The construction industry is facing a skills crisis that, in the UK, could be threatening growth and productivity. In light of this, a recent independent review commissioned by the Department for Education has highlighted the urgent need for change.
With declining workforce numbers and increasing skills gaps, the review calls for a major reset in how the industry approaches training and development. But what does this mean for construction businesses and what steps need to be taken? Keep reading to find out.
A review to reshape the industry
Led by industry expert, Mark Farmer, the review entitled ‘Transforming the Construction Workforce’ examines how the current Industry Training Board (ITB) model is addressing the sector’s needs. In its findings, the report argues that the industry must move beyond traditional training models and adopt a more unified ‘whole workforce’ approach that encompasses workers who are new or existing, employed or self-employed. Farmer explains:
“There is a sense that many are persevering to make a difference whilst feeling that they are fighting the tide. Collectively we need to think and act differently if we are going to make all this hard work and effort really count going forward.”
Challenges facing the construction workforce
The construction sector has been seeing its lowest employment levels since 1998. Since the 2008 employment peak, the industry has lost 20% of its workforce while the UK’s population has grown by 10%. Many businesses struggle to recruit new talent, and the industry’s ability to retain and upskill existing workers remains a key concern.
Farmer warns against relying solely on recruitment as a solution, stating:
“We cannot just assume we are going to recruit our way out of this crisis by setting ever more unattainable new entrant targets.”
Instead, the report stresses the need to maximise the potential of the existing workforce by improving training opportunities and modernising skills development.
Key recommendations for change
The report outlines 63 recommendations to reshape industry training, with several core themes:
- The ITB model should remain but must undergo a major transformation to better address workforce challenges.
- A shift towards a ‘whole workforce’ approach, focusing on upskilling and reskilling both employed and self-employed workers.
- Modernisation of the statutory levy-grant system, ensuring funding is more effectively allocated with clear, measurable outcomes.
- A potential merger between the Construction and Engineering Construction ITBs to create a more strategic, unified approach.
Industry response and next steps
The Department for Education has accepted 34 of the recommendations in full and another 26 either in principle or with partial modifications. Key industry figures have been acknowledging the importance of reform.
Tim Balcon, Chief Executive of the Construction Industry Training Board (CITB), welcomed the report’s recognition of ITBs’ role in addressing skills challenges and emphasised the need for continued investment in apprenticeships and new entrants.
Brian Berry, Chief Executive of the Federation of Master Builders, reinforced the urgency of change, stating:
“The urgent need to build new infrastructure projects and deliver much-needed housing won’t happen unless there is a radical review of the training landscape – the Mark Farmer report shows the way forward.”
Looking ahead
The construction industry is at a turning point. With significant investment in upskilling and reskilling, businesses can build a more resilient, productive workforce. Experts are saying that training reform is not just a necessity – it’s an opportunity to strengthen the sector and secure future growth.
The challenge now is for industry leaders, training bodies and policymakers to implement these recommendations effectively. If successful, this shift could future proof the construction sector and ensure it remains a key driver of the UK economy for years to come.
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10.02.2025
Feature image: Freepik
