A recent study from AJG found that there is a significant skills shortage in the construction industry and this is one of the biggest threats facing the industry right now. As many as 57% of construction companies stated that they were currently short-staffed and this has led to 12% having to turn business down while 11% have had to reduce the services offered. This post will look at the skills shortage in the construction industry and what can be done to address it.
The Effects of the Skills Shortage
There are a few negative effects of the skills shortage in the construction industry. As mentioned above, one of the main problems is that it can limit the number of projects that businesses can work on and this can impact revenue. Not only this, but it can also create the cost of salaries a challenge because the demand for talent is much higher. A lack of skilled workers is costing £32,000 on average per year across firms of all sizes and this is a significant amount.
Why is There a Skills Shortage?
So, why exactly is there a skills shortage? There are a number of factors at play that are causing the skills shortage, which makes it an issue that is hard to tackle. One of the main reasons is an aging workforce with over 20% of tradespeople being 50+ and 15% being 60%. Research shows that only 3% of people between 18-24 have searched for a construction job and this means this is a cause for concern for the future. Brexit has also been a key factor in why there is a shortage in construction workers as it is harder to recruit EU nationals and many that were already in the UK have left.
Is There a Solution?
It is a worrying time in the construction industry with a skills gap that seems to be getting worse with an aging workforce and low uptake in the younger generations. Therefore, it is important to attract younger generations to the industry in order to tackle the skills shortage. It is important to break down negative perceptions of the construction industry and demonstrate that it is one that is becoming increasingly diverse with many different types of jobs available.
The benefits of working in construction should also be made clearer. Many young people want to be their own boss and in construction, it can be easy enough to set up your own business, arrange builders insurance and start taking on projects once you have the skills.
The skills shortage in the construction industry is a serious cause for concern and already costing businesses a lot of money and work. It is important that younger generations are made aware of the benefits of working in construction in order to tackle the issue.