Methodological Centre for Vocational Education and Training

Study of the Construction Sector Research report on skill needs

Vilnius, 2008

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STUDY OF THE CONSTRUCTION SECTOR Experts: Violeta Averjanovien÷, Juozas Baranauskas, Giedr÷ Beleckien÷, Vincentas Dienys, Linas Juknevičius, Bronislava Kaminskien÷, Rūta Karvelyt÷, Valentinas Kavaliauskas, Neringa Miniotien÷, Rimvydas Motiekaitis, Vitalija Motiekaitien÷, Candy Murphy, Loreta Račelien÷, Vita Povilonyt÷, Albertas Šlekys, Lina Vaitkut÷. We are sincerely grateful to sports sector organisations and everyone who helped us in this activity. We hope that the information presented will be helpful while planning employees training and performing other tasks.

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SUMMARY

The construction sector is defined in compliance with the International NACE classification. It is made of six

subsectors: Architectural and engineering activities and related technical consultancy (activity 74.20), Site

preparation (activity 45.11 and 45.12), Building of complete constructions or parts thereof (activity 45.21,

45.22, 45.23, 45.24 and 45.25), Building installation (activity 45.31, 45.32, 45.33 and 45.34), Building

completion (activity 45.41, 45.42, 45.43, 45.44 and 45.45), Renting of construction or demolition equipment

with operator (activity 45.50).

International trends of the construction sector development

Construction sector is one of the most important sectors in the European Union. It generates about 10% of

GDP and positively influences the growth of employment in other related economic activities. The sector is

characterised by cyclic work, rather low efficiency in comparison with other industries and prevailing number

of micro enterprises. The majority of the employees are men. Construction is also characterised by a great

number of migrant workers and the extent of subcontracting. Work on construction sites is one of the most

dangerous. More accidents constantly occur on construction sites than in any other European economic

sector. Earnings are normally high as compared with those paid in other sectors which require a similar level

of skills. Low level of valued added in respect of a man in the construction sector predetermines financial

pressure on construction enterprises, especially small and medium-sized. Therefore, this sector is very

sensitive to the price of raw material.

The level of professional skills required for this sector differs a lot subject to the type of work: for working in

the professional area or construction management area a person is normally required to have the bachelor‘s

degree in construction sciences, construction management or engineering, qualification in construction

sciences, business and management and an appropriate professional experience in the construction sector.

One is also required to have competence related with contracts, plans and specifications, methods of

construction, materials and legal requirements. Skilled workers are usually trained crafts as apprentices from

two to four years.

Construction is closely related with the transportation and manufacturing sectors, especially with the

production of enginery and chemicals as well as timber processing. Also, a great impact on the construction

sector is made by the development of the tourism sector. The projection is that the further growth of the

tourism sector will further positively influence the construction sector throughout Europe.

The increasing environmental concern is an insufficiently-developed area in the construction sector, although

certain attempts have been made by large international enterprises – encouraging of salvage, installing of

new technologies and construction of energy-saving buildings. Though, due to a weakly-developed training

of workers, the environmental awareness of simple workers is still very poor.

The prospects of the construction sector are in fact favourable, especially in the run of a few coming years.

The recent years witnessed not a few changes determined by the technological progress and a further

growth is forecasted, especially in the countries with the speedy growth of economy and the large number of

population. Greater possibilities will be enjoyed by the construction enterprises which may act in the entire

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Europe and outside Europe and use state-of-the-art technologies. In the Eastern Europe the civil

construction subsector surpassed other subsectors and it is expected to grow by more than 10% per year.

Since 2002, the subsectors of construction of dwelling houses and non-dwelling houses have fastly grown

and they are expected to continue growing at the same rate.

Nevertheless, the sector encounters challenges as well, including the growing trend of sub-contracting,

increasing requirements for traditional teaching methods and inability to adapt properly to the changing

needs of skills. This in turn diminishes the attractiveness of the sector as a job. These changes are far more

speedy in the Western than in the Eastern Europe. In fact, the construction sector in the Western Europe

increasingly depends on the especially mobile workers from the Eastern Europe

Trends of the construction sector development in Lithuania

Enterprises. The construction sector encompasses about 5 thousand enterprises, of which 39% specialise in

the field of the construction of buildings and their parts. The sector mostly includes small and minor

enterprises – the number of employees does not exceed 49 workers. Since 2002 till 2006, the number of

enterprises in the construction sector rose more than twofold. The biggest concentration of the construction

enterprises is represented by Vilnius and Kaunas Counties. Such a situation was mostly determined by the

uneven distribution of investments in the territory of Lithuania. On the other hand, the construction

enterprises are rather mobile and tenders in the cities are often won by enterprises based in other places,

mostly due to the cheaper labour force they offer.

Employees. The construction sector employs approximately 107 thousand workers, of whom the major part

is employed in the subsector of the construction of buildings and their parts (about 68% of the total number

of workers employed in the construction sector). Over five years (2002-2006) the number of employees in

the construction sector gradually rose. The majority of workers are men (about 93,5%). The number of

people who work part-time of all the employees of the construction sector amounts to 3%. Among the job

groups, the most numerous group is that of skilled workers. The majority of employees in the architecture

subsector consists of specialists and technicians. The employees structure by age reflects that the number

of people aged 55 and older amounts to approximately 10,3% of the total number of employees. In 2007,

permissions for working in the construction sector were issued to 998 citizens of other countries which is

about 4 times more as compared to 2005. The majority of them consisted of skilled workers and craftsmen

(about 77% of all the permission-holders).

The basic traits of the development. The construction sector is one of the most fastly developing Lithuanian

industries over the recent five years. This is mostly influenced by the national economic growth, favourable

crediting conditions, possibilities provided by the EU structural funds, increased demand of dwelling,

commercial and industrial buildings, increasing choice of new building materials and technologies. Economic

activity in the construction sector depends on the seasons. Recently, the impact of seasons on the

construction works diminished because of the new materials and technologies. The construction sector

development prompts the growth of the production of building materials as well as the demand for sales,

transportation and storage services. Building materials manufactured in Lithuania are popular enough in the

markets of such EU countries as Sweden, Norway, Germany and other. Panel houses, windows, etc are very

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marketable in other countries. These products are purchased together with assembling services which

makes favourable preconditions for the development of Lithuanian construction services in the EU market.

Performance indicators. In 2005, 99% and as few as 1% of the construction works were performed in the

Lithuanian territory and abroad respectively. Foreign trade balance in the construction sector is negative and

deficit increased by approximately 1,7 time over the last four years. Although this industry is characterised by

the constantly increasing turnover and value added, it, however, stands behind the majority of other activities

in respect of productivity (value added per one actually worked hour). The average monthly gross earnings in

the construction sector are among the highest in the country. Nevertheless, great differences in earnings

exist (twofold) in different subsectors. The lowest average monthly gross earnings are paid for the

construction completion activities. The largest competition exists in the construction of buildings and their

parts as well as building completion activities. The quality of construction works is considered to be the main

competitive factor.

Technologies. The major part of the construction sector enterprises exploit state-of-the-art technologies.

Their installation should be continued in future as well. The most popular technologies used in the

construction sector are estimating system software. Installation, maintenance equipment, modern installation

and construction machinery and buildings and constructions development software are also popular. The

latter is used by the majority of architectural enterprises. The most popular technologies that are planned to

be used include modern construction and installation machines and planning, optimisation and management

software.

Development trends. Development trends of the construction sector are assessed rather positively. They are

associated with the demand for the construction of non-dwelling buildings (offices, logistics and commercial

premises); increase of efficiency; land reform; modern technologies; development of the construction

services related with the installation of Lithuanian products in the EU markets. On the other hand, certain

data of the recent years imply that the development of this activity will begin slow down in the coming years.

Presently, the new construction prevails by turnover indicators, though due to the outdated and energy-

inefficient dwelling houses dominating in Lithuania considerable future increase of the volume of

reconstruction works may be apparently observed. According to the EUROSTAT data, working conditions in

the construction sector are more attractive in the EU countries than those in Lithuania. This may exert

negative influence on both the search for new workers and retaining of workers in Lithuanian construction

enterprises.

The main factors which will have influence on the development of the construction sector in future are the

following:

• increasing environmental requirements; necessity of energy saving;

• changes in the immovable property market;

• growing assortment of new building materials and technologies;

• completion of the land reform;

• market internationalization;

• decreasing demand for workers (with regard to the number and qualification).

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Demand for employees. Turnover of employees in the construction sector is rather high and amounts to

35%. It is in part determined by hard operating conditions and dependency of works on the seasons. The

largest turnover is observed in the unskilled workers‘ group where almost all the workers change in the

course of the year. Turnover of workers totals 23% and 32% in the specialists‘ and technicians‘ group and in

the skilled workers‘ group respectively. The lowest turnover of workers is observed among the management

and administration specialists.

Since 2003 till 2006, the number of the unemployed registered in the Labour Exchange decreased. Supply of

the number of vacancies also slightly diminished. According to the preliminary findings, in 2007 the level of

tension (ratio of vacancies to the unemployed) in the construction sector accounted for 1,5 and was the

highest in the country. The shortage of workforce in certain job groups is especially relevant. For example,

the specialists‘ group mostly lacks occupational safety specialists and architects. There is also a lack for

engineers of static engineering systems and civil engineers. Within the skilled workers‘ group the shortage is

especially observed among roofers/whitesmiths and engine-drivers (cranes, hoists, excavators, pile drivers).

Over the coming five years, the number of workers in the construction sector will grow and this will affect all

the groups of vacancies, except for the unskilled workers. The number of unskilled workers should decline in

the future. The annual need for the new workers will total more than 10 thousand people. The highest

demand will be for skilled workers.

Alteration of skills. The construction sector workforce lacks the skills of dutifulness, responsibility, situation

management, inventiveness and inquisitiveness. Specialist, technicians and skilled workers are lacking in

practical skills. Knowledge on modern technologies and materials and skills how to work with them as well

as competences of project management and time planning are also relevant. The managers and

administration staff are lacking general skills most of all. Also, there is a shortage of such skills as work

organisation, decision-making, time planning and flexibility. The majority of the construction sector

enterprises arrange training for their employees. Usually, they arrange on-the-job training or training at state

and more rarely at private schools.

The construction sector is a rather inert industry, therefore, the majority of professions are classic (for

instance, masons, decorators) and eventually are almost not subject to change. However, the development

of the supply of new technologies and materials, increasing level of the automation of activities and growing

globalisation determine the need for new skills. In future, works organisation, technological design and

construction planning skills as well as competencies of robot management and work with automation

programmes and command of foreign languages will be especially relevant for the successful development

of the construction sector.

Supply of workers. In the construction sector the number of skilled workers is almost four times as bigger as

the number of specialists and technicians. Nevertheless, the 2006 findings about the admission to

training/educational institutions, show that the number of young people who study at vocational schools is

only 1,3 times as larger as the number of those who chose the higher education studies. As a result, the gap

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between the demand for and supply of workers may even more widen and cause serious problems for

business development.

According to the survey findings, so far both primary vocational training and higher education have satisfied

approximately 50% of the construction sector needs with regard to workers. On the other hand, in 2006 the

number of young people admitted to study under the architecture and construction field studies/education

programmes increased by 1,4 times as compared to 2003. Therefore, with the slowing of the sector

development and further improvement of operating conditions and efficiency the gap between the supply of

and demand for workers in the construction sector is expected to narrow over the coming five years.

