The Market Is Rebounding – But Not In The Way You Think

According to economists at Refinitiv, a global economy research firm, the UK economy grew 0.1% in February. Furthermore, much of that growth is thanks to the construction sector rebound.

At first glance, this seems unusual. The construction industry isn’t in the best shape it’s ever been, and overall production is down. However, the industry isn’t necessarily contracting but, rather, shifting.

For example, housebuilding is down compared to previous years (albeit recovering slowly, according to Bellway chief). At the same time, infrastructure projects are on the rise again.

It’s fairly consistent with last quarter’s trends, in which the infrastructure sector saw a 9% increase in growth.

Furthermore, it’s common sense that other spaces will eventually rebound. Although rising interest rates have hampered the housebuilding sector, the basic principle remains: people need homes.

And, given the ongoing housing shortage, the UK needs someone to build them. While the housebuilding sector might be slow for now, that could very quickly change. When it does, it will likely rebound hard.

So, what does any of this mean, and how should you adapt?

Training and development

The general mood within the construction industry is optimistic.

As one Senior Economist at the Royal Institute of Chartered Surveyors (RICS), Tarrant Parsons, said: “Although current conditions across the UK construction industry remain relatively subdued, the latest survey feedback shows a gradual improvement in forward-looking sentiment.

Indeed, firms seem to be putting their funds down in line with this, particularly in the talent space. Investment in skills training is up from last year, meaning that most firms recognise that even if they don’t need the talent now, that could very quickly change.

However, training and development isn’t always an option for many firms, especially when some are making cutbacks. Training a permanent employee base is a double investment: you need to pay for the employees themselves and the upskilling process.

To make matters worse, it’s a catch-22. As the market rebounds, firms that don’t invest in training might find themselves at a disadvantage when it comes to being able to bid for projects and not having the appropriate talent in place.

The need to be flexible

The question remains: how can companies meet fluctuating talent demands without maintaining large overheads that could compromise their existing financial situation?

The answer is to keep a flexible talent pipeline, which means two things.

Firstly, it means being able to onboard senior skilled professionals when needed. This saves on in-house salary and training costs. Secondly, it means being able to access a diverse skill pool to give your firm good operational flexibility to meet different project requirements.

To do this, you need a good talent acquisition protocol. One option is to keep an in-house recruitment team, but this defeats the purpose of keeping in-house costs low.

A better alternative is to outsource to a solid recruitment partner who can reliably meet your company’s talent needs while keeping in-house costs low.

Pinnacle

The market is changing, and your company’s talent pipeline should be flexible enough to cope with these changes.

Pinnacle Recruitment has over 20 years of experience in construction recruitment, meaning our clients can access our extensive networks to meet any and all project-specific talent needs.

We know the exact types of potential candidates to look for in the construction industry and the best way to approach them.

Moreover, this is done discreetly so that your firm’s reputation is protected.

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 the shifting talent demands in the UK’s construction sector, look no further than Pinnacle and reach out to [email protected]