Get ready for the - New Zealand Electrical Conference 2025
Electrical contractors will be essential to the high-tech transition to sustainable energy – new strategies are needed to upskill for this future and address an accelerating workforce shortage. We need a multi-faceted approach by the electrical industry to meet this macro challenge.
In this article we look at some of the challenges and opportunities we’re seeing through electrification and how, as an industry, we can collectively navigate this dynamic landscape. We review the big shift to smart green energy, workforce and skills demands that will affect you, Master Electricians’ response to this, and our recommendations for industry.
The pace of change is exponential in the electrical industry, from technological innovation and sustainability imperatives to regulatory shifts and evolving consumer demands. To keep up we need to face the uncertainty and fear of the future, lean in and collaborate to influence how we adopt this change. We need to rise to the challenge in a planned way, which includes having our say in critical industry consultations so that we build a platform for success.
Public consultation on 2024 vocational education and training reforms – have your say
You may have seen the newly released proposal for public consultation on the redesign of the vocational education and training system from Te Tahuhu o te Matauranga, the Ministry of Education. The redesign includes several approaches for a proposal to establish an industry-led system for standards-setting and industry training:
- Option A – establish a small number (possibly up to eight) of Industry Training Boards, similar to the previous Industry Training Organisations. These statutory boards with mostly industry and some ministerial governance would both arrange industry training and set industry standards for sub-degree education. They would take over the work-based programmes and learners currently within Te Pūkenga.
- Option B – replace Workforce Development Councils with a small number (possibly up to eight) of more focused, industry-specific standards-setting bodies. Te Pūkenga’s Work-based Learning division would be divided into industry-aligned units. ITPs (Institutes of Technology and Polytechnics), PTEs (private training establishments), and Wānanga could still offer industry training based on criteria.
Master Electricians supports an industry led approach regardless of provider type. We recognise that a competitive market enhances quality standards for training, but we strongly believe how and where training is delivered should ultimately be determined by the industry. It is the associations preference for Option A as this provides industry with the most influence at a governance level. A seat at the table allows industry to shape its future and also provide a clear pathway for a future-ready workforce. Essentially the value of Option A is about putting industry in the driver’s seat so that we have the appropriate qualifications, standards, safety standard, and curriculum to support the industry practitioners into the future and keep us in sync with all emerging technologies.
Notably this model:
- Enables Master Electricians as the premier Industry representative and advocate which is able to contribute at a level that ensures that the qualifications and standards are in line with our current and future industry needs.
- Restores the feedback loop between training and standards-setting that existed under the previous industry training system. The reforms give Industry Training Boards a monopoly on arranging training that would also ensure national consistency for employers, apprentices, and trainees wherever they are. This is important for industry confidence in qualifications. This monopoly on arranging training would suggest that Industry Training Boards would remain independent from the ITPs and PTEs that would deliver the training prescribed.
- Ensures that the electricians’ expertise is at the forefront, driving the training and standards within the industry. By taking charge of work-based programmes, these boards will align educational outcomes with the actual needs of the industry.
- Fills a critical gap through the proposed Boards conducting strategic workforce analysis and planning, tailored to the unique demands of the electrical sector.
- Ensures industry standards are not arbitrarily set by external entities. Instead, where an industry opts out of forming a board, the NZQA would step in to set education standards, maintaining a balance between self-regulation and national educational consistency. For our dynamic and essential industry, having an Industry-led board is not just a preference – it’s a necessity for progress and innovation.
- It is also important that we advocate for an ITB under the specific heading of electrical so we are not competing for share of voice with other subsectors of the industry. We can rather seek a clear leadership role in governance with appropriate Ministerial appointments and oversight.
- Note: If Option A is the preferred option, Master Electricians will need to review its ownership and interest in ETCO to ensure there is no perception of a conflict of interest.
Details of both options for this proposal are in the Government consultation document. In addition to an industry training system closer to the industry, there are proposals around a network of regional ITPs to replace Te Pūkenga and also changes to the way vocational education is funded. Your thoughts and opinions on the structure for standards-setting and industry training and the broader redesign are important.
