3 minute read
Construction
Like all sectors, the construction industry has faced severe challenges as a result of the COVID-19 pandemic, with some of the knock-on effects predicted to continue in the coming months as the country recovers.
The Construction Leadership Council reported this month that a shortage of products and labour is having a significant impact on the industry’s supply chain, which in turn has led to escalating prices and longer lead times for deliveries. This, coupled with a growing demand for building products over the course of the last year, has left construction firms facing mounting pressures.
We take a closer look at some of these pressures – and why there’s cause for hope despite some of the headlines.
Product shortages and escalating costs
Earlier this month, the Construction Leadership Council reported that global demand continues to outstrip supply, with products used in housebuilding and home improvement among those most affected. The group also reported that prices for products and materials have increased by 10 to 15%, with timber products increasing by 20 to 50%.
Labour shortage
With predictions that construction will need more than 200,000 new workers by 2025, the immediate challenge is a labour shortage. There have been reports of vacancies being hard to fill, from unskilled roles to more experienced positions. Crucially, the logistics sector is also under pressure, with hauliers, HGV and LGV drivers in short supply, and recruitment issues adding to the problem. The Road Haulage Association says that a shortage of 60,000 lorry drivers has been exacerbated by 15,000 European drivers leaving the country and 30,000 HGV driving tests cancelled due to lockdown. There have also been concerns raised about a skills shortage as not enough young people are entering the construction industry to replace an aging workforce. It is something the Construction Industry Training Board is focussing on, saying it is working more closely with government and further education (FE) institutions to build closer ties between employers and FE, and make apprenticeships more flexible.
Self-isolation
In the short term, building projects are being hampered by the high number of workers being required to self-isolate under the NHS Test and Trace programme. The Construction Leadership Council has called on the government to bring forward the date on which those who have been doublejabbed can continue working even after being notified that they have been in contact with someone with COVID-19.
Brexit
Migrant workers returning home has already had an impact on labour, while there have been predictions that the end to free movement could drive up the cost of labour by up to 10%.
Rising to the challenge
While there are undoubtably significant challenges facing the construction industry, there is cause for optimism. Figures from the Construction Skills Network show construction has bounced back quicker than expected from the Covid-19 pandemic, and by 2022, the industry will be back to 2019 levels of output. Meanwhile, Builders’ Conference reports that both the number and value of contracts awarded in June exceeded the monthly average for the last year. With problem solving at the heart of much of LW Developments’ work, the company has taken the same positive, forward-thinking approach to the challenges thrown up by the pandemic. Director Dean Williamson said: “The issues facing the building industry won’t be solved overnight but, in the meantime, we have continued to build at pace through careful planning, early ordering of materials and by having a dedicated, passionate workforce determined to exceed clients’ expectations. “We know how important it is to keep lines of communication open and ensure clients are up-to-date with any developments or hurdles that may arise as a result of the problems being experienced nationally. We have found that our clients have complete faith in us when it comes to overcoming these challenges and finding solutions. “Not only this, but we have also used this opportunity to review our practices and embrace new ways of working to ensure efficiency and excellent customer care.”
Get in touch
For further guidance on freehold land or property get in touch with LW Developments email
dean@lwdevelopments.com
