Weld Australia calls for enforceable local content, verified compliance and urgent investment in welding workforce capability
Weld Australia has released the results of its 2026 Industry and Workforce Outlook Survey, revealing an industry with the capability, capacity and ambition to deliver Australia’s infrastructure, defence, energy and manufacturing pipeline-but held back by short work pipelines, imported fabricated steel, rising costs and a shortage of skilled welders.
The survey found that just 15% of respondents have more than six months of confirmed work ahead, while 60% have three months or less. Worryingly, 20% have no confirmed pipeline at all.
Workshop utilisation remains a serious concern. Almost 60% of fabrication workshops are operating below 75% capacity, with respondents identifying lack of work (60%) as the primary reason, followed by lack of skilled staff (30%).
According to Geoff Crittenden, CEO of Weld Australia, the results should be a wake-up call for governments, major project owners and procurement agencies.
“Australian welding and fabrication businesses are not short of capability. They are short of access to work,” Crittenden said. “We have workshops sitting underutilised at the same time Australia is delivering major infrastructure, defence, renewable energy and construction projects. That is a failure of procurement policy, not a failure of industry.”
The survey confirms that lack of work is now the leading concern for business owners and senior managers. When asked what factors are most likely to inhibit business growth in 2026, respondents cited lack of work (35.7%), and labour shortages (21.4%), as well as factors like rising material costs, inflation, and high interest rates. This marks a shift from the previous survey in 2024, when lack of work and labour shortages were equal leading concerns.
“The message from industry is clear,” Crittenden said. “Australian fabricators need a reliable pipeline of work. Without it, they cannot invest in apprentices, equipment, quality systems, automation or advanced manufacturing. If governments are serious about sovereign capability and a Future Made in Australia, they must start by backing the businesses that fabricate the steel our economy is built on.”
Imported fabricated steel a major compliance concern
One of the most significant findings in the 2026 survey is the level of concern around imported fabricated steel.
When business owners and senior managers were asked how often imported fabricated products fail to meet Australian welding or fabrication standards, 71.4% said this occurs at least sometimes. More than half-53.6%-said it occurs often or very often.
Crittenden said these results reinforce the urgent need for independent verification of imported fabricated steel before it is installed in Australian projects.
“Non-compliant imported fabricated steel is not a theoretical problem. It is being experienced by industry on the ground,” Crittenden said. “Australian fabricators are required to comply with Australian Standards, employ qualified personnel, maintain welding procedures, operate quality systems and meet inspection requirements. Imported fabricated steel must be held to the same standard.”
“If imported fabricated steel complies with Australian Standards, it should be welcome. If it does not comply, it should not be used. This is not protectionism. It is public safety, fair competition and common sense.”
Weld Australia is calling for governments to support the Australian Fabrication Authority (AFA) as a practical mechanism to verify that fabricated steel used in Australian projects complies with Australian Standards-regardless of whether it is manufactured locally or overseas.
“The rules already exist. What is missing is enforcement,” Crittenden said. “The Australian Fabrication Authority provides a practical pathway to close the compliance gap. It will help protect asset owners, taxpayers and the public, while ensuring Australian fabricators compete on a level playing field.”
Rising costs continue to squeeze margins
The survey also reveals that rising input costs continue to place pressure on welding and fabrication businesses. 82.1% of respondents reported an increase in energy prices in the last 12 months, while 78.5% reported an increase in material prices.
However, only 28.5% reported an increase in selling prices, indicating that many businesses absorbed rising costs rather than passing them on. This pressure is reflected in profitability, with 39.2% reporting a decline in gross profit margin.
Despite this, many businesses continue to invest in capability. Half of respondents reported an increase in investment in technology, while 42.8% increased investment in staff training and 39.2% increased investment in research and development.
“This is an industry that wants to invest,” Crittenden said. “Even under pressure from rising costs and uncertain pipelines, businesses are still investing in technology, staff training and R&D. But they need confidence that there will be work at the other end of that investment.”
“A business cannot justify investing in automation, robotics, cobots or workforce development if it does not know whether it will have a stable pipeline of work in three months’ time.”
Australia does not have enough qualified welders
The survey also highlights a significant workforce challenge. Asked whether Australia has enough qualified welders to meet upcoming infrastructure and defence demand, 89.2% of respondents said no.
Crittenden said this result should alarm governments and major project owners. “Australia cannot deliver its infrastructure, defence, renewable energy and advanced manufacturing ambitions without skilled welders,” he said. “The skills shortage is not coming. It is already here.”
Respondents identified the biggest challenges facing welders as non-compliant imported products undercutting local work, attracting young people into the trade, shortage of qualified welders, and low pay relative to skill level.
The survey also found that 79.5% of respondents believe the trade of welding does not receive the respect it deserves.
“Welding is a highly skilled, technical and safety-critical profession,” Crittenden said. “It underpins infrastructure, defence, mining, transport, energy, manufacturing and construction. Yet public understanding of the trade remains far too low. We need to promote welding as the advanced, essential and rewarding career that it is.”
Weld Australia is calling for stronger investment in apprenticeships, pre-apprenticeship programs, TAFE pathways, school engagement, mentoring, and practical industry-led training. “We need to build our own pipeline of skilled people,” Crittenden said. “That means attracting young Australians, supporting apprentices, investing in TAFEs and ensuring training reflects real workshop and site conditions.”
A clear policy pathway
The 2026 survey makes clear that Australia’s welding and fabrication industry is not asking for special treatment. It is asking for fair competition, enforceable standards, access to work, and support to build the workforce and technology capability Australia needs.
Weld Australia is calling on Federal and state governments to:
- Strengthen enforceable local content procurement requirements
- Independently verify imported fabricated steel to Australian Standards
- Support the rollout of the Australian Fabrication Authority
- Invest in apprenticeship and workforce pathways
- Support advanced manufacturing adoption for SMEs
- Ensure procurement policies prioritise whole-of-life value, not just lowest upfront cost
“This is not just about the welding industry,” Crittenden said. “This is about Australia’s ability to build and maintain the infrastructure, defence assets, renewable energy projects, transport systems and industrial capability our economy depends on.”
“The industry has capacity. It has capability. It has businesses ready to work and people ready to train. What it needs now is a clear commitment from governments to buy local, verify compliance and support the workforce of the future.”
“If we get this right, Australia can rebuild sovereign manufacturing capability, create skilled jobs, strengthen supply chains and deliver safer, higher-quality infrastructure. If we get it wrong, we will continue to hollow out local fabrication while importing both the steel and the risk.”
