Deal or no-deal and the skills crisis

Whatever the outcome of Brexit, we need skills development to be put to the top of the agenda, says Scott Wilkins, Industry Manager – Engineering, Manufacturing & Construction – City & Guilds Group.

When Boris Johnson ousted Theresa May as Prime Minister in the Summer of 2019, the chances of a no-deal Brexit became all the more likely. And while it’s impossible to know at this stage what a post-Brexit Britain will look like, one thing is certain: there will be significant ripple effects across the UK’s industries – including the construction sector.

For as long as Brexit has been a part of the daily public discourse, there have been concerns over widening skills gaps within the construction industry – concerns that are only likely to be exacerbated by restricted access to European labour. As we edge nearer to exiting the European Union – whether a deal is secured or not – it has never been more important for employers within the sector to put the skills development of their workforce at the top of their business’ agenda.

This will be critical if the industry is to not only overcome Brexit-induced labour shortages, but also ensure that the workforce of tomorrow is equipped with the vital skills needed to manoeuvre the changing world of work.

Constructing the future

For the UK to prosper, its construction sector needs to prosper. The sector is the fourth largest industry by turnover and the fifth largest by employment in the UK. That’s why the City & Guilds Group last year launched Constructing the Future – a report which examined the multitude of challenges facing the industry, to better understand what needs to be done to help it prepare for the uncertain years to come.

Unsurprisingly, the results were concerning, with the research revealing that over half (54%) of businesses within the sector are hampered by growing skills shortages, such as plastering, cladders and steel fixers. The research also found the number of younger professionals working in construction has fallen to a third of the level it was in 2005, meaning there is only a fragile talent pipeline in place to guarantee the future of the industry.

And, even more alarmingly, skills development isn’t yet at the top of the priority list for many employers within the sector. Our report found there is a lack of learning and development programmes across businesses in the industry, which in turn is impacting all tiers of construction professionals from entry level up to senior management.

No-deal danger

Recent figures from IHS Markit/CIPS purchasing managers’ index reveal that the UK is at risk of slipping into another recession, with output down across the construction industry. So, with the outlook already looking negative across the sector, a no-deal Brexit – and the insecurity that comes with it – is poised to deteriorate the situation further. Although we cannot be completely sure what will happen, while uncertainty increases it is safe to say that things will not improve.

In more challenging economic times – like the ones the construction industry currently faces – budget cuts are often necessary, and employers are more likely to tighten purse strings in line with tightening margins. This means that they are less likely to invest precious spend on activities that are seen as benefits, rather than essentials. And unfortunately, more often than not, training programmes are viewed as the former. This is especially true within the construction industry, with our research finding little more than half of employers in the sector provide training to upskill their staff members. Unfortunately the training that is provided tends to be predominantly focused in health and safety, rather than the skills their workers will need for the future.

We need a change in mindset across the industry, so that training programmes are not just viewed as a ‘nice-to-have’ add-on for employees, but an integral part of business strategy. 

Building bridges across the industry

Getting this right will be critical for safeguarding the industry’s future and shoring up talent pipelines for the years to come. To survive the raft of challenges the industry faces, and boost workplace productivity at the same time, workers need to develop a range of new digital skills in addition to those needed within the core of the trade – and that requires employers to invest more money into their learning and development programmes.

Although the skills crisis is faced by businesses across the whole of the UK and is an issue that, ultimately, the Government needs to take action to help solve, we cannot simply point the finger of blame. It’s essential that employers within the construction industry understand the vital role they play in upskilling and reskilling their own workforces, in order to invest in their future success.

Undoubtedly, a no-deal Brexit may significantly worsen skills shortages within the construction sector, but it is also critical that we alert businesses to the fact that now, more so than ever before, skills development needs to be brought to the top of the agenda.

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