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We must make tackling the skills shortage a priority, urges industry

Construction professionals have stressed how despite the fallout following Brexit, we must focus our efforts on combatting the looming skills crisis by prioritising the introduction of new initiatives to attract workers into the various sectors that span the construction industry.

Thinking ahead

Chris Wood, CEO of Develop Training Limited, the UK’s leading training specialist in the utilities sector, commented “The skills shortage in the UK is a catastrophe waiting to happen, one that literally threatens to turn out Britain’s lights. A solution to the twin problems of a chronic skills shortage in our utilities industry and high youth unemployment is obvious – train young people to take the places of the ageing workforce, but it just isn’t happening at anything like the rate that it needs to be. The new PM and her Cabinet must make it a government priority to look into ways to correct this issue as a matter of extreme urgency.

“As householders and businesses in the UK wonder about a post-Brexit future, they should remember that the utilities sector is still facing a potentially devastating skills shortage. The sector is constantly on a recruitment drive but is simply not receiving the response it requires.

“We all need confidence that our lights will stay on, our heating will continue to keep our houses warm and our taps keep providing running water, but the day is fast approaching when there will simply not be enough workers to do these vital jobs.”

Home-grown talent

Brian Berry of the Federation of Master Builders has also echoed concerns post-Brexit regarding the retention of skilled EU workers and the training of new talent. Berry said “We need to ensure that we invest in our own home-grown talent through apprenticeship training. We need to train more construction apprentices so we are not overly reliant on migrant workers from Europe or further afield. That’s why it’s so important that the Government gets the funding framework right for apprenticeships – when you consider that this whole policy area is currently in flux, and then you add Brexit into the mix, it’s no exaggeration to say that a few wrong moves by the Government could result in the skills crisis becoming a skills catastrophe. The next few years will bring unprecedented challenges to the construction and house building sector, and it’s only through close collaboration between the Government and industry that we’ll be able to overcome them.”

Diversity

Skanska, who recently won the Judges’ Supreme Award and Diversity Champion of the Year Award, have suggested that we need ensure the culture of our industry is both inviting and nurturing in order to alleviate the shortage long-term.

Mike Putnam, President and CEO Skanska UK, said “We believe that a diverse and inclusive culture is key to creating a successful and sustainable business. It will help us to create teams where people think differently, while making them better placed to understand the needs of the communities in which we work.

“It is through the way that our people embrace diversity and create an open and welcoming environment that we are able to work collaboratively – with our customers, joint venture and supply chain partners.”

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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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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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UK faces bleakest construction skills shortage in nearly 20 years

The latest RICS UK Construction Survey shows that the country’s skills shortage has reached its highest levels since the survey was launched 18 years ago, with bricklayers and quantity surveyors in shortest supply. Over half of respondents (53%) reported difficulty sourcing labour, with 71% saying they had particular difficulty sourcing bricklayers and 64% highlighting a shortage of quantity surveyors.

During the same period in 2011, just 1% of respondents were struggling to find bricklayers and only 15% noted a shortage of quantity surveyors.

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 significant areas of growth, with the number of new construction projects increasing, particularly in private housing and commercial sectors. While official figures (which are often subject to revision) highlighted a slight contraction in output over the three months to August, a substantial proportion of respondents to the RICS reported an increase in their workloads (net balance +39%), with 29% of firms saying that they were operating at full capacity.

The private housing and commercial sectors continue to lead the growth in workloads with net balances of 47% and 46% respectively reporting an increase. However, momentum was least firm in the public sector with net balances of 12% and 21% reporting growth in workloads in the housing and non-housing segments respectively.

Meanwhile, in the infrastructure sector, growth accelerated somewhat with a balance of 34% seeing workloads rise, up from 25% last quarter.

RICS Chief Economist, Simon Rubinsohn commented on the survey “While it’s exciting to see that the UK 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.”

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