Tracey Ryan, Aurecon CEO
Aurecon chief executive Tracey Ryan is cautiously optimistic about the prospects for the infrastructure sector.
Looking at the big picture, she notes: “The world has changed. It is far more complex. There’s a lot playing out. We’re seeing a lot of disruption coming at us fast and you can get kind of caught up by that.”
Meanwhile, the industry is recovering from project slowdowns and political uncertainty following the 2023 election. She says Aurecon has been through tough times resizing and reshaping its business as projects stopped.
The Association of Consulting and Engineering says New Zealand’s engineering consulting sector lost 1200 jobs in the past 12 to 18 months, while numbers in the wider construction industry are down 16,000. Ryan says letting good people go is not something that can be taken lightly.
Yet, Ryan says, it’s the job of industry leaders to lean into the challenges disruption brings and understand what the future looks like.
AI may be the greatest disruptive challenge facing business today. Ryan is enthusiastic about using technology as an enabler and says AI is already making a material difference to Aurecon. She says businesses should lean into the technology rather than resist.
“AI is here now. It is transformative and happening at an exponential rate. We need to embrace it.”
There are three ways advanced technologies are changing Aurecon today. At the personal productivity level Ryan uses AI to reduce administrative burdens and help with prioritisation and effectiveness in her role.
Aurecon applies AI, automation and standardisation to designs, using data and machine learning to support clients with asset-intensive infrastructure. This includes making better-informed spending decisions, managing assets and handling renewal programmes.
A more creative use of advanced technology is with community engagement. Aurecon uses tools such as gaming, virtual reality and digital platforms to help communities visualise and engage with major projects in more immersive ways.
Ryan wants New Zealand to view infrastructure through a fresh lens. She says we can’t measure infrastructure success purely by the scale or visibility of new construction. While new projects are necessary, they’re only one part of the picture:
“New Zealand needs to do a lot more than just build all the shiny new things … it needs to think about the maintenance and operation of its assets and renewal of its assets.”
She says there needs to be greater emphasis on the operational expenditure side of projects: existing assets such as roads, rail, hospitals and utilities all need investment in maintenance and renewal to ensure they remain safe, efficient and resilient.
“New Zealand needs to do a lot more than just build all the shiny new things … it needs to think about the maintenance and operation of its assets and renewal of its assets.”
A focus solely on new projects risks neglecting core infrastructure, which can cause higher costs and community disruption later.
Another aspect of this is resilience. Ryan says infrastructure must be designed, upgraded and maintained to withstand disruption, climate change and natural hazards.
“Resilience isn’t always glamorous, but it’s central to keeping communities functioning,”, she says. Ryan fears that political changes on an international scale are influencing New Zealand and mean climate change issues are being downgraded or even ignored, although the infrastructure challenges don’t conveniently disappear.
She argues that we should measure the sector’s success by how infrastructure improves everyday lives, not by ribbon-cutting ceremonies for “shiny” assets. This includes considering how projects feel for communities, how they connect people, and how they contribute to long-term well-being.
Like other industries, New Zealand’s infrastructure and construction sector has relatively low productivity when compared with overseas markets. It also faces higher costs. Ryan thinks we need to do a better job of asking why our infrastructure is so expensive.
While AI and technology investment can help with productivity, Ryan wants to see greater collaboration, more standardisation — not every project needs to be unique — and smarter ways of working.
There’s a need to rebuild the skilled infrastructure workforce. Ryan says New Zealand’s lifestyle is a draw, it is more important to ensure there is a pipeline of meaningful projects and a strong visionary story to attract and retain engineers.
She says in many overseas markets, most of the main infrastructure is built, but here there is so much that needs doing, we should be a good long-term career option.
“There are some big issues that New Zealand needs to sort out and short-term things we need to do, but the long-term gain is clear.”
Aurecon is an advertising sponsor of the Herald’s Mood of the Boardroom report.