By Catriona Lingwood, Chief Executive of Constructing Excellence in the North East
The Construction Leadership Council’s (CLC) Skills Workstream last week published its Future Skills Report, urging contractors to hire more employees directly.
According to the report, industry workers do not receive enough training and the best way to tackle this issue is for contractors to hire more people directly. I think we all share the same concerns over the future skills shortage and the report expands on this. Given that 30% of the workforce is set to retire over the next ten years and the end to Freedom of Movement after Brexit is looming, I think it’s only right to be concerned. Thankfully, the report has put forward actions to make sure the industry doesn’t suffer.
The report calls for clients to agree a code of employment where those who contribute to a project are directly employed. That way, it’s in the employer’s best interest to train staff and benefit from their improved productivity. This echoes the 2016 construction strategy report which said the sector suffers from fragmentation, pointing out that 99% of construction businesses are SMEs. This is long overdue. Direct employment not only improves productivity, it reduces accidents and helps ensure workers are trained correctly. This needs to be the beginning of tackling the hire and fire culture which currently distorts the reputation of the industry.
The report also wants smart construction methods to be encouraged through early design and procurement processes, promoting the use of digital technology and advanced manufacturing techniques. This will create the demand for skilled employees which will hopefully drive employers to invest in training appropriate to the emerging skills and construction processes. Industry qualifications and training should be updated to include skills associated with new construction methods. It’s the only way to ensure the workforce and industry is equipped for the future.
It’s no secret that there are a number of challenges facing the industry, many of which will get worse after Brexit, but we need to ensure we’re taking actions and doing all that we can to avoid the skills shortage being so significant in the future.
Research shows that projects with higher levels of direct employment often work better, the workforce is more engaged, and the client tends to be happier with the final product. The industry is changing, we all know that. We’ve accepted new construction methods and are getting to grips with offsite manufacturing. We just need to invest more in our people, ensuring they have the right training to see us through the next decade, which I personally think might be our most challenging yet.
For more information on Constructing Excellence in the North East, please contact chief executive, Catriona Lingwood, on 0191 500 7880 or email firstname.lastname@example.org.