Towards 2025 - Construction and Engineering Trends

As 2024 comes to a close, we want to extend our warmest holiday wishes to all our clients, candidates, and partners.

This year has brought strong activity in the construction, infrastructure, engineering, project management, and government sectors. Despite a challenging economic environment impacting supply chains, materials, skills, sustainability, digital transformation, and project cost volatility; recruitment and resourcing have continued to present both challenges and opportunities. We’ve also seen incredible growth and diversification across Australia.

Despite opportunities—and the industry seems to say this every year—talent shortages have remained a hurdle. Even though key projects are being delivered, the demand for specialised skills has surged.

Many organisations have also accelerated their digital transformation initiatives, to enhance operational efficiency and effectiveness. This shift has meant business leaders have had to navigate staffing and cultural challenges, requiring new strategies and resources for both team management and project delivery.

Looking Forward to 2025

At CGC, we believe 2025 will bring renewed business confidence. The Australian Government's commitment for new and existing projects in the 2024-25 Budget will be a significant driver. The industry is expected to continue to focus on sustainability and digital solutions. However, rising construction costs may lead to delays and budget overruns for some projects. The continued integration of digital tools, robotics, automation, offsite manufacturing, and prefabrication is expected to further shape the industry.

High interest rates and inflation continue to affect the residential and commercial segments. The challenging lending market is expected to persist, yet investment, driven largely by government funding and a projected decrease in interest rates – although it’s hard to know if, or when, cuts will come in 2025, or if they’ll be significant enough – may provide relief in the coming quarters.

Recruitment Trends to watch 2025

1. Managing Recruitment Gaps: The industry anticipates growth, raising concerns about bridging persistent labour shortages. Firms are likely to integrate AI-enabled automation, offer more career growth opportunities, recruit from outside the sector, and create partnerships with academia and government.

2. Increasing Technological Integration: Digital tools and technologies are transforming operations across the value chain. Technologies like BIM, digital twins, robotics, and automation are being increasingly adopted to enhance productivity, streamline operations, bolster safety, and improve customer experience. These technologies help offset skill shortages and optimise work hours.

3. Financial Considerations: Businesses are expected to focus on creating value and sustaining growth through M&A, refined capital allocation, cash flow optimisation, and increased private equity (PE) investments. Large firms may optimise their portfolios by refocusing investment into core business areas.

4. Industrial Policies: Government investment remains high, closely following state macroeconomic situations and policy shifts. Firms will likely align operations to capitalise on government incentives and policies in the next 12-24 months.

At CGC, our directors are immensely proud of our team’s 2024 performance, the continued commitment to our clients and candidates, and how we’re supporting resourcing for key projects. We’ve been delighted to see many of our clients capitalise on the market, overcoming challenges and achieving their business goals.

2025 should see green shoots, increasing confidence, and continued government spending. Recruitment opportunities and issues will be largely similar to 2024, which will allow companies to continue to manage these creatively.

Happy Holidays

CGC’s management and staff would like to thank you for your continued support. We wish you and your loved one’s health, happiness, peace, and prosperity this Christmas and in the coming New Year.

Merry Christmas and Happy New Year from CGC Recruitment!