Since the turnover of workers, especially in the unskilled workers‘ group, is rather intense, there is a fairly

large need for continuing training (about 11 thousand per year). This need is partly satisfied by arranging the

teaching for the unemployed. Though, according to the sociological survey findings, the major part of the

demand for workers is compensated by enterprises themselves who arrange on-the-job training or training in

educational establishments.

Recommendations:

• to narrow the gap between the supply and demand for workers by improving the planning of the

admission to training/studies programmes. One of the potential solutions is changing the requirements

for the admission to higher educational institutions, i.e. application of requirements of VET background

and work experience for certain study programmes, e.g. business and administration;

• to improve the supply of workers by taking advantage of the possibilities provided by apprenticeship as

a new vocational education and training organisation form legitimated in the Amendment of the Law on

Vocational Education and Training (2007);

• to improve the qualification of specialists by updating training/study programmes according to the

identified skill needs with a special focus on the new technologies and practical skills development and

by designing specific measures (including modernisation of practical training facilities) for the

improvement of study/ training quality and foreseeing resources for implementing these measures;

• to develop construction sector workers qualification improvement system by organising presentations of

new materials, practical seminars, study visits in other enterprises as well as abroad and running specific

training courses with a focus on exclusive, unusual situations, problems and challenges in construction

projects and their practical solutions;

• to strengthen cooperation between employers and training providers by applying such measures as joint

meetings, site visits, career days, curricula development, practical training, etc;

• to improve the information provision to construction sector enterprises and training suppliers by

developing targeted information about employees training and changes in the construction market. This

would enable the timely specification of the requirements for the curricula content and would expand the

opportunities for training of the construction sector workforce.

Study structure. The study is composed of 6 sections. The first section briefly introduces the objectives and

definitions of the study as well as methodology of the sociological survey. It also provides the structure of the

construction sector. The second section includes the overview of international trends of the development of

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the construction sector. The third and fourth sections are devoted to the analysis of the main indicators of the

sector activities and the evaluation of the demand for workers. The third section describes the indicators on

the basis of the collection of statistical data developed for the purpose of the study and accessible

information. The fourth section analyses the survey findings. The fifth section evaluates the supply of

workers and the sixth section provides recommendations. The latter are produced on the basis of the

analysis of all the information and meant for narrowing the gap between the demand for and supply of

workers in the construction sector.

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TABLE OF CONTENTS

1. RESEARCH METHODOLOGY .........................................................................................................................................................10

1.1. Introduction................................................................................................................................................................................10 1.2. Authors of the Study..................................................................................................................................................................10 1.3. Goal of the Study.......................................................................................................................................................................10 1.4. Methodology..............................................................................................................................................................................10 1.5. Description of the Sector ...........................................................................................................................................................10 1.6. Sociological Survey of the Construction Sector Enterprises .....................................................................................................11

2. INTERNATIONAL TRENDS IN CONSTRUCTION SECTOR............................................................................................................12

2.1. Introduction................................................................................................................................................................................12 2.2. Recent Trends in the Construction Sector ................................................................................................................................13 2.3. Recent Trends in Real Estate ...................................................................................................................................................15 2.4. Breakdown of Growth Across the Construction Sector .............................................................................................................16 2.5. Relationship Between Construction and Other Sectors ............................................................................................................16 2.6. Employment in Construction .....................................................................................................................................................17 2.7. Recent Developments in Construction ......................................................................................................................................21 2.8. Likely Future Developments......................................................................................................................................................23 2.9. Prospects for Employment in the European Construction Sector .............................................................................................31 2.10. Impact on Skills, Training and Education ................................................................................................................................32 2.11. Summary .................................................................................................................................................................................35

3. STATISTICAL CHARACTERISTICS OF THE CONSTRUCTION SECTOR.....................................................................................36

3.1. Introduction................................................................................................................................................................................36 3.2. Brief Description of the Construction Sector .............................................................................................................................36 3.3. Enterprises ................................................................................................................................................................................38 3.4. Sector Employment ...................................................................................................................................................................39 3.5. Performance indicators .............................................................................................................................................................41 3.6. Development Trends .................................................................................................................................................................43 3.7. Summary ...................................................................................................................................................................................44

4. CHARACTERISTICS OF CONSTRUCTION SECTOR BASED ON SURVEY FINDINGS ...............................................................47

4.1. Introduction................................................................................................................................................................................47 4.2. Performance Indicators .............................................................................................................................................................47 4.3. Employees.................................................................................................................................................................................49 4.4. Forecasts of Demand for Employees in the Future ...................................................................................................................51 4.5. Summary ...................................................................................................................................................................................53

5. SUPPLY OF EMPLOYEES ...............................................................................................................................................................55

5.1. Introduction................................................................................................................................................................................55 5.2. Education and Job Groups........................................................................................................................................................55 5.3. Supply of Employees by Areas of Education and Level of Education.......................................................................................57 5.4. Supply of Employees for the Construction Sector.....................................................................................................................58 5.4.1. Supply of skilled workers (including operators) for the construction sector............................................................................59 5.4.2. Supply of specialists and technicians for the construction sector ..........................................................................................60 5.5. Summary ...................................................................................................................................................................................61

6. RECOMMENDATIONS .....................................................................................................................................................................63

REFERENCES ......................................................................................................................................................................................65

ANNEX 1 ...............................................................................................................................................................................................66

ANNEX 2 ...............................................................................................................................................................................................70

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1. RESEARCH METHODOLOGY

1.1. Introduction

Since 2005, the Methodological Centre for Vocational Education and Training has been implementing the

project Development of the National System of Establishing Vocational Training Standards. The study is

aimed at developing the national system of establishing vocational training standards which would contribute

to increasing the correspondence between the needs of training and those of the activity world and to

improve the conditions for life-learning. One of the main objectives of the project is to analyse six economic

sectors in order to evaluate the development prospects of each individual sector and the impact made by the

sectors on the number of workers and needs of training. The project is of national importance and is financed

by the European social fund.

1.2. Authors of the Study

The study has been developed by the group of experts representing various Lithuanian institutions –

educational, scientific, statistics, business, etc. The group was also assisted by the Irish specialists having

the experience of implementing similar studies.

1.3. Goal of the Study

The main goal of the study is to analyse the trends of development of the construction sector in Lithuania

and other countries and, on the basis of that, determine the changes in the number of employees and

training needs for the upcoming five years as well as provide concrete recommendations to improve

conformity between the supply and demand of the labour force.

1.4. Methodology

The sectors are studied using a single methodology developed together with the Irish experts in 1999. The

study encompasses the following phases:

1. An overview of publicly available information in Lithuania and other countries about the sector and

related areas as well as the analysis of official statistics about the sector;

2. A survey of sector enterprises by means of interviews and postal questionnaire surveys;

3. Analysis of all information and identification of change factors in the sector;

4. Projection of employment in the sector;

5. Assessment of the sector training needs in the upcoming five years.

1.5. Definition of the Sector

The construction sector is defined according to the international NACE classification activities (Figure 1.1).

The definition has been specified together with the Lithuanian and EU experts. As a result, the possibility of

comparing the study results at international level has been ensured.

According to the definition, the construction sector is made of six subsectors: Architectural and engineering

activities and related technical consultancy (further - AR), Site preparation (further - SP), Building of

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complete constructions or parts thereof (further - BC), Building installation (further - BI), Building completion

(further - BC) and Renting of construction or demolition equipment with operator (further - RE).

Fig.1.1. Structure of the construction sector according to the international NACE classification activities

1.6. Sociological Survey of the Construction Sector Enterprises

Sample for the mail survey was has been drawn on the basis of the data from the Register of Legal Persons

and taking into consideration the prevailing type of economic activity (on the basis of the European

Communities Statistical classification of economic activities NACE) and the size of enterprise. A total of 1620

enterprises were selected. Respondents participating in the mail survey were asked to return the completed

questionnaires within a couple of weeks. Upon sending out the questionnaires, respondents were phoned for

reminding about the deadlines of returning the questionnaires. Thus, the sufficient rate of returning the filled

in questionnaires was guaranteed.

The interviews with respondents from the leader construction sector enterprises were conducted. A total of

10 construction sector enterprises took part in the interviews. The information received was used for the

evaluation of the training needs.

CONSTRUCTION SECTOR (CS)

Architectural and engineering activities and related technical

consultancy (AR)

Site preparation (SP)

Architectural and engineering activities and related technical consultancy (74.20)

Demolition and wrecking of buildings; earth moving (45.11)

Test drilling and boring (45.12)

Building of complete constructions or parts thereof

(BC)

Building installation (BI)

General construction of buildings and civil engineering works (45.21)

Erection of roof covering and frames (45.22)

Construction of motorways, roads, airfields and sport facilities (45.23)

Construction of water projects (45.24)

Other construction work involving special trades (45.25)

Installation of electrical wiring and fittings (45.31)

Insulation work activities (45.32)

Plumbing (45.33)

Other building installation (45.34)

Building completion (BC)

Renting of construction or demolition equipment with

operator (RE)

Renting of construction or demolition equipment with operator (45.50)

Plastering (45.41

Joinery installation (45.42

Floor and wall covering (45.43)

Painting and glazing (45.44)

Other building completion (45.45)

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2. INTERNATIONAL TRENDS IN THE CONSTRUCTION SECTOR

2.1. Introduction

The construction sector is one of the most important and biggest sectors in Europe. The purpose of this

section is to review international trends in the construction sector and in particular, the challenges facing the

sector.

The construction sector is widely regarded as the world’s largest industrial employer, with an estimated 111

million employees, accounting for approximately 28% of all industrial employment. The total annual output

worldwide is approximately 10% of global GNP, of which 30% is generated in Europe. This is greater than

the 22% created in the United States and 21% in Japan.1

Construction plays an important role in economic growth in Europe and stimulates demand in many other

areas of the economy. The construction industry in the EU is said to create up to 20% of employment in

related sectors.2 However, although this industry is a major employer, construction accounted for about 8.6%

of total value-added generated in the whole non-financial business economy, thus indicating a relatively high

level of labour intensity with a low productivity level (Figure 2.1).3

Fig. 2.1. Value-added and number of persons employed in construction, EU-25, 2002

Source: Eurostat, 2005

This section defines the construction sector and highlights recent developments in the sector throughout

Europe. It then goes on to assess the relationship between construction and other sectors and also analyses

1 Ibid. 2 Ibid. 3 Tolkki, 2005

0

2

4

6

8

10

12

14

16

18

20

EU-

25

BE CZ DK DE EE ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK BG RO

Value added

Number of employees

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the different sub-sectors. It then outlines the current employment situation of construction in Europe before

assessing both recent developments in the sector and likely future developments. The factors likely to

influence growth are then analysed, along with the likely future employment situation and the impact of these

on skills, training and education in the sector.

2.2. Recent Trends in the Construction Sector

As indicated earlier, the construction sector is one of the most important in the EU, generating 10% of global

GDP and creating a positive effect on employment growth in other sectors. Production in the construction

sector in Europe has been volatile n recent years. However overall the trend in the EU 25 has been positive

between 2000 and 2005 with a more or less static picture emerging in Euro area.

