Skills shortages continue to affect the UK's construction and infrastructure sector despite workloads rising between July and September, new figures have revealed.
The latest Royal Institution Of Chartered Surveyors (RICS) UK Construction and Infrastructure Market Survey states 22% more respondents saw a rise in workloads for Q3, with growth strongest in the private housing sector.
In infrastructure, 21% more contributors reported a rise rather than a fall in workloads, while respondents expect the rail and energy sub-sectors to post the most significant increases in construction output over the coming 12 months.
However, despite easing throughout 2016 labour shortages intensified in Q3 with 62% of firms citing this as an impediment to growth.
Respondents are still continuing to see a lack of quantity surveyors (62%) as well as other professionals (52%). Overall, 44% are seeing a shortage of workers within specific trade.
In addition, financial constraints are also impacting construction growth, yet the share of contributors expressing this view has come down to 69% from 79% in Q2.
Access to bank finance and credit remains by far the most frequently cited issue, followed by cash flow and liquidity, which likely reflects a more cautious stance by banks due to market conditions and Brexit considerations.
Jeffrey Matsu, RICS Senior Economist, said: "While activity in the sector has moderated, growth and growth expectations remain in positive territory. Uncertainties due to Brexit continue to weigh on companies' investment and hiring decisions, and banks appear to be adopting a more cautious stance to providing finance. Meanwhile, challenges related to an inadequate supply of skilled labour are as pronounced as ever."
(LM/CD)
Construction News
16/11/2017
Workloads Grow In Construction And Infrastructure Despite Skills Shortages


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