Construction Skills Shortages – Are there Solutions on the Horizon?

‘Perfect Storm’ is an overused term. But reports of the skills and manpower crisis looming in construction industry come pretty close. A shrinking pool of skilled workers coupled with increased demand – certainly looks like a crisis.

If the crisis is real, is there a solution on the horizon? And, if the skills needed are not already in the pipeline, can the UK meet the construction challenges it faces by building in the same old ways?

A brief trawl through the statistics will confirm what the industry already recognises: the crisis is real, it is current, and will probably get worse. It is also wide-ranging; not just who will lay the bricks but who will calculate how many you need in the first place.

According to RICS Chief Economist, Simon Rubinsohn, “Labour shortages in the construction sector are causing delays at different stages in the development process and leading to significant problems with project planning.” More than 60% of companies who responded to a RICS survey said that resulting planning delays were impeding growth.

Meanwhile, CITB estimates that 36,000 new recruits will be needed each year to meet current demand. Around 400,000 over 55s plan to retire in the next decade – that’s roughly one fifth of the construction workforce.

And, of course, there is Brexit. Currently one in eight of the construction workforce are non-UK citizens. Will the proportion go up or down in the coming years? Who knows?

Is there hope in sight?

Labour shortages increase wages. There is some evidence that this is attracting new people to the industry. Apprenticeship numbers are also increasing. But at around 14,000 starts per year, we are still well short of the numbers needed to meet demand.

Building a different reality

So, are we kidding ourselves and hoping that somehow the workforce needed to build at twice the current rate, alongside major infrastructure projects, will somehow materialise?

Arguably, there is an inescapable logic and economic reality that leads to a greater use of modern methods of construction and offsite techniques.

Factory production requires less manpower than traditional construction, where most of the work is on site. Precision and quality come largely from the production process rather than relying on skills that take years to master.

Skills needed for offsite construction are also different and more transferable, which may make this a more attractive option for people at the start of their career.

Ultimately the market will decide. Offsite construction is already experiencing rapid growth as clients seek greater reassurance over costs and schedules. If the crisis deepens as expected this trend may well accelerate.