In the aftermath of the credit crunch, the construction industry faced severe setbacks, leading to a significant skills shortage that persists today. The repercussions of halted construction projects resulted in firms cutting back on recruitment, apprentice programs, and essential training. While the industry is on the path to recovery, a new challenge has emerged – the acute shortage of skilled staff, exacerbated by the Brexit situation.

The Impact of Recruitment Challenges

As building programs gain momentum, the construction industry struggles to meet the demand for skilled professionals. The shortfall in recruitment, especially in nurturing the next generation through graduate and apprentice programs, poses a serious obstacle. The ambitious target of 250,000 new homes per annum seems unattainable without a substantial increase in the pool of skilled workers. The dependency on overseas staff, particularly from European neighbours, becomes more pronounced as the shortage persists.

Brexit and the Hollow Bluff

With the trigger of Article 50, concerns rise over the rights of EU passport holders residing in the UK. The government’s reluctance to secure these rights under the guise of bargaining strategy raises questions. The purported threat to seek the return of EU nationals lacks credibility, as the construction industry and related sectors heavily rely on the skills of these workers. The need for skilled EU nationals is undeniable, and the UK must take a principled stance on this issue.

Build Using Development Finance

Addressing the skills shortage is crucial for the growth and success of the construction industry. BLG development finance, with its commitment to supporting development projects, offers solutions to bridge the funding gap. By partnering with BLG, businesses can access development finance that facilitates training programs, recruitment initiatives, and overall industry growth. Explore the opportunities that BLG development finance provides to overcome the challenges posed by skills shortages in the construction sector.

As the construction industry grapples with skills shortages, it is imperative to look beyond political uncertainties and focus on tangible solutions. The collaboration with entities like BLG development finance becomes instrumental in addressing the funding needs required to train, recruit, and retain skilled professionals. By securing the rights of EU nationals and investing in industry development, the UK can ensure a robust and sustainable future for its construction sector.

Hat’s off to property developers embracing newer construction systems – but the utility companies need to keep up

I recently reviewed a report on a new housing scheme constructed from a pre-fabricated flat pack kit.  It was constructed start to finish in 5 weeks. BLG also funded a more traditional build but using a flat pack timber frame structure where from first dig of the footings to roof on has been achieved in just 4 weeks; the full house should be delivered in around 5 months’ total. This is building in the 21^st Century and hats off to those builders who are embracing newer construction systems.

Conversely, we are trying to get a new water supply delivered to a 10 house scheme AND get a high voltage power moved to finish a 7 apartment development. The water utility has quoted 4-5 months to conduct the work and the electrics have been waiting +9 months.

At times I have been critical of building industry practices; compared with Europe or the USA, some UK construction methodologies can appear antiquated. Increasingly UK builders are catching-up but our utility providers are still way behind.

If the UK is to deliver 250,000 plus good quality affordable new homes each year, we need an end-to-end supply chain that is committed to excellence. Our construction professionals are trying and steadily succeeding. The utility providers that run quasi-monopoly operations have some catching up to do. #buildmoreaffordablehomes

Stuart Parfitt is Managing Director for BLG Development Finance and a keen cricketer.