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Industry backing for the government to relax its post-Brexit immigration proposals

October 16, 2019/0 Comments/in Home Page news feed, News /by James

The Construction Industry Training Board (CITB) report calls for the proposed one-year visa for ‘low-skilled’ workers to be extended to two years.

It also recommends that non-UK born workers entering the UK on a ‘low skilled’ visa be allowed to transition to a ‘high-skilled’ visa while working in the UK – train to remain.

And it proposes an ‘umbrella sponsorship’ scheme to allow self-employed non-UK workers to obtain the necessary employment sponsorship.

The CITB’s research found that 61% of migrants say they would choose to move from a ‘low’ to a ‘high’ skilled visa while continuing to work in the UK, and that 70% of employers of non-UK born construction workers see the ‘low skilled’ visa for people with level 2 qualifications as unsuitable for their businesses

The research report, Migration and Construction, finds that just 3% of construction employers have the necessary experience in handling visa applications, with two-thirds saying that the process is difficult.

Under the new post-Brexit immigration system – due to be introduced in January 2021 – employers will have to learn how to navigate the bureaucracy of visa applications for all foreign workers.

CITB policy director Steve Radley said: “Migrant workers have long played a key role in the UK’s construction sector. They make up 14% of the construction workforce, a percentage that rises to 54% in London. They give employers the flexibility to respond quickly to skills needs.

“Employers are raising real concerns about the future 12 month visa scheme. They want to see it extended to 24 months, and for workers to be given the opportunity to ‘train to remain’. A new scheme must additionally be put in place to enable self-employed migrants to work in the sector.

“It’s important that construction has the breathing space to adjust to new changes. CITB will work closely with Government to see that a simple, flexible migration system is put in place to support employers’ skills requirements, while industry grows its domestic workforce.”

Contractors have backed the recommendations

Alasdair Reisner, chief executive of the Civil Engineering Contractors Association (CECA), said: “The construction and infrastructure sectors have been facing a looming skills gap for some years, and it is deeply concerning that after the UK has left the European Union restrictions may be put in place to prevent non-UK born workers contributing to our industry.

“Currently, non-UK born workers account for 14% of UK construction’s workforce, rising to 54% in London.

“Industry is in the process of moving towards recruiting an extra 44,000 British-based people in construction by 2025 to meet projected demand.

“However for UK construction to achieve this goal while delivering the significant pipeline of projects the UK government has planned, those who currently contribute to our industry and the economic and social wellbeing of us all must be given the opportunity to continue to do so. That’s why we are calling on the government to take steps to ensure industry is ready for the post-Brexit migration landscape, by extending the period in which existing non-UK born workers are able to ‘train to remain.’

“Employers in the construction sector are actively working to grow the domestic workforce, but it will take time to do so. Unless the UK government changes its position, industry will be hamstrung in the immediate post-Brexit period, to the detriment of its ability to drive growth and deliver for the UK economy.”

Brian Berry, chief executive of the Federation of Master Builders, said: “The CITB report is absolutely right to highlight the barriers facing construction employers needing to employ non-UK workers. The government needs to look again at its post-Brexit immigration system to make it easier and simpler for small building companies needing to recruit non-UK labour. There is currently a serious skills crisis in the building industry which explains why 9% of the construction workforce is made up of EU workers. Given it takes many years to train a high-quality tradesperson there will, in the short term at least, continue be an urgent need to recruit non-UK labour. Without this labour the industry will not be able to deliver the homes and key infrastructure projects that are needed to underpin the UK’s national productivity and growth.”Mr Berry concluded: “The current non-EU migration system is exceptionally difficult for small employers to engage with taking as long as eight months in some instances to secure specialist tradespeople to come to the UK to work on sites. Most small businesses simply don’t have the time and resources to take that on. It would be very damaging just to extend this system to EU workers without seriously reforming it. Extending ‘low skilled’ visas from 12 months to 24 months; allowing non-UK born workers the opportunity to transition to a ‘high skilled’ visa; and the creation of an ‘umbrella sponsorship’ scheme would help ease concerns about how construction companies are going to fill the skills gaps.”

Souce: The Construction Index

Recession fears as EU workers leave the UK

August 28, 2019/0 Comments/in News /by joannevickers

There are clear signs that the construction sector is bracing itself for a downturn.

