For the next feature in our industry leaders insights series, we recently caught up with Andrea Hamilton, Director at Rubix a New Zealand-wide independent Project Management consultancy.
What are the current trends shaping the industry?
From government spending slowdowns to shifts in technological integration and talent retention the sector has been experiencing several challenges.
One of the most significant trends is the stagnation in government-funded projects. With a noticeable slowdown in public sector spending, specific initiatives are being delayed, and in some cases, abruptly halted. The rationale behind the government’s decision to curb spending may have been to enable fiscal responsibility, but the unintended consequences have been severe. Essential infrastructure work has been postponed, even in critical environments like schools, where the lack of funding for basic utilities is causing disruption.
Typically, when government work slows down, the private sector steps in to maintain momentum. Since the end of 2022, the private sector has also hit the brakes, especially in areas like apartment developments. Clients who had initially planned to move forward with design and consent have now paused indefinitely.
Fortunately for Rubix, we are well-positioned to weather this storm. We had a stable, long-term secured workload and to date have not been forced into any restructures, offering some stability during uncertain times. The sentiment we are hearing within the industry is that many companies are simply holding on, with employees uncertain about job security.
This uncertainty has led to a troubling trend—talent is leaving New Zealand for opportunities abroad, particularly in Australia, the UK, and Canada. While we still have the work available, the anxiety about the future is driving professionals to explore opportunities in more stable markets. This creates a risk of a future skills shortage when demand returns, particularly if the sector is unprepared for the influx of work when funding resumes.
How are technological advancements influencing the industry?
Technology’s integration into the sector has not resulted in the widespread sector changes that some anticipated. Here at Rubix we use several platforms internally, such as Power BI, and have dabbled in AI for tasks like minute-taking, the adoption of technology is still patchy across the industry.
We’ve seen mixed results with advanced tech like Building Information Modelling (BIM). Implementation of full, comprehensive BIM modelling is still being tested across the board with variable results. The variable results can also be attributed to the variable implementation, platforms and understanding of the outcomes from clients and the industry alike. The truth is that while tech offers more assistance, it hasn't necessarily made projects better or faster at this stage.
In New Zealand, there’s a tendency to approach technology differently—not because the tech itself doesn’t work, but because we aren’t fully ready to embrace it. When you compare us to places like Japan, where efficiency is embedded into their culture, it’s clear there’s a gap. The Japanese mindset is fundamentally different. For example, children in Japan clean their own classrooms, instilling a sense of responsibility and efficiency from a young age.
In contrast, here in New Zealand, we often approach change with a bit more hesitation. We tend to adapt things with a "Kiwi lens," which can sometimes lead to compromises. Instead of adopting systems in their purest form, we modify them, often diluting their effectiveness. When change does come, it’s usually accompanied by a big, drawn-out program, and even then, people are quick to want to alter it. It’s a mindset difference, and while we’re making progress, there’s still a lot we could learn from how other countries approach efficiency and innovation.
What are the biggest challenges your organisation is encountering?
One of the biggest challenges we currently face is balance between keeping our team full and engaged. While we’ve been fortunate that our team is solid and strong, but keeping them energised in a downturn is a struggle.
Economic uncertainty continues to weigh heavily on the industry. Both public and private sectors are hesitant to move forward with new projects due to concerns about cost escalations and market stability. Procurement is becoming increasingly drawn out, and we often see tenders racing to the lowest price, only for the final cost of the project to far exceed initial estimates. This "race to the bottom" is a flawed system that results in scrappy projects and higher expenses in the long term.
What is the future economic outlook you are working towards?
There is cautious optimism within the industry. While the government’s current inertia is frustrating, they can’t afford to keep pushing projects down the road indefinitely. As the financial year progresses, we expect to see more green shoots as public spending slowly resumes. When the floodgates eventually open, the concern is whether we’ll have the workforce to meet the demand. As many people will have left overseas, new talent in the current market is difficult. Many of the available candidates are falling short of the calibre we need. This may change as the market evolves, but for now, the pool of high-quality candidates is limited.
The hope is that as procurement processes are streamlined and more efficient checks and balances are implemented, we’ll see a more sustainable flow of projects. Once the brakes come off, the industry should regain some of its lost momentum, but the path to recovery could still take time.
Here at Rubix, we are on a steady, deliberate growth path that will continue over the next 3 to 5 years. As a company, we’ve always prioritised our own journey, taking a certain level of confidence to maintain that focus, especially in challenging times. In 2020 we undertook a 5 year planning session that prepared a plan of what we aspired Rubix to look like in 2025 and how we are currently tracking.
• 75-80 staff - Currently 75
• $13-15m turnover - Currently higher than target
• 4 main offices
o Auckland - Achieved
o Wellington- Achieved
o Christchurch - Achieved
o Queenstown - Achieved
• Regional satellite offices – Northland and Tauranga - Achieved and added two additional in Hamilton and Wanaka
• We have also added a new business service line in - Rubix Safe.
After five years in business, we are now 75-strong, hitting every milestone we set, despite the turbulence of the last few years.
At the beginning of this year, our Managing Director introduced the "Thrive to 25" mindset, it’s about delivering exceptional service to our clients and enabling our people to feel safe, secure, and genuinely happy in their roles.
The market across the rest of the country has shown good progress, and now we’re focused on realising the same potential here in Auckland. Over the next 3 to 5 years, we’ll continue to build on our plans and grow alongside the market, making sure every step is forward.
Thanks so much to Andrea for her insights. Keep an eye on the Assemble LinkedIn page for more chats with Industry Leaders.