Fig. 2.2. Quarterly production indices for total construction, seasonally adjusted (Base Year: 2000)Ketvirčio bendrosios

97

98

99

100

101

102

103

104

105

106

Q4-00

Q2-01

Q4-01

Q2-02

Q4-02

Q2-03

Q4-03

Q2-04

Q4-04

Q2-05

Q4-05

EU-25

Euro Area

Source: Amil ir Dolvet, 2006

Fig. 2.3. Index of production for construction, seasonally adjusted data, growth rates compared with the previous month

Source: Eurostat, 2006a

-4

-3

-2

-1

0

1

2

3

2005-12 2006-1 2006-2 2006-3

EU-25

Euro zone

14

Eurostat’s index of production for construction shows that the growth rate for the sector has fluctuated in

recent months, with marked growth in December 2005 and February 2006 matched by similar reductions in

January and March of this year (see Figure 2.3) 4. This highlights the cyclical nature of the sector, affected by

factors as diverse as the weather and the timing of the awarding of contracts.

The index of employment has also fluctuated in recent months, although a pattern of consistent growth has

emerged over the last two years, particularly in the EU-25 (see Figure 2.4).

Fig. 2.4. Index of employment, construction, seasonally adjusted data, growth rates compared with the previous quarter

-1

-0.5

0

0.5

1

1.5

01-04 02-04 03-04 04-04 01-05 02-05 03-05 04-05 01-06

EU-25

Euro

Source: Eurostat, 2006a

According to the European Construction Institute,5 underperformance in the European construction industry

is costing the taxpayer up to €80 billion a year.6 The Institute believes that European markets are being

threatened by the innovative, globally competitive construction industries in the US, Australia and Singapore

and engineering construction is slowing in Europe as the process industries move to areas with cheaper

labour.

The profile of the construction sector differs across countries in Europe. In general, new construction in

Western Europe has been in decline in recent years, with renovation and modernisation playing a major role.

While Germany’s economy has not been performing well in recent years, and construction output has been

in decline, it has continued to retain its position as the largest construction market, retaining four of the

largest global construction companies. Construction, particularly, new construction, has also been in decline

in the Nordic countries. Only in Ireland has the construction sector performed well in Western Europe over

recent years, with employment in the industry reaching a quarter of a million (13% of total employment) in

2005, and this has been attributed to Ireland’s continuing prosperity, by driving demand in the services

4 Eurostat, 2006a

5 Euroconstruct is a network of 19 specialised European research institutes and consulting organisations based in

Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Netherlands,

Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom. 6 European Construction Institute, 2005

15

sector.7 In Eastern and Central Europe, construction markets are smaller than in the West, although it is here

that much of the growth of the sector has taken place, highlighting the growth potential in the region.

Separate output figures are not available for architectural and engineering activities and related technical

consultancy. Eurostat figures however give a breakdown of this sector by type of activity. This shows that

activity is spread across a wide range of activities within the sector and the proportion of total activity

accounted for by each activity varies significantly across countries. Countries with a growing construction

sector such as Ireland and Spain have a relatively high percentage in architectural services for buildings -

13% of the total in Spain and 20% in Ireland. Countries with lower growing construction sectors such as the

UK have a relatively high percentage of activity in engineering design services.8 These trends may also

reflect the extent to which these activities are outsourced from construction in individual countries. What is

clear is that the development of this sector is closely linked to the development of construction activity. By

analysing trends in the construction sector we can get a good understanding of the likely future demand for

architectural, engineering and related consultancy services.

2.3. Recent Trends in Real Estate

Real estate has been performing well across Europe, with high growth rates in Eastern Europe in particular.

The UK has recorded a 12.9% increase in value growth over the period 2001-2005, while Germany’s

performance was less than 3%, highlighting the strong variations across Europe in real estate.

Table 2.1. European Direct Real Estate Performance (2001-2005)

Annual Returns (%) 5 Year Average

2001 2002 2003 2004 2005 Total Income Value

United Kingdom 6,8 9,6 10,9 18,3 19,1 12,9 6,5 6,0

Ireland 8,1 2,3 12,7 11,5 24,3 11,8 5,4 6,3

Portugal 13,1 13,8 10,0 10,6 10,0 11,5 7,2 4,1

Spain 9,1 8,2 8,3 11,5 17,2 10,9 6,0 4,6

Denmark 11,4 9,4 7,3 6,3 18,0 10,5 6,0 4,3

France 9,7 8,6 8,1 10,1 15,2 10,3 6,2 3,8

Norway 10,8 7,0 7,6 10,4 15,2 10,2 7,6 2,4

Italy 12,4 9,3 11,0 8,9 9,0 10,1 6,0 3,4

Netherlands 11,4 8,8 7,1 7,7 10,2 9,0 6,0 2,9

Finland 7,1 5,7 5,9 5,6 8,5 6,6 7,0 -0,6

Sweden 4,6 2,4 0,9 5,8 12,7 5,3 5,7 -0,5

Germany 5,6 4,1 3,2 1,3 0,5 2,9 4,9 -2,1

Western Europe 7,4 7,3 7,4 10,4 11,3 8,8 n.d. n.d.

Source: RREEF, 2006

7 FAS, 2005 8 Eurostat Architectural and Engineering Activities and related Technical Consultancy, Statistics in Focus 11/2004

16

2.4. Breakdown of Growth Across the Construction Sector

As can be seen in Table 2.2 below, the performance of each of construction’s five sub-sectors affects the

sector’s overall performance in different ways. In 2002, more than half of all construction employment was in

buildings and civil engineering. This sub-sector provided jobs for 6.5 million people. It was also the largest in

terms of value-added, accounting for 58% of the total generated by the sector.

Table 2.2. Total persons employed and EU value-added in the construction sector in the EU-25, 2002

Employment

(000)

Total Value-added

(EUR mn)

Site Preparation 359 12,749

Buildings, civil engineering 6 545 227,147

Building installation 2 892 90,840

Building completion 2 210 58,155

Renting of equipment 65 30,68

Construction 12 070 391,958

Source: Eurostat, 2005

Employment figures are not available for AR subsector. However some figures are available on architectural

and engineering occupations. This indicates that such occupations account for around 10% of total

construction related occupations.9

The performance of certain construction activities particularly civil engineering is strongly affected by state

spending, as the state is often the most important client for the sector, with responsibility for infrastructural

projects such as roads, bridges, sewerage systems, power and telecommunications networks. State-led

construction is not as heavily influenced by the strength of the overall economy at any given time. This is

because state investment in construction can be used to stimulate the economy, in times of recession and

slow growth, and to lay the foundation for future growth. Other forms of construction, including house

building in particular, closely reflect prevailing economic conditions. Expenditure on these projects comes

mainly from the private sector, and hence, building projects are more likely to be launched when the

economy is doing or expected to do well and when the cost of borrowing for mortgages is relatively low.10

Conversely a decline in output in the construction sector is normally the first sign of an economic slowdown.

2.5. Relationship Between Construction and Other Sectors

Construction, transport and manufacturing sectors

Construction has strong relationships with the transport and manufacturing sectors, particularly the

manufacturing of machinery, chemicals and wood. While recent figures show that the transport sector has

9 Expert Group on Skill Needs, 2003, Dublin 10

Amil and Dolvet, 2006

17

been performing well, with an average growth rate of 3% for 200611, the relationship between construction

and other manufacturing sectors has not been as positive over the last number of years as was previously

the case. Compared to other manufacturing sectors, construction’s productivity is low and the sector is still

very labour-intensive. The low level of value added per person in construction puts financial pressure on

construction companies, particularly on small and medium enterprises. The sector is therefore highly

sensitive to the price of its raw materials. Concerns have been rising in recent years that the competitiveness

of SME’s in Europe’s construction industry may be threatened by the availability of cheaper materials

manufactured in Asia. This can benefit larger enterprises that can buy in bulk, and may push small and

medium enterprises out of the market. Recent figures show that high oil prices are causing average input

prices to rise across all regions in late 2005, apart from China, further highlighting this potential difficulty.12

Construction and tourism

Forecasts indicate that future growth in tourism will continue to have a positive effect on construction

throughout Europe.

The growth of hotels and other tourist services will continue to provide new business opportunities, in terms

of both expansion and renovation, for the construction sector. The World Travel and Tourism Council

forecasts that travel and tourism activity is expected to grow globally by 4.2% per annum in real terms

between 2007 and 2016. Employment in the industry is likely to grow by 1.8% by 2016.13

2.6. Employment in Construction

In 2002, the European construction sector employed 12.7 million workers, or 7.9% of the total EU-15

workforce (see Table 2.3), of which, 91% were men.

Table 2.3. Proportion of Construction Workers (NACE F) of the Total Workforce in 2002

%

EU-15 7,9

Belgium 6,6

Denmark 6,6

Germany 7,6

Greece 7,6

Spain 11,9

France 6,6

Ireland 10,6

Italy 7,9

Luxembourg 9,1

Netherlands 6,5

Austria 8,9

Portugal 12,7

Finland 6,3

Sweden 5,5

11 Ibid. 12 JP Morgan, 2005 13

World Travel and Tourism Council, 2006

18

UK 7,4

Source: Tolkki, 2005

This table shows that countries experiencing high levels of growth following EU membership such as Spain,

Portugal and Ireland have a relatively high dependence on construction employment. This growth is unlikely

to be sustainable as such economies settle into lower long-term growth patterns.

Skilled and highly qualified workers, who make up the bulk of workers, are able to command substantially

higher salaries than unskilled workers.14 Construction, like many other sectors, has a strong hierarchical

structure, with skilled and highly qualified workers, who make up the bulk of workers, able to command

substantially higher salaries than the unskilled workers.15 To illustrate this point Table 2.4 below shows the

breakdown of employment in construction in Ireland.

Table 2.4. Employment Levels in Skills Groups 2002-2010 (000's)

2002 % of total

Architects, Architectural Technicians 4 700 3

Engineers, Engineering Technicians 7 800 5

Surveyors 3 600 2

Planners 550 1

Project Managers, Contractors 18 000 12

Plumbers, Electricians 32 600 22

Carpenters, Plasterers, Painters, Bricklayers 61 400 41

Crane Drivers, Plant Operators, Fitters, Road Workers 11 700 8

Floorers, Roofers, Tilers, Scaffolders 8 100 5

Total 148 450 100

Source: Expert Group on Skills Needs, 2006

Occupational structure of construction

As mentioned above, construction has a strongly hierarchical structure. At the top of the hierarchy is a chain

of managers, including owners or managing directors followed by senior managers and project/contract

managers. Construction companies also usually employ or hire a range of professionals, including architects,

architectural technicians, engineers and engineering technicians, quantity surveyors and building surveyors,

accountants and planners.

On the ground are the skilled workers, trades people: electricians, plumbers, carpenters, plasterers,

bricklayers and painters, and unskilled workers, non-craft construction skills-floorers, roofers, scaffolders and

glaziers, as well as a range of other workers, covering many emerging skills related to environmental

protection, waste disposal, material technology and safety issues are also employed at various levels within

the sector.

14 US Department of Labor, 2006a 15

Ibid.