According to the Federation of Master Builders (FMB), an independent, non-profit trade association that represents 8,000 small- to medium-sized building firms, companies are already reducing their headcount of direct employees in favour of subcontractors who are easily removed if the work dries up.

The FMB’s most recent State of Trade survey showed that employment among construction SMEs had dropped for the first time in more than five years.

“Their thinking is that if the worst happens and a recession hits later this year, they need the size of their workforce to be flexible in order for their firm to survive,” said Arthur McArdle, the FMB’s national president. “However, this strategy is not without risk, as if construction bosses are employing more subbies, they might not always be certain of their quality. Rebalancing the workforce may seem like a good idea at the time, but it could lead to reputation-damaging mistakes.”

Another body, the Home Builders Federation (HBF). meanwhile. said however that delays in the planning process and a lack of available land were of more concern at the moment to its members, who account for 80% of all new homes built in England and Wales.

Buyer confidence was cited in March as a major constraint by only 7% of members of the Home Builders Federation (HBF), well down on the 48% who said it was a challenge of a similar scale at the end of last year.

Stockpiling, which has been taking place in other sectors ahead of Brexit, is meanwhile less of an indicator in the building trade. Smaller and medium-sized companies do not have the necessary storage space in the first instance. When shortages have occurred, such as problems in relation to bricks last year, they have been rectified relatively quickly.

Results from a survey of over 10,500 construction workers carried out by recruiter Randstad has revealed that one in three EU nationals have considered leaving the UK because of the Brexit referendum.

The truth is that it’s the potential drop in construction projects, subsequent funding, and availability of jobs that’s the biggest driving force influencing the 39% who are expressing concern. This is followed by uncertainty over trade deals with the EU (19%), new findings suggest.

A no-deal Brexit raises the prospect of delays and cost increases, as employers face difficulties to get vital EU workers to UK building sites, threatening timing of projects. With 7% of construction workers in the UK and over a quarter of London’s construction workforce coming from other EU countries (ONS), plus the £10bn (15%) of building materials coming from the EU, it’s clear that action needs to be taken. The good news is that there is still time to make a difference and retain highly-skilled workers.

As the country gets closer to withdrawing from the EU, it is becoming clearer that employers and employees are sceptical of what the industry will look like later this year in terms of workforce and materials supply. Of all of those surveyed, one fifth admitted that they have considered leaving the country amid Brexit uncertainties.

Source: The Guardian / Showhouse.co.uk

“Brexit fatigue” sees surveyors report construction output grow

July 31, 2019/0 Comments/in Home Page news feed, News /by joannevickers

The industry is getting on with life as its patience with Brexit related indecision wears thin according to the latest RICS Construction and Infrastructure Market Survey.

Quarter two results show output growth accelerating and workload and employment expectations gathering pace for the year ahead.

The quarter saw 16% more surveyors reporting an increase in construction workloads, up from a +9% net balance in Q1.

RICS Senior Economist, Jeffrey Matsu, said: “Three years on and the long, unrelenting shadow of Brexit uncertainty is testing the mettle of the construction industry.

“After a prolonged period of delays and underinvestment, businesses now appear to be fed up and are proceeding cautiously with new hiring and intentions to invest.

“While much of this is likely to be backfilling or maintaining existing capacity, the requirements of larger projects such as Hinkley Point C and HS2 are constraining growth opportunities elsewhere.

“With the range of possible outcomes related to Brexit as wide as ever, we expect to see continued volatility in the construction output data but in the meanwhile foresee workload activity stabilising.”

Following a dip in Q1, workloads in the infrastructure sector improved in Q2 and there was also modest growth in commercial and public non-housing activity.

Looking to the year ahead, workloads are expected to be most resilient in the private housing and infrastructure sectors with 27% and 25% more surveyors, respectively, anticipating activity to rise rather than fall.

The RICS market confidence indicator – a composite measure of workload, employment and profit margin expectations over the coming twelve months – rebounded to 21% (from 13% in Q1).

Investments related to equipment, software and worker training are expected to gather pace as well.

Source: Construction Enquirer

168,500 new jobs to be created

March 6, 2019/0 Comments/in Home Page news feed, News /by joannevickers

CITB experts are predicting an extra 168,500 new construction jobs will be created over the next five years despite the uncertainty of Brexit.

The training body’s annual Construction Skills Network (CSN) report anticipates average annual industry growth of 1.3% until 2023.

