Nearly half of water engineers now say the size of the skilled workforce is the single biggest challenge facing the industry, up sharply from just over a quarter a year ago. At the same time, two-thirds are considering leaving the sector altogether and almost a quarter are expected to retire within the next five years. Against this backdrop, AMP8 is not simply a delivery challenge. It is a workforce crisis unfolding in real time.

The latest AMP cycle hasn’t got off to the start we may have hoped. Indeed, as we explored in our recent article, AMP8: Year 0 - A Slow Start with High Stakes, the sector has not entered this regulatory cycle with the momentum many expected. What should have been Year 1, has felt like Year 0, for a range of reasons.

However, while the timeline may have slipped, the expectations have not. With around £104 billion of planned investment, AMP8 represents one of the largest infrastructure programmes the sector has ever delivered. A slower start does not reduce the scale of delivery, it compresses it, intensifying pressure on an already stretched workforce.

A record investment programme meets a shrinking workforce

The immediate impact of this Year 0 effect is a shift in timelines. Projects that should already be mobilised are now delayed. and programmes that would typically ramp up gradually are instead being pushed further into the cycle. As a result, the industry is heading towards a more concentrated period of delivery in the years ahead, which creates a fundamental challenge.

When timelines compress, demand spikes. This can be seen particularly across programme leadership, engineering, commercial, and delivery roles. At the same time, external pressures haven’t eased, and timelines have become even tighter. The sector is still expected to deliver against stringent regulatory targets, increased scrutiny, and growing environmental expectations. And with the Government’s Water White Paper revealing significant places for reforms across the industry, this complexity is only going to intensify.

The risk, therefore, of today’s delayed start is in the capacity problems of tomorrow.

Why this is, at its core, a workforce challenge

The water sector has been aware of its talent challenges for some time, but AMP8 has certainly brought them into sharper focus. Skills shortages, particularly in engineering and commercial roles, are already well documented, and employers have seen the impact of this on project timelines and budgets. Indeed, our research shows that 49% of engineers now identify workforce size as the single biggest issue facing the industry, up from 26% the previous year. At the same time, 66% are considering leaving the sector, and 23% are expected to retire within five years.

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.

Against this backdrop, delayed mobilisation creates a knock-on effect. Instead of steady hiring over time, businesses are likely to face sudden surges in demand, which also means that many will be competing for the same limited talent at the same time and under increased delivery pressure. That is simply not a sustainable model.

The role of the contingent workforce in closing the gap

The response to the challenges of timing, capacity, and capability lies in strategically using the contingent workforce as a critical component of project delivery. In reality, the water industry itself doesn’t have enough permanent talent to meet AMP8 demand, so even without the Year 0 delays, the scale of AMP8 would have stretched existing talent pipelines. It’s simply not realistic to expect the sector to build permanent teams at the required pace, and this is where contingent talent can help.

Contract workers allow water companies to mobilise with speed and flexibility and bring on capability and specialist skillsets exactly where and when they are needed. This flexibility becomes particularly valuable in a compressed delivery environment, where demand is likely to fluctuate across programmes and phases.

Where long-term pipelines are being developed, the contingent workforce bridges the gap and ensures continuity of delivery. The required long-term solutions, such as early careers, apprenticeships and cross-sector talent attraction, can continue to be invested in without risk of destabilising projects.

This is not a choice between contingent and permanent hiring, however. This is about recognising that both are essential to working strategically to address current and future workforce challenges in water.

The risk of fragmented workforce planning

One of the less documented risks facing the water sector is the lack of coordinated workforce planning. Too often, hiring decisions are made in isolation rather than with a view of the wider market.

In a talent landscape of constraints, this siloed thinking creates the unintended consequence of increasing competition for the same individuals. The effects of this are rising employer costs, inefficiencies in mobilisation and onboarding and reduced overall delivery capacity across the sector.

The irony is that while AMP8 requires greater collaboration in delivery, workforce planning has not always kept pace. The risk to the sector is that, without a more joined-up approach, the sector will amplify the very challenges it is struggling to solve.

A more strategic approach

A shift in mindset and strategy, away from reactive hiring towards proactive workforce planning, benefits companies in multiple ways.

Better forecasting and collaboration: Greater visibility of future demand is needed across the whole supply chain, not just within individual company programmes. When this happens, opportunities for more coordinated planning are created, reducing unnecessary competition.

A balanced hiring model: A mix of permanent and contingent talent should be designed deliberately, not by accident or by short-term necessity. While permanent employees provide stability and long-term capability, contingent workers bring flexibility, specialist skills and pace. Both are essential to successful delivery.

Investment in long-term talent pipelines: Early careers, apprenticeships, and cross-sector talent attraction remain important long-term solutions. Such strategies must be developed in parallel with immediate delivery needs, however, and not in place of them.

How decisions made now will define AMP8 delivery and beyond

AMP8 may have started slowly, but the expectations have not changed. If anything, they have become more urgent. The reality is that Year 0 has shifted the challenge forward and the water sector now faces a compressed delivery curve. Increased competition for talent, and heightened pressure to perform mean that those who continue to rely on traditional hiring approaches risk being left behind.

If the sector takes a more strategic hiring approach, combining contingent and permanent workforce planning, improving collaboration and investing in long-term capability, those in charge of delivering AMP8 will see a marked improvement. This phase will test how effectively water can mobilise the people needed to build it and, ultimately, the industry's success.

If your business is preparing for the challenges of AMP8, now is the time to take a more strategic view of workforce planning. The decisions made today will shape your ability to deliver tomorrow. Whether you are looking to strengthen your talent pipeline, explore the role of contingent resource, or improve workforce visibility across your programmes, taking a proactive approach now will put you in a far stronger position as demand accelerates.

Contact us today to find out how we can help address your workforce challenges.