A new report from the Fabian Society has highlighted the stark skills challenges facing construction – including that just 30% of young people would consider a career in the industry.
Tackling the Built Environment Skills Crisis explores issues such as an ageing workforce, the high costs of training and the impact of labour shortages on project delivery and quality.
It also proposes recommendations for policymakers, employers and skills providers to improve the UK-wide picture for years to come.
So what are the report’s key findings, and what new light does it shine on an all-too-familiar set of problems?
Supply can’t satisfy demand
To begin with, some of the statistics resulting from its authors’ literature review, data analysis, interviews and workshops make for grim reading.
36% of UK construction workers are over 50, with as many as 700,000 expected to retire by the early 2040s – in an industry that, according to the report, already has a higher density of skills shortage vacancies than any other.
To make matters worse, only 50% of construction employers reported investing in workforce training during the year prior, with investment per employee also falling by 19% in real terms since 2017.
One likely factor is the price of developing skills; construction, the authors say, has the highest training costs of any industry – £915 per training day, a whole £437 more than the economy-wide average.
Inefficient training
But when businesses do invest in skills, results can be underwhelming.
Take apprenticeships, for example. It’s clear they remain popular, given 38% of construction employers recruit apprentices.
That’s some 13% higher than in the wider economy, and the report also notes that around half of on-site house-building workers completed an apprenticeship.
Yet momentum is slipping.
After the introduction of the Apprenticeship Levy in April 2017, apprenticeship starts fell by a staggering 29%.
That’s worrying enough, but consider the fact that only 62% of those who start their apprenticeship go on to complete it – or that just 58% pass their end-point assessment – and the risk of producing less site-ready talent is obvious.
A millstone around the industry’s neck
The net result of all this decline is felt in quality as well as in productivity.
The Fabian Society’s report suggests avoidable construction errors cost up to £20 billion every year, with the direct costs of defects alone accounting for around 5% of projects’ value.
As the Building Safety Act 2022 places greater emphasis on competence, qualifications and ongoing training, the industry must understand that investing in skills is no longer optional, but a necessity.
So what’s holding it back?
Taking decisive action
Reading the report, it’s apparent that different audiences encounter different barriers that deter them from prioritising skills development.
While larger builders, for instance, care primarily about workforce pipelines, quality consistency, competence and strategic planning, the priorities for SMEs are administration, funding, supervision and cashflow.
That distinction matters because 79% of construction employees work for small and medium-sized enterprises – and 41% for firms with fewer than 10 employees.
At the same time, SMEs currently deliver more than three-quarters of apprenticeships, too.
Solving the skills crisis is complex, therefore, but we still see lots of opportunities.
Firstly, can we attract more people to careers in construction?
The low interest among young people and the fact only 15% of the 2025 workforce was female suggests significant room for improvement.
And when it comes to training, how do we deliver the right courses in a way that gives employers confidence that their skills investments will pay off?
At NHBC, we’re already taking great strides to answer these questions and more.
Our unique apprenticeships, delivered at purpose-built, site-like training hubs across the country, are one notable example.
These accelerated programmes mean apprentices can achieve far more quickly than via traditional routes, qualifying typically within between 14 and 18 months.
Couple that with improved results –such as the 90% completion and 85% retention rates at our current training hubs, or the 93% end-point assessment pass rate at our Lichfield hub – and construction businesses can clearly see improved returns on their investments.
It’s a start that we’re incredibly proud of.
But it’s still only a start – and as the industry’s partner in tackling the skills shortage, NHBC has plenty more planned to play a key role in a stronger future.
