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Roberts Co Withdraws from Defence Sector

Business news NSW

By Darian Macey, October 29 2024

Roberts Co, a major commercial builder, has decided to withdraw entirely from the Defence infrastructure sector after a frustrating five years, though there has not yet been a public announcement.

The company, which had been known for its robust contributions to planning the Garden Island Redevelopment Program, has chosen to close all full-time positions related to Defence business development. Sources close to the company tell me that the strategic decision was made to focus on markets and sectors that Roberts Co is historically familiar with.

This move captures a lot of what professionals across the Defence sector are dealing with: constant change, blindsiding developments, and the sometimes painful decision to pull back from profitable but resource-intensive areas. No matter how well a project may be performing, strategic shifts like this can lead to abrupt closures, often with little warning.

Many of us have faced similar situations: telling team members, contractors, and clients about unexpected changes or job losses, and dealing with the impact on everyone involved. It’s the hard part of the business that doesn’t often get discussed openly. The Roberts Co decision underscores the challenges faced in Defence infrastructure—despite the success of certain initiatives, the company ultimately chose to reallocate its resources to more familiar sectors.

This also highlights how widespread the issue of “ghost teams” has become. With decreasing Defence project cash flows and the constant stop-start nature of governmental approvals, many businesses have been forced to scale back teams significantly, sometimes leaving a virtual or “ghost” team to hold space in tender documents. Over the last five years, many smaller, cash-strapped companies have dropped out or merged into consultancies and government-hired design houses that were able to weather the lack of projects.

What’s next? Many Defence industry insiders are simply waiting for a consistent pipeline of projects and funding to bring the stability everyone needs to plan effectively. For now, it’s a wait-and-see game, but with renewed calls for better strategic planning and more consistent support for the companies on the ground. As the sector recalibrates, the opportunities are out there for those with the resilience to weather the uncertainty and adapt. The hope is that, as one player leaves, another might see the hard work already in place and be willing to build on it.

For those in the sector right now, adaptability is more important than ever.

Darian Macey
Author: Darian Macey

Darian is a former Engineering Officer with the RAE with tertiary qualifications in Engineering and Project Management. He is a leading practitioner within Australia's NSI sector with previous employment in Government, project management and building contractor organisations.

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