19

The level of training required in the construction sector varies significantly by occupation, with those in the

professions or construction management usually required to have a bachelor’s degree in construction

science, construction management, or engineering, qualifications in building science, business and

management, as well as related work experience within the construction industry. They also need to have an

understanding of contracts, plans, and specifications, and to be knowledgeable about construction methods,

materials, and regulations. Skilled workers traditionally did two- to four-year long apprenticeships, which are

often regulated by national qualifications regulations bodies. Many unskilled workers enter the occupation

with few skills or qualifications but develop their skills through on-the-job training through their employer.16

Skills gaps17

A skills needs survey carried out among employers in 2002 in North East England reported a number of key

skills gaps Seven out of every ten companies surveyed said they encountered difficulties in recruiting skilled

staff in the previous three months (compared to 79% for Great Britain overall). Participating employers found

it hardest to recruit those in wood trades (26%) and bricklayers (19%). This often created problems for

construction companies, with 43% of participating employers reporting problems with new employees who,

though trained and qualified for certain occupations, lacked the variety of skills required for the role. However

most employers (91%) were satisfied that their employees could cope with current requirements, including

dealing with new technology, new construction methods, and/or new materials.18 This highlights the

importance of a combination of on and off-the-job training for construction workers, as well as the need for

on-going training to keep up with new materials and new technologies within the sector.

Remuneration

Salaries tend to be high compared with jobs requiring similar skills levels in other sectors. The median

annual salary for construction labourers in the United States in 2004 was $25,168, while construction

managers’ median wage was $69,870. However, this is offset by the intermittent work available, due to the

limited duration of construction projects and the cyclical nature of the sector. As a result, more and more

skilled workers are working on a self-employed basis, operating either independently or through what are

termed ‘labour only subcontractors’ or ‘employment agencies’. There are advantages both for the contractors

and the contractees in this system, including cost savings for employers, who can hire short-term labour and

can delegate at least part of the responsibility for supervision to the sub-contractor, while many craftsmen

appreciate the opportunity of working independently. However, there are a number of disadvantages,

including the possible breakdown in teamwork and of the traditional systems of training through

apprenticeship.19 This system also makes it very difficult to regulate the sector in terms of standards, heath

and safety and revenue collection.

Typical working conditions

Many workers in construction do physically demanding work, including carrying heavy objects, working at

great heights, and working outdoors in all weather conditions. Some jobs expose workers to harmful

16

US Department of Labor, ibid; 2006b 17 Qualification does not correspond requirements of job place or there is a lack of qualified staff 18 European Foundation for the Improvement of Living and Working Conditions, 2005a 19

CICA, op. cit.

20

materials or chemicals, fumes and dangerous machinery. Skilled workers also work in difficult conditions. For

example, construction managers may be “on call”, often 24 hours a day, to deal with delays, the effects of

bad weather, or emergencies at the site. Most work more than a standard 40-hour week because

construction may proceed around-the-clock. They may have to work this type of schedule for days, even

weeks, to meet special project deadlines, especially if there are delays.20

Indeed, construction is one of the most hazardous of all occupations, continually accounting for the highest

proportion of accidents at work than any other sector in Europe.21. More construction workers are killed,

injured or suffer ill-health than in any other industry. Every year, more than 1,000 workers are killed

worldwide; over 800,000 workers are injured, many seriously. Nearly 600,000 workers work on sites where

asbestos fibres are present. Nearly half of all workers report some sort of muscular problem (backs, necks

and shoulders), and noise-induced hearing difficulties are prevalent. In 2000, 31% of all accidents at work

occurred in construction, the highest rate of all sectors (see Figure 2.5). Construction also accounted for the

highest proportion of absence due to health problems caused by work (60%).

Fig. 2.5. Distribution of causes of days lost due to illness, EU-15, 2000

0% 20% 40% 60% 80% 100%

% of days of absence

Wholesale and retail tradeTransport and

Real estate activities etc.

Public administration and

Other services

Manufacturing and miningHotels and restaurants

Health and social w ork

Financial intermediation

Electricity, gas and w aterEducation

Construction

Agriculture and fishing

All w orkers

Accident at w ork

Health problems caused by w ork

Other health problems

Source: Eurostat, 2004

Migrant workers

Construction is staffed by high levels of migrant workers, particularly in Western European countries where it

is proving increasingly difficult to recruit skilled and unskilled workers from the domestic market. The entry of

the ten accession countries into the EU has enabled many workers from Eastern Europe to migrate in search

of work. Many construction companies throughout Europe have actively recruited workers from Eastern

Europe. Ireland is just one country that has benefited from such workers, particularly since 2004, with

20 US Department of Labor, 2006a; 2006b 21

Eurostat, 2004

21

251,032 registered to work within all sectors in Ireland (see Table 2.5) 22. Of these an estimated 10% are

working in the construction sector23.

Table 2.5. Personal Public Service (PPS) Numbers issued to citizens of new EU states since May 2004 in Ireland

Poland 147 659

Lithuania 40 237

Slovakia 20 312

Latvia 20 301

Czech Republic 10 302

Hungary 7 162

Estonia 4 477

Malta 324

Slovenia 192

Cyprus 65

Total 251 032

Source: Department of Social and Family Affairs, Ireland

Large numbers of non-national workers, particularly in the Western European countries, have resulted in the

presence of illegal workers, who are sometimes mistreated. One of the benefits of the entry of the accession

states into the EU is the potential to reduce the numbers of illegal workers, and thus reduce the exploitation

to which such workers can be exposed. However, many of the features that characterise the sector,

described above, such as the high levels of self-employment and subcontracting make it difficult to regulate

the presence of illegal workers.

High levels of migrant workers may also effect the development of the sector as a whole. Firstly, wages may

be kept artificially low, adequate training may not be provided thus holding back the sector from developing

to its maximum capacity in the longer term.24 Efforts to ensure that the cost of training is fairly spread across

employers internationally are therefore necessary.

2.7. Recent Developments in Construction

Changing characteristics of the sector

The sector is characterized by a high number of micro businesses (SME’s account for approximately 97% of

all businesses), as many of the projects are small in scale. The sector is becoming increasingly fragmented,

with separate organisations taking responsibility for different phases of construction - design, site works and

operation – and many suppliers, subcontractors and specialists involved in both design and on site. This

provides much scope for confusion of responsibilities and ambiguity in communications, which prejudices

ultimate customer satisfaction. Research and development is also limited throughout the sector, particularly

in the small and medium-sized enterprises. Investment in R&D among the reporting EU countries was found

to account for between 0.01% and 0.22% of the total production value in the sector in 2001.25

22

These data do not take account of migrant workers no longer working in Ireland. 23

Expert Group on Future Skills Needs / Forfás launch Report

“Skills Needs in the Irish Economy: The Role of Migration” , 2005 24 European Foundation for the Improvement of Living and Working Conditions, 2005b 25

OECD Structural Analysis in European Foundation for the Improvement of Living and Working Conditions, 2005b

22

This fragmentation, the temporary nature of the relationships formed on individual projects, and the

prevalence of very small firms in the sector, all serve to inhibit the sector’s learning processes, both the

ability to carry forward experience from one project to another or between projects and the opportunities for

the kind of collective learning necessary to achieve process and product innovations.

As a result, formal training structures have been under pressure in many companies, leading to a shortage of

qualified staff.

These trends have also had a negative effect on the image of the sector and have made it increasingly

difficult to recruit workers, particularly bricklayers, carpenters, joiners and some specialist trades such as wall

and floor tillers, as well as qualified professional staff in many of the larger companies, leading to the

recruitment of workers from outside of the domestic market.

Increasing focus on environmental protection

The increasing interest in environmental protection is an area which has not been fully explored by the

construction sector, although some attempts have been made by larger, international companies to

encourage the use of recycling, new technologies and constructing energy-efficient buildings. However, the

lack of training of workers has meant there is little awareness on the ground of the potential changes that

could be made to protect the environment further.26

Recent advances in construction

Construction has been exposed to numerous technological advances in recent years, such as in building

design and materials.

This has allowed an increasing range of tasks to be done off-site, such as prefabrication, or the use of glass

rather than traditional building blocks. Technology is also changing building practices and creating new skills.

This is leading in some cases to reduced demand for some traditional skills. For example, computer added

design (CAD) has reduced the demand for draught people. In addition, the growth of E-business has

facilitated the globalisation of the construction sector and the Internet allows contractors to seek and award

tenders from all over the world. In particular it is now possible to subcontract specialist tasks to experts in

other countries.27 This has had a dramatic effect on the way consultancy services are delivered by architects,

engineers and other technicians. Information technology coupled with the increasing sophistication of

customer demands and expectations has opened up new opportunities for designers working in and with the

construction sector. The creative use of IT can allow innovative consultancy companies to develop new

international business across the world. Figure 7.2 illustrates some of the key factors influencing the nature

of employment in the construction sector.

26 CICA, op. cit. 27

European Network of Building Research Institutes, 2005

Fig. 2.6. Key factors influencing construction

2.8. Likely Future Developments

It is clear that construction is an important sector of the European economy, through the provision of jobs

within the sector, as well as in other related sectors, and also through its role in developing the physical

infrastructure of Europe. However a number of key factors will determine the extent to which the sector

prospers over the next few years. Each of these factors is examined below, starting with future growth

prospects.

Economic Growth

Future growth is likely to be positive, with growth of over 5% expected in Eastern Europe, while growth is

also expected throughout the rest of Europe (see Figure 2.7).

Construction

sector

High number of

migrant workers

Low level of

qualification

High accident rate

Lack of R&D

High level of

subcontracting

Environmental

issues

24

Fig. 2.7. European GDP Growth, 2006-2007 (% per annum)

0

1

2

3

4

5

6

UK and Nordics Core Eurozone Central Europe Eastern Europe

2006

2007

Source: RREEF, 2006

Prospects for the construction sector

Added to overall economic growth prospects, new household formation and increasing prosperity should

ensure that prospects for the construction sector will remain positive over the next number of years,

particularly in Central and Eastern European markets, although growth in the UK and Nordic markets is not

expected to be as strong28. The nationality of the construction companies that will benefit from such trends

will largely depend on which country’s construction sector, and particularly its largest employers, are most

competitive and efficient. In the long-term this will be influenced by individual employers’ attitudes to training

and development of staff, by the extent to which they embrace innovation in terms of new materials and

technologies, as well as by the efficiency with which they can carry out their work.

As can be seen from Figure 2.8 below, construction output developed at a slower rate than GDP-growth over

the last few years. However this year, 2006, is set to be a remarkable year for the rate of construction output.

This rate of growth is set to slow in 2007 and 2008, when the economy will again grow at a faster rate than

the construction industry, and construction growth will be just marginally above that of 200529.

28 RREEF, 2006 29

Euroconstruct, 2006

25

Fig. 2.8. Construction output and GDP growth, Euroconstruct area 2002-2008

Source: Euroconstruct, 2006

While construction in Eastern Europe represents a small proportion of the overall European market segment,

it has grown considerably in recent years (see Table 2.6). Many signals indicate that this trend is likely to

continue over the next number of years, which may also improve overall European figures. In Eastern

Europe, civil engineering has outperformed other sub-sectors, and is expected to increase by more than ten

per cent annually. The residential and non-residential building sectors have also performed strongly since

2002, and are also expected to continue to do well.

Likely developments in different market segments

Table 2.6 shows that repair and maintenance, new non-residential and civil engineering are expected to

grow fastest in Western Europe with a slight decline expected in new residential output in 2007 and 2008. In

contrast new residential output is expected to grow significantly in Eastern Europe and in all segments of the

construction market.

