Small building firms have reported an increase in salaries due to the skills shortage…
A new survey has revealed salaries for small building firms are rising as a result of the skills shortage.
The Federation of Master Builders (FMB) published their latest State of Trade Survey for quarter one, 2016. The data revealed that construction bosses expect to see salaries increase sharply over the next six months, due to the continuing skills shortage.
Commenting on the results, chief executive of the FMB Brian Berry said: “More than half of small construction firms are predicting that wages and salaries will increase over the coming six months. Given that brickies are already able to command wages of up to £60,000 per year in London and around £45,000 a year in the North of England, it’s clear that the skills squeeze is starting to push up costs for construction SMEs.
“A whopping 55 per cent of small building firms are currently reporting difficulties hiring bricklayers, which makes these tradespeople the most in-demand of all construction workers. This particular skills shortage is of course linked to the steady growth in private house building.”
He added: “The results for the first three months of this year show consistent growth among small construction firms in almost all parts of the UK.
“What’s more, despite evidence of the EU referendum causing some uncertainty within the business community, more than two-thirds of firms expect their workloads to increase over the coming three months. These results are heartening but skills shortages, and the knock-on effect on wages and salaries, remains a major cause for concern.
“We need tens of thousands of new and returning construction workers to pick up the slack, or this growth among construction SMEs could so easily unravel.
“The Government is hoping to address the skills shortages through the new Apprenticeship Levy, which is due to come into force in exactly one year. However, I have spoken to many small construction bosses who have major concerns about the impact that the new funding arrangements, which will come into effect alongside the levy, will have on their ability to hire an apprentice.
“The Government must work closely with the construction industry to ensure its new system is as easy to use as possible, or else we could see apprenticeship training by small firms nose dive at exactly the wrong time.”