Clearview National April 2016 - Issue 173 | Page 18

INDUSTRYNEWS Construction needs vital skills investment According to a study, tradespeople were even busier in 2015 than the year before. But as workloads increased, businesses were struggling to recruit more staff due to the current skills shortage. »»WAYNE LYSAGHT-MASON, managing director at IronmongeryDirect, discusses the importance of attracting talent to the sector in order to bridge the gap and keep up with rising demand. IronmongeryDirect’s Annual Industry Review found that overall the construction sector occupied a positive position throughout 2015 as tradespeople declared how busy they were, and that revenues were up. But as a result, many businesses were feeling the pressure as staffing levels and resources were pushed to their limit. While 17% took on more staff and apprentices in 2015, a quarter of respondents said they struggled to take on more staff because of the skills shortage. These figures are further supported by the Royal Institution of Chartered Surveyors (RICS) which revealed that at the end of 2015 the UK construction sector was facing its biggest ever skills shortage since 1998, with bricklayers and quantity surveyors the hardest to source. As a result, building projects are likely to come under threat and the construction of vital infrastructure projects severely delayed. The reason for the labour shortage is not easy to pinpoint. One of the main causes stems from the global financial crisis. During a recession, job losses are inevitable and the economic downturn of 2008 to 2010 saw 300,000 tradespeople leave the construction sector. But as the building industry begins to stabilise and improve, these workers have not returned or been replaced. Those who left the industry may have now retired or found new job roles in other sectors. When jobs are lost, this also affects confidence within that sector. Employers may be reluctant to take on new workers, especially apprentices and graduates, even when the economy gets back on track. And people may be hesitant to enter into a profession that previously lost so many workers. 18 » A PR 2016 » CL EARVI E W- UK . C O M However, investment in the sector is growing. The number of new housing projects has risen, particularly as the government seeks to tackle the current housing shortage. It has promised the construction of 200,000 new starter homes by 2020 and has invested £1.2billion to help deliver this commitment. And those working within the construction industry have also seen their workloads increase, with nearly three quarters of tradespeople reporting an increase in revenue in 2015. 45% said they had so much work on they actually had to turn jobs away. For those within the sector, this growth is positive news but growth will only be sustainable if there are enough skilled workers to deal with the rise in new projects. If the growing skills crisis is not addressed, more businesses could be forced to turn away work as they do not have the manpower to take it on. It could also be the case that the costs of completing projects are pushed up as developers try to outbid each other to secure the necessary workforce. So how do we attract talent back into the building trade? According to the Local Government Association, in the past two years the number of construction qualifications awarded through apprenticeships, colleges and universities has dropped by 10,000. Attracting more young people into the sector is vital, by expanding apprenticeship and training opportunities. Construction firms need to be doing more to show young people the opportunities available within the building trade. To attract young talent, these companies need to be taking on apprentices and offering better training to new staff members. Wayne Lysaght-Mason, IronmongeryDirect Investment into skills is crucial to ensure that the construction sector remains stable. This is particularly important given that the profession is feeling the consequences of an ageing workforce and as a result, talent will be lost when older employees move on to retirement. The Construction Industry Training Board estimates that around 400,000 people are set to retire from the profession in the next 5-10 years. Alongside attracting new recruits, employers need to be taking care of their current workforce; ensuring staff members remain within the sector for the foreseeable future. To keep skills within the construction trade for longer, firms could offer incentives such as regular training or flexible working hours. Investment in skills needs to take place now before the workload becomes too heavy to deal with. And with 622,000 young people unemployed, now is the ideal time. www.IronmongeryDirect.co.uk