Table 2.6. Annual change in market segments, Western and Eastern Europe (% by volume)

Western Europe 2002 2003 2004 2005 2006 2007 2008

New residential -1,4 2,6 5,4 3,8 3,5 -0,1 -0,6

Residential Repair & Maintenance -0,3 1,5 2,3 0,7 1,8 1,9 2,1

New non-residential -1,0 -3,6 1,0 -0,6 2,0 2,0 2,5

Non-residential Repair & Maintenance 0,9 0,3 -0,4 1,1 1,4 1,6 1,6

Civil Engineering 2,1 1,8 0,6 1,1 2,8 2,4 2,3

Total Construction 0,0 0,7 2,1 1,3 1,4 1,5 1,5

Eastern Europe 2002 2003 2004 2005 2006 2007 2008

New residential 0,3 4,9 10,4 0,9 4,6 6,8 10,3

Residential Repair & Maintenance 6,5 4,5 8,0 6,4 4,6 5,7 6,2

New non-residential 3,5 -1,2 5,4 5,4 5,4 2,9 4,2

Non-residential Repair & Maintenance -17,1 -0,2 3,9 3,1 3,4 2,3 3,6

1.1

0.0

1.0 0.7

2.3 2.2

1.6 1.5

2.2

2.6

2.2

1.7

2.3

1.8

0.0

0.5

1.0

1.5

2.0

2.5

3.0

2002 2003 2004 2005 2006 2007 2008

GDB growth Construction output growth

26

Civil Engineering 3,9 4,1 7,1 11,4 11,3 11,6 11,9

Total Construction 0,8 2,0 6,9 6,3 7,0 6,7 8,1

Source: Euroconstruct, 2006

Technology and the environment

In many developed countries, construction accounts for up to half of all the raw materials taken out of the

earth’s crust by weight. It also produces a considerable waste stream, although a significant and growing

proportion of this is recycled. In Europe, the built environment accounts for about 40% of energy use rising to

as much as 50% in some countries if construction activities (including materials production and transport) are

taken into account30.

Technology is already being developed to increase energy efficiency in the construction sector, although few

new developments are in common use.31 Significant possibilities also exist to reduce emissions from

buildings through increased energy-efficiency measures, and in the longer term through the exploitation of

renewable energy resources. The focus on repair and maintenance of the built environment is growing, as it

eliminates other less environmentally friendly choices, such as demolition and rebuilding. Repair and

maintenance in Europe now represents about one third of all construction activities and in some countries is

estimated to have reached 50% and is still growing. Recycling is also becoming increasingly important within

the sector, as companies and countries strive to meet the Kyoto Protocol. These developments in turn will

lead to increasing opportunities in construction related consultancy services.

Demographic Change

The population of Europe is ageing, and it is expected that the number of persons aged 80 and over will

nearly triple, rising from 18 million in 2004 to about 50 million in 2051.

32 The ageing of the population means

that the needs of consumers of the housing sector will change with a greater focus on the renewal of existing

buildings (e.g. accessible bathrooms and bedrooms at ground level). This development will create new

market opportunities, but will require additional skills among workers in all phases of the construction

process in relation to building management systems, networks and electronics.

Population and household growth

As outlined earlier, the population of many countries in Europe has been increasing and estimates indicate it

is likely to continue to grow in a number of countries. These countries are likely to experience continued

growth in construction activity.(see Table 2.7). This will have a positive effect on demand for housing, as has

been the case in Ireland in the last number of years, where the population has risen substantially in recent

years. Even where populations are not growing, trends towards smaller households will create additional

demand for housing.

30 CICA, op. cit. 31 European Foundation for the Improvement of Living and Working Conditions, 2005b 32

Lanzieri, 2006

27

Table 2.7. Projected total population for selected years (’000)

2004 2010 2030 2050 Change (%)

EU-15 382 674 390 652 398 737 384 356 0,4

EU-25 456 815 484 054 469 365 449 831 -1,5

Luxembourg 452 477 567 643 42,3

Ireland 4 028 4 323 5 066 5 478 36,0

Malta 400 423 479 508 27,0

Sweden 8 976 9 187 9 911 10 202 13,7

France 59 901 61 486 65 118 65 704 9,7

UK 59 652 60 924 64 388 64 330 7,8

Netherlands 16 258 16 672 17 589 17 406 7,1

Belgium 10 396 10 554 10 984 10 906 4,9

Austria 8 114 8 256 8 520 8 216 1,3

Spain 42 345 44 603 45 379 42 834 1,2

Denmark 5 398 5 465 5 577 5 430 0,6

Finland 5 220 5 294 5 443 5 217 -0,1

Greece 11 041 11 269 11 316 10 632 -3,7

Portugal 10 475 10 686 10 660 10 009 -4,4

Slovenia 1 996 2 015 2 006 1 901 -4,8

Italy 57 888 58 631 57 071 52 709 -8,9

Germany 82 532 82 824 81 146 74 642 -9,6

Poland 38 191 37 830 36 542 33 665 -11,9

Hungary 10 117 9 982 9 484 8 915 -11,9

Slovakia 5 380 5 347 5 186 4 738 -11,9

Czech Rep. 10 211 10 122 9 693 8 894 -12,9

Lithuania 3 446 3 345 3 092 2 881 -16,4

Estonia 1 351 1 341 1 202 1 126 -16,7

Latvia 2 319 2 240 2 022 1 873 -19,2

Source: Eurostat, 2006b

Migration

The entry of the accession states into the EU in 2004 has also begun to change its demographic profile, as

large numbers of younger workers from the accession countries have started to migrate to Western

European countries for work. The consequences of this free movement of labour within the EU-25 are still

not clear and vary between countries and sub-sectors. As many staff shortages are now being filled in

Western European countries, it is likely to be seen as a positive development, although incoming labour has

been said to put a downward pressure on wage levels33. However, the ‘skills drain’ on Eastern European

countries also needs to be considered.34

33 European Foundation for the Improvement of Living and Working Conditions, 2005b 34

Ibid.

28

Research and Development

As indicated earlier, research and development does not currently play an important role in construction in

Europe. Several of the top ten international companies in 2003 were Japanese companies with high levels of

R&D investment, showing its importance for boosting profit, as well as benefiting the sector overall.35

Research and development on the needs of clients, on how best to evaluate progress, on developments in

new technology and on environmentally sustainable buildings are all vital to the long-term growth of the

sector and research into such areas needs to be supported for the sector to thrive. The challenge is how

SME’s can take part in this activity.

Improving Europe’s building stock and urban areas

As a result of societal and demographic changes, new demands on the built environment are occurring.

Changing age distributions and lifestyles, greater disposable income, changing family and social structures,

new technologies and greater awareness of health and safety issues all pose challenges to the construction

sector. New requirements can be accommodated relatively easily in new buildings and townships. More than

50% of Europe’s built environment was constructed between 1945 and the 1970s and is in need of

modification and refurbishment.

Public-Private Partnerships – opportunities for growth

Public private partnerships (PPPs) are a relatively new way of financing big construction projects. Such

projects concern typically large infrastructural projects. The construction of hospitals, prisons, educational

institutions, etc, have also been financed through such partnerships36. PPPs present a real opportunity for

value-for-money for taxpayers and service-users, innovative projects and a contribution to socio-economic

growth. However, due to the nature of such partnerships, they are usually only open to larger construction

companies. Very large scale projects are now being tendered for across Europe. As stated above,

companies that can work efficiently and cost effectively across a number of European countries will

increasingly be used for such projects as a means for governments to control costs and to ensure the

completion of such projects on time and within budget. The ability of the public and private sectors to co-

operate will also influence the ability of the sector to grow.

Real Estate performance outlook

On the whole, the prospects for the real estate sector in Europe are positive. However, as most of the

markets in Western Europe are relatively mature, there is less scope for “emergent market” strategies there

than in Central and Eastern Europe.37 At the same time, the recent interest rates rises by the ECB have put

pressure on the real estate sector in recent months, and this is likely to effect the sector’s medium-term

development. Eurozone growth is likely to slow to 1.6% in 2007, with only Eastern Europe expected to

continue to grow at a higher rate.38 It is also possible that higher interest rates may force home-owners to

sell, putting pressure on the sector.

35

Ibid. 36 Ibid. 37 JP Morgan, op. cit. 38

RREEF, op. cit.

29

Factors that will influence growth are:

• search for an improved quality of life;

• further internationalisation of markets;

• inexorable march of the information revolution;

• growth of ethical investment;

• changing nature of work in society;

• relative competitiveness of European cities;

• importance of connectivity in property location;

• emerging popularity of mixed-use development;

• imperative of energy conservation;

• call for safety and security in building layout and design;

• incorporation of the “fun factor” in property products;

• greater flexibility and adaptability across the sector; and

• challenge of access and affordability in housing markets39.

The internet in particular will continue to change the way estate agents work and agents that embrace these

changes are likely to grow at the expense of those that don’t.

Global Competition

Many commentators have highlighted the relatively low productivity level of the European construction

sector, which has been attributed, at least in part, to Europe’s failure to export construction goods and

services. Trade of construction services (primarily civil engineering services) between the EU15 and the rest

of the world is positive, but relatively small and is a product of mainly large, multinational companies only40.

In 2001, EU exports of construction services to the rest of the world accounted for 3.2% of the total export of

services, while imports accounted for 2.1%.

It is possible that greater co-operation between small and medium enterprises could help them to export their

services to other global markets. However, as noted by the European Construction Institute, companies

based in Europe can only hope to compete in a global market if they can assure potential buyers that their

service or product is of a higher quality than local providers41.

Technological changes

The technological changes taking place in the sector also mean new that new forms of training for

employees are also required. While many of the larger companies often have well-structured training

programmes, small and medium enterprises may face a very high financial burden in providing training for

staff.

39 European Real Estate Scenarios: Nirvana or Nemesis? King Sturge, 2005 40 European Network of Building Research Institutes, op. cit.; CICA, op. cit.; European Foundation for the

Improvement of Living and Working Conditions, 2005b 41

European Construction Institute, op. cit.

30

SWOT analysis of the sector

Table 2.8 summarises the strengths, weaknesses, opportunities and threats facing the European

construction sector.

Table 2.8. SWOT Analysis of the Construction Sector

Strengths

• Tradition of jobs creation in construction and other sectors;

• Increased focus on R&D among the large construction companies;

• Growing specialisation in many firms has created highly knowledgeable and competent companies within specific construction fields and an international remit

• Strong tradition of training in traditional trades

Weaknesses

• Low productivity; • Weak industry image among customers and

potential new workers; • Little focus to date on the protection of the

environment and related skills; • Problems with health and safety in terms of

accidents and physical strain on employees; • Problems with undeclared work; • Little further education and training among small

construction companies; • Low level of R&D investment among SME

construction companies. • Increasing fragmentation of the sector

Opportunities

• Growth markets in new Member States, China, India and others;

• Demographic changes leading to new markets developing;

• Environmentally sustainable development, including waste management;

• Off-site construction (pre-assembly); • Improvements in technology; • New market segments in PPP

activities.

Threats

• Many European markets with stagnating growth; • Increasingly globalised engineering sector where

Japanese and US construction companies will enter certain European construction sectors;

• Increasing dependence on an internationally mobile, skilled, more diverse, workforce;

• Inter-European price-based competition represents a threat to employment in some EU15 countries.

