The water industry is entering its most demanding period in decades. AMP8 represents the largest Asset Management Period ever undertaken, with more than £104bn of investment committed over the next five years. The ambition is to accelerate environmental improvements, upgrade ageing assets, and deliver a more resilient water infrastructure for customers. But while funding and political ambitions are aligned, delivery risk has shifted to something far more fundamental: the people who deliver the network.

In our 2025 Water Industry Labour Report, we revealed that 49% of engineers believe the size of the skilled workforce is the single biggest problem facing the water sector. This is a challenge for a sector that has historically relied heavily on hiring people with prior water experience, and it signals that change is required in how the sector recruits talent.

The workforce pipeline is under pressure from multiple angles. With 66% of engineers planning to leave the water industry in the coming years and 23% expecting to retire within the next five years, there is a significant increase in attrition in a remit that is already short of skills. Combine this with rising demand due to AMP8 projects (which are already running behind schedule due in part to the lack of resources), and it’s perhaps fair to say that water cannot simply fill personnel gaps internally. Instead, it must look outside the sector and re-think where it looks for skills.

Why relying only on sector specific experience is no longer realistic

For many years, the water industry has prioritised recruiting and onboarding individuals with direct water experience. The findings in our report, however, clearly show that this approach is no longer viable. With two-thirds of engineers considering leaving in the very near future and nearly a quarter approaching retirement, the pool of experienced water professionals is shrinking rapidly. Our research highlights a particular shortage of experienced hands‑on engineers who keep assets running and projects moving.

When employers compete exclusively for established water professionals, they are effectively recycling the same limited talent, driving up competition and cost while slowing delivery.

This challenge is compounded by wider STEM shortages across the UK. While the problem is not unique to water, the sector is feeling it more acutely due to the scale and urgency of AMP8.

Engineers responding to our survey described organisations being in “panic stations”, with some projects already at risk of delay or failure due to shortages. There is an unavoidable conclusion here, that sector only hiring is no longer realistic.

Transferable skills the water industry urgently needs

The good news is that the skills water companies need most are not exclusive to the sector. Our report identifies a set of core capabilities that employers consistently prioritise:

Engineering project experience (35%)

Management capability (27%)

Soft skills such as resilience, communication and leadership (17%)

These foundational engineering and project delivery skills are widely developed across parallel infrastructure and industrial sectors such as construction, energy, transport, manufacturing and other regulated environments. Attributes such as flexibility, people management and communication were also among the most essential skills needed in the water industry, which again, aren’t exclusive to the sector itself.

So where can these skills be found?

Adjacent sectors where water companies can find talent

There are several adjacent sectors with strong skill alignment to the water industry and proven transferability. These represent immediate talent pipelines and a realistic opportunity to address the current and future skills gap. Examples include:

Civil engineering & construction: which has a strong alignment with capital delivery, asset upgrades and site‑based work. These professionals already operate in complex, regulated environments.

Energy, nuclear and renewables: These sectors are already attracting water engineers, which is a clear sign of high transferability. They share safety‑critical operations, complex systems and long‑term asset planning.

Oil & gas: Engineers in this sector bring experience in high-risk environments, rigorous safety standards and large‑scale infrastructure, which is directly relevant to water utilities, operations and treatment.

Rail and transport infrastructure: 11% of engineers in our survey identified rail as a key adjacent sector, which delivers excellent programme management capability, stakeholder coordination and experience with long asset lifecycles.

What needs to change: adapting recruitment strategies for cross-sector talent

Attracting non-water talent requires more than broadening job adverts. It demands intentional changes to how roles are framed, how candidates are assessed, and how organisations support transitions. Engineers who contributed to our report explicitly cited sourcing talent from outside the industry as part of the solution to addressing skills shortages. The challenge now is turning that insight into action.

Top tips: how water companies can adapt their recruitment strategies

1. Rewrite role specifications to focus on capabilities, not sector history: Shift from “X years in water” to “experience delivering complex engineering projects”, “leading multidisciplinary teams”, or “managing safety‑critical environments”.

2. Highlight purpose and impact: Our research shows that industry perception is a barrier. Candidates from other sectors may not realise the scale of environmental and societal impact water careers offer. Make that purpose visible.

3. Use contingent and contract talent strategically: 69% of engineers now work on a contract basis. Offering flexible employment models can attract specialists who may not want a permanent move but can bring immediate capability.

4. Streamline onboarding and upskilling: Create induction pathways that can be fast-tracked for engineers from adjacent sectors. Focus on regulatory context, water-specific processes and safety rather than reinventing their technical foundational skills.

5. Broaden where and how roles are advertised: Move beyond traditional water networks. Target construction, energy, infrastructure and manufacturing platforms where transferable talent is already active.

6. Listen to the workforce: Engineers in our survey are clear that cross-sector recruitment is part of the solution. Use their insight to shape strategy, messaging and workforce planning.

Widening the talent lens is now a necessity

The water industry cannot deliver AMP8 by competing over an ever‑shrinking pool of water-experienced professionals. The findings from our Water Industry Labour Report make it clear that the talent crisis is structural, not temporary.

Looking across adjacent sectors is one of the most immediate and realistic ways to strengthen capacity, resilience and delivery. The skills the industry needs most are already well developed in parallel infrastructure and industrial markets.

Cross-sector recruitment is about future-proofing the workforce, not lowering standards. Diversifying where expertise comes from will ensure the industry has the people it needs to meet its environmental, regulatory and customer commitments. By widening the lens in which talent is viewed, there is a genuine opportunity to not just survive the growing workforce pressures of AMP8, but to build stronger resilience in the sector for the decades to come.

Want to know how we can help you find talent beyond the water sector? Contact us today.