Construction Skills Shortage
The government's target of constructing 1.5 million homes by 2029 is in jeopardy due to the UK construction industry's acute labour shortage. The Labour-led government of Prime Minister Keir Starmer came to power with the promise of boosting economic growth and infrastructure, but there are not enough qualified workers to complete the task, as it stands.
Sadly, this isn’t a new issue. While construction contributes 6% to the UK’s GDP and supports growth in other sectors, years of underinvestment and labour shortages have left the industry weak.
Challenges Facing the Workforce
One of the biggest challenges is an ageing workforce. With 25% of skilled workers anticipated to exit the business over the next 10 to 15 years, a sizable portion of the workforce is approaching retirement.
Meeting present expectations, let alone preparing for the new housing targets, is becoming more difficult due to the aging workforce.
Compounding this issue is the skill shortage resulting from the aging workforce. Only one in four students who took construction courses went on to pursue related occupations. Additionally, apprenticeship enrolment is consistently below expectations. For instance, just 33,600 apprentices signed up for apprenticeships in 2022–2023, which is less than the 50,000 that were needed.
Opportunities in the UK Construction Industry
The UK construction industry is facing a significant challenge: a lack of skilled workers that could jeopardize the government’s plan to build 1.5 million homes by 2029.
However, where there are challenges, there are also significant opportunities. For those ready to step into the industry—or invest in its future—this labour gap presents a unique chance to capitalise on growing demand and transform the sector.
A Growing Demand for Skilled Workers
There is a bigger need than ever for newcomers to the construction business because many current employees are approaching retirement and the demand for houses is rising. This offers an opportunity for anyone thinking about a career in construction:
- Fast-Track Entry: The government is establishing 32 skills hubs to provide focused training for essential trades like bricklaying, scaffolding, and plant operation. These hubs aim to fast-track 5,000 apprentices annually, equipping new workers with the skills to start careers quickly.
- Job Security: Over the next ten years, demand is expected to increase in one of the few industries, construction. Entering this industry currently gives people looking for long-term stability the opportunity to have a steady and fulfilling career.
- Greater Earning Potential: As a result of a skills shortage, firms are competing more fiercely to recruit skilled workers. Greater pay and chances for quick professional progression could be advantages for those who enter the field now.
Opportunities for Investors
With the right strategy, construction could prove to be a profitable sector to invest in:
- Increased Housing Development: The demand for skilled labour and materials to meet housing targets will drive growth across the supply chain. Investors in housing developments or construction-related businesses can tap into this growing demand.
- Innovation and Technology: The industry is increasingly turning to innovative technologies to address labour shortages, such as prefabricated housing and automation. Start-ups and companies focusing on construction tech represent an exciting frontier for investment.
- Government Support: With housing central to the UK’s economic recovery plan, funding and policy changes are likely to favour construction-related projects and businesses, providing a supportive climate for investment.
A Win-Win for the Industry
This is a rare chance for anyone thinking about investing in the business or breaking into the industry. While investors have the opportunity to propel expansion in a vital sector for the UK economy, new hires can enjoy safe, lucrative professions with the correct training and tools.
Notwithstanding the difficulties, the government's emphasis on resolving labour shortages and assisting the building industry may transform this crisis into a time of change that will benefit those who are prepared to seize the chance.
Your First Step: Book Your CITB Test
Thinking of entering the industry? Start by booking your CITB Test—a crucial step towards securing a CSCS card and beginning your construction career. With demand for skilled workers at an all-time high, there’s never been a better time to join. Let us help make the process seamless and stress-free.