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The recession’s lost generation – the challenge of closing the graduate skills gap

Guest post from Managing Director of TDM Recruitment, Tom Morris:

At its pre-recession peak in 2008, the UK’s construction workforce was 2.58 million; a staggering amount. However even more confounding is the fact that by the end of quarter four last year, this had dropped by nearly 13 per cent to 2.25 million. The big problem is that those that were forced to leave the industry at the start of the recession have left a gaping skills gap behind them which is continuing to cause issues.

Before the recession hit, a variety of industry graduate training programmes were being run by contractors and developers in the residential sector and money was in plentiful supply. It was common practice for us to be arranging around 15 first interviews a week which now seems somewhat ridiculous given the way the industry has changed. Salaries were high and construction job openings were plentiful.

When the credit crunch hit in 2008, and the banking sector went into freefall, graduate training programmes were cut as being ‘non-core.’ They really didn’t get going again until 2013, and the old ways of actively promoting to universities to attract the best talent wasn’t until 2014.

The result was a four-year gap after the last tranche of graduates came into the industry before the crunch, and many of those arriving in 2007 and 2008 were shown the door when the recession hit. Now we are faced with an industry where those experienced late twentysomething and early thirtysomething graduates needed to team lead on projects are missing, and junior guys with perhaps only two or three years’ experience are being over promoted to fill the gap.

The worst irony is that now there is a lot of work to do to deliver on demand, particularly in the residential sector, but the new professionals aren’t there to deliver it, and many don’t want to return to the industry having been through a traumatic time in the late 2000s. At the same time there are lot of senior people who now want to step up to board level, meaning there is a excess of applicants for each position, and an oversupply of freelancers who left the industry during the recession and now command high rates and benefit from flexibility. This perfect storm has only begun to dawn on people relatively recently, but what can be done?

The way that some firms have tried to deal with this shortage in management skills is to throw money at the problem. However, it is hard to justify a £20,000 jump in salary for the same Senior Surveyor position in 12 months when the rest of the economy hasn’t kept pace. This sort of inflation-busting rise isn’t sustainable because the rest of the team is likely to want something similar and be demotivated if it isn’t given.

The construction industry had to make hard-headed commercial decisions as the recession bit into their profit margins, but some of those decisions are now coming home to roost in the form of the skills gap. Many staff were treated brutally, and some professionals with good experience are now reluctant to go back to work for the larger organisations which made large numbers of staff redundant, sometimes at very short notice.

The mind-set of candidates has changed and as a ‘sellers’ market’ employers need to be acutely aware of how. Before the recession they may have just looked at whoever was making the highest offer as salaries were very healthy, however graduates who have come into the industry since 2008 or perhaps knew people who went through a traumatic time have a different mind-set.

The experienced young candidates the sector desperately needs are much more focused on achieving genuine work-life balance and being part of an organisation with a strong set of values beyond simply making money. Recent graduates are from Generation Y and are asking employers ‘why would I want to work here?’ As the new graduate programmes will take some time to bed in, employers facing the challenge of delivering construction projects now need to be able to answer that question.

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More young people in construction are called for

A South East based office refurbishment, design and build company is calling for a greater push to get more young people into the construction industry.

RAP Interiors, who are based in Kent, serve a number of clients in the South East, also working into London – so a local company with a national service, and have been growing rapidly. Part of this growth has meant that young people have been taken on as Apprentices to fill new important roles.

RAP Interiors Design Director Julie Anderson said “As we have grown, we have been able to take on young people as apprentices to train from scratch. It has been a challenge finding the right people to do this but we have been lucky and found three great employees who are closely mentored and beginning to take on more responsibility.”

“The problem is that many young people are not being made aware of the benefits of getting into work via this route, and perhaps being encouraged to stay on into 6th form and then go to University. Apprenticeships need to be promoted as a good career choice. They offer a greater chance for young people to hit the ground into the world of work, learn a trade, earn some money and hopefully build a career.”

“They also learn about working in a business setting which includes everything from people-skills, answering the phone to talking in meetings and representing the company. This is often missed when young people move on to further education.”

