Brutal cutbacks in spending in the engineering industry has seen the sector plummet to post-GFC conditions, according to consultancy industry specialist Consult Australia.

Consult Australia’s annual skills survey found that 44 per cent of the industry is reducing recruitment activities and a quarter is making targeted redundancies.

This data is a contrast to 2010 and 2011 when 74 and 66 per cent of firms respectively stated they were recruiting and there was a skills shortage.

Consult Australia’s Chief Executive Officer, Megan Motto, has suggested this crisis is indicative of the Government’s underinvestment in infrastructure and is symptomatic of declining business confidence in the economy.

“This is just stage one of what will become a nation-wide crisis should investment continue to fall by the wayside,” said Ms Motto.

“Until governments provide a more stable and consistent pipeline of work, the engineering industry will be forced to continue cutting back staff, which will be to the detriment of Australian productivity and the overall economy.

Consult Australia’s annual Economic Forecast report estimates the industry consists of some 48,600

firms, employing about 240,000 people and generating revenues of $41 billion per year.