There is significant opportunity for SME construction firms to plug the demand for infrastructure, housing, and maintenance projects. But the industry faces a pressing challenge: a significant shortage of skilled labour. It’s the biggest operational hurdle for construction businesses in the UK, and here we discuss how you can overcome the issue.
The Current Landscape
According to the Construction Industry Training Board (CITB), the UK will require an additional 251,500 construction workers by 2028 to meet projected demand. This translates to approximately 50,300 new workers annually, a notable increase from previous years.
The demand spans various sectors including:
- Private Housing: Driven by government targets to build 1.5 million homes by 2029.
- Infrastructure: Ongoing and planned projects necessitate a robust workforce.
- Repair and Maintenance: The aging housing stock requires significant upkeep.
Challenges for SMEs
Small and medium-sized enterprises are particularly vulnerable to these shortages. With limited resources, SMEs often struggle to compete with larger firms for skilled labour. The British Chambers of Commerce reported that 82% of construction and engineering firms experienced recruitment difficulties, highlighting the widespread nature of the problem.
Strategic Solutions
To navigate these challenges, SMEs can adopt several strategies:
1. Invest in Apprenticeships and Training
Developing in-house talent through apprenticeships can provide a steady pipeline of skilled workers.
2. Utilize Flexible Workforce Solutions
Engaging temporary staffing or project-based hiring can help fill immediate gaps. Specialist recruitment agencies can provide access to skilled workers for specific projects or peak periods .
3. Enhance Workforce Planning
Implementing robust workforce planning ensures that businesses can anticipate and prepare for future labour needs. This includes identifying potential skill gaps and developing strategies to address them proactively.
4. Invest in your team
Invest in training and encourage a learning environment, demonstrating that you value your team and their growth. This can help to reduce staff turnover.
5. Fair pay
It’s not unusual for workers to take the best paid role. Check that your pay scales are fair and inline with national averages in order to attract skilled workers.
Build a Workforce for Success
Addressing labour and skills shortages requires a multifaceted approach. By investing in training, reviewing working conditions and contracts, and planning strategically, construction businesses can position themselves to thrive despite the challenges.
CH4B supports SMEs and provides free resources so that business owners can learn, grow and success. Download our Build a Workforce for Success guide to gain actionable insights to help you develop a resilient and skilled workforce tailored to your business needs.
