Construction industry manpower challenges and the implications of Brexit

The construction sector in the UK is one of the major drivers of our economic success. It doesn't just stop at the building site either; construction also reaches into such sectors as architecture and civil engineering - the foundations of a progressive civilisation.

Construction is booming

Since construction is a high-risk/high-cost industry, it serves as a very effective barometer of how the UK as a whole is performing. When things are tight this is evidenced by a reduction in new infrastructure and housing projects; conversely, when things are looking up, investment in construction expands exponentially. 

Currently, investment is increasing. Due to numerous new housing initiatives, construction is a strong performing sector. Indeed, employers' confidence is blooming, meaning it's a terrific time for those that want to work in construction. However, a perceived shortage of skilled professionals is posing a challenge for a field that is, by nature, the most labour-intensive.

Skills shortages

Not only employers but also specialist recruitment agencies have been facing a lack of qualified candidates among the present labour market. Nevertheless, the construction industry is robust and extremely profitable. In 2014, the industry generated £103 billion, or around 6.5% of the UK's total output. Indeed, almost 3 million people work within the industry. 

But, while the construction industry itself is pretty solid, some erosion to the foundations is apparent and there is a risk that the industry currently lacks the skilled bricklayers, plumbers and project managers to reverse the rot. Furthermore, a decline in apprenticeship take-ups has led to a dearth in skilled men and women available to work. The upside, however, is that the number of candidates in apprenticeships is growing again, seeing a rise of over 14%. This still falls short of the estimated 36,000 currently required, however. The irony is that it is the current boom in construction that has exposed a manpower shortfall.

Brexit: the elephant on the construction site

No discussion about the future of the construction industry can be honestly engaged in without addressing the elephant on the construction site: Brexit. With uncertainty surrounding the impact of the UK's withdrawal from the EU, its single market and related easy access to a migrating labour force, opinions are, obviously, divided. 

According to Paul Manchester, director of construction site suppliers Manchester Safety Services, "Uncertainty surrounding the global economy, taxation and access to funding could remove a layer of security from the UK’s construction industry. This potentially could lead to an increase in conservatism practised by construction executives, unwilling to take risks in an unknown financial landscape." (http://www.builderandengineer.co.uk/feature/how-could-brexit-affect-uks-construction-industry) 

Unsurprisingly, Lord Bamford, chairman of JCB, disagrees and thinks our exit from the EU could be beneficial: "I think it would be [beneficial to leave the EU], because I really don’t think it would make a blind bit of difference to trade with Europe. There has been far too much scaremongering about things like jobs. I don’t think it’s in anyone’s interest to stop trade. I don’t think we or Brussels will put up trade barriers. It’s a burden on our business and it’s easier selling to North America than to Europe sometimes."

The good news is that the number of skilled workers coming into the pipeline is beginning to increase, ready to contribute to the UK's most robust industry at a time when optimism and opportunity remain the watchwords among employers and recruiters, alike.