Is Britain’s construction shortage getting worse?
Manchester’s planned £365mn Co-op Live arena suffered three failed launches before finally opening in June.
The problem, according to the American investment firm behind the project, the Oak View Group, was a lack of skilled construction workers that caused the project to stall.
The Co-op Live arena isn’t the only project that’s struggling amidst this skills shortage. Large projects and utilities firms, like Hinkley Point C, National Grid and Thames Water, have raised concerns about labour shortages.
It’s not just labourers who are in short supply but senior project managers as well. According to Juliano Denicol, associate professor at University College London, all civil UK projects are struggling to find skilled, senior leaders.
If you work in the construction sector, you’re likely already familiar with this trend. But why is this happening? And, more importantly, what can you do about it?
Ageing population
Much of this comes down to an ageing population.
According to the Financial Times, employment among UK-born construction workers aged 50-54 fell between 2019 and 2024, while the 60-64 age group increased in the same period.
Simply put, many older, skilled, and senior project managers are retiring – and there are fewer people to replace them from younger generations.
Overseas opportunities
So, where are these younger generations going?
Some analysts believe that much of this comes down to skills poaching by construction companies in the Middle East. These companies typically pay better salaries than in the UK, which, in conjunction with the opportunity to live and work abroad, is attractive to many skilled construction professionals in the UK.
Slow Apprenticeships
The government’s response in the past 14 years was to increase the number of apprenticeships so that domestic talent can plug the skills shortage.
This has only partly worked. Last year, there were 31,000 apprenticeship starts, but almost 40% dropped out. Moreover, apprentices take time to train and even more so to get the skills and experience needed for senior positions.
Companies need another strategy.
What can you do?
Companies who maintain an adept and agile recruitment strategy, should overcome the worst of this shortage.
Part of this comes down to employee compensation. Indeed, many construction firms are choosing to increase wages, which were, on average, 22% higher at the end of 2023 compared to 2019.
However, this only goes so far. Your firm could have the best employee compensation package on the market yet still struggle to put it in front of potential applicants.
One reason is a lack of proactivity. Many viable candidates on the market aren’t necessarily seeking a new role. Unless these people are approached directly, they often won’t consider a job switch – let alone respond to your company’s job posting.
Furthermore, UK construction circles are close-knit, meaning that unless you’re discreet about approaching passive talent, you risk harming your firm’s reputation as an organisation that “steals” talent.
The solution, therefore, is to work with a recruiting partner.
Pinnacle Recruitment
By partnering with a recruitment firm, construction companies can tap into a broader and more diverse talent pool. Recruiters with industry expertise can discreetly identify and approach passive candidates, presenting opportunities in a way that doesn’t harm the company’s reputation.
Recruitment firms also have established networks and databases of qualified professionals, making it easier to find the right fit for specific roles.
At Pinnacle, we pride ourselves on our ability be leverage our existing networks to find the best-skilled candidates for your position while simultaneously maintaining the necessary discretion to protect your firm’s reputation.
We’re also proactive – so that you don’t need to be. Reaching out to candidates personally can be a drain on in-house resources — even if there are in-house teams in place.
We can provide you with a shortlist of candidates who meet all your requirements, saving you time and effort in the recruitment process, all while maintaining privacy on both ends.
So, if you’re looking for a partner who can help you with the shifting talent demands in the UK’s construction sector, look no further than Pinnacle and reach out to [email protected]