Rates at which method is currently used not enough to plug worker gaps, group warns

The adoption of modern methods of construction would have to 鈥渆xpand considerably鈥� to have an impact on labour shortages in the industry, according to Skills England.

In the first report published by the new arms-length body, interim chair Richar Pennycook described how the UK鈥檚 businesses and public services have been 鈥渓aggards in productivity over the past 30 years鈥�.

In its section on the construction industry, the report said the government鈥檚 plans for housebuilding and investment in the energy and water sectors would 鈥渞equire an expansion of the UK鈥檚 construction workforce鈥�.

MMC

MMC won鈥檛 be able to solve labour shortages at the rate it is being used now, Skills England has warned

The industry, it said, 鈥渨ill simultaneously need new workers and to upskill existing workers to improve competence, safety and productivity鈥�. 

鈥淭he use of Modern Methods of Construction (MMC) has the potential to reduce construction鈥檚 reliance on skilled labour pools and drive productivity in the sector,鈥� it added, citing a 430-home scheme in Birmingham where its use improved efficiency by 50%.

鈥淗owever, due to its currently limited use in the sector, MMC adoption will need to be expanded considerably to bring a notable impact on our current skilled workforce requirements,鈥� the report said.

The report identified a range of reasons why UK construction had struggled to invest in productivity enhancements over the years.

鈥淐onstruction typically has highly cyclical and unpredictable profit margins and therefore struggles to invest in skills and innovation,鈥� it said. 

鈥淗igh rates of subcontracting and self-employment also disincentivise employer investment in training for on-site workers.鈥�

The Construction Industry Training Board forecast that the construction sector will need 252,000 extra workers over the period 2024-28 to meet UK construction output.