The construction sector is falling behind in gender diversity, with slow progress in appointing women to key decision-making positions on company boards, according to a new report by Creditsafe.
While numerous industries are making significant strides towards achieving gender equality, implementing various initiatives and programs to enhance diversity in senior management, the construction sector is still lagging.
According to the Women in Business report, of the over 458,761 firms operating within the construction sector, only twenty-one percent boast female representation at the directorial level, marking the lowest figure across all sectors in the UK.
The data, which analysed the highest proportion of female entrepreneurs revealed that industries such as Households as Employers (encompassing cleaners, tutors, and secretaries) lead the way, with sixty percent representation at the directorial level. Following closely behind are sectors like Education (56%) and Health and Social Work (54%).
In stark contrast, sectors like Construction, Transport and Storage, and Electricity & Gas remain heavily male-dominated, with less than thirty percent of companies in these sectors featuring female representation at the directorial level.
Geographically, the South West emerges as the frontrunner, with forty-four percent of its directorial positions held by women.
The South East follows closely behind at forty percent, with the East Midlands and Scotland jointly securing third place at thirty-nine percent. The North East and Wales combined authority rank fourth, also at thirty-eight percent.
The report also sheds light on the concerning trend that male-owned businesses faced a higher risk of insolvency in 2023 compared to those run by females, with a staggering thirty-nine percent of companies being more likely to become insolvent if their boards were predominantly male.
Expressing disappointment with the sluggish pace of progress, Drew Fahiya, Creditsafe’s data director said, “Although some women work within construction and building companies in the UK, very few occupy management or leadership roles. With women representing only twenty-one percent of board directors, it stands as the lowest representation across all key sectors in the UK.”
Fahiya added, “Despite the construction industry attracting women, and with women pursuing studies in engineering and project management at tertiary levels, there’s a significant gap in their progression within the workforce. This isn’t due to a lack of desire or motivation but rather organisational barriers that need to be addressed promptly.”
Building, Design & Construction Magazine | The Choice of Industry Professionals
