State of the Nation: Major Projects in Australia & New Zealand – A Futurescape

As we step into 2025, the landscape of major projects in Australia and New Zealand presents both opportunity and challenge. The post-pandemic recovery phase has been replaced by a new reality—one defined by economic headwinds, workforce shortages, and the rapid evolution of technology. At Project Advisory Group, a lot of the time we have a front-row seat to these changes, supporting clients across infrastructure, transport, defence, renewables and energy.

So, where do we stand today, and what does the future hold for major projects? Let’s break it down into three key areas: people, development, and technology.

1. People – The Talent Crunch is Here to Stay

The war for talent is no longer looming—it’s here. Across Australia and New Zealand, we see persistent shortages in skilled project professionals, from engineers to project managers and risk specialists. Factors such as shifting migration policies, an ageing workforce, and the increasing complexity of projects have intensified the challenge.

What does this mean for organisations?

• Retention strategies must evolve beyond pay increases. Career development, flexible working models, and meaningful work are becoming the real differentiators.

• The need for project talent pipelines is greater than ever. Smart organisations will invest in long-term capability building rather than relying on just-in-time hiring.

• AI-driven workforce planning will become the norm, ensuring resources are allocated efficiently while maintaining employee wellbeing.

2. Development – A Tighter, More Scrutinised Pipeline

Australia and New Zealand have ambitious infrastructure pipelines, but economic pressures and funding constraints are already shifting the landscape. Governments are tightening the purse strings, and projects must now prove their value more rigorously than ever before.

Key trends we see emerging:

• Greater prioritisation of projects – No longer will everything on the wish list get a green light. Expect a sharper focus on projects with clear economic, environmental, and social benefits.

• Increased private sector involvement – With public funds stretched, alternative financing models (PPPs, green bonds, and institutional investment) will play a greater role in project delivery.

• Sustainability as a non-negotiable – Net Zero targets are shifting from aspiration to requirement. Projects that fail to integrate carbon locking strategies or circular economy principles will struggle to secure funding or approval.

3. Technology – The Future of Project Delivery is Now

If the past decade was about digitisation, the next will be about automation, AI, and immersive technology. The way we plan, execute, and manage projects is undergoing a seismic shift.

What’s next?

• AI-driven decision-making – AI-powered risk modelling, automated reporting, and predictive analytics will replace many traditional project control methods. The days of manual spreadsheets are numbered.

• Immersive training & digital twins – The rise of AR/VR in safety training and project visualisation will redefine how we prepare teams for complex environments.

• Integrated ecosystems – The silos between asset management, project controls, and operations will blur as digital twins and real-time data integrations drive smarter, more connected projects.

Final Thought: Adaptability Will Define Success

The future of major projects in Australia and New Zealand is not just about what gets built but how. At Project Advisory Group, we believe adaptability is the defining trait of high-performing organisations. The ability to embrace new workforce strategies, capitalise on emerging funding models, and integrate cutting-edge technology will separate the leaders from the laggards.

As we move forward, one thing is clear: standing still is not an option. The future is already here—are we ready to build it?