As we close the chapter on 2024, it’s evident this year brought a mix of challenges and opportunities for the architecture, engineering, and construction (AEC) sectors. Looking ahead, 2025 promises a landscape filled with shifts in market dynamics, candidate priorities, and client needs. Here’s a reflection on the past year and what’s shaping up for the year ahead.
Architecture: Positive Signs Amid Caution
2024 in Review:
The architecture sector faced a steadily slow year. While OCR adjustments provided optimism for residential projects, challenges such as capacity constraints and increased development costs posed hurdles for smaller developers. Redundancies left candidates prioritising job security, with many hesitant to make career moves. However, commercial interior design maintained steady activity, providing some consistency in an otherwise uneven market .
2025 Outlook:
A subdued start is expected, but activity should pick up by Q2. Firms that prioritise early planning and adaptable strategies will be well-positioned as market conditions improve. Strengthening client relationships and focusing on long-term planning will be essential for success .
Engineering: Rebuilding Confidence
2024 in Review:
Engineering saw mixed results, with patchy activity across sectors. Redundancies and tighter budgets placed pressure on consultancies, leading some to adopt reduced working hours or sabbaticals as cost-saving measures. Despite these challenges, areas like power and building services demonstrated resilience. Increased tendering activity by the end of the year hinted at improved conditions, though candidates remained cautious about changing roles.
2025 Outlook:
Activity is expected to improve in both civil and commercial construction by mid-year, with regional projects driving demand. Skill shortages could become a key challenge as hiring picks up, highlighting the importance of proactive planning and effective hiring strategies. Employers that focus on strong branding and long-term opportunities will stand out.
Construction: A Year of Challenges and Promise
2024 in Review:
The construction sector faced significant challenges in 2024, with commercial building consents reaching historic lows and redundancies continuing in civil construction. However, regional activity and new projects provided positive moments. Candidates sought stability, with many exploring overseas opportunities amid local market volatility.
2025 Outlook:
Activity is expected to improve in both civil and commercial construction by mid-year, with regional projects driving demand. Skill shortages could become a key challenge as hiring picks up, highlighting the importance of proactive planning and effective hiring strategies. Employers that focus on strong branding and long-term opportunities will stand out.
Common Threads Across the Industry
Candidate Sentiment:
Job seekers are prioritising stability and growth, with many cautious about making career moves. The challenge for 2025 will be finding and retaining high-quality talent in a competitive market.
Client Strategy:
Clients are increasingly seeking stable and reliable partnerships. Companies that can offer flexible, forward-thinking solutions will have the upper hand.
Client Strategy:
- Residential Growth: OCR adjustments have spurred optimism in housing projects.
- Collaboration: Smaller firms are pooling resources to manage workloads effectively.
- Talent Demand: A highly competitive market is expected for skilled professionals in Q2.
Looking Ahead
With 2024 behind us, the AEC sectors can look forward to a year of renewed growth and opportunity. Early planning, strong relationships, and a focus on market trends will be key to thriving in 2025. Here’s to a successful and exciting year ahead!
– Grada
