Focus on construction

Chris Green at Trade Skills Training Limited (0845 345358) looks at recent developments, with the help of the Construction Industry Training Board

Construction is the UK’s biggest employer (2 million people) and about 76,000 people need to be recruited into the industry every year to meet current growth targets and replace those leaving the industry. The Construction Industry Training Board (CITB) recently surveyed 470 companies in a Skills Needs Survey.

Of the employers interviewed, 79 per cent had experienced difficulties recruiting skilled staff compared with 76 per cent surveyed in spring 2001; 79 per cent had also experienced difficulties recruiting skilled staff in the previous three months compared with 76 per cent surveyed in spring 2001, while 63 per cent of companies said they had had long-term vacancies.

Building services trade associations want to introduce multi-skilling in the new installation sector of their industry to help combat a recruitment crisis, and to offer greater job security and career progression. The associations are working towards developing new occupational profiles that integrate mechanical and electrical skills on top of the basic interchangeable skills learned in the early stages of training. Training providers may now find themselves running fewer but broader courses.

Because the current New Deal scheme attracts only around 2,500 new entrants into construction a year, a new Ambition Construction scheme has been developed that specifically targets mature candidates. It encourages recruits to achieve NVQ Level 2 in 12 months and NVQ Level 3 over a further 12 months. The aim is to train more people and secure trainee retention, helping to address the current recruiting shortfall of around 17,000 per annum.

The industry is expected to grow by a minimum of 2 to 3 per cent over the next three years, bringing with it good prospects for good people. Many of these people will be employed by the various construction and maintenance companies, while others will own their own firms or work as sole traders.

A look at the regions shows that, in the East of England, the predicted growth rate of construction output is above the national average with an annual labour requirement of 9,300 workers, and 88 per cent of employers experiencing recruitment difficulties. In the East Midlands, output is also above the national average, and over 6,000 new workers are needed each year. Nearly 25 per cent of employers were unable to bid for a contract due to a shortage of skilled staff.

The population of Greater London is set to grow by 500,000 over the next 12 years or so. There are therefore major housing and infrastructure projects under way. Despite an influx of construction workers, nearly 40 per cent of employers were unable to bid for a contract due to a shortage of skilled staff.

Total construction output in the north-east is just under £2.3 billion and employs in excess of 55,600 people. Very few firms employ more than 50 people, and 64 per cent of employers have difficulties recruiting skilled staff. Construction in the north-west and Cumbria turns over some £6 billion per year and output is forecast to increase by an average yearly rate of just 1 per cent. Current and predicted volume of construction activity will further increase skill shortages.

The construction industry in Scotland employs about 125,000 people. Output is set to grow by an average yearly rate of 1.5 per cent with companies generally wanting skilled workers to acquire additional skills so that they can undertake more roles. South-east England has a construction output of around £9 billion, over 15 per cent of the British total. Predicted growth exceeds the national average and will require over 250,000 workers by 2006.

The south-west’s output has been steady for ten years, but is now forecast to grow at 3 per cent per year. Construction employment is 175,000 (1 in 14 people of the economically active population), set to grow by over 7,500 annually. In Wales, over 2 per cent growth is expected with a 72,000-strong workforce increasing by 3,500 people annually. Skill levels compare unfavourably with other industries, and there is concern about early leavers from the industry and a lack of replacements.

The West Midlands’ output of just over £5 billion will grow by less than 2 per cent, but a workforce of 172,000 will still need 5,600 recruits a year to allow it to grow to meet demand from numerous housing and construction projects. In Yorkshire and Humberside, output has remained constant over the past ten years at just under £5.3 billion – 9 per cent of total British construction output. One in every 13 people works in construction, with over 7,000 recruits needed annually.

This quick survey of construction should demonstrate just some of the opportunities open to Service leavers during the next few years in an expanding industry