As we approach the end of the first quarter of 2017, the construction industry is benefiting from a growth in demand of new orders, despite the slow start to the year. In areas such as house-building, which is currently the main drive behind recent growth. However the construction industry is still facing many issues which may cause more problems than solutions in the near future. Here are currently the five biggest issues that are currently effecting the construction industry.
1. Shortage of Skilled Workers
Despite the construction industry being on the rise in the past couple of years, the vast majority of contractors (around 70%) still state that they are facing a difficult time in finding skilled labour to keep up with demand. This issue with finding skilled labour to fill up the available vacancies, will likely continue to be a major issue for the industry. Although they have been efforts to help deal with this problem; with companies increasing the pay and benefits for their workers. However despite these efforts, it is a continuous problem that is greatly effecting the industry. It is not just a profitability concern for companies, it is also a safety concern as many companies are concerned with the safety of their projects being handled by an inexperienced workforce.
The lack of available skilled workers will continue to be a problem for companies, in which companies will have to find ways adjust to the problem, and make sure their projects are safe and secure to combat the inexperienced workforce handling their projects.
2. Environmental Sustainability
Between 25-40% of the world’s carbon emissions is currently produced by construction companies, in which is a significant problem that the construction industry must resolve. Environmental sustainability is a social obligation that all construction companies must abide by. This is a problem that will likely take a great number of years for the industry to provide a solution for. Furthermore, pressures from the government and the press to create a “green planet” will add further pressure for companies to make sure they’re taking the necessary steps to protect the environment they operate in.
3. Technological Adaptation
Technology has no doubt forced companies to change the way they operate, also it has led to consistent investment into training their veteran workers to make best use of these”technological advances”. This has caused problems for companies who wish to complete their projects according to the scheduled deadlines; but may suffer from setbacks such as lack of employee knowledge on how to use the latest equipment available on the market.
4. Differences between Generations
As more and more millennials enter the workforce, they will likely have a work ethic and a set of skills that are different than the generations before them. This may cause conflict and “a clash of cultures” between the current generation and the older generation of employees.
5. Uncertain Profitability
With Brexit causing lots of foreign owned companies to question whether building and doing business in the UK will actually be as profitable than in prior years. Lots of contractors are dealing with a decline in new business developments, especially in the commercial sector.
At the moment the construction industry is facing a lot of problems and concerns such as uncertain profitability due to Brexit and a lack of skilled labour, therefore construction companies can only prepare and adapt to the changes that the uncertain market may bring them.
If you are a contractor and are facing issues such as the ones that we have raised, please let us know.
