Construction EMPLOYMENT Landscape · Page 3 Source: ONS –CIBT –Glenigan –Barbour –Savills - National Housing Federation –Chartered Institute of Personal Development Construction

BUILDING CAREER POTENTIAL

Construction

EMPLOYMENT

Landscape

March 2018

Edition 1

Content Page

1. Introduction 3

2. Regional employment levels 4

3. Employment by industry sector 5

4. Employment by occupation 6

5. Employment forecast 7

6. January project activity 8 -10

7. Future reports 11

8. Occupation classifications 12

New houses built

217,350

2017The construction sector faced a range of challenges and uncertainties in 2017 but whilst

the economic political landscape is currently uncertain with lingering concerns around

Brexit, as well as business and consumer confidence, the future construction forecast

remains positive which should sustain workforce and employment levels.

The search for skilled experienced professionals continues within the industry. This has

been fuelled by the full pipelines of planned work seen across the UK and within a

number of sectors, such as residential development and infrastructure.

This employment insight segments the construction workforce by, region, sector and

occupation and helps to pinpoint immediate and future hot spots for employment growth

and subsequent skill shortages..

31,600 Construction Jobs Created

During 2018 UK

Housing Output to grow

2.8%During 2018

New Construction Jobs London

2,010During 2018

2,140New Technical Jobs Created

During 2018 UK

158,000 New Recruits Needed

Over 5 Years

Introduction to the UK’s

Construction Employment

15%Up from 2016 new houses built .

Source: ONS – CIBT – Glenigan – Barbour – Savills - National Housing Federation – Chartered Institute of Personal DevelopmentPage 3

Construction Employment

2,331,600

20180.5%Up from Employment in 2017 .

As expected, a large proportion of construction-specific employment is

concentrated in London and the South East, whereas employment levels in more dispersed regions such as the North East and Wales remain relatively lower.

The largest contributions to construction employment growth came from London

and the South East, which together make up 29% of construction employment in

2017. Elsewhere, the most notable increase in 2017 came from Yorkshire and The

Humber, which grew by 18.6% compared with 2016. Scotland also grew at an

increasing rate, rising 13,500 in 2017 and now equates to 10% of all construction

employment in Great Britain.

Strong national activity, which is widespread across the UK, has kept the

construction sector buoyant despite concerns about the future. Recent analysis

indicates a 2.7% national salary increase across the sector, which reflects a

healthy demand for professionals, some regions are now rivalling London for

salary rises.

After four months of declining growth,

residential bounced back with £1.9 billion

worth of construction contracts in

January 2018.

42.4%London tops theregions in January for new contracts.

Regional Construction

Employment Structure 2018


Based on a 4 week rolling period.

Retail construction: Retail construction continues to be impacted, largely negatively, by

the changing shopping habits of British consumers, leaving only leisure construction of

the big three components of the commercial sector showing growth in the short term.

Education and health construction: With the focus on the residential and infrastructure

sectors, public expenditure on education and health construction is projected to fall,

only in part mitigated by an increase in defence work as part of the Army Basing Plan,

although this will complete in 2019.

Private Housing remains the largest

employment sector within the built environment, a trend which is set to continue with the Governments’

commitment of 300,000 new homes to be built.

Infrastructure: Infrastructure is expected to be the strongest sector in output terms,

driven by a small number of huge projects, such as High Speed 2 (HS2), and new

nuclear build at Hinkley Point and Wylfa. Annual average growth of 3.1% over the

five years to 2022 is likely to peak in 2019.

Residential/Housing : Housing output, both public and private, is expected to grow by

2.8% and 2.2% respectively, which will considerably reduce the dependence on

infrastructure to buoy up the sector.

Commercial construction: Office space was the sector identified as the most

vulnerable to a more cautious attitude by investors and developers to bringing new

projects forward due to Brexit uncertainties. This is proving to be the case with new

orders for office construction on a downward trend and output growth weakening

significantly.

Repair and maintenance (R&M): Growth across all the new work sectors is projected

to average 1.5% a year over the 2018 to 2022 period, with the repair and

maintenance sector seeing slightly slower expansion of 1.1% per annum. The

prognosis for housing R&M is for significantly stronger than long-term trend growth

(1.2%) largely due to the potential rework across the public high rise.

