Biggest skills shortage in construction for 18 years
THE North West’s construction industry is facing its greatest skills crisis since 1998, a survey released today by RICS (Royal Institution of Chartered Surveyors) has revealed.
The quarterly RICS UK Construction Survey – covering July to September shows the skills shortage in the region has reached its highest levels since the survey was launched 18 years ago, with bricklayers and quantity surveyors in shortest supply.
Half of respondents (50%) reported difficulty sourcing labour, with 52% having difficulty sourcing brick layers, whilst 62% also highlighted a shortage of quantity surveyors. In the same time period in 1998, just 18% of the North West’s surveyors reported a skills shortage.
In addition to labour supply, 69% of firms said that financial constraints, such as access to credit, were among the biggest constraints to growth, while 60% said that regulatory and planning issues were potent constraints.
However, despite these challenges, the survey shows some areas of growth, with the number of new construction projects increasing in the North West, particularly in private housing, commercial and industrial sectors.
Over the last three months, nearly half of the region’s respondents saw an increase in workloads (49%), however this is a fall from the 73% of North West respondents who reported a rise in workloads during the previous quarter (Apr-Jun).
Richard Barnes, of Veritas Surveying in Manchester, said: “The lack of training over the past few years is now having massive consequences on the availability of tradesmen and professionals within the industry. Contractors are starting to feel the pinch with raising costs and fixed values on projects.”
Simon Rubinsohn, chief cconomist at RICS added: “While it’s exciting to see that the North West is experiencing growth across the construction sectors, future growth will only be sustainable if the growing skills crisis is addressed.
“The availability of both blue collar and white collar construction workers is reaching crisis point. We haven’t witnessed a labour shortage of its kind in nearly 20 years. Without the relevant skills, we will not be able to grow many of the Government’s priority construction sectors such as infrastructure.
“Currently, while we know that there is a serious shortage of skills, we don’t yet know why we have seen such a dramatic drop in the labour market over the past five years. Part of the problem is the legacy of the collapse in the sector following the onset of the global financial crisis.
“Many professionals and other skilled workers chose to leave the industry and quite simply have not returned or been replaced. A real focus on attracting more young people into the industry is critical alongside an expansion of apprenticeship opportunities.”
Martyn Makinson, managing director of construction recruitment business specialist Ionic, which has bases in Manchester and Warrington, said: “The trouble is that the recession cut the industry to the bone and removed a lot of skills and overall capability to deliver construction projects. You can’t repair that damage overnight and the concern is that the construction industry is not recovering fast enough to keep pace with demand.”
Makinson added: “In a candidate-driven recruitment market construction companies need to present themselves as attractively as possible. Construction companies must sell themselves to a candidate by focusing on benefits, company culture and development opportunities which, in my experience, are often far more attractive than salaries.”
