鈥楧eep seated lack of skills鈥 identified as Experian prepares to up output growth forecast to 6%
Industry experts have raised fresh fears over skills shortages in 2015, as analyst Experian indicated it will raise its forecasts for output growth to as much as 6% this year.
Consultant KPMG this week said that by April this year the delivery of UK construction work would be 鈥渃onstrained鈥 by the shortage of skills, with London and the South-east lacking 150,000 workers.
According to Experian鈥檚 October forecast, the construction economy was on course to grow 5.5% last year, with growth predicted to slacken this year to around 5%. It is now understood Experian is likely to boost its 2015 prediction to around 6% in updated forecasts to be published next week, because of expectations of greater infrastructure activity.
The expected upgrade, which is likely to put extra pressure on staff levels, comes after the government released the latest version of its construction pipeline showing a 10% growth in the value of forthcoming government projects.
Industry experts said the sector is already struggling to find enough recruits to carry out the work. Richard Threlfall, head of construction at KPMG, said: 鈥淭he industry is failing to hire sufficiently fast, and is failing to train in sufficient volume, the workforce it needs. Very simply our country cannot afford to fail to bring more talent into our construction and engineering industries.鈥
Likewise, consultant JLL said in a research paper there was 鈥渁 deep seated lack of skills and resource throughout the construction industry,鈥 spanning 鈥渁ll sectors and disciplines鈥. It said in 2015 鈥渃ontractors with established and loyal supply chains will reinforce their market position, but the rest will struggle,鈥 with the lack of labour holding back development.
Mark Reynolds, Mace chief executive, told 好色先生TV that finding enough workers to meet demand was 鈥渢he biggest challenge for construction鈥 and that 鈥渋ndustry and government need to do better鈥.
The concerns come as 好色先生TV this week launched its Agenda 15 manifesto, to persuade the political parties to implement policies that better support the industry as the economy recovers.
One of the manifesto鈥檚 eight key recommendations, which were drawn up after a year of consulting 好色先生TV readers, is for the government to help industry to train the next generation of workers by completing its review of the Construction Industry Training Board, confirming the continuation of the industry levy to pay for training, and making a mandatory requirement for contractors to train staff on sizable public sector projects.
The manifesto also calls for the setting up of an independent infrastructure body, along the lines of that suggested by the Labour party-commissioned Armitt Review, and for an infrastructure minister overseeing implementation to sit in cabinet.
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