WET News

6 WET NEWS DECEMBER 2014 While some sectors are affected by the current skills deficit more than others, the construction industry is one of the worst hit. Skills shortage jeopardises infrastructure projects • Two recent reports suggest the engineering skills shortage shows no sign of abating. In fact the situation is being made worse because of a poor skills base. Maureen Gaines reports. T he delivery of future large infrastructure projects in London and the South- east will be jeopardised unless the supply of construction workers is increased. So says a new report, by London Cham- ber of Commerce and Industry (LCCI) and KPMG that outlines the labour requirements to de- liver housing and infrastruc- ture construction projects in London and the South-east be- tween 2014-2017, and the gaps in training that must be filled to meet this demand. The Skills To Build report highlights that 20% more work- ers are required to meet the £96bn pipeline of construction projects over the next three years in London and South-east. This could impact the wider economy as early as April 2015, when more than 600,000 workers will be needed on site to deliver major housing and infrastructure projects cur- rently in planning. It estimates that a 26% increase in water supply and a 20% rise in energy will be required to cope with popula- tion growth demand up to 2050. Generations Based on the infrastructure pipeline, the report said 124,180 construction workers are required on site in London and the South-east in 2015. Fore- casts predict that the infra- structure new-build market will grow by more than 50% over the next five years. Richard Threlfall, KPMG UK head of Infrastructure, Building and Construction, says:"For the first time in many generations, the UK has a strong pipeline of construction and infrastructure projects to reinvigorate the economy and drive our future competitiveness. But delivery of that pipeline is now in jeopardy – not for lack of political will or funding – but for lack of a sufficiently large and trained workforce. "Unless action is taken now, our housing targets will be missed, and infrastructure pro- jects delayed." Another report, this time by the Civil Engineering Contrac- tors Association (CECA), sug- gests that at least one in five UK vacancies are unfilled because of a poor skills base. While some sectors are affected by the current skills deficit more than others, the construction indus- try is one of the worst hit. The report says: "There is a substantial pipeline of work to be delivered over the next dec- ade. It is therefore vital that UK business can easily find the right people for the job." And there lies the problem – skills or, to be more precise, the change in skill set required in the infrastructure. This is no differ- ent for the water industry now that the transition from AMP5 to AMP6 is in full swing cou- pled with the new challenges that the next five, ten or 15 years will bring. Of course, the skills short- age is not exclusive to the water industry. However, the situa- tion has been exacerbated by the cyclical nature of the AMPs and the resultant boom and bust culture. This cycle has led to the loss of tens of thousands of jobs among contractors and suppliers over the past five AMP cycles. It is hoped that the £440M of investment being brought for- ward from AMP6 will halt this process. Apprentices Skanska is on record as saying it requires 1,500 jobs in the UK over the next two to three years in order to fulfil major water, rail, building and roads contracts. The construction of the Thames Tideway Tunnel will generate more than 9,000, and chief executive Andy Mitchell is keen to encourage equality in the company's workforce. He says: "Women only account for 11% of the construction work- force – a figure which needs to be addressed urgently. As one of the largest infrastructure projects of its kind in Europe, Thames Tideway Tunnel has a compelling opportunity to make considerable changes, and inspire the future genera- tion of women in all aspects of construction." In fact, CECA highlights the "ambitious skills strategy" that Thames Tideway already has place using synergies with other tunnelling projects such "There is a substantial pipeline of work to be delivered over the next decade. It is therefore vital that UK business can easily find the right people for the job." Civil Engineering Contractors Association News+ as Crossrail, and existing train- ing facilities including the Tun- nelling and Underground Con- struction Academy. The construction industry is active in taking on apprentices, with about 40% of CECA's members having employed apprentices in the past 12 months. This compares with just 19% of companies across the whole of the construction industry, and 13% for UK plc as a whole. CECA chief executive Alas- dair Reisner says it is "great news" that contractors are recruiting the next generation of employees as the sector gears up to deliver major programmes of work in the future. But he warns that "unless we can con- tinue to recruit and train new entrants, the UK will face a sub- stantial construction skills shortage over the next decade. "This is why CECA has called on the government to prioritise working with industry and education leaders to pro- mote a positive message about careers in the infrastructure sector. We need to ensure all children of primary and sec- ondary age, and their teachers, parents and carers, are well informed about the wide vari- ety of challenging, dynamic and exciting job opportunities available in our sector."

• Cover