Industry Employment

Structure 2017


Professional Occupations

377,790

CURRENT EMPLOYMENT

BY OCCUPATION

Professional occupationsOther construction professionals and technical staff 203,190

Civil engineers 56,820

Surveyors 74,440

Architects 43,340

Non-manual occupationsNon-construction professional, technical, IT, office-based staff 380,190

Other construction process managers 210,400

Senior, executive, and business process managers 181,340

Construction Trades Supervisors 50,240

Construction Project Managers 47,710

Non-construction operatives Manual occupations 36,330

Manual OccupationsWood trades and interior fit-out 263,850

Labourers nee* 134,070

Electrical trades and installation 197,200

Painters and decorators 113,020

Plumbing and HVAC trades 168,010

Bricklayers 71,640

Plant operatives 39,960

Logistics 23,590

Plasterers 53,270

Roofers 47,430

Scaffolders 22,480

Specialist building operatives 58,480

Building envelope specialists 108,130

Steel erectors/structural fabrication 24,550

Glaziers 30,150

Plant mechanics/fitters 42,750

Floorers 26,640

Civil engineering operatives nee* 22,150

Manual Occupations

1,447,370

Non-manual Occupations

906,210

Professions in high demand

Specialist trades to be the most in demand are

wood trades and interior fit out (3,070) within

professional occupations technical staff (2,140)

sit within the top three of high demand roles,

whilst in non-manual occupations will see a

significant rise for construction process

managers (2,770) .

Taken as a proportion of base 2018 employment

levels, the highest ARRs are for logistics

personnel (3.4%) construction trades

supervisors (3.1%) civil engineers (2.5%).


31,600 Total number of new

recruits are needed within the

industry during 2018

The UK construction industry needs to find an extra 31,600 new recruits each year for the

next 5 years in order to meet the nations construction forecasted output, the projected

figure does not include the amount of retirements due during the coming years, in reality

the new recruit figure could be much higher.

The North West has been identified with the largest employment forecast. The North West

is estimated to have accounted for around 10% of UK construction employment in 2017,

an significant increase on previous years.

In 2017, Greater London accounted for around 15.8% of UK construction employment.

Between 2018 -2022 construction employment within the capital is likely to see only

marginal growth. Plant operatives are anticipated to see the strongest annual average

increase within the region.

However, recruitment challenges will most certainly intensify as 63% of employers expect

to hire permanent staff during 2018, and 78% of employers expect a shortage of suitable

candidates to be the primary recruitment challenge in the next year. This shortage is partly

due to the specialist skillsets often required, but also because employees are cautious

about the future and less likely to switch jobs.

UK 2018

EMPLOYMENT FORECAST


JANUARY

PROJECT ACITIVITY

New construction contract awards increased

by 11.6% in January 2018 following downturn

in December 2017, with number of projects

increasing by 46.6%.

Types of Project

Residential projects accounted for the highest share of contract awards

values in January 2018 with a 47% share followed by infrastructure with

14% and commercial & retail with 13%.

As well as the Spire London development at India Quay, notable

residential contract awards in January included the £95 million Telford

Home project at Blackhorse Road in Walthamstow to provide 337 flats

and the £90 million Plot L development at Angel Gardens in Manchester to

provide 458 flats. The largest infrastructure contract award in January

2018 was the £200 million Midland Metro extension between Brierley Hill

and Wednesbury.

Residential

Industrial

Commercial & Retail

Hotel, Leisure & Sport

Medical & Health

Education

Industrial

Other notable infrastructure awards included the £100 million biome thane plant at Blackburn Waste Water Treatment Works, whilst one of the largest civil engineering projects was

the £15 million flood defence works on the river Medway in Rochester. Within the commercial and retail sector one of the largest contract awards was the £150 million Paris

Gardens development at Southwark to provide 60,751 square meters of space in a 26 storey structure, whilst one of the largest retail contract awards was the £20 million extension

and refurbishment of the Cheshire Oaks shopping complex at Ellesmere Port.

Top 10 biggest project by value


JANUARY

PROJECT ACITIVITY

Change of activity by region (since January 2017) Residential contract awards in

January 2018 were dominated

by private housing which

accounted for 85% share of

contract awards.

Residential contract awards in January 2018 were dominated

by private housing which accounted for 85% share of

contract awards, but this is a 6% decrease on January 2017.

The only other significant sector in January 2018 was

hostels/halls of residence/barracks with 8% share, up 3% on

January.

