Record high skills shortages, says FMB
23rd January 2018

A hint of possible good news for anyone losing their job through the Carillion collapse came today (Tuesday Jan 23) from the Federation of Master Builders which says a ‘record high’ of skills shortages means they may not be too long finding new jobs.

The claim comes from its Chief executive Brian Berry who said: “The silver lining to current skills shortages among construction SMEs is that the numerous tradespeople and professionals. who may find themselves out of work following the collapse of Carillion, have a ready supply of alternative employers.

His comment follows today’s publication of its quarterly State of Trade Survey, which shows that two thirds of construction SMEs are struggling to hire core skills – the highest figure since records began in 2008.

The report continues that 87% of builders believe that material prices will rise in the next six months, up from 82% in the previous quarter, and61% of construction SMEs expect salaries and wages to increase in the next six months.

Berry said: “Skills shortages are skyrocketing and it begs the question, who will build the new homes and infrastructure projects the Government is crying out for. The Government has set itself an ambitious target to build 300,000 homes every year in England alone.

“These figures are the highest we’ve noted since records began a decade ago. As a result, the wages for these increasingly scarce skilled tradespeople continue to rise sharply; that’s a simple consequence of supply and demand. This, coupled with the fact that small construction firms continue to face significant material price increases, will inevitably squeeze their margins and put a brake on growth.”

He concluded: “The silver lining to current skills shortages among construction SMEs is that the numerous tradespeople and professionals, who may find themselves out of work following the collapse of Carillion, have a ready supply of alternative employers. The FMB is working with the Department for Work and Pensions and the Construction Industry Training Board to match-make ex-Carillion workers with small construction employers in need of skilled workers. We’re also working hard as an industry to re-home the 1,200 Carillion apprentices who are the innocent victims of the major contractor’s demise. It’s in everyone’s interests to ensure that these young people continue on their path to a rewarding career in construction.”