We invite members to provide feedback to Master Electricians so that we can submit our collective view to Government. It won’t take much of your time but will make a difference. We need to submit your feedback by 12 September 2024.
Impact of electrification – What lies ahead for the electrical industry?
The electrification of various sectors and the widespread transition to renewable energy sources such as solar, wind, and hydroelectric power will have a significant impact. Electrical contractors will play a crucial role in this transition by installing, maintaining, and optimising renewable energy systems on a massive scale.
The future of the electrical industry lies in embracing cutting-edge technology and sustainable practices to meet the evolving needs of clients and address global challenges. The Energy Efficiency and Conservation Authority (EECA) reports that the push towards electrification will place new demands on the skills and talent pipeline.
Workforce shortages will accelerate. The industry must enhance the visibility and attractiveness of electrical careers, offer competitive wages, and provide clear career paths.
Emerging technologies will transform electrical system design, installation, and management. AI algorithms may aid in predictive maintenance, energy optimisation, and fault detection, enabling more efficient and reliable services. Electrical contractors will be central to integrating renewable energy through installing, maintaining and upgrading infrastructure, including building EV charging stations, renewable energy systems, and smart grids. New Zealand needs to upskill current electricians and train new entrants in EV technology, energy storage, and smart grid management. Flexible training options are needed to quickly equip the workforce with new skills.
Rapid technological change means the half-life of skills is now estimated to be 18 months or less, so our workforce must quickly master new technologies. Climate-related disruptions, technological vulnerabilities, and geopolitical shifts demand a focus on resilience and adaptation. Electrical contractors must build resilient infrastructure, anticipate future challenges, and mitigate risks. Advances with new materials and construction techniques will require adaptability to evolving regulatory frameworks and policies, including around compliance. As existing qualification frameworks lag, suppliers and wholesalers are providing necessary training.
As we transition to sustainable energy, we expect decentralised energy grids, global collaboration, smart infrastructure, and IoT integration. Energy storage advancements and microgrids may decentralise energy grids, providing resilience and flexibility. Smart technologies and IoT will revolutionise infrastructure, involving electric contractors in deploying smart meters, sensors, and interconnected devices. Electrical contractors will face ethical and social issues related to data privacy, digital equity, and workforce displacement.
Addressing these challenges requires a multifaceted approach by the electrical industry, involving strategic partnerships, continuous education and training, and a commitment to diversity and inclusion. By focusing on these areas, we can build a resilient, skilled, and adaptable workforce ready to meet the demands of a rapidly evolving landscape.
Skills shortage
Driven by factors including an ageing workforce, the increasing complexity of electrical systems, and/or the lack of regulation that exists with neighbouring industries like smart home automation, AI, and robotics, the workforce shortage highlights the urgent need for new approaches to training and continuous professional development (CPD).
New technologies and products are critical to the advancement of the industry. This requires organisations like Master Electricians to work in partnership with wholesalers and suppliers to drive productivity in the adoption of technology. Together, we can create industry-wide strategic initiatives to build a talent pipeline and succession plan that addresses skill shortages, retains older workers, attracts younger talent, and maintains industry stability.
Our tertiary training system provides a solid foundation for apprentices to learn the basics and meet the minimum requirements for certification. It’s essential for these institutions to continue focusing on core skills. Their success lies in their ability to collaborate with employers, ensuring an industry-led system that emphasises practical application and commercial readiness in on-the-job training.
We need to build alternative CPD pathways with an industry lens that enables building programmes of study with portable, weighted credentials, recognised by industry bodies, regulators, and electrical contractors. An approach encourages and incentivises the electrical industry to adopt new technologies and ways of working will help maintain currency and competency and ensure business growth, productivity, and industry success. With advanced technologies and competencies, our industry can increase hourly rates, and support consumers in New Zealand to progress with the world.
If we do this well, we can apply our innovative “No. 8 wire” thinking to electrical advancements and other areas. Keeping up to date with developments in smart grids, renewable energy, energy storage solutions, and the integration of AI and automation requires continuous upskilling to remain compliant and safe when working with new and emerging technologies in a high-risk installation environment that necessitates adherence to Supplier Declarations of Conformity.