Types of Residential Projects


Change of activity by sector (since January 2017)

The dominance of London this month meant that the remaining

regions had much smaller share of contract awards with the North

West the second largest region at 10.9%, followed by the South East

with 8.4% of residential contract awards.

Key residential contracts in the North West included the £90 million

Plot L Angel Gardens in Manchester which will see 458 residential

units and ground floor office space over 2 structures and 33 storeys.

15

6 45

16

2

3

7

17

1

9

812

14

11

13

10

1 Long Marston, Stratford-on-Avon

2 Oxfordshire Cotswold, Oxfordshire

3 Deenethorpe, Northamptonshire

Culm, Devon

5 Welborne, Hampshire

West Carclaze, Cornwall

Dunton Hills, Essex

8 Spitalgate Heath, Lincolnshire

9 Halsnead, Merseyside

10 Longcross, Runnymead and Surrey Heath

11 Bailrigg, Lancaster

12 Infinity Garden Village, Derbyshire

13 St. Cuthberts, Cumbria

14 North Cheshire, Cheshire East

14 Planned Garden Village

15 Aylesbury, Buckinghamshire

16 Taunton, Somerset

17 Harlow & Gilston, Essex and Hertfordshire

3 Planned Garden Towns

Earlier this year the Government also announced plans to deliver 14 new

villages of between 1,500 to 10,000 homes to be built outside existing

settlements. A further three towns of more than 10,000 houses each will be

built alongside Aylesbury, Taunton and Harlow and Gilston.

JANUARY

PROJECT ACITIVITY


7

4

6

FUTURE

INSIGHT REPORTS


Occupational Employment

Forecast

Built Environment

TALENT INSIGHT

A New Reality

Attracting New Talent

Regional

EMPLOYMENT

Landscape

Technical & Design

Professionals

Salary Benchmark


1115

1131

1132

1133

1135

1251

1136

2150

1162

1259

1139

2133

2134

3538

3545

Occupational group

Description, SOC (2010) reference.

Senior, executive, andbusiness process managers

Chief executives and senior officials

Financial managers and directors

Marketing and sales directors

Purchasing managers and directors

Human resource managers and directors

Property, housing and estate managers

Information technology and telecommunications

directors

Research and development managers

Managers and directors in storage and warehousing

Managers and proprietors in other services nee*

Functional managers and directors nee*

IT specialist managers

IT project and programme managers

Financial accounts managers

Sales accounts and business development managers

Construction project managers

Construction project managers and related

professionals

Management consultants and business analysts

Receptionists

Typists and related keyboard occupations

Business sales executives

Bookkeepers, payroll managers and wages clerks

Records clerks and assistants

Stock control clerks and assistants

Telephonists

Communication operators

Personal assistants and other secretaries

Sales and retail assistants

Telephone salespersons

Buyers and procurement officers

Human resources and industrial relations officers

Credit controllers

Company secretaries

Sales related occupations nec*

Call and contact centre occupations

Customer service occupations nec*

Elementary administration occupations nec*

Chemical scientists

Biological scientists and biochemists

2423

4216

4217

3542

4122

4131

4133

7213

7214

4215

7111

7113

3541

3562

4121

4214

7129

7211

7219

9219

2111

2112Other construction process managers Physical scientists 2113

Production managers and directors in manufacturing 1121 Laboratory technicians 3111

Production managers and directors in construction 1122 Graphic designers 3421

Managers and directors in transport and distribution 1161 Environmental health professionals 2463

Waste disposal and environmental services managers 1255

Health and safety officers 3567

IT business analysts , architects andsystems

designers 2135

Conservation and environmental associate Conservation professionals 2141

professionals 3550 Environment professionals 2142

Non-construction professional, technical, IT, and other Actuaries, economists and statisticians 2425

office-based staff (excl. managers) Business and related research professionals 2426

IT operations technicians 3131 Finance officers 4124

IT user support technicians 3132 Financial administrative occupations nec* 4129

Finance and investment analysts and advisers 3534 Human resources administrative occupations 4138

Taxation experts 3535 Sales administrators 4151

Financial and accounting technicians 3537 Other administrative occupations nec* 4159

Vocational and industrial trainers and instructors 3563 Office supervisors 4162

Business and related associate professionals nec* 3539 Sales supervisors 7130

Legal associate professionals 3520 Customer service managers and supervisors 7220