The three apprentices that were recently taken on are now part of the team. Marcus has become a Site Foreman but qualified in a Multi skilled Apprenticeship covering all trades, Conor is training to be a Quantity Surveyor and Estimator and finally, Ryan Clarke, who was taken on as a Digital Marketing Apprentice, has also been appointed Ambassador for Maidstone via training provider 3aaa.

Ryan said that working at RAP and becoming an Ambassador has built his confidence: “I have learned a lot as a digital marketing apprentice at RAP and this has helped build my confidence in the work-place. I am now comfortable talking in meetings and representing the company. I didn’t want to go to university and get into debt or sit around at home playing video games. I was made aware of a digital marketing course at 3aaa. This seemed like a good idea and I applied – which then led to me being taken on as an Apprentice at RAP. Following this I was surprised when the training provider 3aaa offered me the role of apprentice ambassador and I now go and speak to other young people about becoming an apprentice – which I really enjoy.”

A spokesperson from 3aaa said on Ryan’s appointment: “When Ryan first sent his application through to the Maidstone Academy we were impressed with his skill-set and his passion for digital marketing, he was so keen and eager to find an Apprenticeship, and committed to the programme immediately. Ryan has been chosen to be the Ambassador for the 3aaa Maidstone Academy for his continued effort and dedication, he is an absolute pleasure to have in the Academy, he gets on well with his peers and often offers his support to the class.”

Julie from RAP, says there is a real problem with getting the right people in the construction industry.

“We can see that the industry is improving with new construction taking place and more jobs being made available. This is a good sign that the economic climate is getting better. The challenge is that many young people fail to realise that there are a number of careers they can take up in this industry.”

“It is important that we have enough plumbers and carpenters, but it is also just as important to have marketing, IT and Design specialists. There is a huge crisis in the construction industry where there is a lack of people available and the average age is 55 on site. However, this also means it is good news for those who are qualified as they can demand up to £250 a day in certified trades.”

Colleges are some of the key providers of Apprenticeship training. East Kent college support the view that trained workers in construction can earn a good wage.

Jane Hughes, the head of East Kent College’s Virtual Campus, who oversees the apprenticeship offering said: “In Kent the construction industry is a huge employer, providing around 15 per cent of the county’s jobs. East Kent College works alongside business to identify skills shortages, and currently construction is one sector which is crying out for well trained, skilled professionals.”

“In much of East Kent a bricklayer with the correct training can earn up to £180 a day due to shortages in skilled staff. The skills shortage in construction is a growing issue, and one which makes the industry an ideal choice for those who want a good career.”

“East Kent College offers a wide variety of technical, vocational apprenticeship options to help young people break into the construction industry, and build a solid career for their future.”

Another provider, Mid Kent College, have set up the MidKent College JobShop to help. Assistant Principle Peter Webb said: “Many of our construction contacts in businesses across Kent entered their trade through an apprenticeship. As a result they understand the benefits that apprentices bring to their organisations, and recognise the fantastic opportunities that completing an apprenticeship can open up for young people.”

“We set up the MidKent College JobShop to help employers promote their vacancies to our work-ready candidates, and we work hard to promote the full range of career paths available in the construction sector. Construction companies need trade professionals, but also managers, administrators, accountants, customer service representatives and more. We see it as part of our responsibility to help young people appreciate the breadth of options available to them, and to provide them with the right skills and qualifications to make a positive impact at work in whatever role they function.”

RAP Interiors will continue their drive to support young people. Julie said: “The right foundations are being laid to train young people, we just need them to join the right schemes and take notice of the different jobs available in construction. Otherwise the skills crisis will only get worse.”

For further information please visit www.rapinteriors.co.uk.

Rap interiors

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Nearly 60% of construction bosses start their careers as an apprentice, reveals FMB

With National Apprenticeship Week kicking off today, FMB have made an interesting announcement. Nearly 60% of SME construction owners started their career as an apprentice, according to new research from the Federation of Master Builders (FMB) ahead of National Apprenticeship Week.

The research also shows that more than half of those bosses were running their own company within just seven years of completing their apprenticeship training, and that 98% of construction SME owners value an apprenticeship over a degree when looking for new staff.