That is down a third of a percent on last year’s forecast and is based on the scenario that the UK agrees an exit deal with the EU, rather than a ‘No Deal’ Brexit.

Despite the wider economic uncertainty approximately 168,500 construction jobs are to be created in Great Britain over the next five years – 10,000 more than in last year’s forecast.

Construction employment is expected to reach 2.79m in 2023 – just 2% lower than its peak in 2008.

Steve Radley, Policy Director at CITB, said: “Assuming that a deal is agreed, we expect low but positive growth for construction.

“Even as infrastructure slows, sectors like public housing and R&M are strengthening.

“This will see the number of construction jobs increase over the next five years, creating growing opportunities for careers in construction and increasing the importance of tackling the skills pressures we face.”

The CITB and industry trade bodies have published a plan to help brace the sector for tighter migration controls after Brexit.

Building After Brexit: An Action Plan for Industry identifies the need for construction to adopt a twin-track strategy: growing investment in the domestic workforce and driving up productivity, while working with Government to agree how to maintain access to migrant workers to give it the breathing space to adapt.

Recommendations include:

Attract talent by raising apprenticeship starts and completions, creating pathways into construction for under-represented groups and providing better work experience opportunities.
Retain the workforce by supporting older workers to stay in the industry, upskilling the existing workforce and offering improved mental health support.
Be productive by developing a Future Skills Strategy to identify the skills required to modernise the industry, drive digitalisation forward and boost investment in modern methods of construction.

Steve Radley, Policy Director at CITB, sayid: ‘Construction needs a twin-track strategy, increasing investment in the domestic workforce and working with Government to agree how we can maintain access to migrant workers to give it the breathing space to adapt to changing rules.

‘The latest forecast has revealed over 168,000 new jobs will be created over the next five years and with a likely post-Brexit reduction to the availability of foreign workers, the industry must act now to avoid widening the skills gaps.

‘We must do more to attract new talent to the sector and get better at retaining and upskilling the current workforce. Finally, the sector must fully embrace digital skills in order to become more productive and mitigate the widening skills gap.’

Alasdair Reisner, Chief Executive at CECA, said: “The date for leaving the European Union is rapidly approaching and employers are finding it harder and harder to recruit the right people for their business.

“Recruitment is already very difficult for some key roles and this will be exacerbated once migration from the EU is reduced post-Brexit.

“We must work together, as an industry and with Government to target these gaps; boosting UK-based recruitment and training while looking to sensible migration from the rest of the world to meet demand.”

Brian Berry, Chief Executive of the Federation of Master Builders, said: “The single biggest issue keeping construction employers awake at night is the skills shortage.

“If we’re going to address this skills gap post-Brexit, the whole industry needs to step up and expand their training initiatives. Even Sole Traders can offer short term work experience placements and large companies should be aiming to ensure at least 5 per cent of their workforce are trainees or apprentices.

“But realistically speaking, the UK construction sector can’t satisfy its thirst for skilled labour via domestic workers alone.

“With record low levels of unemployment, we’ll always need a significant number of migrant workers too – particularly in London and the south east.

“The Government needs to work with construction to amend its Immigration White Paper and rethink the current definition of low-skilled workers.

“Level 2 tradespeople play a vital role in the sector and would currently be excluded, which is wrong. We urge Ministers to engage with the construction industry to help improve these proposals.”

Source: Construction Enquirer.com

Brexit will have no impact on the construction industry

February 27, 2019/0 Comments/in Home Page news feed, News /by joannevickers

A detailed analysis of the UK’s withdrawal from the European Union, with or without a deal, has shown that it will have little or no impact on UK construction, according to Laing O’Rourke group finance director Stewart McIntyre.

He has lead an analysis of Brexit implications and explained his findings in the company’s 2018 financial review.

He said that: “Laing O’Rourke has analysed its current order book and pipeline and this review supports an assessment that, to date, a ‘no-deal Brexit’ would present minimal, if any, risk to current projects and liquidity forecasts. The business has also considered implications for the sector and, to date, has not identified any negative impact on the UK construction market either in the traditional built environment or infrastructure sectors. We are concluding that, based on evidence to date and assuming the sector’s clients continue with their projects, there are minimal risks to liquidity forecasts arising from any deterioration in revenue.”

