What’s the Biggest Challenge Facing Engineering Teams in 2025?

In 2025, engineering teams are under more pressure than ever. As demand surges across infrastructure, energy, data centres, and life sciences, the expectations placed on engineers - speed, precision, sustainability, innovation - are only increasing.

At Thor Companies, we’re in daily contact with the people driving these projects forward. From technical leads to hiring managers, we hear first-hand what’s holding teams back - and what they need to succeed. Across regions and sectors, four key challenges continue to surface.

Talent Shortages

The engineering talent gap isn’t new, but it’s deepening. As project pipelines expand, the need for qualified engineers - especially those with niche expertise - has reached critical levels.

We’re seeing particular shortages in disciplines like electrical, mechanical, and process engineering, especially where sector-specific experience (like data centres or pharmaceuticals) is required. With fewer candidates and more competition, companies are facing extended hiring cycles, increased salary expectations, and difficulty securing the right people at the right time.

At Thor, we help our partners overcome this by proactively building talent pipelines, tapping into our international candidate network, and staying ahead of market trends so hiring plans don’t fall behind project timelines.

Project Delays and Supply Chain Issues

While post-pandemic supply chains have stabilised to a degree, challenges persist, especially for complex engineering builds. Delays in securing materials or equipment can push entire projects off track, costing both time and money.

These pressures are felt most acutely in sectors like energy and construction, where large-scale logistics are involved. Engineering teams are often caught between the demands of multiple stakeholders and fluctuating supplier timelines.

For recruitment, this adds another layer of complexity. Having flexible, reliable talent ready to step in can be the difference between a small delay and a spiralling one. Thor supports teams with contractors and permanent staff who can hit the ground running - even in high-pressure, rapidly changing environments.

Meeting Sustainability Goals

Sustainability targets are now a key driver of engineering decision-making. But meeting those goals, especially within tight timelines and budgets, is no small task.

Whether it’s low-emission design, carbon tracking, or sustainable sourcing, engineers are expected to do more with less. In highly regulated industries, compliance is only part of the picture; stakeholders want to see demonstrable progress towards ESG commitments.

We’re increasingly recruiting for roles that didn’t exist five years ago; Sustainability Engineers, Carbon Consultants, Net-Zero Project Managers, because businesses know that sustainability needs to be embedded into every phase of delivery. Thor’s access to specialist talent in this space is helping engineering firms stay both compliant and competitive.

Adapting to New Tech and Automation

Technology is moving fast. From AI-assisted design to digital twin modelling, automation is transforming how engineering work gets done. But not every team is ready to adapt overnight.

Upskilling takes time. So does culture change. Many engineers are being asked to rethink their roles in the face of digital tools that promise increased efficiency and accuracy. At the same time, younger professionals entering the industry expect tech-forward environments and development opportunities.

That’s why more companies are looking for adaptable, tech-savvy candidates with growth mindsets - something we prioritise when shortlisting for roles. We also partner with clients on long-term workforce planning so they’re ready not just for today’s tech, but tomorrow’s too.

So….What Is the Biggest Challenge?

The reality is, it’s not just one thing. Engineering teams in 2025 are facing overlapping pressures - talent shortages, supply chain volatility, sustainability demands, and digital disruption. These aren’t isolated issues; they’re interconnected.

At Thor, we believe the biggest challenge is staying ahead of all of it. That means building agile teams, investing in future skills, and having the right people in place at the right time. And that’s where we come in.

Whether you’re scaling up a new project or strengthening your permanent team, we’re here to help you meet the moment - with specialist knowledge, industry insight, and a global network of engineering talent.

Looking for your next engineering hire?
Speak to one of our consultants today and find out how Thor can support your recruitment strategy.