The construction industry faces a demographic time bomb if more is not done to address skills and employment in the face of the imminent spending review, guests were told at a business luncheon in Birmingham last week.

Speaking in his capacity as Chairman of Construction Skills and President of the Chartered Institute of Building, James Wates urged the region's industry to continue to promote apprenticeships throughout the supply chain. He argued they are the "lifeblood of the industry" and will help address the skills shortfall created by the 375,000 construction jobs lost as a result of the recession and those the industry is potentially facing as a result of government cutbacks.

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James Wates, also Chairman of the UK Contactors Group and Deputy Chairman of the Wates Group, explained that whilst the industry is growing, it will be impacted by the ongoing public sector budget cuts - averaging at 1.7% per year between now and 2014. The public sector generated 38% of construction output in 2009.

He subsequently reinforced that training the future workforce is the only way to keep the industry moving forward.

(CD)