Like any other industry, construction is constantly having to adapt to new challenges and this year has brought its unique difficulties. With 2021 coming to an end, we take a look back at some of the main challenges the industry has faced over the course of the year.
Skills Shortages
One of the ever-present challenges in the industry has been the need for new talent to fulfil its growing demands. The construction industry is experiencing a shortage of workers, and the rate of new applicants is not enough to combat the shortage.
Construction has bounced back quicker than expected from the Covid-19 pandemic and it is forecasted that the industry will need to recruit an additional 217,000 new workers in order to meet demand. According to CSN, most English regions will experience an increase in workers by 2025, with East Midlands (1.7%) and West Midlands (1.4%) expected to lead demand.
The skills shortage that the industry continues to be faced with has created a number of implications, including: longer project times, hiring difficulties and increased wage demands.
During 2021 construction vacancies soared to record highs, rising to the highest levels since official records began in 2001.
And as vacancies in the industry surged by the fastest rate on record, talent in the construction industry have had the power to find new companies that offers them exactly what they’re looking for to achieve true job satisfaction; whether that be financial incentives, a clear path for progression or more of a work-life balance.
Ageing Workforce
Currently, over 50s account for around a third of employees in the construction industry across the board and as more and more professionals begin to reach retirement age there will be essential skills lost, this is exacerbated by the fact that the number of new recruits is not increasing and there will not be enough new talent to replace those retiring.
There is also a concern that the industry is losing a valuable teaching resource, as older workers often use their expertise and experience to help develop new entrants.
Extending the retirement age, which has proved effective in some other industries, may not offer the solution to the construction industry. Many construction jobs are physically demanding and therefore it is not always possible to safely extend the retirement age for all sectors of the industry.
Strategic plans are required to be implemented in order to encourage younger generations to pursue careers in the industry.
Materials Shortage
Covid-19, Brexit and booming demand combined to drive up prices for the essential materials the UK’s construction sector needs in 2021.
The government called out for the UK to “build build build” as a key part of its strategy to drive growth across the economy in response to the COVID-19 crisis; it’s ambition to “build back better” kick started in 2020 and gained further momentum in the last 12 months. This demand has played a key factor in the shortages of material the sector is currently seeing.
The UK construction industry has had to navigate shortages of steel, timber, bricks, cement, and other essential building materials throughout the year.