Consequently, many of those either left the industry altogether and went into other industries, or they retired. Either way, the knowledge and years of experience of construction exited the sector.
Fast-forward to 2017 and the landscape is very different. The UK construction sector is experiencing an upturn in fortune. The autumn statement revealed that 140,000 new homes will be built in 2017, there will be a £1.3bn investment to upgrade motorways and there will be £450m spent on trialling digital signalling on UK railways.
However, for all the investment in new projects, there is a serious skills shortage. A report by Arcadis has discovered the full extent of Britain's construction labour crisis. The company has undertaken a detailed analysis of how many people are required to build homes, infrastructure and to ensure the economy succeeds.
The report indicates that the many people that left the industry in 2008 were in their 50s and are unlikely to be returning. It also illustrated that current trends towards education could be to blame for a skills shortage.
Construction salaries likely to double
For a generation of school leavers, gaining a university degree has been the gold standard in academic attainment. It was long touted as the gateway to a fulfilling future career. However, a focus on academic achievement has done little to bridge the gap in the skills shortage.
Whilst a lot of school leavers have progressed into higher education, there has been a reduction in those up taking science, engineering or maths disciplines. As a result, it has left a gap at the senior level of construction staffing.
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Such is the shortage in the construction industry, it could lead construction workers to become a MINTED workforce – The Most In Need Earning Double before a new generation enters the workplace. The demand for experience currently outweighs the supply and to ensure targets are met, salaries are likely to increase across all roles.
UK housing targets
The government has targeted the construction industry to build 110,000 new homes per annum by 2026 but there is a sheer lack of people to physically build them. The UK will require an average of 307,000 people per year up to 2026 to meet government home building targets.
For infrastructure such as rail and road, a further 36,000 people must be recruited annually to meet the demand. Britain has one of the most ambitious plans in HS2 and Crossrail and after 2017 the infrastructure sector is expected to grow by a huge 30%.
In total, between just 2016 – 2021 the UK will have to recruit 407,495 construction professionals annually to meet the growing demand for infrastructure and housebuilding.
The government's targets for new homes and the exit of European workers post-Brexit is likely to highlight further the shortage of qualified and experienced personnel in the market. Arcadis suggests that a 'hard Brexit' will result in the cumulative loss of more that 214,000 EU construction workers.
What can be done to bridge the skills gap?
It's not all doom and gloom for the sector, first and foremost, there is a call for the government to secure EU workers as soon as possible. By doing that it will plug a hole and reduce the impact; if work visas are needed, they should be made available without commotion.
In Birmingham, the HS2 Academy is addressing the skills gap by training new construction workers. In Doncaster, the National Skills Academy for Nuclear aims to better equip people around the country to work in the energy sector. British businesses are also investing in up-skilling and cross-skilling their current workforce to ensure personnel can carry out more than one type of duty.
Perhaps the most important factor that will help ease the pressure on the construction industry is mobility and agility. Having a workforce that it able to work in several different construction sectors is vital, particularly for temporary positions. Sub-contractors will be expected to have gained experience in energy, infrastructure and house building and they could benefit financially from being more flexible location-wise as demand shifts from region to region.
ACER has already noticed the shortage of skills within the temporary and permanent recruitment market. Working with many of the leading UK companies on projects around the country, we have experienced first-hand the requirements of both our clients and candidates.
There are more options for candidates now with a vast array of work available and a skills shortage. By having close relationships with our candidates we understand their needs and where best to place them to allow them to gain maximum experience and thus achieving an agile workforce.
We've noticed a large shift from specialist candidates to adaptable candidates, meaning that many clients will now look to hire staff from other disciplines. As a result, ACER has adapted its strategy in recent years to ensure a continuous pipeline of experience, agile and knowledgeable candidates are available for cross-sector roles.
To talk to ACER today about a job in the construction industry, or if you need staff, call 0151 665 0013.
www.acer4jobs.co.uk