He continues: “The business has conducted a detailed review of its staff and workforce with a full analysis across primary job families. Based on the most recent data, 16.1% of the total UK headcount are EU citizens and 23% of that total are Irish citizens who have the full ongoing right to work in the UK. This risk assessment has highlighted a dependency on EU nationals in certain job families and the business is monitoring developments in these areas, however, it is clear that earnings and rewards are such that it does not present a significant risk to staff retention, staff recruitment or the ability to comply with the minimum earnings threshold for securing visas.”

Mr McIntyre also finds little to fear should the UK have to revert to trading under World Trade Organization (WTO) rules. “The UK business buys assets such as tower cranes as part of its core business and has conducted a detailed analysis on potential tariffs based on the past 12-month record of direct imports from the EU and possible registration procedures available to mitigate import supply difficulties,” he writes. “No tariffs apply under WTO rules to the import of tower cranes and it is assumed that additional customs procedures will create delays of no more than seven days. Apart from construction capital assets, the level of direct EU imports is low and the estimated additional costs arising from a ‘no deal Brexit’ are deemed to be immaterial.”

He concludes with a caveat that continued vigilance is required. “In summary, there has been no change to the group’s workwinning methodologies, or material negative impact on current live projects or staff recruitment and attrition. However, with the political environment continuing to develop, few companies can declare themselves immune to the risks of withdrawal from the EU. The board will continue to monitor developments in the UK business and political environment, and remains vigilant to the need to respond to changes in market conditions such as freedom of movement, finance and tariff implications, disruption to supply of plant and equipment and key construction components, logistics, exchange rates and primary commodity prices as we approach 29th March 2019, and for the period immediately after any other withdrawal date.”

Laing O’Rourke’s phlegmatism in the face of political uncertainty is in contrast to concerns that the Construction Leadership Council (CLC) has aired to government. CLC co-chair Andy Mitchell has written to construction minister Richard Harrington, copying in the chief executive of the civil service, warning that “it will not be possible to mitigate all of the potential impacts of ‘no deal’”. These include employment issues, trade in construction products, the future regulatory regime for construction products and potential impact delaying projects and adding costs.

Source: The Construction Index

Industry unites for largest-ever poll on skills shortages to gauge Brexit impact

December 5, 2018/0 Comments/in Home Page news feed, News /by joannevickers

Companies from across the UK construction sector are being invited to take part in the largest-ever research project on skills shortages. As the UK prepares for the departure from the EU next year, construction’s leading trade and professional bodies have joined forces to build a picture of those occupations that are in greatest demand.

The survey, which will go out to more than 20,000 companies nationwide, will ask respondents to indicate which roles they are finding it difficult to recruit now and which they expect to be challenging post-Brexit.

The survey is supported by the following industry groups.

Association for Consultancy & Engineering
Build UK and member trade bodies
Chartered Institute of Building
Civil Engineering Contractors Association
Construction Plant-hire Association
Construction Products Association and member trade bodies
Federation of Master Builders
Highways Term Maintenance Association
National Federation of Builders

To ensure that the survey has as wide reach as possible, companies that are not members of the above organisations are also invited to take part in the survey. Evidence uncovered from the survey will be used to identify where the industry should be focussing its efforts to recruit new workers.

It will also be used to engage with the government and Migration Advisory Committee to support decision-making on appropriate migration for workers from the EU and rest of the world.

Mark Reynolds, Mace chief executive and skills lead for the Construction Leadership Council, said: “We know that our sector will need to recruit hundreds of thousands of new workers over the coming years. We want to ensure that this recruitment is supported with targeted actions by industry and government. The first step in achieving this is the development of a detailed picture of those occupations where we face the biggest challenge. I welcome the fact that the industry is unifying to develop this research and encourage all companies from across the industry to take part in the survey.”

Hannah Vickers, chief executive of the Association for Consultancy and Engineering, said: “With all the uncertainty around Brexit and its impact on skills, we need to make sure that our industry has a sound evidence base from which to argue, which is why I will be asking all our members to participate in the survey. We will need to come together in one voice and collectively make the case for construction to government, ensuring that any post-Brexit agreement secures the skills our sector needs now and into the future.”

Alasdair Reisner, chief executive at the Civil Engineering Contractors Association, said: “Our members tell us that recruitment is probably their single biggest challenge. We can only overcome this by working together, targeting significant interventions based on high-quality industry data to ensure that we can recruit and train the next generation of construction workers”

Please click here if you would like to take part in the survey.

