The industry's skills shortage is continuing to have an impact on contractors, according to a new survey.

The study by EC Insurance Company (ECIC) found out of over 350 contractors, 78% have felt an impact due to a lack of skilled workers in their sector.

The survey revealed 30% of participants said their business has been quite seriously impacted by skills shortages, while 44% have been marginally impacted in some way and 4% severely impacted.

In addition, 25% said they will start using more labour only sub-contractors in the next year, with 31% using more bona fide sub-contractors.

However, industry initiatives to tackle the problem and encourage young people to join the sector appear to be having an effect, with 32% of the contractors having surveyed a plan to take on more apprentices in the next year.

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Richard Forrest Smith, Chief Executive Officer of ECIC, said it's "no secret" the contracting sector, including the UK's engineering services sector, is facing a serious skills shortage that is "increasing dependence on subcontractors".

"This is underlined in the findings of a recent survey by ECIC's parent, the ECA, which showed that labour costs had increased for 5 in 10 engineering services contractors," he said.

"Greater use of subcontractors can make the task of managing health and safety on site much more complex so it is important main contractors understand their responsibilities, not just to subcontractors but to the apprentices they employ too.

"It's vital main contractors create an embedded approach to health and safety amongst the entire workforce, from apprentices through to highly skilled subcontractors. The alternative is greater risk of accidents on site, leading potentially to liability claims, prosecutions, heavy fines and even possibly a jail sentence."

However, plans by contractors to take on more apprentices were welcomed by the ECIC.

Mr Forrest Smith said: "Our parent, the ECA, has campaigned for quality engineering and technical apprenticeships and is working with partners within TESP – The Electrotechnical Skills Partnership – on a career progression project intended to upskill existing workers within the industry. Our findings suggest these efforts are starting to reap rewards."

(LM/MH)