The job market is over-heating in the construction sector with skills shortages causing pressure, driving up costs and holding back growth.
One of the most noticeable effects of the skills shortage is that competition for skilled people has resulted in a race to the bottom of who can pay the most to subcontractors and new employees and with deeper pockets, larger construction companies will be at an advantage.
Smaller developers will find that they can’t compete with the larger companies and struggle take on more work as their margins shrink due to labour costs.
On an individual level, companies would do well to remember that salary isn’t everything to attracting talent. In our experience, whether it is a tradesperson or management, people often place work environment and none financial benefits over a large salary.
Construction Skills Shortage Holds Back Housing
House builders are operating under the combined pressure of rising costs and real shortages in the labour market; a double whammy which is holding back growth.
The reality of the situation is that we just don’t have enough skilled workers to build the homes we need. In the words of Peter Box, the Local Government Association’s housing spokesman, Britain has trained “too many hairdressers and not enough Bricklayers”.
As we’ve all seen in recent news articles the UK’s construction industry is starting to suffer due to a shortage of Site Managers.
The ‘Building for Growth’ report by Lloyds Banking Group, shows a third of construction companies are failing to find qualified candidates for Site Manger roles which is causing our construction sites problems.
With figures for the industry showing a 34% shortage for Site Managers and Electricians, with Project Managers following closely behind on 33%, and Quantity Surveyors and Architects facing a 31% shortage there has unavoidably been a negative effect on the construction industry output.
Leading construction recruitment business Ionic has expanded its Midlands operation and moved to a new office base in Tamworth.
The Midlands team is now located at Pacific House, Relay Point, under the leadership of Hayley Jackson.
Today we got to meet the hardworking staff that help St Rocco’s provide such a fantastic service.
We presented St Rocco’s staff with a cheque for a grand total of £1428.80, money raised from your support of our Manchester 10k run in May.
St Rocco’s nurses were amazed at the amount we raised and explained that the majority of your donations will help pay for St Rocco’s Hospice at Home Service which aims to support people who wish to remain and spend their last days at home if that is their choice. This service is provided by a team of experienced healthcare assistants who give practical nursing care and psychological support to patients and their families.
We want to say a massive thank you to all of those who have contributed in support of St Rocco’s and Ionic.
We’ve teamed up with CK Tools to find out your thoughts on the construction job market.
To be in with a chance to win, simply complete the survey below;
Keep an eye out on our Facebook page for competition updates.
Survey Terms and Conditions
- One winner will be chosen random from entries received.
- The winner will receive an iPad mini.
- The winner will be notified by social media and must provide a postal address to claim their prize. If a winner rejects their prize or the entry is invalid or in breach of these Terms and Conditions, the winner’s prize will be forfeited and Ionic Recruitment shall be entitled to select another winner.
- The prize will be sent to the winner by post.
- The prize is non-exchangeable, non-transferable, and is not redeemable for cash or other prizes.
- The prize cannot be shipped to outside of the UK and Ireland.
After the Queen’s speech we reflect on the Conservative government’s investment in the housing market and the effect on apprentices.
George Osborne announced a new ‘Help To Buy’ ISA, where for every £200 a first-time buyer saves towards a home, the Government will give them a £50 top-up. Furthermore, the Government has set a substantial target of building 200,000 new starter homes by 2020 and plans to release public land for the construction of up to 150,000 new homes.