Laing O鈥橰ourke boss bemoans the ability of the industry to attract 鈥渂right people鈥�
Ray O鈥橰ourke, chair of contracting giant Laing O鈥橰ourke, has said that the productivity in the construction industry is 鈥渨oeful鈥�.
Speaking at a round table on investment in Australia, hosted by HSBC bank last week, O鈥橰ourke said productivity in both the UK and Australia was poor and bemoaned the industry鈥檚 ability to attract 鈥渂right people鈥�.
He said it was difficult to attract smart young graduates into construction because they had many opportunities in other industries the UK, while he said that in Australia the fact that many construction projects were far from the major cities created a similar recruitment problem.
He said: 鈥淧roductivity is woefully low in both regions鈥� How you can get improved productivity is by transitioning from having trades to technicians. I want to see people working with a lab coats [on site] assembling stuff that has been manufactured to a very high standard.鈥�
O鈥橰ourke has invested heavily in offsite manufacturing facilities in the UK and Australia and has made offsite manufacturing a central characteristic of his business.
He also said striking early agreements with trade unions on worker conditions and pay was another key part to ensuring improved productivity.
He praised the Australian trade unions in particular. He said: 鈥淲hen we have agreements they live by them.鈥�
O鈥橰ourke also said that he expected the firm鈥檚 Australian business to continued to account for around half of the firm鈥檚 revenue, as it did last year.
He said: 鈥淲e think the shift that has taken place [towards Australia] over the last couple of years will flat plane now.鈥�
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