Source: Adapted from European Foundation for the Improvement of Living and Working Conditions, 2005b

This SWOT analysis shows how the construction sector within Europe must adapt if it is to prosper in the

long-term. Central to this is the attractiveness of the sector to employees and subcontractors. These issues

are already affecting the construction sector in Western Europe which is creating significant opportunities for

eastern European workers to find employment in the construction sector across Europe. However the

construction sector within the Eastern European countries must also show an ability to adapt to these trends

if it also is to be able to attract labour and to successfully compete with internationally established

construction companies from all parts of the world.

Implications of likely future developments on employment and training

Perhaps the biggest challenge facing construction is to raise the image and profile of the sector. This is

especially important if quality new recruits are to be attracted into construction. Significantly, this involves

improving health and safety and enhancing training schemes in the sector. The better management of the

construction process, and improved supply chain management in particular, remain important topics.

31

2.9. Prospects for Employment in the European Construction Sector

Prospects for employment in the construction sector across Europe are expected to be mixed over the next

number of years. Overall growth is expected to slow down post 2008.

However due to high staff turnover, on-going staff shortages and the increasing ability of construction

workers to move to areas where construction activity is strong, there are likely to continue to be positive

opportunities for construction employment within Europe42. However, rising interest rates will pose a

significant threat to the development of the construction sector. In addition, a large proportion of companies

throughout Europe are reporting skills gaps in certain trades and professions, which may threaten

employment growth prospects and the ability of the sector to compete internationally. Changes need to take

place in a number of areas to help the sector to maximise its growth potential.

Across Europe, the construction sector faces recruitment problems, which has led to the recruitment of

workers from abroad. Vacancies commonly reported tend to be for bricklayers, wood workers and quantity

surveyors43. While Western European countries are sourcing labour from the new accession states, the latter

are also being forced to recruit foreign workers; for example, small construction companies in Poland have

recruited skilled workers from the Ukraine and Belarus.44 While there have been benefits arising from the

migration of workers from the accession states, including the US$7 billion sent home by Poles since 2004,

this phenomenon has also created a number of threats to the growth of the sector. Firstly, it is possible that

the pool of skilled construction workers available from Eastern European countries may dry up as the

economies in these countries improve (in part funded by the ‘remittances’ sent home by emigrants in recent

years), and domestic employment opportunities begin to improve. Thus, it is vital that Western European

countries plan alternative recruitment strategies in advance, including the employment of non-typical

workers.

Another difficulty arising from the employment of migrant workers, as indicated earlier, is the potential for

abuse of such workers, which can damage both the wage structure and the reputation of the sector45. The

high level of self-employed workers is also causing problems across the sector, particularly in relation to

maintaining traditional training practices and ensuring a comprehensive response to new skill needs. If this

problem is not addressed, it is possible that difficulties in recruiting skilled workers may increase. The social

partners, particularly trade unions, must recognise their role in this regard.

Demographic change will increasingly mean that employers will need to explore the possibility of recruiting

higher numbers of women and older men. Already employers are actively campaigning to recruit female

workers46. As technology and machinery in the sector is becoming more advanced, some of the barriers that

prevented these groups from entering the sector in the past will be diminished.

42

Standard and Poor, 2006 43

European Foundation for the Improvement of Living and Working Conditions, 2005a; Sexton, Hughes & Finn, 2006. 44 European Policy Centre, 2006 45 European Foundation for the Improvement of Living and Working Conditions, 2005b 46

European Foundation for the Improvement of Living and Working Conditions, 2005a

32

2.10. Impact on Skills, Training and Education

The construction sector plays an important role in Europe, through the creation of jobs and the development

of the physical infrastructure. However, the sector faces many employment-related problems, as has been

illustrated in this paper. If the sector is to maximise its growth potential, it must improve its image by

changing the methods used to recruit and train workers. This includes both the need for a review of the

training structures currently in place and of the content of courses to reflect changes taking place within the

sector.

Current training provision

There is evidence to suggest that there is a shortage of third level courses available throughout Europe for

professions in the construction sector, particularly in architecture, while other professions, such as

engineers, quantity surveyors and town planners are in danger of being oversupplied, and so monitoring is

required to ensure difficulties do not arise.47 The traditional apprenticeship training methods for craft trades is

under increasing pressure resulting in shortages of these skills and this issue needs to be urgently

addressed if the required skills are to be available when required.

Implications of likely future developments on employment and training

It can be argued that, as the services offered by the construction sector are essential to the well-being of the

economy, as has been demonstrated above, construction in Europe will continue to grow in spite of the

difficulties evident in the sector. Indeed, there is much to be said for this argument: evidence shows that

customers are more likely to hire local companies who have easy access to building materials and can

manage the job closely. However, to accept this argument would be short sighted. Construction across

Europe faces increased global competition from construction companies who can relocate managerial staff

and hire local workers, and also as a result of a greater degree of market internationalisation for construction

materials. As such, growth in the sector will only occur if companies can source highly-skilled workers in

each profession.

Accessing qualified staff

The sector has traditionally been staffed by young men. However, as the population of Europe is ageing, as

sustainable development is not seen to be a central priority for the sector and as the reputation of the sector

remains poor, fewer young men may choose the construction sector as a career. Added to this, increasing

segmentation, the growth of subcontracting for specific projects, and increasing internationalisation of the

sector and of its employees, means that traditional training arrangements are in danger of breaking down. It

is thus possible that sourcing an adequate supply of qualified staff will become an increasing cause for

concern across Europe. Already many western European countries are running marketing campaigns to

attract international workers and are increasingly dependent on such workers to survive. At a European

level, the social partners are also starting to address the issue in the form of developing a ‘tutoring system’

between older, experienced workers and younger workers entering the sector. This system offers training in

traditional skills and a mentor to younger workers to encourage them to remain in the sector48.

47 Expert Group on Future Skills Needs, 2003 48

FIEC and EFBWW, 2003

33

Barriers to training

The training of skilled construction workers is considered to be expensive and time consuming; resulting in

many SMEs discontinuing the practice over the last number of years. A study carried out on employers in

Western Australia reveals some of the barriers to training faced by employers and employees49:

Employers:

• Concerns about the relevance, quality, consistency of training for their business needs

• Lack of input into training content

• Lack of flexibility into the delivery of training

• High costs

Employees:

• Standard required too high, particularly among those with literacy and numeracy problems

• High level of commitment required

The study also revealed that a lack of information about apprenticeship opportunities, a lack of desire to work

in the sector, a dislike of the work and a lack of a clear career path were among the reasons school-leavers

did not wish to enter the sector. Thus, it is clear that training courses for workers in the construction sector

need to be more in tune with the needs of employers and employees, with greater input from employers and

sharing of costs across the sector. Consideration also needs to be given to reducing minimum requirements

for entry to courses in certain situations, as well as support for numeracy and literacy education.

New training needs across the sector

Training for workers in the construction sector also needs to take account of the changes that have been

taking place in the sector over the last number of years.

Project and construction managers will in particular require additional training over the next few years, as

deadlines for completion of projects are shortening and as increases in the use of technology, working with

sub-contractors, compliance with environmental and safety standards become more important components

of their work. Construction management as a profession is only now being recognised in its own right in

many countries. For example, Ireland has only made such courses available in the last number of years.50

Over the last decade, many changes have taken place within the sector, as described earlier, including the

increasing use of new technology, new materials and machinery, the need to prioritise environmental

protection, increased specialisation of work and growing internationalisation of construction activity. Such

changes need to be reflected in both college-based and on-the-job training.

Within the services area as referred to above demand for architects, engineers and technical consultants will

be strongly influenced by changes in technology. Increasing use of CAD may lead to a reduction in demand

for fully qualified architects. However for those companies that do embrace such technology their will be

49 Minerals Council of Australia, 2006 50

Ibid.

34

growing opportunities on an international level. Demand for engineering consultancy will be strongly

influenced by the prospects for the construction activity in each country and particularly by the type of

demand in different market segments- strong non-residential growth, particularly in large public sector

contracts, will result in opportunities for such occupations.

There is also a need for training providers and employers and employees to recognise the personal skills

and related training needed for those working in the sector, including communication and teamwork skills. A

high level of cohesion between the needs of employers and the training provided by third-level institutes is

essential. In addition, college-based training needs to be flexible and accessible to reflect the fact that work

in the construction sector is dependent on many external factors including the weather, winning contracts

and the awarding of planning permission. The qualifications of workers from abroad also need to be

recognised by a national qualifications board, and the process of reporting back to an employer on an

individual’s qualifications should take place as quickly as possible.

The importance of safety training cannot be overemphasised. Increasingly governments will introduce

mandatory certification in health and safety training for each worker in the sector, and monitored such

developments closely. Added to this a good understanding of cultures and attitudes, of modes of learning,

and of incentives and rewards, will create a firm foundation upon which to promote good safety practices, to

support changing relationships and to ensure more satisfying working arrangements. Without such changes,

the sector may not succeed in attracting and maintaining the skills required for in an increasingly globally

competitive market.

Planning and financing of education and training

Financing training costs represents a further challenge for the sector. Whereas large companies can better

accommodate training costs, which constitutes a competitive advantage, smaller companies are finding it

difficult to finance education and training for their staff other than what is required by law. These financial

challenges have to be met in order to improve qualification levels across the sector in general. How these

costs should be shared between individual workers, companies, the sector and government will depend on

the national frameworks already in place, the existing organisation of national educational systems and of

approaches to lifelong learning, as well as the actual strength of the social partners in each country.

However, there is a need for governments across Europe to recognise the importance of a highly-skilled

construction industry and to consider providing financial incentives to small and medium employers to

encourage adequate training and related qualifications for their workers that is internationally recognised and

which is highly responsive to changing needs. The long time required to train skilled workers within the

construction sector means that a high level of planning, Involving close co-operation between the different

actors involved, is required to ensure that skill supply meets demand. Table 2.9 outlines skill needs in the

constructon sector.

Table 2.9. Overview of Skill Needs of Key Occupational Groups in the Construction Sector

Managers

• Managerial skills • Marketing skills • Planning skills • Project management skills

35

• Costing skills • Negotiation skills • Customer relations

Unskilled Workers • Numeracy, literacy • Health and safety • Rights and entitlements

Skilled Workers • Relevant craft and technical skills, especially in relation to carpenters/joiners, glaziers, roofers, tilers, floorers, scaffolders, electricians, plumbers

• Technical skills • Supervisory skills • Multi-skilling • Team-working skills • Customer skills • Health and safety • Regulation compliance • Customer relations

Professionals • IT skills • IT related design skills • Customer / Communication skills • Interior design • Landscaping skills • Architectural technicians • Quantity surveyors • Knowledge of regulations, health and safety • Costing skills • Customer skills • Relevant third level qualification • Refresher courses on technical and occupational changes

2.11. Summary

Although concern has been raised about the low productivity of the sector, the construction sector in Europe

has been performing reasonably well, and the outlook for the sector is generally positive, particularly in the

next couple of years. A number of changes have taken place in the sector in recent years, thanks to

advances in technology, and further opportunities exist in the future, particularly in countries with strong

economic and population growth. Increasing opportunities will be found for construction companies that can

operate across and outside of Europe. There will also be increased opportunities for specialisation of

activities and for companies that can take advantages of new technologies to be innovative in the design,

construction and redevelopment of the built environment.

However, the sector also faces a number of challenges, including an increasing tendency to subcontract,

increasing pressure on traditional training methods and a failure to adequately adapt to changing skill needs.

These in turn are reducing the attractiveness of the sector as a place to work. The speed of these changes is

much faster in Western than in Eastern Europe. Indeed the Western European construction sector is

increasingly dependent on highly mobile workers from Eastern Europe.

