Sydney, Australia, 31st December 2025 – Ongoing skill shortages, low productivity, resource reuse, emission optimisation, electrification, and a reliance on strategic partnerships will tax the minds of Australasian businesses in 2025, according to management consultancy Partners in Performance.
Organisations will face a unique set of challenges and opportunities, driven by shifting regulatory environments, workforce shortages, and the increasing need for sustainability.
Mohamed Abdulahi, a Director at Partners in Performance, highlights the need for businesses to respond to these evolving demands.
"There isn't a mining or industrial project that doesn't have environmental approval as part of the critical path," he said. "Sustainability and environmental regulations have moved from being a consideration to a core requirement for capital projects across Australasia."
As businesses across the region confront these growing challenges, they are also grappling with productivity pressures exacerbated by workforce shortages.
"Resource reuse and minimising waste are top concerns as emission optimisation, tracking, and electrification rise on the priorities list - these are sticky challenges that need time to be overcome," he said.
In Australasia, modular projects are emerging as an innovative solution to drive greater efficiency in delivery.
Mr Abdulahi points to examples such as China's small modular reactors and Sweden's modular home construction as successful models. "Modular projects are an excellent example of how the industry can innovate to achieve faster delivery and lower overall costs," he said.
This approach is especially relevant for Australasian industries seeking to balance the rising demand for sustainability with the need to reduce costs and project timelines.
Mr Abdulahi predicts a fundamental shift in how capital projects are managed. "Project owners in Australasia are increasingly looking to form strategic partnerships to keep projects on track. The question being asked is: 'How do we think about projects as a program? How do we work together to drive them forward?'"
This collaborative approach is becoming essential for navigating complex challenges such as workforce shortages, regulatory compliance, and the push for sustainability.
Casting an eye further afield to Europe where balancing cost and climate with operational efficiency is quickly becoming one of the biggest challenges, according to Katya Vladislavleva, a global prescriptive analytics leader, at a Partners in Performance.
"Resource industries are focusing on how to do more with less, through material recycling and creating more sustainable business practices," Ms Vladislavleva said.
She points to poorer ore feeds in mining leading to "a renaissance of projects trying to reinvent mining and metal processing to be low emissions and low energy".
Companies will be asked to deliver more with less, leading to longer timelines, higher costs, and growing complexity. With these pressures mounting, the strategic adoption of cutting-edge technologies is no longer optional but essential. As automation, AI, and prescriptive analytics reshape operations, businesses must leverage these technologies to stay competitive.
The answer for oil and gas is accelerating automation. Alan Trench, a Texas-based Partners in Performance director working across Latin America, sees "a wave of investment in making remote ops centres the norm."
He notes infrastructure and processes are challenges.
"You have to bring people on the journey, so they draw benefits from technology," Mr Trench said.
The predictions are contained in the Partners in Performance Emerging Trends 2025 report, which concludes that organisations across the globe will need to answer a series of critical questions. For example: Does your team have the ability and tools to adapt to rapidly evolving demands? Is your organisation positioned to create the broader ecosystem of partners necessary to thrive in the face of these challenges?
As the energy transition unfolds, businesses that embrace innovation, sustainability, and strategic partnerships will be best positioned to lead in an evolving global market. Partners in Performance's 2025 forecast underscores the critical importance of automation, sustainability, and long-term collaboration in driving success and shaping the future.
