Another downturn hits the Construction Industry

The face of the construction industry is set to change, according to the latest CITB-ConstructionSkills 5 year forecast.

The report reveals that output in construction is expected to fall by 3% during 2012 – and a further 45,000 skilled workers and tradespeople will be lost as economic uncertainty continues.

The annual Construction Skills Network report – delivered in conjunction with construction employers from across the UK, outlines that growth is expected to be slow and uneven over the next five years – with a 4% increase in output expected in 2013, followed by dips to 2% in 2014, 3% in 2015 and 2% in 2016 which is lower than previous long term trends.

Judy Lowe, Deputy Chairman CITB-ConstructionSkills, said: “The Construction Skills Network clearly shows that our industry is in for a tough time. Infrastructure investment, the first nuclear power plants and the revival of private housing will help, but the hard fact remains that despite an increase in growth from 2013 onwards, output and employment levels in construction will not have reached their 2007-8 levels by the end of the forecast in 2016.”

Whilst increasing economic uncertainty has plagued the construction sector, changes to working practices have also contributed to the gloomy forecasts – with the biggest falls in employment in the period arising from the loss of manual trades. By 2016, demand for painters and decorators is expected to be 6,300 below 2010 levels, manual labourers 3,000 below and bricklayers 2,500.

The greatest growth in demand is predicted to be for Construction Managers – up 30,000 by 2016 on 2010 figures, marking a real change in the operation and make-up of the industry.

(CD/GK)