Forging Ahead: The State of Welding and Fabrication In Australia

Posted by Orbinox Pty Ltd on

From bridges to renewable energy projects, welders and fabricators are the silent architects of progress. But the sector stands at a crossroads.

On one hand, there are pressing challenges like chronic skill shortages, rising costs and fragile training pipelines. On the other, emerging infrastructure, energy and defence projects offer a promising horizon.

According to Weld Australia’s 2024 Member Survey, about three-quarters of welding and fabrication businesses are operating below 80% capacity, citing lack of steady project work as a major constraint. Rising costs of steel, energy and consumables compound the pressure, squeezing margins and reducing the incentive to invest in new equipment or training.

Industry Snapshot

Industry membership surveys and national workforce reports point to the same themes - demand is strong but the workforce is tight.

Weld Australia’s 2024 Member Survey highlights chronic work shortages across welding and fabrication businesses, alongside rising energy, materials and labour costs. Members urged stronger local-content commitments to create stable, long-term demand and justify investment in capacity.

Broader labour-market analysis (Jobs and Skills Australia) shows ongoing pressure in the “Technician and Trades Workers” occupation group - employers continue to report difficulty filling trades roles, although vacancy fill rates have fluctuated over 2024–25. Jobs and Skills Australia

Training and apprenticeship data from NCVER underline structural challenges in the pipeline: completion, attrition and uneven commencements are still issues for apprentices and trainees, which affects the flow of fully trained welders into the industry. NCVE

Key Challenges

Labour Shortages and Recruitment Difficulty: Businesses report persistent gaps in skilled welders, qualified fabricators and experienced supervisors. Shortages raise costs (overtime, agency labour) and can slow project delivery. Weld Australia’s survey flagged this as the industry’s top near-term pressure.

Training Pipeline Fragility: Apprenticeship commencements and completion rates across trade sectors have been inconsistent in recent years. Attrition and cancellations reduce the effective output of the training system, meaning fewer people enter the workforce when employers need them. NCVER

Rising Operating Costs: Energy, steel and consumable prices, plus labour cost inflation are squeezing margins. Smaller fabrication shops can struggle to absorb these increases, impacting investment in equipment and training. Weld Australia

Uneven Geographic Distribution: Regional and remote projects (mining, resources, regional infrastructure) create local spikes in demand that are hard to meet, spurring reliance on fly-in/fly-out labour or migrant recruitment. Jobs and Skills Australia

On The Horizon

Despite the challenges, fabrication demand is strong and growing. Major infrastructure, renewable energy, mining and defence projects signal a multi-year pipeline of work for welders and fabricators. Local content mandates and government procurement policies also provide some certainty for businesses to invest in training and capacity.

Technology also offers a bright spot. Modern fabrication increasingly adopts automation, CNC cutting, welding robotics, and digital workflows, which increase productivity, improve safety and create higher-skilled roles. Smart investment in these areas can reduce dependence on manual labour while making the sector more attractive to new entrants.

Training innovation plays a critical role in this growth. Short, competency-based modules, stackable micro-credentials and co-designed programs between employers and Registered Training Organisations (RTOs) help ensure graduates meet the skills employer’s demand. Stronger apprenticeship support, including mentoring, flexible delivery and wage subsidies can improve completion rates and workforce stability.

Opportunities & Strengths

Strong Project Pipeline: Major spending on infrastructure, defence sustainment and renewable energy creates multi-year demand for steelwork, pressure-vessel fabrication, structural welding and specialised welding for new energy projects. That pipeline creates room for workforce growth and skills investment. Jobs and Skills Australia

Industry-Led Training and Innovative Programs: Organisations like Weld Australia are running targeted initiatives, including programs aimed at under-represented groups, pre-apprenticeship and prison-based training pathways that can broaden the recruitment base and raise entry rates into welding careers. These practical programs help convert interest into qualified workers. Weld Australia+1

Momentum for Sovereign Capability and Local-Content Policies: Calls for local-content rules in procurement (cited in industry surveys) can produce stable demand signals, which in turn encourage businesses to invest in apprentices, machinery and upskilling. If implemented thoughtfully, that demand can certainty help rebuild capacity. Weld Australia

The Way Forward

Australia’s welding and fabrication sector is at a defining moment. The twin pressures of skill shortages and rising costs are undeniable, yet they coexist with unprecedented opportunity.

The national pipeline of infrastructure, energy transition, and defence projects offers both a test and a chance to rebuild industrial strength. 

The path forward will rely on balance between technology and training, between automation and craftsmanship and between short-term survival and long-term capability. Collaborative robots, smarter training systems, and strong local-content policies can help bridge these divides. With coordinated investment and a focus on workforce renewal, the industry can evolve from managing shortages to shaping a new era of productivity, resilience and sovereign capability, ensuring that the welders and fabricators who build Australia’s future are equipped, supported and valued.

Written by Aaron Hollingworth , Orbimax Operations Manager

Aaron has an extensive career in the automotive and general mechanical sales industry with leading national brands. As the Operations Manager with Orbimax, Aaron is responsible for sales, customer service and business development in order to deliver product knowledge, industry insight and an all-round exceptional customer experience for Orbimax customers.

 

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