Recent figures have found that in the UK, house builders are struggling to recruit the skills needed to build the necessary number of homes.
Within Bellway’s report on its preliminary numbers for 2016/2017, there was some bad news for the industry. Within the report, it described that due to a lack of skilled workers, tradesmen are able to ask for higher and higher wages. Engineers can even be earning in the regions of premier league salaries! For more information, click here.
However, this increase in wages is negatively impacting company profits. And, consequently, the number of homes that can be built is limited.
Bellway stated: “Growth in output in the construction sector and the wider industry skills shortage continued to place upward pressure on sub-contractor costs, particularly for trades such as bricklayers and scaffolders.”
“The skills shortage facing the entire construction sector is a moderator to the industry’s overall ability to deliver growth.”
And, things could possibly get worse too with the introduction of post-Brexit immigration controls. This will limit the number of workers from overseas that can be recruited. Bellway argued though that, “whilst there is some reliance upon overseas labour, predominantly in the south-east and London, there is no evidence that this valuable resource has diminished as negotiations to leave the EU progress.”
Instead, emphasis has now been placed on the importance of “homegrown talent”. According to reports, this is “necessary” in order to combat the industry’s skills shortage. Take a look at the full report here.
So what do you think of this? How much of an impact do you believe Brexit will have on the skills shortage? Let us know in the comments below.