Shortages of skilled construction workers in Britain could put the brakes on housing developments and delay complex infrastructure projects, surveyors have warned. Almost two-thirds of firms told a survey by trade body RICS that labour shortages were a serious issue as they looked ahead to what most said would be another strong year for the construction industry.
The warning comes after more than two years during which the domestic housing market has recovered some of its previous swagger, while the commercial building and infrastructure industries have remained in the doldrums. But a rebound in spending on infrastructure and commercial construction in recent months has added to the industry’s more positive outlook. This year, growth is expected to reach 3.8%.
RICS said progress was being held back by “a degree of uncertainty that has entered the market in the countdown to the general election”, but the biggest factor holding back growth was a lack of skilled engineers, project managers and other specialists.
RICS spokesman Alan Muse said: “Despite the outward optimism, there are some very real unknowns which are impacting on industry, including the general election, the UK’s relationship with Europe and skills shortages.
Muse said more than half of firms reported difficulties obtaining a bank loan or other form of finance, hindering their investment plans, especially small-to-medium-sized businesses. “Now that material shortages are becoming less of an issue, the practical challenges are in providing the skilled labour the industry needs and in alleviating the financial constraints, which saw nine months of decreased lending in 2014.”
But outward confidence for growth is strong, with 79% of respondents expecting their workloads to rise over the next 12 months. Workloads increased in every area of the industry in the first quarter, led by private-sector housebuilding in the south and housing association projects in the north.
A boom in road-building and maintenance firms triggered the fastest growth in infrastructure activity since 1998, when the surveyors’ body first started its industry poll.