Source: Infrastructure Intelligence

Construction growth to rebound to 2.3% next year

August 8, 2018/0 Comments/in Home Page news feed, News /by James

UK construction output is expected to bounce back to 2.3% growth in 2019 after dipping by 0.6% this year.

The growth hiatus this year ends the five-year run enjoyed by the industry, fed mainly by private sector home building and strong commercial and industrial activity.

While forecast 2019 and 2020 growth will boost civils contractors and trade contractors working for house builders, commercial building contractors are expected to continue to feel the squeeze in both commercial and retail work opportunities.

The latest forecast from economists at the Construction Products Association, revises 2018 output down from stagnation to contraction, due mainly to bad weather and the fall-out from Carillion.

Forecasters predict growth will bounce back in 2019 and then expand by 1.9% in 2020.

Strong house building activity outside London will drive up activity in this sector by 5% in 2018 and 2% in 2019.

Infrastructure will also become a primary driver of growth for the whole industry, with output forecast to hit a historic high of £23.6bn by 2020, driven by large projects such as HS2 and Hinkley Point C.

Without the forecast growth in infrastructure and private housing activity, total construction output would fall by 3% in 2018 and remain flat in 2019.

The demise of Carillion resulted in a poor performance for the industry at the start of the year, which combined with the bad weather, lost UK construction £1bn of work.

It is estimated 60% of this work may be recovered, but Carillion’s collapse will cause further delays at two major hospitals as work on the £335m Royal Liverpool University and Birmingham’s £350m Midland Metropolitan hospitals is on hold until at least 2019.

Brexit uncertainty continues to drive the sharpest decline for construction in the commercial sector, particularly felt in the offices sub-sector which is expected to fall 20% in 2018 and a further 10% in 2019.

Meanwhile, the shift to online shopping is causing woes for the high street, with new retail construction expected to fall by 10% this year.

Noble Francis, Economics Director at the Construction Products Association said: “Overall, it’s mixed fortunes for contractors at the moment.

“On the positive side, house builders are keen on accelerating building rates outside of London and that is expected to be enough to offset sharp falls in house building in the capital.

“Firms working on major infrastructure projects also have a lot of work in the pipeline. Infrastructure output is forecast to rise by 3% in 2018 and 13% in 2019.

“This growth is highly dependent on large projects such as HS2 and Hinkley Point C. As ever, there remain concerns about government’s ability to deliver infrastructure projects without the cost overruns and delays that we have seen on Crossrail and HS2 recently.

“On the negative side, the elephant in the room is clearly Brexit uncertainty, which has had a big effect on international investment, especially where it is high up-front investment for a long-term rate of return, which is now highly uncertain.

“It badly affects demand in sectors such as prime residential in London, commercial offices towers and industrial factories, which is dependent on manufacturing.”

CPA summer 2018 forecast

Construction output to fall by 0.6% in 2018 before growth of 2.3% in 2019 and 1.9% in 2020
Private housing starts to rise by 2.0% in 2018 and 2019
Commercial offices output to fall by 20.0% in 2018 and by 10.0% in 2019
Commercial retail output to fall by 10.0% in 2018 and remain flat in 2019
Infrastructure construction to grow by only 3.2% in 2018 and 13.0% in 2019

Source: Construction Enquirer

£22 million cash injection to address skills shortage

June 27, 2018/0 Comments/in Home Page news feed, News /by joannevickers

The government has attempted to address the construction industry skills shortage with a £22m cash injection which will bring training to construction sites and therefore allowing learners to apply their knowledge in a real-world environment.

The multi-million-pound Construction Skills Fund has been announced by skills minister Anne Milton with 158,000 new construction jobs expected to be created in the UK over the next five years after first being unveiled by the chancellor Philip Hammond in his Spring Statement.

Money will go towards 20 on-site hubs to train more people to help deliver 300,000 new homes a year by the mid-2020s. The 18-month scheme is funded by the Department for Education (DfE) and will be administered by the Construct.on Industry Training Board.

Commenting on the announcement, Milton said: “For our economy to thrive we need everyone, regardless of their age or background, to be able to get the training and the skills they need to make the most of the opportunities that lie ahead. The government has committed to building 300,000 new homes a year by the mid-2020s and we want to make sure that we are investing in the UK skills base to deliver this. A career in construction offers the chance for many people to establish and grow their own business. On-site training will be hugely beneficial for employers and trainees, as it will help bridge the gap between training and working in the industry, meaning trainees are site-ready sooner.”

