UK construction: workloads rise, but skills shortage persists

The UK construction industry has seen an increase in workload, employment opportunities, and work enquiries – the first time in two years all three areas have seen growth – according to new data from the Federation of Master Builders.

The news comes as part of the SME State of Trade Survey for January to June 2005, which reveals even more truths about the current state of the construction industry.

But it’s not all good news – with skills shortages and rising costs continuing to plague the trades, which could go on to affect homeowners and the wider economy.

Workloads and employment in construction on the up

Looking specifically at UK nations, the increase in industry workload is as follows:

• 36 per cent increase in Northern Ireland
• 30 per cent increase in Scotland
• 24 per cent increase in Wales
• 21 per cent increase in England

Skills shortage still a problem

Despite these positive increases, the same study reveals that the skills shortage continues to be a problem for the construction industry – with carpenters the most difficult skill to recruit for.

Top 3 trades affected by the skill shortage

Across all trades, 64 per cent of those surveyed revealed they find it difficult to recruit staff knowledgeable on new building safety regimes. While 59 per cent stated they struggle to recruit staff with modern sustainable building practices.

These shortages have caused problems for building firms across the country – with 61 per cent saying their work was affected. Of this number, 49 per cent revealed it resulted in delays, while 23 per cent had their jobs cancelled entirely.

Construction prices continue to rise

While recruitment slows, prices continue to rise – with 75 per cent revealing they’ve seen an increase in the cost of materials.

The impact of these cost increases has meant:

• 56 per cent have had to raise their prices
• 49 per cent reported lower than expected profits or losses
• 34 per cent have restricted recruitment
• 25 per cent feared for their business’s viability
• 22 per cent have had to make redundancies

‘The industry is ready to build, but it needs support to do so’

Brian Berry, Chief Executive of the Federation of Master Builders, said: “If skills shortages and planning delays aren’t addressed, there’s a risk that the economic recovery will be slowed down and housing targets won’t be delivered.

“The industry is ready to build, but it needs support to do so. Without it, homeowners may be left waiting, and the UK could fall further behind on the homes that are urgently needed. 

“Action is needed to ensure that the recovery is not just short-lived but sustainable, and that builders have the tools they need to keep Britain building.”

More news and guides for construction workers

• Which trade earns the most – and where?
• Mandatory licensing for builders on the way?
• What is the Construction Industry Scheme (CIS) and how does it work?
• Planning reforms to reduce red tape for builders