Navigating Resource Constraints in Australia’s Energy Transition

Australia’s push toward a cleaner energy future has driven a surge in infrastructure development. However, a major bottleneck in this transition is a shortage of skilled workers in the Design and Construct (D&C) market. Without the necessary workforce to complete large-scale projects efficiently, timelines are slipping, costs are rising, and progress toward the national energy goal is slowing.

While most tackle these projects on a case-by-case basis, Critical Input recognises the need for a long-term, collaborative strategy. By shifting from a fragmented approach to a bundled program of work, Critical Input is facilitating a smoother energy transition.

The Challenges of Resource Constraints in the Design and Construct (D&C) Market

Right now, the Australian D&C market is facing major resource issues:

Workforce Shortages

The D&C market is grappling with a shortage of skilled labour, including engineers, project managers, and trades. This shortage is delaying project timelines and putting additional pressure on procurement processes.

Limited Contractor Capacity

Many contractors are already operating at or near full capacity, making it difficult for new projects to find experienced teams capable of managing complex requirements.

Increased Competition

With a surge in infrastructure development across Australia – driven by both public and private investments – the D&C market is experiencing heightened competition for resources, including personnel, materials, and manufacturing slots.

 

These challenges threaten Australia’s ability to meet climate targets and modernise its energy infrastructure.

Impacts on the Energy Transition in Australia

As project costs rise and timelines extend, Australia risks missing its emissions reduction targets. While more and more renewable projects are delayed, Australia’s power grid continues to grow, underscoring an urgent need for new infrastructure to meet the changing needs of energy consumers.

A Strategic Approach to Workforce Planning

Critical Input recognises that constraints within the Design and Construct (D&C) market requires expertise, precision and adaptability. Their distinguished Supply Chain consultancy practice excels in guiding businesses through these complex hurdles. With deep experience operating across Australia and Southeast Asia, Critical Input provides tailored solutions that empower organisations to optimise procurement strategies and improve overall project outcomes.

With a focus on strategic procurement, Critical Input understands that businesses need a long-term, collaborative strategy. As opposed to tackling projects on a case-by-case basis, they’re helping organisations shift from a fragmented, project-by-project approach to a bundled program of work, ensuring:

Longer-Term Contracts with Construction Partners

This secures a stable workforce and reduces resource competition.

Improved Project Scheduling

A programmatic approach allows for better resource allocation and efficiency.

Stronger Industry Collaboration

Encouraging partnerships across multiple stakeholders enhances project execution.

 

Whether it’s overcoming D&C constraints, maintaining strategic procurement, or enhancing business processes from start to finish, Critical Input offers:

Crafting Bespoke Improvement Strategies – helping companies streamline procurement processes, mitigate risks, and aligns Supply Chain activities with broader project goals through:

• Identification of inefficiencies and creation of customised action plans
• Integration of advanced forecasting tools to improve demand planning for LLE
• Development of agile systems that can adapt to changes in market conditions

Providing Robust Supply Chain Solutions – to enhance performance and resilience by fostering strong partnerships with suppliers, improving visibility into production timelines and leveraging technology for real time tracking.

• Optimising supplier relationships to ensure reliable delivery
• Improving collaboration between procurement teams and project managers
• Creating contingency plans to address Supply Chain disruptions

Delivering the Right Staffing Solutions – Critical Input is a trusted provider of specialised staffing resources.

• Access to a diverse pool of skilled professionals tailored to specific project needs
• Reduction in project delays by addressing workforce constraints promptly
• Strengthening team collaboration and alignment through targeted staffing solutions

With extensive experience operating in both Australia and Southeast Asia, Critical Input is uniquely positioned to tackle challenges associated with resource constraints. Their holistic approach – combining strategic planning, Supply Chain optimisation, and workforce solutions – makes them an invaluable partner for organisations striving to navigate complex markets and contribute to a sustainable future.

Looking to futureproof your procurement approach?

Let’s talk about how a bundled program of work can expand your business capabilities and get you on the right track toward a cleaner energy future in Australia.

 

References:

Clean Energy Council, “New report identifies workforce opportunities of the clean energy transition”, September 26, 2024.