With nearly 50 percent of AIPM's membership falling within the 40 to 54-year age bracket, Australia faces an acute shortage of project management skills by 2020.

Another 10 percent of the industry body's membership base is in the 55 to 60-year age bracket, well on their way to retirement.

Peter Shears, the institute's CEO, said the retirement of up to a third of Australia's project managers in the next decade signals a significant skills shortage in sectors such as government, construction, IT, telecommunications, finance and energy.

Speaking at myPrimavera06 conference in Canberra last week, Shears said the only solution is for companies to significantly change the role of project management.

He said the departure of so many professionals will leave a dramatic gap in experience and business acumen to backfill.