Inspectors of standards and regulations 3565 Office managers 4161

Programmers and software development Construction trades supervisors

professionals 2136 Skilled metal, electrical and electronic trades

Information technology and telecommunications supervisors 5250

professionals nec* 2139 Construction and building trades supervisors 5330

Estate agents and auctioneers 3544 Wood trades andinterior fit-out

Solicitors 2413 Carpenters and joiners 5315

Legal professionals nec* 2419 Paper and wood machine operatives 8121

Chartered and certified accountants 2421 Furniture makers and other craft woodworkers 5442

Business and financial project management Construction and building trades nec* (25%) 5319

professionals 2424

Bricklayers Air-conditioning and refrigeration engineers 5225

Bricklayers and masons 5312 Logistics

Building envelope specialists Large goods vehicle drivers 8211

Construction and building trades nec* (50%) 5319 Van drivers 8212

Painters and decorators Elementary storage occupations 9260

Painters and decorators 5323 Buyers and purchasing officers (50%) 3541

Construction and building trades nec* (5%) 5319 Transport and distribution clerks and assistants 4134

Plasterers

Plasterers 5321

Civil engineering operatives not elsewhere

classified (nec*)

Roofers Road construction operatives 8142

Roofers, roof tilers and slaters 5313 Rail construction and maintenance operatives 8143

Floorers

Floorers and wall tilers 5322

Quarry workers and related operatives

Non-construction operatives

8123

Glaziers Metal making and treating process operatives 8117

Glaziers, window fabricators and fitters 5316 Process operatives nec* 8119

Construction and building trades nec* (5%) 5319 Metalworking machine operatives 8125

Specialist building operatives not elsewhere Water and sewerage plant operatives 8126

classified (nec*) Assemblers (vehicles and metal goods) 8132

Construction operatives nec* (100%) 8149 Routine inspectors and testers 8133

Construction and building trades nec* (5%) 5319 Assemblers and routine operatives nec* 8139

Industrial cleaning process occupations 9132 Elementary security occupations nec* 9249

Other skilled trades nec* 5449 Cleaners and domestics* 9233

Scaffolders Street cleaners 9232

Scaffolders, stagers and riggers 8141 Gardeners and landscape gardeners 5113

Plant operatives Caretakers 6232

Crane drivers 8221 Security guards and related occupations 9241

Plant and machine operatives nec* 8129 Protective service associate professionals nec* 3319

Fork-lift truck drivers 8222 Civil engineers

Mobile machine drivers and operatives nec* 8229 Civil engineers 2121

Plant mechanics/fitters Other construction professionals and technical staff

Metalworking production and maintenance fitters 5223 Mechanical engineers 2122

Precision instrument makers and repairers 5224 Electrical engineers 2123

Vehicle technicians, mechanics and electricians 5231 Design and development engineers 2126

Elementary process plant occupations nec* 9139 Production and process engineers 2127

Tool makers, tool fitters and markers-out 5222 Quality control and planning engineers 2461

Vehicle body builders and repairers 5232 Engineering professionals nec* 2129

Steel erectors/structuralfabrication Electrical and electronics technicians 3112

Steel erectors 5311 Engineering technicians 3113

Welding trades 5215 Building and civil engineering technicians 3114

Metal plate workers and riveters 5214 Science, engineering and production technicians nec* 3119

Construction and building trades nec* (5%) 5319 Architectural and town planning technicians* 3121

Smiths and forge workers 5211 Draughtspersons 3122

Metal machining setters and setter-operators 5221 Quality assurance technicians 3115

Labourers nec* Town planning officers 2432

Elementary construction occupations (100%) 9120 Electronics engineers 2124

Electrical trades and installation Chartered architectural technologists 2435

Electricians and electrical fitters 5241 Estimators, valuers and assessors 3531

Electrical and electronic trades nec* 5249 Planning, process and production technicians 3116

Telecommunications engineers 5242 Architects

Plumbing and heating, ventilation, and air conditioning Architects 2431

trades Surveyors

Plumbers and heating and ventilating engineers 5314 Quantity surveyors 2433

Pipe fitters 5216 Chartered surveyors 2434

Construction and building trades nec* (5%) 5319 *Not elsewhere classified

45

Occupational Groups

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Construction EMPLOYMENT Landscape · Page 3 Source: ONS –CIBT –Glenigan –Barbour –Savills - National Housing Federation –Chartered Institute of Personal Development Construction