14.05.2025

Water industry skills crisis intensifies as ‘perfect storm’ looms for AMP8

The water industry is facing a perfect storm of intensifying talent shortages, engineer departures, and a looming retirement cliff as AMP8 commences. That’s according to a new report from specialist water industry recruitment firm, Water by Murray.

In its 2025 Water Industry Labour Report, the specialist revealed that the number of water engineers raising concerns about skills and recruitment had almost doubled in the last year, up from 26% in 2024, to 49% this year. With the increased scrutiny facing the industry in light of the Thames Water crisis, this increase paints a concerning picture for the future of water at a critical time in the latest asset management period.

People exodus yet to be halted

The latest report also revealed that the engineer exodus flagged in the 2024 research report still hasn’t been resolved, with two-thirds (66%) of engineers seeking roles in alternative sectors in the coming months, and nearly a quarter (23%) of the existing workforce planning to retire in the next five years.

Results from the study of over 4,300 engineers from across the UK water industry should sound alarm bells for employers that are already battling ongoing shortages as AMP8 begins. The data also echoes other findings from a recent round table hosted by Marsh McLennan, which found that the sector faces an image problem, with graduates reportedly seeing a career in water as ‘too risky’.

Adam Cave, Managing Director and Founder of Water by Murray, part of Murray McIntosh, commented on the report findings: “Last year’s data from the inaugural study revealed a worrying picture; however, if anything, this year’s findings show that the talent crisis has only intensified over the past 12 months, which is particularly concerning as we embark on the largest asset management period of all time. Engineers working at the coalface clearly recognise the impact that shortages are having on productivity and output, and the industry is facing a perfect storm of retirements and planned departures to other sectors, in an already skill-short market.”

“There is already a major shortfall in engineering numbers, and that’s before we account for nearly two-thirds of the workforce considering roles in other industries. This is why it’s frustrating that alternative issues grab the headlines, while the talent crisis is bubbling underneath the surface and is ultimately driving many of the other problems that are being faced. We urge employers to consider their short-term needs and find methods to resource projects that will allow AMP8 to be delivered, but in the longer term, a more collaborative and united approach to tackling engineering shortages is needed. This isn’t only a problem for the water industry, but it is perhaps felt most acutely in this market, and shortages here could have a critical impact on key national resources.”

Leading figures from across the water industry who were involved in the report echoed the sentiment.

Stephen Slessor, CEO at RSE Group, Strategic Advisor at Ofwat, and Non-Executive Director at British Water commented: "Workforce remains the critical issue. The war for talent is real, particularly in engineering and skilled trades. At RSE, we’re addressing this through early careers investment, flexible pathways, and a culture of empowerment. But the sector as a whole needs to tell a more compelling story about purpose—clean water, climate resilience, and social value. That’s what attracts and retains people today."

Neil Dhot, Executive Director at AquaFed also highlighted the urgent need to address the perception of the industry: “The growing problem of talent shortages in the UK water sector is sadly something that is happening all over the world. All utilities need to fundamentally rethink how they market themselves to potential employees so they can attract the best talent. Human resource management is as big as any other issue that utilities globally have to prioritise. Water by Murray’s report holds a mirror to the UK sector, but everywhere else too, and decision-makers need to step up and take action.”

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