Chief Executive of the FMB, Brian Berry said “The construction industry is ideally suited to a young person with heaps of ambition and an entrepreneurial spirit. Our research demonstrates that a construction apprenticeship is the perfect springboard for a successful and rewarding career, with more than half of construction SMEs being run by people who started out as an apprentice. Of those who went on to start their own businesses, more than one in two reached that goal within a mere seven years of completing their apprenticeship training, showing that you can go from being a brickie to a business owner in no time at all.”

“Even if running your own firm isn’t what you aspire to do, a construction apprenticeship can nevertheless provide the foundation for a highly rewarding career. Almost 80% of our SME construction bosses said that employment in the sector offers high levels of job satisfaction with tangible results and 87% believe an apprenticeship teaches useful and practical skills. What’s more, by the age of 23, a bricklayer with five years’ experience can earn up to £31,000 and rising in some cases to £52,000 in London. Given the high levels of university tuition fees, young people have every reason to properly consider a more vocational education and pursuing a career in construction looks an increasingly shrewd move.”

Tony Passmore, Managing Director of the Passmore Group – an FMB member firm – added “I’ve been working in the construction industry for a long time now and I’ve lost count of the number of young people who I’ve seen start out at the bottom, put in the hard work during their apprenticeship, and then rise up through the ranks to set up their own firm. Many of them wouldn’t have guessed they’d soon be running their own business when they first entered the construction industry and started their apprenticeship. And for those who aren’t keen on running their own firm, most jobs in the construction industry give you the freedom to work anywhere in the country – or better still, anywhere in the world.”

Did you start your career as an apprentice? Tell us about it in the comments below!

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Ecobuild joins forces with the Job Show to help meet construction industry skills gap

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In response to an industry-wide skills shortage, Ecobuild, the UK’s largest show dedicated to construction and energy, has launched a partnership with The Job Show™, the nationwide quality recruitment and careers event, to create a construction-focused job show which will run alongside Ecobuild on the last day of the show, 10th March at ExCeL London.

The Construction Job Show™ in partnership with Ecobuild has been designed to bring together employers of all sizes and disciplines with the very best would-be employees, and is built on The Job Show’s proven track record of uniting talented individuals with fantastic career opportunities, creating connections that benefit both parties.

For construction industry companies, the show gives them the opportunity to recruit their next generation of workers, ensuring they have the manpower – in terms of both capacity and competency – to meet growing, post-recession workloads and address any emerging skills shortages.

Jobseekers will be able to take in a wide variety of potential employment options and take their first steps to a career in fields as diverse as engineering and architecture, surveying to project management.

Martin Hurn, Ecobuild Event Director, said “With The Construction Job Show™ we have responded to industry demand to provide a dedicated space that will go some way to addressing the current skills shortage affecting the construction industry. With the recent news from Construction Industry Training Board (CITB) predicting an additional 232,000 job roles being created over the next five years, we believe this skills gap will be a core topic being discussed on day three of Ecobuild, which has a conference programme dedicated to Next Generation.

“The industry is changing at a pace never experienced before and as such there’s never been a wider range of opportunities available for those looking to embark on a career in construction across a wide range of disciplines.”

Victoria Clarke, Co-founder and Director of The Job Show™ said “We are delighted to launch The Construction Job Show™. As a dedicated ‘sector’ driven recruitment event we believe we can offer an excellent forum to showcase industry job roles as well as Apprenticeship and training opportunities for our generation of the future.

“With the increasing demand for new recruits across the construction industry, the timing of The Construction Job Show™ is excellent, being staged on the last day of Ecobuild, an event that already gathers the leading construction companies together.”

The Construction Job Show™ will be held in the South Gallery Rooms on the last day of Ecobuild 2016 on Thursday 10th March. For more information about the event or to book a stand space please click here or telephone Victoria on (01733) 555717 or mobile 07804 735856.

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Could offsite construction attract new home grown talent?

Ministers have today announced that they want the construction industry to focus efforts on attracting, developing and retaining home grown talent into the industry and remove barriers currently preventing more young people from entering the sector.

This involves looking at how companies recruit and train, but also at how adopting modern technologies and methods could help to keep our sector interesting, up-to-date and attractive to the next generation of budding construction professionals.

Housing Minister Brandon Lewis and Skills Minister Nick Boles have stressed that they want the construction industry to re-evaluate their current business models to see if there is enough attention being paid to recruitment. The ministers suggested that businesses should also consider other methods of construction – such as offsite manufacturing – to help diversify the industry.