New technologies, such as automation and robotics in our manufacturing and primary sectors, could create new supply chains that have been previously overlooked. Adding value to these sectors, and many others, relies on a future-ready workforce that has the necessary qualifications and competency to drive progress.
What is Master Electricians’ plan for leaning in and keeping up with a changing industry?
Master Electricians’ goal is to establish ourselves as the leading authority in electrification technology while celebrating our past achievements, and those of our members, and preparing for future innovations. We signal this through Trade Master and working with directly with industry partners – including wholesalers and product suppliers – to provide fit-for-purpose and future-focused training that will enable our industry to lead technological innovation.
Investing in training and professional development programs led by credible industry organisations, in partnership with suppliers, wholesalers and innovative partners – to provide the skills and knowledge needed to adapt to technological advancements in smart grids, renewable energy, energy storage solutions, and regulatory changes:
- To this end we have invested in Trade Master – a one-stop CPD shop for our industry that supports businesses and individuals to futureproof their staff and business. Experiential learning should supersede technology for learning (which has its place), and it’s important that the industry leads the way. We are collaborating with suppliers, manufacturers and technology providers to stay abreast of innovations and access cutting-edge products and solutions.
- Trade Master will focus on bridging the technical and soft-skill capability gap to remain competitive and aid growth. Trade Master sets out to develop a range of technical and non-technical courses, health and safety, electrical testing, business acumen, and soft-skill development.
Advocacy and representation to represent, champion and challenge interests to policymakers, regulators and industry stakeholders.
- Master Electricians regularly meets with and briefs Ministers and key government stakeholders to ensure our industry’s voice and views are considered in legislative change, when budgets are set, and when key incidents impact our industry (e.g. the Serene bathroom heater recall issue and de-jointing of AU/NZ Standards). We are aiming to distil a trusted industry voice to lobby government.
Technical support and advisory services that enable all-sized businesses to navigate complex projects, troubleshooting technical issues and ensuring compliance with regulatory requirements:
- Master Electricians offers a technical support and advisory service that is the go-to for all electrical contractors – big and small. From helping you remember key regulations to providing clarity on grey areas that lack up-to-date standards, our technical manager is on call to support you and keep you and your customers safe with the latest electrical standards and operating practices.
- Reviewing our quality assurance accreditation program to recognise members who demonstrate competency, experience and adherence to industry best practices.
- Providing ongoing support and resources to help members navigate challenges, stay updated on industry trends and grow their businesses.
Networking and collaboration opportunities across our industry to foster knowledge sharing, peer support, and business growth among members.
- Master Electricians provides national and regional opportunities to connect via dynamic branch events that provide professional development, networking, and information opportunities, or events that celebrate success. Master Electricians events are about connecting with like-minded individuals and avoiding the loneliness that may come with the flexibility of owning your business.
Access to market intelligence and business insights to enable businesses in our industries to make informed decisions and stay competitive in a rapidly evolving market.
- Master Electricians offers access to wage and salary reports and information that can help you benchmark your business nationally and regionally. Knowing the economic climate in which you’re operating can help you adapt to change more rapidly.
Embracing digital transformation and leveraging digital tools to streamline operations and enhance communication, and sharing our findings with our members on best practice.
Our next steps together as an industry
The evolving electrical industry demands a workforce equipped with advanced qualifications and up-to-date training. Master Electricians is researching key areas for development, including:
- New competency requirements (as distinct from qualification requirements) to align with current industry standards and technological advancements. Our workforce is qualified but may not always be competent to install product in a way that reflects best practice and safety.
- Advanced qualifications to prepare the workforce for complex tasks and leadership roles.
- A CPD programme with easy-to-recognise levels of expertise across technical and business acumen and encourages continuous development.
- More informal training that is supplier- and wholesaler-led and endorsed by Master Electricians to address short-term specific skills and knowledge gaps.
Contact Master Electricians or one of our Regional Managers to learn more about how we can support you.
References
Electrotechnology Themes Vision and Next Steps. Waihanga Ara Rau Workforce Development Council, 2024.
The future of training for the electrical sector
We invite you to share your thoughts and feedback on the proposed solutions and recommendations outlined above.
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