How is the Construction Industry Doing in 2022?
March 7, 2022
Specialist Recruiters for the Construction & Engineering Sectors
According to leading global property and construction consultancy, Gleeds, 80% of contracting companies agree there is a labour shortage. Almost 70% of these believe that the situation will continue and that there will be a negative impact. A report released by Gleeds predicts that inflation will rise by up to 5% in London with a rise of 3.5% in other locations. Also 86% of those surveyed believe that the industry has not yet seen the worst impacts of Brexit.
Chief executive officer at Gleeds, Graham Harle said, “We are not making a political point, but our survey shows real issues with labour shortages across UK construction which are not currently being addressed by the government. “The London Mayor is accurate when he says that our recovery will be put at risk if there isn’t a skilled workforce available to build.
“Construction is absolutely vital to driving the economic recovery of the nation and Gleeds’ market reports have shown an escalation in the problem of labour availability – with 80% of contractor respondents experiencing problems at the end of 2021.” Data analysts who helped compile the report expect that pay rates will increase, making labour costs a bigger issue than material shortages. As problems with materials start to settle, project costs will take over as the major worry.
The Office for National Statistics, found that 43,000 jobs were unfilled across construction as of September 2021. This is the highest volume of vacancies in the sector for at least 20 years. The Government recently announced a new flexible apprentices scheme to run until 2023, teaching skills and creating opportunities. Key sectors such as construction and health care, as well as the creative industries will benefit. Almost £5 million has been allocated to encourage employers including the BBC and NHS to support the drive.
