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05/02/2018

CITB Upbeat Over Future Despite Industry Uncertainty

The Construction Industry Training Board (CITB) is remaining upbeat over the sector's future prospects despite uncertainty over the collapse of Carillion and Brexit.

The organisation's new 'Construction Skills Network UK report for 2018 – 2022' report is forecasting a total of 158,000 new jobs will be created over the next five years, with strong growth in a range of range of professional and managerial roles as the industry seeks to boost its productivity (+7.8% and +5.6% respectively).

As homebuilding activity rises, 15,350 new carpenters and 9,350 labourers will need to be recruited, with an average output growth of 1.3% for the industry. Infrastructure remains the strongest performer with an annual growth of 3.1%, while housing output (both public and private) is expected to expand by 2.8% and 2.2%. However, the commercial sector is not predicted to grow at all over the next five years, as investors potentially hold back decisions due to Brexit uncertainty.

The CSN report also forecasts a mixed regional picture across the Uk. Wales continues to perform best with output growth estimated at 4.6% per year, largely attributable to major infrastructure projects including Wylfa nuclear power stations as well as a series of major road improvements such as the M4 upgrade.

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However, Scotland is likely to remain largely static at 0.1%, with housing growth mitigating a decline in infrastructure from record highs. In Northern Ireland, annual growth is down from last year's 1.6% forecast to 0.5%, caused by a slump in the commercial sector,

In England, the North West and South West lead the growth rankings, both with 2% growth anticipated. The West Midlands is also expected to perform well with an overall average output of 1.8% over the five years. Growth across the remaining English regions is predicted to range between 1.5% in Greater London to -0.8% in the North East.

Overall, employment is projected to grow for the fourth consecutive year at 0.5% a year on average to 2022, taking industry employment to 2.77 million in 2022.

CITB Policy Director Steve Radley said: "Despite all the gloom around Carillion and uncertainty from Brexit, our report's message is that construction will continue to grow and create more jobs.

"Though growth is slightly down on 2017, it's looking more balanced with housing and infrastructure both expanding significantly. And the range of job opportunities is growing. While we need to bring in lots of people in the trades, the fastest growth will be for professionals at 7.8% and for managers and supervisors at 5.6%.

"By 2022, employment will be in touching distance of the heady 2008 peak so we face a massive recruitment and training challenge, which is likely to get harder after Brexit. So while we can take some comfort from weathering the recent storms, it's vital that we make the investment in skills today that will shape our own destiny for tomorrow."

To view the 'Construction Skills Network UK report for 2018 – 2022', visit here.

(LM/MH)

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