UK Construction Faces Ticking Timebomb in Skills and Labour Shortages!

Construction Products Association (CPA) has warned that shortages of skilled labour have gone from bad to worse and is a ticking time-bomb for construction firms. Now is the time for construction firms to address this problem head-on by forging strong relationships with trusted labour providers, embedding them within their supply chains to guarantee labour supply.

The UK construction industry is facing a critical challenge due to ongoing skills and labour shortages, driven by the loss of tens of thousands of workers each year, the ageing workforce, and a significant dropout rate among apprentices.

According to the Construction Skills Network (CSN), the industry requires an additional 251,500 workers by 2028 to meet current and projected demand, translating to an average annual shortfall of approximately 50,000 workers—similar to the annual net loss experienced over the last five years.

The situation has been compounded by the effects of the pandemic, economic uncertainties, and decreasing immigration, all of which have intensified the impact of an ageing workforce.

Since 2019, the number of self-employed contractors and specialist tradespeople has decreased by more than 21%, primarily affecting older workers and those with niche skills. This shift has had a profound effect on the availability of skilled labour in critical areas such as private housing and infrastructure development Given these shortages, establishing strong relationships with reliable recruitment and labour supply agencies has become essential for construction firms. Partnering with a recruitment labour supplier can offer several benefits:

Reduced Project Delays: Labour shortages often lead to project delays, which can cause significant cost overruns. With a recruitment supplier, construction businesses have access to their network of vetted and skilled workers, helping them avoid costly delays Access to Skilled Labour: As firms struggle to fill skilled positions, recruitment agencies provide access to a broader talent pool, helping to address the industry's ongoing skills gap. Recruiters have established accounts and routes to job databases and can react quickly to client demands. This is especially important given the high dropout rates in construction apprenticeships and the declining number of new entrants to the workforce

Risk Mitigation: Labour shortages increase risks related to project deadlines, quality, and safety.

A well-established labour supplier can help mitigate these risks by ensuring a steady supply of skilled labour that meets industry standards. This partnership enables construction firms to focus on their core business activities without being disrupted by recruitment and payroll challenges. Recruitment and Employment Businesses can provide end to end solutions from advertising, CV database access, UK right to work checks, onboarding with CSCS checks, obtaining references, PPE supply, payroll and a whole host of laborious work in getting the workforce in place at the right time. They also offer flexibility in easily pausing labour supply to fit in with project delays, downtime and a number of other unpredictable factors construction firms do not want to be left holding.

The construction sector’s growth is forecast to recover by 2025, especially in areas such as public infrastructure and housing. Even so, many firms will be losers and get caught out by their complacency in the labour market and lack of forethought. Meeting demand hinges on building and retaining a skilled workforce including with the help of labour suppliers.

Without concerted efforts to address these labour shortages, certain firms within the industry will continue to face significant barriers to growth. As construction companies strive to meet ambitious government targets, including housing and infrastructure projects, effective workforce management through reliable labour suppliers will be crucial in safeguarding project timelines and quality.

This collaborative approach not only addresses current labour shortages, negating the effects of the ticking time-bomb, but also allows construction firms to build a flexible workforce model, preparing them to respond to future fluctuations in labour demand.