The Construction Leadership Council has been called upon to review what skills the construction industry need to provide enough homes to meet national demand and tackle the housing crisis effectively.

The Council has asked Mark Farmer, of real estate and construction consultancy Cast, to identify actions that will help bring more workers to the industry.

Views are being sought on how to best train a workforce which has a high level of self-employment and bring about greater use of off-site construction. The review will also look at how the industry can introduce measures that encourage more investment and new ways of working.

Housing Minister Brandon Lewis said “The number of new homes is up 25% in the last year – and this is further proof we’ve got the country building again and delivering the homes the nation wants.”

“This means thousands of jobs are now up for grabs and we’re determined to make sure that there are enough skilled workers to get the job done.”

“Construction offers an exciting and rewarding career and we need to build a new generation of home grown talented, ambitious and highly skilled construction workers.”

Skills Minister Nick Boles commented “The government is committed to getting Britain building. We are investing in measures to cut red tape and increase the number of young people doing apprenticeships and traineeships to ensure we have a pipeline of skilled workers.”

“As leaders in the industry, the Council is best placed to advise on how to boost productivity in the sector and build the houses and infrastructure our nation needs.”

Mark Farmer, chief executive officer at Cast, added “I’m delighted to be asked to lead this review. The construction industry’s skills shortfall has been growing progressively and its ageing workforce now means affirmative action needs to be taken to avoid more acute issues in the future.”

“A healthy and robust construction sector is vital to underpinning the government’s commitment to delivering critical new housing and infrastructure projects. It will also ensure the unrivalled economic multiplier effect related to construction activity continues to play its part within the wider UK economy.”

“The industry needs to seize the opportunity to celebrate the vital contribution it makes and, in partnership with government and other key stakeholders, ensure it overcomes the current barriers to fulfilling its potential.”

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Highways England helps young people consider construction careers

Young people from across the county have been given an insight into the wide range of career opportunities available in the construction industry.

A Highways England-led team delivering road improvements in the East of England met with teens at the Huntingdonshire Careers Fair, held at Wood Green animal shelter this week.

The event, part sponsored by Highways England, was aimed at 15-16 year olds who are at a critical point in making their career choice.

More than 600 young people attended and met a wide range of Highways England employees and contractors, to learn more about the opportunities and skills involved in developing and constructing road projects of all sizes.

Adam, a local student who attended the fair, said “I am looking into a career path in design or engineering and it was great to see the range of opportunities the A14 scheme offers. I am in my final year of A-Levels and I was particularly interested in the design portfolio and was able to discuss the possibility of gaining work experience with the possibility of an apprenticeship starting in August 2016.”

Barry Andrews, one of the Highways England project managers present at the fair, said “I was delighted to represent Highways England at the Huntingdonshire careers fair. This was a great opportunity to engage with the potential engineers, technical specialists, project managers, team executives and apprentices of tomorrow on behalf of Highways England.”

“I passionately believe that the young people within our community are the future in which we must invest now and I will continue to support such valuable and creditable endeavours.”

Kirstie Dawe, one of Highways England’s apprentices who also supported the event, continued “I am on the Business Administration Apprenticeship at Highways England. For me, going to the careers event at Wood Green was a great opportunity to encourage young people to consider a career at Highways England and make them aware of the variety of career paths available from apprenticeships to graduate schemes.”

Among the team present were also employees from Highways England’s supply chain and representatives from the £1.5bn A14 Cambridge to Huntingdon major project, which is due to start construction next year subject to statutory processes. The scheme is local to Huntingdon and is set to provide many career opportunities in the coming years.

Chris Taylor, Director of Complex Infrastructure at Highways England, who oversees the A14 Cambridge to Huntingdon major project, said “Construction is a really dynamic industry to work in and offers a huge range of interesting career opportunities – from contract and commercial management, to archaeology and ecology, as well as the more obvious construction and engineering paths.”

“The Huntingdonshire Careers Fair gave us a great opportunity to meet young people and talk to them about some of the fantastic prospects on offer in their local area and across the country.”

“We are committed to using the local workforce and businesses as much as possible. As well as delivering much needed journey improvements, we hope to leave a lasting legacy by improving skills and employment opportunities in the communities we are working for.”

