Fax: 01444 414813
Email: info@airstream.co.uk
The failing mortgage market is of especial significance to the tool trade, as house building declines and the associated trades suffer.
So now is a good time to here about initiatives from the Construction Skills Network (CSN) and the government that deal with the area of training of new recruits to the trade.
The UK’s current economic downturn has seen the annual requirement for new construction staff halve, according to new figures. However, despite fears in some sectors of the market, the industry will continue to grow over the next few years according to the forecast from the CSN.
The CSN, which reports on the numbers of new industry recruits needed to satisfy growth, shows that a slowdown in the housing market and related sectors has reduced the requirement from the previous average of 88,000 per year to 42,000 per year between 2009-2013. From the previous forecasts produced at the end of 2007, this is a total fall of 184,000 new recruits needed by the industry over 4 years.
The figures, which are usually published every February, were re-calculated to provide an interim indication of the impact the credit crunch is having on the construction sector’s skills needs, based on changes to official data and feedback from the Network’s experts around the country.
However, the forecast also reveals that, despite fears in some sectors of the market, the industry will continue to grow over the next few years. Between 2009 and 2013, UK construction is expected to expand by 0.7% annually, thanks to high-value projects like the Olympic Park and the Thames Gateway re-development, and continued public sector investment in services and facilities such as roads, schools and hospitals.
The new forecasts indicate significant sub-sectoral differences, for example infrastructure is still showing very strong annual average growth at 6.5% to 2013. This is in contrast to the 0.3% growth for private housing. These differences have contributed to the stark change in requirement for new recruits, with infrastructure being far less labour intensive, so requiring fewer new entrants to deliver planned projects.
Mark Farrar, Chief Executiveof ConstructionSkills, added: “The indications are clear that the construction industry will continue to flourish in the long-term, and that the workforce will expand beyond the current number of 2.5 million.
“We advise firms to continue training their employees, as this will ensure they have a safe, professional and qualified workforce, putting them in a stronger, more competitive position to win and retain contracts. Businesses should protect and seek to improve the quality of their workforce to mark themselves out to potential clients. Past experience also shows that some of the experienced workers leaving the industry tend not to come back, and should this happen it may cause major problems for the country to deliver much-needed affordable housing, schools, hospitals and roads.”
Also last month the Secretary of State for Skills, John Denham, announced a series of measures to safeguard house building skills during the economic downturn, including a Government Task Force established with ConstructionSkills, the employer-led Sector Skills Council.
It will lead on a rapid response service to find new employer places for apprentices facing redundancy and will ensure there are enough new apprentices in the system to deliver the Government’s ambitious house building plans in the future.
The immediate task is to support the 1,000 apprentices at risk of not completing their apprenticeship. A network of regional ConstructionSkills staff will be providing a range of support measures to encourage employers to retain their existing apprentices. Where this is not possible, an apprenticeship ‘clearing house’ developed with the Department for Innovation, University and Skills (DIUS) and the Learning and Skills Council (LSC) will encourage employers across the wider construction sector to take on those apprentices at risk.
It is anticipated that, in the absence of an upturn in the private new housing market, this will rely on identifying additional placements in the social housing, repair and maintenance or environmental improvement markets. Away from the housing sector there are also opportunities linked to some of the Government’s major infrastructure projects.
Longer term, industry must expand the number of apprenticeship starts to meet the sector’s future needs. Major infrastructure projects like the Olympics, Crossrail, the Building Schools for the Future programme, colleges and hospitals are thought to be the key to a rapid expansion of apprenticeship places. Government construction clients will be given responsibility for identifying and securing additional apprenticeship places through their procurement processes and supply chains.
Mark Farrar comments: “We are encouraging employers to hold on to their existing apprentices and consider taking on new ones where they can. Despite the uncertainty of the current economic climate the long term trend is for rising levels of construction activity so it is imperative that the industry continues to train ahead of the recovery. Skills will be in great demand in years to come and, in some cases, will need updating as the nature of the industry changes through innovation and technological change. Apprenticeship training will be the key to meeting these demands so I’m pleased the Government is working with us to provide the appropriate support to both employers and apprentices during these difficult times.”
In terms of this year’s recruitment of apprentices, ConstructionSkills is still calling on companies of all sizes to commit to helping young people enter the industry before they are lost to other sectors. Good progress has been made so far this year with over 3,800 young people in England either already placed or about to start their placement through ConstructionSkills. However thousands more employers are needed to match the demand with 19,000 applications received so far and only 4,600 employer vacancies offered.
To help employers take on an apprentice there is financial support towards Traditional Apprenticeships of up to £9,820 and for the alternative Programme-Led Apprenticeships direct funding of £3,000. In addition through a network of trained advisors ongoing mentoring and support is provided. This end-to-end support has helped achieve a completion rate of 77%, 10% higher than the average for the sector.
Click on icon (above) for the full story!
Airstream Communications