All of these trends signal the need to review and adapt existing training methods, to address new skill needs,

to ensure recognised high standards across Europe and to plan such developments in close co-operation

between the different actors involved.

36

3. STATISTICAL CHARACTERISTICS OF THE CONSTRUCTION SECTOR

3.1. Introduction

This section presents a brief description of the construction sector. It includes the main aspects related with

enterprises, employment and performance indicators of the construction sector. The analysis was made on

the basis of statistical data developed precisely for the study. The secondary data – studies, overviews and

other accessible information about the development of the construction sector and Lithuanian economy –

were also used.

3.2. Brief Description of the Construction Sector

The construction sector is characterised by a rapid development greatly influenced by the growth of the

national economy, favourable crediting conditions, possibilities provided by the EU structural funds,

increased demand for dwelling, commercial and industrial buildings and growing assortment of new building

materials and technologies.

Enterprises and especially private persons normally take advantage of the crediting services when making

investments to immovable property. Therefore, all over the world the crediting conditions exert a great

influence upon the development of the construction sector. The majority of Lithuanian economy observers

prelate the impressive growth of the construction sector in Lithuania over the recent years with the especially

favourable crediting conditions that have been getting more and more favourable due to the bank margin.

The latter has not even reached 1% sometimes and this means that the banks in Lithuania have been

receiving minimal profit for the crediting services. Therefore, it is not even worthwhile expecting for the

improvement in this segment in future. The increasing interest rate and wrecked hopes of having the single

European currency have been already making negative impact on the demand for immovable property.

One of the specific features of the construction sector is the dependency of works on the seasons. The basic

works have been normally done during the warm period of the year in Lithuania. Whereas internal works –

decoration, refurbishment - have been done in winter. However, due to the new materials and technologies

available on the market, the impact of the seasons on the construction works has diminished – dependency

of the economic activity on the seasons in the construction sector is smaller than that in the agricultural

sector but greater than that in the fields of industry and transport.

With the rapid growth of prices for the sale of dwelling houses over the recent years, the development of the

immovable property market has made a great influence on the growth of the construction volumes. This

fostered the growth of the turnover of building materials – cement, concrete, reinforced concrete, bricks,

windows and doors, heat insulation mineral materials. Simultaneously, volumes of sales, transportation and

warehousing services have been on the increase. Due to their peculiarities the majority of the construction

business services are delivered on the local market. In 2005, 99% of construction works were done on the

territory of Lithuania and only 1% of the construction works were done abroad. Foreign trade balance of the

construction sector is negative, the deficit has increased by almost 1,7 times over four years. Nevertheless

Lithuanian-made building materials are sufficiently popular on the markets of such EU countries as Sweden,

Denmark, Norway, Ireland, Germany. Panel houses (along with the erection services), Windows, doors and

37

heat insulation materials, etc are especially marketable. These products are purchased on the EU markets

and building and erecting services and warranties are relevant. This creates favourable conditions for

Lithuanian enterprises to engage in organised activities in other EU countries on the basis of commercial

contracts.

Value added created by the construction sector enterprises over four years has increased by almost 97%,

i.e. 24% per year on the average. The growth rate of the production within the given period were

approximately 1,6 times as greater as those of the entire economy. The rapid growth is also witnessed by

the continually increasing rate of GDP which in 2007 reached 20,5% and was 2,3 times as greater as the

analogous national indicator. Although the efficiency of the construction enterprises51 rose from 18,7 Litas in

2004 to 23,4 Litas in 2006, it still remains lower than the respective indicator of the entire economy (26,8

Litas). The price of workforce increased more rapid as compared to that in the entire economy and average

monthly gross receipts is among the highest in the country. The prospects of the development of the

construction sector are considered as rather positive. The demand for construction of non-dwelling houses

(offices, logistics and commercial premises) should considerably increase. Provided that the state improved

the conditions for subsidizing of flat renovation which presently are not favourable, a huge demand for

construction works related with renovation and reconstruction would emerge in Lithuania. On the other hand,

certain findings of the recent years imply that the development of this activity will slow down in the coming

years.

On the basis of the analysis of the accessible information the following basic impediments to the

development of the construction business were identified:

• slow land reform;

• legal framework (for example, ambiguous laws, frequent changing of laws, public procurements,

unconformity of the system of the regulation of construction with the modern technologies and

existing standards of cost estimating).

• emigration;

• low productivity, work organization and culture in comparison with the indicators of the other EU

countries;

• lack of qualified workers.

The main factors that will influence the development of the construction sector in the future are as following:

• increasing environmental requirements;

• energy saving necessity;

• changes in the immovable property market;

• increasing assortment of new building materials and technologies;

• completion of the land reform;

• market internationalisation;

• decreasing of the supply of workers (with respect to the number and qualification).

51

Value added per one actually worked hour.

38

3.3. Enterprises

Distribution of enterprises by the subsectors and the size. According to the 2006 statistical data, the

construction sector has 5035 enterprises of which 39% specialise in the field of buildings and their parts

construction. The sector mostly includes small enterprises (the number of workers does not exceed 9). The

number of such enterprises total 63% of all the construction sector enterprises. The structure of the

construction sector and the number of enterprises are provided in Table 3.1.

Table 3.1. Structure of the construction sector

Enterprises by the number of workers subsector activities according to NACE

up to 9

from 10 to 49

from 50 to 249

from 250

total

Architectural and engineering activities and related technical consultancy (AR)

Architectural and engineering activities and related technical consultancy (74.20)

1096 131 19 3 1249

Demolition and wrecking of buildings; earth moving

(45.11)

72 31 21 1 125 Site preparation (SP)

Test drilling and boring (45.12) 4 2 0 0 6

General construction of buildings and civil engineering works (45.21)

748 594 237 30 1609

Erection of roof covering and frames (45.22) 59 35 4 0 98

Construction of motorways, roads, airfields and sport facilities (45.23)

27 31 31 9 98

Construction of water projects (45.24) 9 4 4 0 17

Building of complete constructions or parts thereof (BC)

Other construction work involving special trades (45.25)

101 39 18 0 158

Installation of electrical wiring and fittings (45.31) 379 151 29 1 560

Insulation work activities (45.32) 10 10 4 0 24

Plumbing (45.33) 247 108 20 1 376

Building installation (BI)

Other building installation (45.34) 31 16 6 0 53

Plastering (45.41) 27 33 9 0 69

Joinery installation (45.42) 95 32 1 0 128

Floor and wall covering (45.43) 91 72 6 0 169

Painting and glazing (45.44) 34 24 4 0 62

Building completion (BC)

Other building completion (45.45) 117 63 9 0 189

Renting of construction or demolition equipment with operator (RE)

Renting of construction or demolition equipment with operator (45.50)

26 12 6 1 45

Total: 3173 1388 428 46 5035

Changes in the number of enterprises in the construction sector. From 2002 to 2006, the number of

enterprises in the construction sector more than doubled (Figure 3.1.). This trend is especially explicit in the

architecture and building completion subsectors where the number of enterprises within the given period

increased as much as by three times. The number of minor (up to 9 workers) and small (from 10 to 49

39

workers) enterprises in all the subsectors has increased over the last five years. The number of large

enterprises has actually remained unchanged.

Fig. 3.1. Changes in the number of construction enterprises

0

1000

2000

3000

4000

5000

6000

2002 2003 2004 2005 2006

AR SP BC

BI BC RE

Geographical distribution of enterprises in Lithuania. Vilnius and Kaunas counties are characterised by the

plenty of the construction sector enterprises (39% and 21% of all the enterprises respectively). In other

counties the distribution of the construction enterprises ranges from 1 to 12% (Figure 3.2). Such a situation is

to a large extent determined by the uneven distribution of investments in the territory of Lithuania. For

example, Vilnius county receives as much as 62% of foreign investments and this creates favourable

conditions for the development of the construction sector in this place. On the other hand, all the building

materials, machinery, equipment and workforce are transported to a specific construction site. Therefore, it

all the construction enterprises may be considered as mobile. Construction works tenders in towns are often

won by enterprises from other places, mostly because of the cheaper workforce.

Fig. 3. 2Geographical distribution of construction sector enterprises by counties, 2006.

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

Alytus

Kauna

s

Klaip÷

da

Marijam

pol÷

Panev

÷žys

Šiaulia

i

Taurag

÷

Telšiai

Utena

Vilnius

AR SP BC

BI BC RE

3.4. Employment in the Sector

Distribution of workers by subsectors. According to the 2006 statistical findings, the construction sector

employs approximately 107 thousand workers. The number accounts for about 10% of the total number of

employees in the Lithuanian economy. The majority of the construction sector employees are men (93,5%,

according to the 2006 findings of the survey on the population employment). The assessment of the

40

distribution of employees by subsectors shows that the majority of them are employed in the BC field (about

68% of the total number of employees working in the construction sector). Over five years (2002-2006) the

number of employees has gradually increased in all the subsectors of the construction sector (Figure 3.3).

Fig. 3.3. Alteration of the number of the construction sector employee, 2002-2006.

0

20000

40000

60000

80000

100000

120000

2002 2003 2004 2005 2006

AR SP BC

BI BC RE

Demand and supply of workers52

(unemployed and vacancies). Since 2003, the number of the unemployed

registered in the Labour Exchange has gradually decreased. This trend is especially characteristic to the

construction sector as compared to other industries. According to the preliminary findings, in 2007 the

number of the unemployed should decline in all the activities of the construction sector, except for the rent of

construction or demolition equipment. The number of vacancies projected to rise in all the subsectors of the

construction sector (Figure 3.4.).

According to the preliminary findings, in 2007 the level of tension (ratio of vacancies to the unemployed) in

the construction sector accounted for 1,5 and was the highest in the country. Thus, the demand for workers

in the construction sector exceed the supply in a quantitative sense. The highest level of tension is

characteristic to the subsectors of site preparation, architecture and engineering, building installation and

rent of construction and demolition equipment.

Fig. 3.4. The number of unemployed and supply of vacancies in the construction sector

Unemplyed Vacancies

0

5000

10000

15000

20000

25000

2003

2004

2005

2006

(proj

ectio

n)

2007

(proj

ectio

n)20

0320

0420

05

2006

(proj

ectio

n)

2007

(proj

ectio

n)

RE

BC

BI

BC

SP

AR

52

The source – data developed by the Lithuanian Labour Exchange for the purpose of the study.

41

The level of tension in the construction sector by job groups is presented in Figure 3.5. It shows that the

problems of the shortage of the construction sector workers should include both persons who acquired

higher that secondary education and those who acquired lower than secondary education. The specialists‘

group is mostly lacking occupational safety specialists and architects. There is also lack of engineers of

engineering systems of buildings and civil engineers. Within the groups of skilled workers the shortage is

especially observed among roofers/whitesmiths and engine-drivers (cranes, hoists, excavators, pile drivers).

The demand for old crafts such as stove-making, straw-roofing, etc has been recently observed.

