Out-Law News 1 min. read

Skilled workers shortage and rising costs could threaten infrastructure recovery


The rising cost of materials and difficulties in recruiting suitable staff are among the main issues worrying civil engineers as prospects in the infrastructure sector improve, according to a new survey.

The Civil Engineering Contractors Association (CECA) said that cost inflation and skills shortages were now second only to workload amongst its members' concerns for the first time since the start of the economic downturn.

According to the body's quarterly Workload Trends Survey, contractors' workloads remained flat for the third consecutive period. However, order books grew for the first time since early 2012, and most respondents said that they expected the number of orders on their books to grow over the coming year, it said.

"Our members have told us that although they expect workloads to rise over the next year, rising costs and an inability to recruit skilled workers are impeding trading conditions in the sector," Alasdair Reisner, CECA's director of external affairs, said.

"Infrastructure contractors are particularly vulnerable to inflation in the costs of materials and fuel. The UK also needs to address skills gaps in the industry as a matter of urgency. If the UK fails to address these issues, our infrastructure sector will be unable to generate the economic growth we need for a sustained and sustainable recovery," he said.

CECA's membership includes over 300 contractors of all sizes, representing approximately 80% of the civil engineering market in the UK.

Last month, an engineering recruitment firm said that it was already struggling to fill vacancies, just before work began on large public sector 'mega projects' including HS2 and Crossrail. Keith Lewis, owner of recruitment firm Matchtech, said that the Government had to do more to encourage young people to take up engineering as a profession or risk the shortage pushing up labour costs on the projects.

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