The state of the construction industry is often considered a trendsetter for investor confidence in the British economy. Following unprecedented market turbulence in Autumn 2022 that saw the BoE Base Rate double to its current peak and push inflation to its highest rate in 40 years, there was understandable concern in the industry regarding the impact of this changed economic landscape.
Of course, economic uncertainty is just one of the challenges the industry must face going forward. Supply chain management, training and recruitment, increasingly tighter planning regulations and the journey to fully sustainable buildings all must be met to ensure a strong outlook for the rest of the decade and beyond.
In the second of a series of blog posts, our Commercial Manager, Kevin Deere, takes a look at where the UK construction industry is today and examines one of its biggest challenges – Recruitment.
Forecasts for growth
The predicted fall in inflation from its unsustainable peak to a level that’s still over 1% above the BoE’s target has yet to be reflected in Base Rates, which remains at 5%. So, what does this mean for the industry?
Well, there is welcome news from the Glenigan Construction Industry Report for 2024/2025. This influential publication is forecasting growth for the next 2 years – 8% in 2024 and 7% in 2025 – amidst a strengthening economy. A positive vision for the years ahead will hopefully stimulate investment in the sector, increase investor confidence and build momentum for the medium and long term.
Attracting young talent
The industry is projected to need an additional 225,000 people by 2027 to meet UK construction demand. Bringing new people into the industry is, therefore, an essential and immediate necessity, and construction is in competition with many other sectors in the market to attract young talent.
The news that 2024 will see an increase in the number of industry apprenticeships clearly shows that there is a desire among young people to take their first step onto the career ladder in construction. One of the ways this has been achieved is by changing the way the industry is perceived.
Women in construction
The Office for National Statistics states that more women, on average since 2008, are entering the traditionally male dominated world of construction, indicating that the industry is seen as inclusive and welcoming and defines its people by their talents alone. While more needs to be done to recruit the numbers needed to keep the industry moving forward, the aim must be to achieve a gender split that is reflective of wider society.
Alongside recruitment, ensuring people remain in the industry throughout their working life is necessary as these are the people who bring the knowledge and experience to nurture and inspire the next generation. Furthermore, to create a productive environment where people want to spend their working life, everyone must be recognised as unique, with different qualities and ways of working.
Neurodivergence
There is growing recognition of the importance of accommodating neurodiversity in the workplace. Research by APM indicates that up to a quarter of the construction industry is neurodivergent, which includes autism, ADD and dyslexia. Yet, many individuals hesitate to disclose their condition due to concerns about stigma or just ‘not seeing the point’. Creating an inclusive environment where individuals feel supported and valued for their unique strengths can attract diverse talent and drive innovation and productivity within the sector.
The construction industry offers excellent opportunities for those with neurodivergent traits to shine. By introducing accommodations, we can attract individuals with unique talents and abilities that come with neurodiversity, providing a wealth of possibilities and new ways of thinking.
Just as there always has been, the possibility of seismic economic shifts is always on the horizon. Just as it has always done, the construction industry will withstand these events due to the strength and support of its most valuable resource. Its people.
