NZ Engineering Sector Update

The engineering sector in New Zealand is currently undergoing a range of dynamic changes across its various subsectors, driven by advancements in technology, a strong focus on sustainable practices, and significant contributions to global engineering trends.


From innovative infrastructure projects and cutting-edge automation in manufacturing to the development of eco-friendly solutions and the integration of digital technologies, each subsector is evolving uniquely to meet the demands of the future.


SUBSECTOR UPDATES


Structural Steel and Construction

The structural steel industry is navigating a complex landscape. Like many industries, companies are contending with tight margins and competitive bidding wars, often accepting projects at reduced profits to keep their workforce busy.


At the same time, government initiatives, such as the NZD$22 billion construction sector transformation plan 2022-25 investment, are accelerating projects and imposing stricter completion timelines, ensuring a steady flow of work for contractors.


Additionally, we are seeing many fabrication companies diversifying into seismic strengthening projects to retain staff thus positioning themselves for future large-scale developments.


The Building (Earthquake-prone Buildings) Amendment Act 2016 mandates that buildings must meet at least 34% of the new building standard (NBS) to be considered safe.


Export Market

Our clients oriented towards exports have witnessed a surge in orders. This uptick is attributed to intensified sales efforts and favourable exchange rates, enhancing the competitiveness of New Zealand's engineering products on the global stage.


Agriculture Sector

The agricultural sector, particularly dairy and grain, is currently thriving. At Stellar, we’re seeing clients within these industries report increased demand, leading to a boost in engineering services related to agricultural infrastructure. Factors like favourable milk prices are leading farmers to feel confident to invest in upgrades and new equipment or infrastructure to drive their businesses forward.


Energy and Resources

The energy sector is undergoing rapid expansion, especially in renewables. Since November 2024, there has been a notable increase in demand within the hydro and solar energy segments. This growth aligns with New Zealand's commitment to achieving 100% renewable electricity by 2030 and net-zero emissions by 2050, prompting significant investments in sustainable energy projects and projects finally breaking ground. 


WIDER MARKET TRENDS AND TRAINING


Employment Trends

The job market reflects the sector's dynamic nature. Recent SEEK, Trade Me and LinkedIn data indicates a 20% increase in engineering-related job listings (since Aug 2024), suggesting optimism and a growing demand for engineering tradesmen.


Apprenticeships and Training

Apprenticeship programs are facing retention challenges. For instance, in Canterbury, Ara Institute commenced 2024 with 20 candidates in their engineering pre-trade program, but only 8 completed it, with similar trends reported nationwide.


Additionally, I requested data from NZQA on engineering apprenticeship statistics, which show a 16.7% decline in graduates between 2021 and 2023. They anticipate a further decline in 2024; however, numbers are not yet available. This reduction raises concerns about the future supply of skilled tradespeople in the engineering sector.


Emigration Trends

Conversations with potential candidates, corroborate the noticeable trend of engineering individuals emigrating for better remuneration packages. Countries like Australia remain attractive destinations due to their competitive salaries with Statistics NZ reporting a net migration loss of 27,000 people to Australia in 2023.


This migration underscores the need for New Zealand employers to reassess compensation structures and career development opportunities to retain skilled engineers.


Conclusion

The engineering sector in New Zealand is at a pivotal juncture, with certain subsectors experiencing growth driven by government investments and renewable energy projects, while others face challenges related to economic conditions and workforce retention.

If you need information more specific to your engineering subsector, please contact Mike Didham.

Stellar Recruitment Team at the RCSAs 2025

Katie France Wins Recruitment Professional of the Year at 2025 RCSA Awards; Stellar Recruitment Celebrated for Safety and Wellbeing Excellence

By Shazamme System User • June 12, 2025
Stellar Recruitment is proud to announce that Katie France has been named Recruitment Professional of the Year at the prestigious 2025 RCSA Industry Awards in New Zealand. This recognition celebrates Katie’s exceptional customer service, mentorship of others and unwavering commitment to excellence in her profession.

A full circle moment at Stellar Recruitment

By Shazamme System User • May 27, 2025
In the world of recruitment, relationships are everything. For Kymberly (Kym) Jones and Kavitha Raj , their professional journey is a testament to the power of long-term connections and the values that define Stellar Recruitment. Their story began in 2015, when Kym, then a recruiter, placed Kavitha at the Department of Corrections as a Recruitment Advisor. Kym and Kavitha continued their relationship, where Kym partnered with Kavitha to fill roles within the organisation. Kym recalls those visits vividly, checking in at Auckland Women’s Prison, locking away personal items, passing through scanners, and walking through secure corridors to meet Kavitha in her office. Though their roles changed over time, the connection remained. They kept in touch through LinkedIn, liking, commenting, and quietly cheering each other on from afar. Then, in late 2024, a simple message from Kavitha reignited the conversation. That message, sent through LinkedIn, marked the beginning of a new chapter as Kavitha looked for her next role. Kavitha had built an impressive career, working with several organisations including Korn Ferry and GHD. Eventually, she made the move to Stellar Recruitment, completing a full-circle moment that neither of them had anticipated but are both equally thrilled about.  “I sent Kym a message on LinkedIn letting her know I was looking for my next role. As luck would have it, Kym was looking for a new team member and as they say, the rest is history.” Said Kavitha. For Kym, this journey is more than just a professional milestone. “In New Zealand, we say it’s two degrees of separation, at most,” she says. “My dad always told me, if you have the opportunity to help someone, do it. It will come back to you.” That philosophy has guided her throughout her career. “You’re taught that your clients may become your candidates. But I never imagined one would become a colleague.” With Kavitha managing the engineering and consultancy team at Stellar, their relationship has evolved once again. It is a powerful reminder of why long-term relationships matter. At Stellar Recruitment, it is not just about filling roles, it is about building trust, nurturing connections, and creating opportunities that come full circle.

Katie France: Recruitment Professional of the Year Finalist

By Shazamme System User • April 15, 2025
Katie France is a finalist in the RSCA NZ 2025 awards in the category of Recruitment Professional of the year.