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EU Migrants’ Impact in the Construction Industry

The UK construction industry employs approximately 3 million people in the UK, making up 10% of UK employment. Significant skills shortages are restricting construction economic growth in the industry that employs 8% of EU workers, however in London this amounts to a staggering 28%. According to research by TowerEight, 35% of

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BDC 319 : Aug 2024

workforce

EU Migrants’ Impact in the Construction Industry

The UK construction industry employs approximately 3 million people in the UK, making up 10% of UK employment. Significant skills shortages are restricting construction economic growth in the industry that employs 8% of EU workers, however in London this amounts to a staggering 28%. According to research by TowerEight, 35% of construction workers stated Brexit has created a shortage of EU migrant labour in the UK construction industry that has already increased project costs. Non-UK workers in the UK construction industry are mainly employed as general labourers (22%) and architects (15%). However, a high percentage of professional roles such as quantity surveyors (11%), project managers (11%), engineers (7%), have been placed within the last year by agencies as EU workers. Labour shortages appear to have increased rapidly since 2013 and a majority of surveyors have stated this is a significant hinderance on output. Skills’ shortages created more pressure on the delivery of projects with the triple constraints of time, cost and quality. A survey by Inside Housing revealed that the biggest skills shortages were for construction project managers (32%) and quantity surveyors (31%), followed by electricians (29%), plumbers (24%), carpenters/joiners (24%) and bricklayers (20%). However, only a fifth of those surveyed saw Brexit as the biggest problem, suggesting that skills shortages have been in existence for numerous years. This finding is supported by The MacFarlane who reports that 68% of construction SME’s are struggling to hire bricklayers and 63% are struggling to hire carpenters and joiners which have increased more than 10% in Q4 2017. The skills’ problem is an issue the sector has been facing for some time. RICS warns that “30% of construction professionals surveyed believe that hiring non-UK workers was critical to the success of their businesses”. The Construction Industry Training Board (CITB), estimates that to meet current demand more than 36,000 new workers a year will be required. Both skilled and non-skilled in labour will decline rapidly in the coming years in the UK construction industry. Data by Build UK found that 43% of contractors reporting rising labour costs in the first quarter of 2016, with a lack of suitably qualified staff a key factor. This impending threat of reduced labour movement, coupled with already existent shortage of labour would appear to pose a major risk to the future performance of the UK construction industry. The ONS data suggests that on the date the UK voted to leave the EU, migration fell from 336,000 to 246,000.  A survey by Helm supports this as they had found 55% of skilled workers were either planning to leave or considering leaving the UK. However, could departing from the EU be beneficial? It could create a wider range of job opportunities within the UK that would become available and allow a growth of UK suppliers. Knight Frank reports that Brexit has done little to deter investors from London as purchases of assets increased from the previous year. The value of the pound is likely to go down which could create an upsurge of overseas investment in UK real estate. Brexit will reduce EU competition when tendering for work.  But there is also the likelihood that wage rises are likely to occur and restrictions on free movement could pose a problem for the UK construction industry which already faces a labour skills crisis. Under a soft Brexit the UK GDP would decline by 3.5% and a hard Brexit, the construction industry’s contribution would fall by 8.2%. Brexit will affect urban areas more than rural communities and if access to skilled EU workers is cut, projects such as HS2 and Crossrail will be undeliverable. In conclusion, James Morris, Director at Tower Eight explains why there is a real importance of immigration to the labour market, “It is critical that we have flexible access to labour from overseas as without this we would fail to deliver against the commitments for construction, such as housebuilding and infrastructure. The pound’s value has descended as a result of the UK voting to leave the EU. Costs are expected to climb for contractors and UK developers due to their heavy reliance on importing and exporting with a less favorable exchange rate. Once the UK has left the EU, the UK Government could potentially only allow UK-based firms to tender for government work, consequently meaning that the UK’s construction Industry would no longer have to compete with foreign firms. But until the exit plans are revealed we are left hoping that the Government recognises the dual challenges of an ageing workforce and a lack of skilled labour; both of Britain needs to meet housing targets and deliver the infrastructure required for growth.”

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It’s a woman’s world ~ How STEM industries can attract more females into the sector

The recent Why not physics? – a snapshot of females uptake at A-level report foreword from Professor Dame Julia Higgins, claims that “an ill-judged quip that girls ‘can’t’ do maths, or physics is ‘too hard’, can lead to girls making life-changing decisions that alter the subject they study or the career they pursue.” In anticipation of International Women in Engineering Day on June 23, 2018, Lucy Speed, HR advisor at engineering solutions provider Boulting Ltd, explores what employers in science, technology, engineering and maths (STEM) industries can do to attract more females into the sector.   Engineering contributes 26 per cent of the UK’s GDP every year, yet reports suggest that the industry is facing an unprecedented skills shortage. But what can employers realistically do to encourage the next generation of female graduates to consider STEM as a viable career option?   Role models and mentors Adopting a mentorship or simple ‘buddy’ system can help women that are joining the workplace feel like they aren’t alone in a disproportionate sector. Pairing employees up to share experience and knowledge helps to create an inclusive environment and can be beneficial in terms of retaining staff that thrive with social stimulation, particularly women.   According to the Women Engineering Society (WES), who set up its own mentorship program to specifically support women in STEM roles, those who participated in the scheme benefited from increased confidence, improved listening and coaching skills as well as employment progression. At Boulting, we support our staff with dedicated mentors who support employees to achieve their goals across all levels of the organisation.   Flexibility is key Providing a work environment that accommodates flexibility for different personal needs can also be beneficial in attracting female employees. Having an understanding for an individual’s needs, whether that be childcare requirements or being able to schedule time off work around holidays will allow your team members to reaffirm their work-life balance.   Natalie Pancheri, HR policy advisor at the London School of Economics also says that “embedding a culture of flexibility begins to chip away at the types of issues that can prevent women from advancing in their careers.” It really can be win-win all round.   Young minds By capturing the minds of the next generation of female STEM graduates, we will begin to see an increase in the number of girls pursuing a career in the sector. However, a lot of the work to do this must start at school level.   Integrating STEM-style learning through dedicated activities or guest speaker sessions from those in the industry into classrooms, will begin to pave the way for students to consider their future paths. Working with and supporting teachers to understand what a STEM career can actually entail will also open up conversations with students about what is possible.   Additionally, organisations, like Boulting, that incorporate student reach-out or collaboration programmes to help harness the enthusiasm and talent from younger generations has the potential to lead to more interest in STEM education and apprenticeship opportunities.   At Boulting we have a longstanding and successful apprenticeship scheme that has been the springboard for many employees’ careers in the organisation. Our scheme offers the opportunity to develop skills, knowledge and experience across a wide range of engineering sectors including chemical, pharmaceutical, petro-chemical and renewable energy markets.   While some progress has been made to encourage girls to pursue careers in STEM industries, women are still firmly in the minority. Particularly in UK engineering, where, according to the Women in Engineering Society (WES), the UK has the lowest percentage of female engineering professionals in Europe and only eleven per cent of the engineering workforce is female.   It’s important for organisations in the engineering sector to recognise the importance, and potential, of the future female workforce and secure any opportunity to help promote science, technology, engineering and maths as exciting and rewarding prospective career path.

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