The fund forms a vital part of the Government’s modern Industrial Strategy – a long-term plan to build a Britain fit for the future by helping businesses create jobs in every part of the UK.

It underlines the Government’s commitment to improving education standards for everyone, so they can gain the skills they need to succeed and can secure good jobs.

The fund aims to support:

20 on-site training hubs
Work experience and placements for people working to join the industry
Entry pathways for those currently unemployed
Pathways for career switchers.

CITB is now calling on employers, housing associations and other interested bodies such as LEPs and local authorities to submit expressions of interest. These can be from both existing and prospective on-site learning hubs.

The funding will only support on-site training provision, and access to live construction projects is essential to qualify.

Steve Radley, Policy Director at CITB, said: The Construction Skills Fund is a milestone scheme for the sector and provides a significant investment in skills and training. It will help attract new talent and bridge the gap between training and working in the industry. Having training on or near to major projects will reveal what an exciting sector this can be, while also putting new talent in the shop window. We want all interested organisations to submit Expressions of Interest that are innovative, collaborative and with training at their heart. We will support applicants through the process and provide expert guidance to apply to the fund. We are pleased to help deliver this major new project and we are confident that, with industry support, it can help meet construction’s skills needs now and in the future.

Managing director Graham Ratcliffe said: “It is great seeing funds being made available to support on-site training through hubs similar to the Construction Skills Villages in Scarborough and Barnsley. We hope to secure funds to expand our unique and successful model in turn helping support the construction industry overcome a skills gap.”

Funds provided by the DfE will also be provided for work experience placements for people working to join the industry, entry pathways for those currently unemployed and pathways for career switchers.

The CITB is now calling on employers, housing associations and other interested bodies such as LEPs and local authorities to submit expressions of interest. These can be from both existing and prospective on-site learning hubs.

Radley continued: “Having training on or near to major projects will reveal what an exciting sector this can be, while also putting new talent in the shop window. We want all interested organisations to submit Expressions of Interest that are innovative, collaborative and with training at their heart. We will support applicants through the process and provide expert guidance to apply to the fund.”

The Construction Industry Training Board (CITB) has released new research investigating how to tackle the skills crisis.

With Brexit on the horizon, the research points to the need for greater skills transferability, with a key goal to attracting talent from other sectors and trades.

The new report, ‘Construction and Built Environment: Skills Transferability in the UK’, surveying 500 employers across the UK, found that with a smaller construction talent pool post-Brexit, the sector needs to look at encouraging people from different industries to look at construction as a good career progression.

The industry is not noted for its diversity of talent, with researchers finding that 62% of employers took no action to encourage employees to transfer between trades. This is despite approximately one in five (19%) of construction sector workers having previously worked in another sector.

The report highlighted manual occupations, such as steel erectors and bricklayers, as the roles with the best potential to transfer skills.

The survey pointed to a number of challenges in increasing skills transferability, including:

Improving the image of the industry
Changing the way training is delivered to it promotes multi-skilling
Concerns from employees and unions around multi-skilling

Radley continued: “Our research shows that transferability of skills is a growing issue, particularly with Brexit looming.

“While many employers are not yet looking at it, it could become a significant way to meet our skills needs in the coming years.

“CITB clearly has a role to play in this. Our forecasts can help prioritise support for upskilling and ensure training providers are well placed to respond. In addition, we will collaborate with industry to develop top-up courses to enable transition for people with relevant transferable skills.”

Source: Infrastructure Intelligence / UK Construction Media

Is Brexit going to create a skills shortage?

June 20, 2018/0 Comments/in Home Page news feed, News /by joannevickers

Constructionnews.co.uk, as part of their week long industry skills challenge, have discovered how fresh data and political investigations are shedding more and more light on the impact Brexit is having and will have on workforces.

Brexit negotiations have moved forward yet at the same time seem to have produced little real progress.

Despite Theresa May’s ‘deal’ announced in December last year, uncertainty still hangs in the air for the UK’s 3.2m EU nationals.

Under the current agreement, EU citizens who have been in the UK for five years continuously will be able to apply for ‘settled status’. The online system is being developed from scratch, but the government promises it will be “user-friendly” and draw on existing data to “minimise the burden on applicants to provide evidence”.

