North West worries deepen over construction skills shortage

The vast majority of building contractors based in the North West are concerned that skills shortages will hold them back next year, according to new data.

Research from construction recruitment firm Ionic, which has offices in Warrington and Birmingham, found that 83% of the region’s building contractors believe a lack of available skills will limit their growth in 2016. The findings pointed to particular concerns over a shortage of estimators, quantity surveyors and site-based personnel.

The research also found that 71% of contractors in the North West struggled with skills shortages in 2015.

To compile the data, Ionic carried out an industry perception audit with 50 of the region’s contractors. Just over half (54%) of respondents said cost inflation for labour/subcontractor rates was a barrier to growth.

Ionic’s managing director, Martyn Makinson, said: “The construction industry has introduced a range of initiatives this year to try to combat the chronic skills shortages; however, the scarcity of key personnel continues to hold back the sector.

“The health of the construction industry should be a concern for everyone as its problems resonant.”

He continued: “They impact the cost and delivery of projects from the smallest housing development to HS2 and everything that will come under the Northern Powerhouse vision.

“The cost pressures are about supply and demand – and the erosion of profit margins for companies which have only just recovered from the recession.”

Elsewhere, the research highlighted increased volatility in the region’s workforce. Around 66% of respondents reported seeing a rise in staff turnover in 2015. Just over 54% said they had to make counter offers to retain staff over the last 12 months.

Ionic’s survey also found indicators of the increased activity in the property sector, with 62% of respondents bidding for up to 25% more projects than they did in 2014.

Speaking further about the findings, Martyn said: “People are the raw materials that will help a business grow but competition has returned to the jobs market in a way that impacts the bottom line.

“In a candidate-driven marketplace, construction companies need to present themselves as attractively as possible.”

He concluded: “It’s also imperative that they sell themselves well at interview stage to prospective candidates by focusing on career and skills advancement opportunities; which from experience are more important factors than a salary increase.”

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