Transport Minister Lord Ahmad said “Having a skilled workforce is essential if we want to build a strategic road network fit for the future. That is why the government is committed to delivering on its ambition for 30,000 transport apprenticeships by 2020, by investing in our next generation.”

“We welcome this Highways England initiative which demonstrates the wide range of careers options available in transport for high calibre young people.”

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Older workers crucial to curbing construction industry skills gap

The world’s population is ageing rapidly and with profound results. In response to these changes, the Chartered Institute of Building (CIOB) has launched a report exploring the effects of the ageing population on the construction industry and outlined how the sector can adapt to meet some of the challenges.

‘Exploring the impact of the ageing population on the workforce and built environment’ is the second report from the CIOB to study the effects of the ageing population. Six years on from the first study, the research highlights the crucial role the built environment has to play in terms of improving the lives of older people.

In a survey of nearly 1,000 CIOB members, responses indicate that despite legislative changes to improve recognition of the ageing population and combat workplace discrimination, awareness of the ageing population and its influence on the built environment has slumped – when compared with the findings from the CIOB’s first report.

The research finds that the built environment has a crucial role to play in terms of improving the lives of older people through measures designed to enhance the accessibility and liveability of buildings. Retaining ageing workers’ knowledge and skills is also crucial, and the report sends a clear message to policymakers and industry leaders: to be successful, construction needs to see far greater investment and recognition of ageing workers.

With 19% of the construction workforce set to retire in the next five to ten years, the report finds that employers need to overcome stereotypes and repurpose, where necessary, job descriptions to attract and, most importantly, retain older workers. However, the CIOB is clear that this not be considered a substitute for investing in training, and should work hand-in-hand to help alleviate the ongoing skills crisis.

Whilst 57% of respondents acknowledged that it was ‘very important’ to retain ageing workers, this was not reflected in the number of respondents who stated that their workplace had measures such as flexible working, succession planning, mid-life career reviews or retirement planning designed to encourage an extension to longer working lives.

The benefits of mentoring are well documented. However, despite the overwhelming majority of respondents acknowledging this, only 63% confirmed that this measure was a regular feature in the workplace. Respondents pointed towards the difficulties obtaining high-calibre staff to deliver and participate in such schemes. Crucially, the report suggests that more needs to be done to make better use of ageing workers’ expertise and skills, and use this to help upskill younger counterparts.

Bridget Bartlett, Deputy Chief Executive of the CIOB said “The findings from this report indicate that the impact of the ageing population and the role of the ageing workforce have slipped down the agenda.

“However, if construction is to meet the skills crisis it faces and fill the 224,000 vacancies needed by 2019, employers should look to take additional steps to overcome the skills shortages they incur by reaching out to older workers. There is a huge opportunity to showcase to both young and old members of the workforce that construction isn’t all hard hats and hi-vis and that off-site opportunities are aplenty. We demand technical skills as much as manual skills.

“Employers must also recognise the skills of their existing workers and put in measures such as flexible working, career reviews or even retirement planning to encourage longer working lives. As our own research tells us, skills shortages in construction are compounded by those entering the industry not being suitably qualified for the position. We should take this opportunity to use older workers to tap into their skills and knowledge and ensure they are passed onto the next generation.”

A full copy of the research can be accessed from www.ciob.org/population.

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A third of construction firms are turned off by taking on apprentices

Recent studies by the Federation of Master Builders (FMB) have suggested that a third of small construction firms are actually being put off from offering apprenticeships due to the bureaucracy involved. The report, entitled “Defusing the skills time bomb”, explains further.

Chief Executive of the FMB, Brian Berry commented “The construction industry is in the midst of a skills crisis which can only be solved if more employers take on apprentices. The Government wants to deliver three million apprentices over the next five years and this new report sheds some light on how this can be achieved. Our research shows that 94% of small construction firms want to train apprentices but a third are being turned off by a number of serious “fear factors”. These include the cost of employing and training an apprentice and major concerns regarding the complexity of the process.”

“There is strong evidence to show that small construction firms need better information and that if they were more aware of the support that’s available, a great number would train apprentices. Just under 80% of non-recruiters are not aware of one of the most important apprenticeship grants available to them and just over 75% say knowledge of financial support would make them more likely to take on apprentices.”