The EU workforce’s contribution to the UK construction sector cannot be underestimated – particularly in London. As the Construction Industry Council pointed out in its evidence to the MAC: “Nearly 200,000 people working in construction are from the EU, which is the equivalent workforce for building 16 Crossrails.”

Only one more Crossrail is planned, for now, but that’s part of a £500bn pipeline of major infrastructure projects – including HS2, Hinkley and Heathrow. In addition, housebuilding is expected to ramp up as the government aims to tackle the UK’s shortage of homes.

In the scaffolding sector alone, thousands of employees will be needed for major nuclear power stations at Hinkley and Wylfa, leaving workers in short supply up and down the country.

Infrastructure plans are concentrated on the South-east, where the EU labour issue could become particularly acute. According to the MAC, 26.8 per cent of London’s construction workforce is from the EU.

Two years on from the EU referendum, how worried should the industry be about a ‘Brexodus’ and what are the current trends around labour?

The latest figures from the Office for National Statistics show that the number of EU nationals working in the UK has fallen 28,000 in a year to 2.29m.

ONS data published in February revealed that the number of Eastern European nationals working in the UK last year slid by 5 per cent.

Meanwhile its latest employment survey, published in May, showed that in Q1 2018, 80 per cent of main contractors were reporting difficulties with recruiting bricklayers, 76 per cent were having trouble finding carpenters and 56 per cent were struggling to find plasterers.

These issues can partly be attributed to the long-running skills crisis in construction. But they also emphasise the need to address the status of EU nationals.

Anecdotally, Mr Radley says the CITB is hearing that the number of EU workers in construction is remaining generally stable, but there is some concern about the quality of workers arriving.

“A lot of workers here currently are from Poland and are generally regarded as being technically some of the best – multi-skilled and with good language skills,” he says. “But it may be that immigrants from some other countries don’t score as highly on those fronts.”

As contractors work out how to fill the gaps, others are still concerned about how government views the construction industry in the context of Brexit. A leaked document last year revealed that construction was rated as a ‘low priority’ by government.

However, Liberal Democrat peer and former coalition government minister Lord Stunell believes this is the wrong approach.

“Everything about growth in the economy is dependent on construction, but the government seems completely transfixed with getting its immigration figures down,” he says. “The industry needs to expand its workforce by 30 per cent to get these big infrastructure projects done, but could lose 10 per cent of its workforce.”

It is not just the lack of EU workers that is weighing on the minds of construction bosses. The industry’s ageing workforce – with 30 per cent of workers over 50 – remains a deep-seated concern. The added sting in the tail is that there is a higher proportion of young migrant workers compared with their UK counterparts.

Brexit and an ageing workforce combined could prove a big stumbling block in the future, however figures generally are encouraging in terms of output at the moment, and that is something that can be built upon. Brexit was always going to bring uncertainty, but being prepared and working towards solutions now means that once change comes the construction industry as a whole will be ready.

Source: Construction News

A snap General Election – what does this mean for Construction?

May 17, 2017/0 Comments/in News /by joannevickers

Prime Minister Theresa May has announced plans to hold a snap general election on the 8th of June, citing a lack of unity in Parliament and Westminster. With the next general election not being expected until 2020, what could this mean for the construction industry?

The idea behind the election is that it would provide a stability and leadership as the UK departs from the EU. The public need to have faith in those steering us.

Mike Wharton, head of membership at the National Federation of Roofing Contractors (NFRC) and a fellow of the Chartered Institute of Securities and Investments (CISI), commented: “The Prime Minister’s intention to gain an increase in moral authority over Brexit talks had the immediate effect of a positive bump for the Pound. Both business and consumer confidence could benefit from a significant increase in Conservative majority, though Brexit terms are still likely to be dictated by the remaining nations of the EU. Significant uncertainty surrounds forthcoming elections in Europe and the unpredictable nature of US Government policy may give the Pound further strength. Within the built environment supply chain, Sterling strength would be a benefit to those firms which import finished product or raw materials from overseas and their contractor buyers; it could also give consumers more bang for their buck whilst keeping inflation under control. If the Pound continues to strengthen, that could also be a plus in terms of keeping borrowing costs low – all positives for the domestic construction industry in terms of confidence. There is no question though, volatility will be the watch word not just in the run up to the June General Election, but for the next few years.”

