Putting employers in the driving seat with the Industry Impact Fund will be key to industry success in tackling labour shortages by advancing productivity and promoting diversity, says CITB chief executive Tim Balcon
During the past year, construction companies have faced significant input cost inflation from supply chain disruptions, high energy costs and rising wage bills.
Despite this, construction output has performed better than expected, with estimated annual growth of around 4% during 2022 and demand for construction workers remaining high.
However, with the UK currently facing economic challenges, it’s likely there will be a decline in construction output this year of -0.5%. Fortunately, forecasts look brighter compared to just a few months ago, meaning we can expect a return to growth in 2024 through to 2027.
CITB’s recent Construction Skills Network (CSN) report reflects these turbulent times and provides an insight into the UK construction economy and its future labour needs for the next five years.
Tackling construction’s long-term labour challenge
Despite a slight downturn, the research tells us that the construction industry is still facing a long-term challenge in recruiting workers, with an additional 45,000 per year required over the next five years to meet demand.
With a high level of job vacancies and low unemployment, recruiting and developing the workforce for the future remains vital to ensure the industry can contribute to growth. This includes building the infrastructure for energy and transport, the homes the industry needs and retrofitting the built environment to meet net zero targets.
The CSN report predicts that the most in-demand construction roles from 2023-27 will be for architects, civil engineers and trade plant operators, all of which will see annual average growth of over 1%.
To tackle some of these challenges, we have put specific measures in place to support employers and ensure the construction industry has a skilled, competent and inclusive workforce now and in the future.
CITB’s recent Business Plan details how we will improve the quality of training provision, while also supporting employers with the cost of core skills training. This includes investing over £100m into the grants scheme in the coming year and almost £30m into the National Construction College (NCC) to develop the facilities and quality of training, focusing the curriculum on unmet demand.
I was encouraged by the Chancellor’s Spring Budget, which announced the inclusion of in-demand construction occupations on the Shortage Occupation List, a particularly important step in bridging the current skills gap. We will continue to work in partnership with the government and the construction industry to grow the skills of the domestic construction workforce and create a dynamic migration system to ensure the industry is able to deliver its pipeline of work.
We also know that a key part of addressing future skills needs is working towards net zero – making sure that employers and the workforce are well prepared. CITB is putting various foundations in place to help towards this milestone, including offering grants for a variety of training and qualifications. We are also continuously working with the government and industry to ensure training pathways are clear and all qualifications are fit for purpose, across all areas.
Industry Impact Fund: Putting employers in the driving seat
However, there’s one initiative I’ve been particularly excited to unveil, which is a frontrunner in CITB’s Business Plan for this year: the Industry Impact Fund.Â
This new fund launched just last month and invites CITB-registered employers to apply for up to £500,000. It targets big picture thinkers, who have innovative solutions to skills and training challenges across the following areas: productivity, equality, diversity and inclusion.
It’s also one of many initiatives outlined in the plan that aims to put employers in the driving seat, providing the opportunity for a greater say on the best solutions for tackling some of the biggest skills challenges.
It’s been tough and there are inevitable challenges in the year ahead. However, I remain inspired by the construction industry’s resilience, shown during the pandemic and throughout the struggles faced in 2022. I take heart from the long-term CSN picture, and I am confident that the range of initiatives CITB has set out in this year’s Business Plan will help make a difference to employers and new entrants across the UK.
I look forward to working with stakeholders to overcome these challenges and seeing the industry emerge stronger in 2024.
Tim Balcon
Chief executive
Construction Industry Training Board
Tel: +44 (0)344 994 4400