“Given that two-thirds of all construction apprentices are trained by SMEs, it is critical that the Government does everything in its power to remove any barriers that might be stopping these companies from training. Looking ahead, the Government’s new apprenticeship voucher could be a disaster for small firms unless it is properly road tested and made as simple and easy-to-use as possible. We’re also calling on the Government to protect our industry training board which is at risk from the new Apprenticeship Levy. The Construction Industry Training Board (CITB) needs reform admittedly but without it the very smallest firms would be left with less financial and practical support for apprenticeship training – remove this lifeline and you risk worsening the skills crisis.”

The FMB isn’t the only body voicing concerns over announcements made in the Autumn Statement. The British Chamber of Commerce have also called for greater clarity on the apprenticeship levy.

Executive Director of Policy at the British Chambers of Commerce (BCC), Dr Adam Marshall said “Businesses want to tackle skills shortages and drive up productivity, but the apprenticeship levy risks having the reverse effect.”

“A lack of clarity around the scope, rate and scale is having a huge impact on business confidence. Many firms have decided to put training and investment on hold, and are concerned about the knock on effects of the levy on their cash flow, existing training schemes, and the bottom line. It’s important that this levy doesn’t undermine other types of vocational training, which could be better suited to some businesses.”

“While businesses back the government’s drive to boost apprenticeships, they have real concerns about the current approach. The government must focus on improving the quality of apprenticeships to make them more attractive to employers, and provide clarity on how they will be paid for as soon as possible.”

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Careers under the spotlight at UK Construction Week

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As students across the country get stuck into the new academic year, UK Construction Week is celebrating education and training of all kinds – highlighting that there is more than one way to build a successful and rewarding career in construction.

Key to this is the UK Construction Week Career Centre, a dedicated area within the Build Show where house builders, construction firms and other industry experts will be on hand to offer construction specific careers advice to visitors. Covering apprenticeships, on-going training and professional development, the centre will cater for all levels – from seasoned professionals scoping out their next move, to new starters looking for their first break into the construction sector.

Supported by a host of industry bodies, the Career Centre will give visitors a useful insight into a variety of career paths in building, civil engineering, integrated technology installation and other crucial construction trades. Key partners include the Home Builders Federation, the Institute of Civil Engineering and the Women’s Engineering Society, as well as construction skills and apprentices network K10 and major UK house builder Cala Homes.

Visitors will also be able to gain inspiration by hearing the stories of other people who have built a career for themselves in the industry. For example, Heidi Perry, a generator engineer at building machinery supplier Finning, will be sharing her experiences as a female apprenticeship in a male-dominated industry.

Heidi, who took up an apprenticeship after sixth form college, commented: “Finding an apprenticeship wasn’t easy so I applied to Finning to work in the parts department. It wasn’t my ideal job but it was a foot in the door. Luckily, at my interview they asked if I’d prefer to work on the machines and I landed an apprenticeship working on diesel standby generators.

“Now I travel across the country fault-finding, servicing, working on the electrical control systems or fixing broken parts. Apprenticeships are a great way to learn. If you’re thinking of making the move into construction, do it. It’s brilliant fun and you won’t regret it.”

Nathan Garnett, show director commented: “Employing more than 2.2 million people, the construction industry has been the major force behind the UK’s economic recovery – and with £125 billion of public sector and infrastructure projects in the pipeline, the demand for skilled workforce is set to create even more employment opportunities in the years to come. The Career Centre at UK Construction Week will be a really useful source of information for visitors looking to take advantage of this booming work market.”

Bringing together nine shows under one roof, UK Construction Week will be the biggest construction trade event the UK has seen in years. Taking place at the Birmingham NEC from 6 – 11 October (with the trade only days from 6 – 8 October) the event will unite 1,000 exhibitors with an expected audience of 55,000 visitors.

Visitors will be able to attend the Build Show (incorporating Civils Expo), Timber Expo, the Surface and Materials Show, Energy 2015, Kitchens & Bathrooms Live, Plant & Machinery Live, HVAC 2015, Smart Buildings 2015 and Grand Designs Live.

For more information please visit www.ukconstructionweek.com or follow @UK_CW on Twitter.

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