The election is a chance for the industry to make it’s priorities known. Building (building.co.uk) have realised a manifesto, Building a Better Brexit campaign, in which they have asked 200,000 construction professionals what could make leaving the EU work for them. It sets out what the industry wants from the Government, and with voices being heard a lot earlier than anticipated, the snap election could go some way to cement the ideals of a post Brexit non EU construction industry.

The 8 key demands of the manifesto are as follows:

Re-classify the construction industry from a “low priority” to a “high priority” sector in the Brexit negotiations.

Moving the construction industry up to “high priority” would give it the same status as the pharmaceuticals, car manufacturing and aerospace industries. The industry’s vital role in delivering the government’s target of 1 million new homes by 2020 and essential infrastructure such as Hinkley Point C, HS2 and the government-backed plans for expansion at Heathrow illustrate its importance to the country’s economy and its growth prospects.

Ensure tariff-free and barrier-free access for all construction product imports and exports with the EU for a transitional period of up to five years

The frictionless movement of products would allow current “just-in-time” product delivery arrangements to continue, which is vital to productivity and current business models. Meanwhile, individual rules for products can be renegotiated with the EU and the rest of the world in a realistic timeframe.

Work with the construction sector to put in place a clear, robust system for training future UK workers.

The industry seeks an express assurance from the government, similar to that given to the agriculture sector, that it will work with industry to ensure it has “the right people with the right skills” after Brexit. The reason the industry needs such an assurance is underlined by the government-commissioned Farmer Review, which indicated that construction’s labour force could see a 25% decline over the next decade, even before taking into account the possible impact of Brexit.

Confirm the rights of skilled construction tradespeople and professionals from the EU who are already legally working in the UK

Official estimates are that in London alone a quarter of the workforce, 100,000 construction workers, are from the EU. These workers make a huge contribution to the industry, and the country as a whole, and their status should be guaranteed as soon as possible by the UK government.

Guarantee freedom of movement for key skilled tradespeople and professional architects and engineers at least for a transitional period, and for any new immigration system to allow as near frictionless movement for these key workers as possible.

Around 12% of the UK’s 2.1 million construction workers are from abroad – the majority, from the EU – and constraints on labour flows would exacerbate skills shortages and put at risk projects being built on time and to budget. At the very least, the government needs to secure this arrangement for a transitional period while the UK addresses skills shortages. The issue particularly affects skilled workers because it will take longer to train them than the time available according to the government’s deadline for leaving the EU. However, a longer-term objective should be to maintain as near as possible frictionless movement of skilled workers /professionals across borders, because the alternative would weaken both the international competitiveness of the our industry and its capacity to deliver vital UK schemes.

Retain mutual recognition of professional qualifications in the industry with EU countries

This would ensure EU professional qualifications continue to be recognised in the UK and that there are no barriers to UK professionals working in the EU. The government should remove barriers to enable UK professionals to seek opportunities in other markets, establishing mutual recognition with other trading partners.

Commit to greater spending on construction of public projects in housing, infrastructure, schools, hospitals and other public projects, through both capital funding and PF2, to counteract market volatility, giving the sector a clear pipeline of work that will benefit the UK economy.

The autumn Budget is the next opportunity for the government to commit to increased spending, in particular: an increased school building and renewal programme, using both central government capital funding and private finance; releasing local authority borrowing constraints to allow investment in housing development to meet the government target for England of 1 million homes by 2020; accelerating the roll-out of new nuclear build and renewable energy programmes; implementing investments to improve digital/broadband capacity and investment in 5G to lead the way in take-up of autonomous vehicles. In addition, the government should maintain road and rail spending at least at current settlement levels.

Work with private sector clients to establish best procurement practices in order to develop more efficient bidding processes for public sector contracts

Leaving the EU will involve the government looking at options to replace the OJEU procurement rules. This is an opportunity to simplify and make procurement less resource intensive, which in turn would make the UK construction industry more efficient, enabling faster delivery of key public projects. At the same time, increasing the flexibility available to procurers to award on a best value basis should encourage and reward innovation and whole-life thinking.

No matter what the result of the election, construction will need assurances from politicians over issues that affect its ability to build the infrastructure that the UK needs. President of RIBA (Royal Institute of British Architects), Jane Duncan said “Amidst the challenges of Brexit, we need to also ensure that big domestic issues are not neglected. We need innovative designs and smarter procurement approaches to solving the desperate housing crisis, renewing and expanding our schools and ensuring that we have a sustainable environment that works across the UK”