Acute Skills Crisis Hampering UK Construction Firms, Amidst Cost of Living Woes

Of surveyed UK construction firms currently recruiting, over a third (36%) are struggling to hire, with 58% unable to find the skills they need in the tight labour market. This is according to a new report from Autodesk, entitled ‘UK construction in 2022: Addressing talent challenges for the future workforce’, being released today. 

The survey of 207 UK construction professionals provides insight into the state of the industry today and the role that talent will play in stimulating growth, amidst post pandemic recovery and a period of economic uncertainty dominated by inflation hikes, the cost of living crisis and ongoing supply chain issues. 

Additional headcount needed to cope with increased demand  

Despite the difficult market conditions, construction has rebounded well from Covid-19. Over half (57%) of respondents predicted an increase in revenue in the next financial year, with an average expected growth of 27%. In order to meet their increase in contracts and work secured, approximately four out of five (79%) construction businesses surveyed are actively recruiting, with 42% saying that staff recruitment will be their biggest investment in the next two years.  

However, over a third of organisations are struggling to hire, with 36% saying that being unable to offer competitive salaries due to the increasing cost of living was a factor. Over two in five (42%) say that there is a shortage of labour due to Brexit. Electricians (51%), bricklayers (49%) and plumbers (41%) are the roles in highest demand. 

Great tech ambitions to improve future ways of working  

Despite their talent woes, construction firms surveyed feel generally well prepared to meet new regulatory requirements, with 72% believing that their company is well-equipped to adapt to the changes brought about by the Building Safety Act.  

In response to the policy, economic and environmental demands, new digital ways of working, sustainability, and diversity efforts are becoming top priorities for firms in the UK. 95% of UK construction companies surveyed plan to invest in emerging technologies by 2027, with 25% exploring 3D printing and virtual/augmented reality and 29% looking to invest in zero carbon and their sustainability and ESG strategy. Worryingly, however, just over a quarter (27%) are making these IT investments today, pointing to a big upwards struggle for firms looking to deliver emerging technologies in the short-term.    

“It is clear from our research that the construction industry needs to continue to develop traditional skill sets at the same time as developing the digital capabilities needed to deliver on the country’s goals around growth and sustainability,” said Matt Keen, Director of Construction Strategy, Autodesk. “We must invest in the next generation of skilled workers and emerging technologies that are increasingly shaping the built environment now in order to compete for talent, and present construction as an attractive career path for the decades to come.”   “UK construction is going through a time of change, but this is also a chance to reset our approach to the workforce,” added Amit Oberoi, Non-Executive Chair of the Considerate Constructors Scheme. “We need to attract new workers to the industry, whether that’s entry level candidates just starting out or people switching careers. Improving equality, diversity and inclusion will help to bring new kinds of talent to construction, particularly as new technologies and methods of construction are adopted. Construction companies and sites can be the best advertisement not just for themselves, but for the industry as a whole.”