Late on the Thursday afternoon before the Easter long weekend, Business NSW announced that Business Illawarra executive director Adam Zarth was departing after six years.

The announcement by the parent organisation also included mention of a restructure for the local arm.

Many members of the Illawarra business community expressed surprise, given the organisation was in the midst of major projects, including a push for affordable housing for key workers and a renewable energy roadmap in collaboration with the University of Wollongong.

Paula Martin, executive director regional NSW for Business NSW, will lead the Illawarra arm while it searches for a successor to Mr Zarth and undergoes any changes.

Deputy Mayor Tania Brown, who is currently preparing for a tilt at the Lord Mayoralty in the upcoming local government elections, said the move indicated that the state's largest business lobby group was abandoning the region.

"I call on the state business chamber to come to Wollongong and explain to our broader community how they intend to have a Central Coast based employee represent the diverse local business community," she said.

In the two weeks since the announcement, Ms Martin has been meeting with business leaders and members, and said the Illawarra was front and centre in her mind and in the eyes of Business NSW.

"We will continue to support and advocate for what the Illawarra and Shoalhaven needs as a region to absolutely maximise its potential."

Ms Martin said she was unable to discuss the reasons behind the change but said it was necessary.

"The change is about future-proofing Business Illawarra into the future and we will restructure the organisation so that it better meets the needs of industry going forward."

Previously two separate organisations, in 2015 the Illawarra Business Chamber merged with the NSW Business Chamber before the pair were renamed Business Illawarra and Business NSW.

At the time, a $1 million fund was established to quarantine funding for strategic projects in the Illawarra. The resulting Illawarra First fund has been used to bankroll major advocacy work, including for affordable housing and the region's defence industry.

Ms Martin said there would be no change to this funding bucket.

The organisation is now in search of a new leader for the Illawarra business community, and Ms Martin said the successful candidate would require a unique skill set and the team would take the time to find the right person.

"They'd have to have that combination of commercial experience, really understanding what it takes for business to be successful and also have that local knowledge and understanding the history and the future and potential of Illawarra, but also would need to understand the stakeholder ecosystem, and that includes understanding how local state and federal government work."

In the meantime, the organisation's regular roster of annual events are continuing, including the imminent launch of the 2024 Illawarra Business Awards. Ms Martin said the region had significant opportunities, particularly with the Albanese government's focus on domestic manufacturing and clean energy.

"We have nationally significant businesses here," she said. "There's no doubt the opportunity to assist those businesses to transform to provide energy solutions for the future for future generations is second to none."