Two-thirds of those
running small and medium-sized (SME) construction firms are struggling to hire
bricklayers and carpenters as construction skills shortages hit a ‘record
high’, according to the Federation of Master Builders (FMB).
Key results from the
FMB’s latest State of
Trade Survey, which is the only quarterly assessment of the UK-wide SME
construction sector, include:
• More than two-thirds
(68%) of construction SMEs are struggling to hire bricklayers and 63% are
struggling to hire carpenters and joiners – the highest figures since records
began in 2008;
• The number of firms
reporting difficulties hiring plumbers and electricians (48%), plasterers (46%)
and floorers (30%) also reached record highs;
• Construction SME
workloads grew at a slightly slower rate than in Q3 2017, but new enquiries and
expected workloads slowed more sharply; expected workloads among those firms
building new homes showed a negative net balance for the first time since 2013;
• Fewer construction
SMEs predict rising workloads in the coming three months, down from 41% in the
previous quarter to 38% in Q4 2017;
• 87% of builders
believe that material prices will rise in the next six months, up from 82% in
the previous quarter;
• Nearly two-thirds
(61%) of construction SMEs expect salaries and wages to increase in the next
six months.
Brian
Berry, Chief Executive of the FMB, said: “Skills shortages are sky
rocketing and it begs the question, who will build the new homes and
infrastructure projects the Government is crying out for.
"The Government
has set itself an ambitious target to build 300,000 homes every year in England
alone. More than two-thirds of construction SMEs are struggling to hire
bricklayers which is one of the key trades in the building industry. This has
increased by nearly 10% in just three months which points to a rapid worsening
of an already dire situation. What’s more, nearly as many are facing
difficulties hiring carpenters and joiners.
"These figures
are the highest we’ve noted since records began a decade ago. As a result, the
wages for these increasingly scarce skilled tradespeople continue to rise
sharply; that’s a simple consequence of supply and demand. This, coupled with
the fact that small construction firms continue to face significant material
price increases, will inevitably squeeze their margins and put a brake on
growth.
“The Government must
take account of the worsening construction skills shortage with Brexit looming
large on the horizon.
"The Prime
Minister must ensure that the immigration system that replaces the free
movement of people can take account of the particular needs of key sectors such
as construction and house building. Without skilled labour from the EU, the
skills shortages we face would be considerably worse, and it is not in anyone’s
best interest to pull the rug out from under the sector by introducing an
inflexible and unresponsive immigration system. On the domestic front and in
the longer term, to ensure we have an ample supply of skilled workers in the
future, the Government must continue to work with industry to set the right
framework in terms of T-Levels and apprenticeships.”
Berry concluded: “The
silver lining to current skills shortages among construction SMEs is that the
numerous tradespeople and professionals, who may find themselves out of work
following the collapse of Carillion, have a ready supply of alternative employers.
"The FMB is
working with the Department for Work and Pensions and the Construction Industry
Training Board to match-make ex-Carillion workers with small construction
employers in need of skilled workers.
"We’re also
working hard as an industry to re-home the 1,200 Carillion apprentices who are
the innocent victims of the major contractor’s demise. It’s in everyone’s
interests to ensure that these young people continue on their path to a
rewarding career in construction.”
