2025. A Year of Challenge, Movement and Opportunity Across Heavy Industry
As 2025 draws to a close, one thing has been impossible to miss across heavy industry in Newcastle and the Hunter. The work has not slowed, but the pressure on the workforce has continued to build. Every conversation this year has reinforced the same theme. There is plenty happening and plenty more coming, but the challenge is finding and keeping the people with the right capability to deliver it.
A Mixed Start to the Year
The year started with a mixed landscape. Some organisations were navigating restructures or pockets of redundancy activity, and others were managing the usual fluctuations tied to project timelines and shifting priorities. Even with these challenges, experienced technical specialists and leaders moved quickly into new roles. They gravitated to employers offering stability, interesting work, long term investment and a healthier work life rhythm. The movement was rarely about people leaving the sector and far more about choosing environments that aligned with what they value.
Major Projects Signalling a New Era
What became increasingly clear across the year was the scale of work now locked in for our region. The Hunter Central Coast Renewable Energy Zone secured major planning approvals that set the tone for the next decade. These approvals underpin a long pipeline of transmission, generation and supporting infrastructure. They also reinforce what many of us already knew. The future of heavy industry in this region is no longer defined by a pure coal base. It is evolving into a mix of machinery and equipment manufacturing, defence related production, advanced technology, energy transition and clean power. Defence manufacturing and advanced production also continued to expand, adding further demand across engineering, quality, supply chain and technical support functions.
Increasing Demand for Technical Capability
This shift has absolutely intensified the demand for technical capability. Engineers, electricians, licensed trades, project delivery specialists, maintenance and reliability professionals and skilled supervisors have remained difficult to secure. HunterNet, TAFE NSW and industry groups continue to hear the same story from employers. Attracting experienced technical talent across manufacturing, engineering and energy related work remained a real challenge, and this was consistent all year.
Positive Momentum in Skills Development
There have also been very real positives. Investment into future skills has stepped up noticeably. The Hunter Net Zero Manufacturing Centre of Excellence created new momentum around advanced manufacturing pathways, and the University of Newcastle and TAFE NSW expanded training that supports emerging capability in renewables, digital skills and engineering. Subsidised programs encouraged people to transition into industrial careers and that pipeline is strengthening.
Pressure on Mid-Career Talent
The reality is that early career entrants still need time to build depth. At the same time, many organisations have been managing retirements, promotions and increased project load. This has kept enormous pressure on the 5 to 15 year experience band, which most employers now describe as the hardest cohort to attract and retain. It is also the group carrying much of the succession and safety risk across the region. Retention also became a stronger focus across 2025 as increased movement in mid-career talent placed added pressure on employers to hold capability.
Growing Confidence in the Second Half of 2025 and Looking Ahead
Confidence across heavy industry strengthened through the second half of the year as major energy, infrastructure and defence programs continued to progress and hiring needs stabilised.
Looking into early 2026, the national picture reinforces these local trends. Infrastructure Australia’s 2025 Workforce Capacity Report highlights a current shortfall of more than 141000 workers on active projects and projects a gap of around 300000 by 2027. Regional areas like the Hunter will feel this strongly as energy and housing projects accelerate.
Recruitment Outlook: No Signs of Slowing
With this in mind, I am not seeing recruitment across the industrial space slowing. If anything, many organisations are actively using December to embed new hires or are keeping recruitment campaigns moving through closure periods so they start the new year with momentum rather than catching up.
Advice for Those Considering a Move
If you are deciding whether to move now or wait until January, it may be worth talking it through. Staying proactive can make a noticeable difference when the workforce is under this much pressure.
Supporting Workforce Planning Into the New Year
My focus as we close out the year is to keep supporting organisations across heavy industry, whether that is supporting critical hires, sharing what we are seeing day to day or sense checking how your roles are landing with the talent you want to attract.
If you would like to have a conversation about what this means for your workforce planning going into 2026, I welcome you to reach out for a chat.