Industry Challenges: HS2 Delays and the Impact on Rail Manufacturing Jobs
Last month, the Times newspaper reported that employees at the Litchurch Lane plant in Derby may lose their jobs due to delays in HS2 contracts, causing the factory to run out of work.
If Litchburn Lane is mothballed, it’s not only the 2,000 highly-skilled factory workers who will lose their jobs. Over 17,000 people across 1,400 companies in the supply chain may be affected.
The recruitment sector is vital in mitigating these employment challenges, but this has to be done correctly.
It’s about getting people back into work as soon as possible, ensuring they are placed in the proper role, and supported throughout the recruitment process. This is where specialist expertise comes in handy.
Background
The HS2 project has been mired with issues from the start. The £100 billion project has far exceeded its original price tag of £33 billion. Likewise, there’s been pushback from environmental campaigners and people reluctant to sell their homes.
These problems aside, the project has generally positively impacted employment in the UK. This summer, over 3,000 formerly unemployed people were supported into jobs on HS2.
Likewise, the knock-on effect on other industries is notable. The massive demand for steel has created hundreds of jobs in South Wales, Yorkshire and Nottinghamshire.
The potential mothballing of the Litchburn plant is another stage in HS2’s series of ups and downs. Moreover, it reflects general issues with the UK manufacturing and construction sector, as the Arcadis Autumn Report notes.
According to Arcadis, the UK construction sector has grown for eight successive quarters, but there are “signs of a broader slowdown”. Notably, infrastructure leads the decline.
Opportunities
Ironically, despite the declining market and ongoing recession, the UK construction industry still has a massive skills shortage.
58% of construction organisations are struggling to find the right talent. Furthermore, the UK needs an estimated 250,000+ construction professionals by 2027.
Therefore, the challenge for recruitment firms is not just to get people back into work – it’s to get them into the right job and support them throughout the process.
There’s much to consider, such as job security and longevity, career progression opportunities, and company culture and values, to name a few. The more specialist the job role, the more important these things are – for the company and the candidate.
Furthermore, redundancies can be personally challenging for candidates. This isn’t just about stress and financial pressure, but also at an individual level of confidence and self-identity.
A good recruiter will consider these things and ensure that the candidate is matched to the right jobs, supported throughout the process, and given valuable and proper feedback if an application fails.
Industry resilience and moving forward
According to the Times, Alstom may reduce the workforce at Litchfield Lane. Layoffs aren’t uncommon in the railways, construction, manufacturing and civil sectors – especially after the Covid-19 pandemic.
Recruitment agencies must be able to navigate these circumstances effectively. Whether you’re a candidate or a client, finding the right recruitment agency with specialist sector experience is crucial.
They must also be suited to long-term relationships and be able to work closely with both the client and the candidate.
The UK is on the brink of a recession. There are, potentially, more job losses coming, and recruitment firms must be positioned to deal with it. If you’re looking for skilled headhunters, please reach out to [email protected]
Sources:
https://www.railadvent.co.uk/2023/08/hs2-huge-demand-for-steel-supports-hundreds-of-uk-jobs.html
https://mediacentre.hs2.org.uk/news/over-3-000-formerly-unemployed-supported-into-jobs-on-hs2
https://www.arcadis.com/en-gb/knowledge-hub/perspectives/europe/united-kingdom/uk-autumn-market-view
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