Engineering Australia chief executive Peter Taylor says the number of engineers for every $100 million of engineering, construction and building work halved from 600 to 300 in the period 2001-2006.
By extrapolating those results and consulting with major employers, Taylor estimates Australia has a shortfall of 28,000 engineers.
"Whichever way we look at the numbers, we come inevitably to the conclusion that Australia, like many other developed countries, has taken its eye off the engineering ball," he told the National Press Club on Wednesday.
The shortfall looks set to get worse with heightened activity in the resources sector, increased government spending on infrastructure projects and the effects of climate change putting more pressure on the already overstretched sector.
Taylor said the problem started at school with fewer than 12 per cent of year 12 students studying advanced maths.
"Radical action is needed to improve the science, engineering, technology and mathematical literacy of students if we are to increase the numbers of domestically trained engineers," he said.
"From the latest data we have been able to get hold of, fewer than 12 per cent of all year 12 students in Australia study advanced maths; 66 per cent ... do not study either advanced or intermediate maths and the same proportion give physics and chemistry a wide berth."
Taylor warned that action must be taken soon as even if the education problems were fixed tomorrow it would take 15 years to filter through to graduate level.
"If governments continue to ignore the evidence, the current shortage of 28,000 engineers will more than double in the next 10 years or so," he said.
"The result will be that infrastructure programs promised by governments will not be delivered, Australia's desperate water situation will remain unaddressed and engineering solutions to combat the effects of climate change will not be developed.
"More importantly, Australia's economic development and our envied lifestyle will be jeopardised."