Fig. 3.5.Level of tension in the construction sector by job groups (2007 preliminary findings)

2,2 1,8 2,4 0,7Construction

Specialists and public servants Qualified workers and service workers

Equipment, machinery operators and assemblers Unqualified workers

Permissions (to foreigners) for working in Lithuania53

. The problem of the shortage of the construction sector

workers has been attempted to solve with the help of foreign workers. Permissions for working in the

construction sector were issued to 998 foreign citizens which is four times as much as in 2005. The

permissions were mostly issued to skilled workers and craftsmen (about 77% of the total number of workers

who were issued permissions). Despite the fact that current actual figures are rather small, the trend for

growth is obvious. With the shortage of workforce and rapid economic development, the influx of foreigners

issued permissions for working in Lithuania is expected to grow in the future.

3.5. Performance Indicators

Turnover. According to the official data, the turnover in the construction sector has been continually growing

over the recent five years (Figure 3.6). This trend is characteristic to all the subsectors. Faster growth of the

turnover is observed in RE and BC subsectors. Since 2002 till 2006, it has increased by 4,3 and 3,5 times

respectively. In other subsectors the growth of turnover within the given period was slower (from 1,6 to 2,6

times). It is noteworthy that though minor and small enterprises compose the major part in the construction

sector, their income are smaller than those of medium-sized and large enterprises. For example, in 2006 the

turnover of minor and small enterprises accounted for 29%, whereas that of the medium-sized and large

enterprises amounted to 71% of the total turnover in the construction sector. To date, according to the

turnover indicators the new construction is prevailant, though due to the outdated and energy-inefficient

dwelling houses dominating in Lithuania considerable future increase in the volume of reconstruction works

may be apparently observed.

53

Source – data developed by the Lithuanian Labour Exchange for the purpose of the study

Fig. 3.6. Changes in the turnover in the construction sector

0

1000000

2000000

3000000

4000000

5000000

6000000

7000000

8000000

9000000

10000000

2002 2003 2004 2005 2006

AR SP BC

BI BC RE

Productivity (turnover/number of workers). Figure 3.7 shows that productivity has increased in all the

subsectors of the construction sector since 2002 till 2006. This trend is especially explicit in large (250 and

more workers) enterprises, except for the architecture and building completion fields of activities where

higher degree of productivity was demonstrated by minor, small and medium-sized enterprises. It is also

obvious that the site preparation activity has the lowest degree of productivity as compared to other

subsectors of the construction sector (for example, the productivity of the SP sector in 2006 was half as

much as that in the BC sector). The latter information suggests that in the site preparation activities modern

technologies are exploited less intensively than in other construction sector industries. The fastest growth of

productivity within the given period was observed in the RE and BC subsectors. Over the last five years, it

increased by 3,5 and 2,3 times respectively, whereas in other subsectors the rate of growth ranged from 1,1

to 1,5 times.

Fig. 3.7. Changes in productivity (turnover/number of workers) in the construction sector.

0

10

20

30

40

50

60

70

80

90

100

2002 2003 2004 2005 2006

SP AR

BC BI

BC RE

As it has been already mentioned, the efficiency of the construction enterprises54 is lower than the respective

indicator of the entire economy. The latter is determined by modern technologies used by enterprises, proper

organisation or work and discipline. According to the Lithuanian experts, the efficiency of the construction

sector will be in essence determined in the nearest future by the increase of building assembling (application

54

Value added per one actually worked hour.

43

of tailor-made and finished constructions and elements), early planning of works and projects of construction

organisation and technologies.

Earnings. Figure 3.8 presents data on the changes in the average monthly gross55 earnings in the

construction sector subsectors. Over the last five years, earnings have been on the increase in all the

subsectors. As it has been already mentioned, earnings in the construction sector are among the highest in

the national economy. On the other hand, the provided data reflect great differences of earnings (up to 2

times) by subsectors. The lowest average monthly gross earnings are paid for the building completion

activities. In 2006, it was 1,7 times as lesser as the analogous national indicator. The most attractive salaries

and wages are paid for AR and BC activities, where in 2006 the average monthly gross earnings exceeded

the national indicator.

Fig. 3.8. Changes in (average monthly gross) earnings by subsectors

0

200400

600800

10001200

14001600

18002000

2002 2003 2004 2005 2006

AR SP BC

BI BC RE

According to EUROSTAT findings, in 2002 the average number of paid hours per month in the construction

sector of the European Union countries totalled 174 (in 25 EU countries), and it amounted to 183 hours in

Lithuania. The average length of vacation amounted to 16 days and 26 days per year hold respectively by

Lithuanian and EU workers of the construction sector. Whereas the average monthly gross sales and wages

totalled 2190 and 302 euros respectively in the 15 EU countries and Lithuania which is approximately 7

times as lesser. The information provided demonstrates that operating conditions in the construction sector

of other countries are more attractive than those of Lithuania. This may have negative influence on both the

search for new employees and retaining employees in the Lithuanian construction enterprises.

Share of the Gross Domestic Product (further - GDP). According to the available findings, the value added

created in the construction sector in 2006 amounted to 8,8% of the total GDP. The greatest share of the

value added structure by subsectors is made by the BC activity. Value added created by the latter increased

by 1,2 times over the last five years. According to the preliminary findings, in 2006 it accounted for 5,17% of

the total GDP. Share of the total GDP created in other subsectors does not exceed 1%.

3.6. Development Trends

Data on the changes in the number of enterprises and employees, turnover, productivity, earnings and share

of the GDP in the construction subsectors in the past and future projections are presented in Table 3.2. For

55

Pretax earnings.

44

making projections, regressive and autoregressive models, general trends of the development of Lithuanian

economy and historical statistical findings were used. According to the results, the projections are rather

optimistic: The turnover, productivity and earnings of the construction enterprises of all the subsectors will be

further growing, however, the growth rate of is likely to slow down. One of the reasons is the insufficient

resources of workforce. Therefore, other sources should be searched in order to ensure the production

development, for example, productivity which is presently rather low should be increased.

Table 3.2. Changes in the construction sector in the past and future projections

2002 2006. Alteration (by times)

Projection 2011.

Alteration (by times)

2002. 2006 Alteration (by times

Projection 2011

Alteration (by times

AR SP

Number of enterprises 412 1249 ����(3,03) 1145 ����(0,92) 53 131 ����(2,47) 158 ����(1,21)

Number of employees 7198 8860 ����(1,23) 9172 ����(1,04) 2138 3125 ����(1,46) 3344 ����(1,07)

Turnover (thousand, Litas)

460555 752480 ����(1,63) 1046842 ����(1,39) 68176 145844 ����(2,14) 173722 ����(1,19)

Productivity (turnover/number of employees)

64 85 ����(1,33) 114 ����(1,34) 32 47 ����(1,47) 53 ����(1,13)

Average monthly gross earnings

1278 1758 ����(1,38) 2829 ����(1,61) 983 1475 ����(1,50) 1810 ����(1,23)

Share of the GDP (%) 0,35 0,40 ����(1,14) 0,42 ����(1,05) 0,19 0,22 ����(1,16) 0,20 ����(0,91)

BC BI

Number of enterprises 1182 1980 ����(1,68) 2138 ����(1,08) 517 1013 ����(1,96) 1058 ����(1,04)

Number of employees 48435 72619 ����(1,50) 104221 ����(1,44) 8587 12508 ����(1,46) 12880 ����(1,03)

Turnover (thousand, Litas)

1940488 6758020 ����(3,48) 12077435 ����(1,79) 679981 1105450 ����(1,63) 1208656 ����(1,09)

Productivity (turnover/number of employees

40 93 ����(2,33) 100 ����(1,08) 79 88 ����(1,11) 94 ����(1,07)

Average monthly gross earnings

998 1670 ����(1,67) 2689 ����(1,61) 834 1312 ����(1,57) 2112 ����(1,61)

Share of the GDP (%) 4,23 5,17 ����(1,22) 6,16 ����(1,19) 0,75 0,89 ����(1,19) 0,76 ����(0,85)

BC RE

Number of enterprises 244 617 ����(2,53) 1000 ����(1,62) 22 45 ����(2,05) 43 ����(0,96)

Number of employees 5143 8794 ����(1,71) 11929 ����(1,36) 1013 1258 ����(1,24) 1236 ����(0,98)

Turnover (thousand, Litas)

210426 546697 ����(2,60) 898699 ����(1,64) 19750 85861 ����(4,35) 87052 ����(1,01)

Productivity (turnover/number of employees)

41 62 ����(1,51) 70 ����(1,13) 19,5 68,3 ����(3,50) 70,4 ����(1,03)

Average monthly gross earnings

642 863 ����(1,34) 1371 ����(1,59) 718 1057 ����(1,47) 1707 ����(1,61)

Share of the GDP (%) 0,45 0,63 ����(1,40) 0,71 ����(1,13) 0,09 0,09 = 0,07 ����(0,78)

���� - increase; ���� - decrease; = the same

3.7. Summary

• The construction sector is one of the most fastly developing Lithuanian industries over the recent five

years. The growth of the construction sector stimulates the growth of the production of building

materials as well as the demand for the services of sales, transportation and warehousing. Building

45

materials manufactured in Lithuania are popular enough in the markets of such EU countries as

Sweden, Norway, Germany and other. Panel houses, windows, etc are very marketable in other

countries. These products are purchased together with assembling services which makes favourable

preconditions for the development of Lithuanian construction services in the EU market. One of the

specific features of the construction sector is the dependency of works on the seasons. However,

due to the new materials and technologies available on the market, the impact of the seasons on the

construction works has diminished.

• The construction sector has 5035 enterprises of which 39% specialise in the field of buildings and

their parts construction. The sector mostly includes small and minor enterprises (the number of

workers does not exceed 9). From 2002 to 2006, the number of enterprises in the construction

sector more than doubled. The biggest concentration of the construction enterprises is represented

by Vilnius and Kaunas Counties. Such a situation was mostly determined by the uneven distribution

of investments in the territory of Lithuania. On the other hand, the construction enterprises are rather

mobile and tenders in the cities are often won by enterprises based in other places, mostly due to

the cheaper labour force.

• The construction sector employs approximately 107 thousand workers, of whom the major part is

employed in the subsector of the construction of buildings and their parts (about 68% of the total

number of workers employed in the construction sector). Over five years (2002-2006) the number of

employees of the construction sector gradually rose. The majority of workers are men (about 93,5%).

• According to the preliminary findings, in 2007 the level of tension (ratio of vacancies to the

unemployed) in the construction sector accounted for 1,5 and was the highest in the country. Thus,

the demand for workers in the construction sector exceed the supply. The shortage of workforce in

certain groups of jobs is especially relevant. For example, the specialists‘ group mostly lacks

occupational safety specialists and architects. There is also a lack for engineers of static engineering

systems and civil engineers. Within the skilled workers‘ group the shortage is especially observed

among roofers/whitesmiths and engine-drivers (cranes, hoists, excavators, pile drivers).

• In 2007, permissions for working in the construction sector were issued to 998 citizens of other

countries which is about 4 times more as compared to 2005. The majority of them consisted of

skilled workers and craftsmen (about 77% of all the permission-holders).

• Foreign trade balance in the construction sector is negative and deficit increased by approximately

1,7 time over the last four years. Value added created by the construction sector enterprises over

four years has increased by almost 97%, i.e. 24% per year on the average. The growth rate of the

production within the given period were approximately 1,6 times as greater as those of the entire

economy. Over the last five years, the turnover in the construction sector has been increasingly

rising. The efficiency56 of the construction enterprises rose from 18,7 Litas in 2004 to 23,4 Litas in

2006, it still remains lower than the respective indicator of the entire economy (26,8 Litas). The

average monthly gross earnings in the construction sector is among the highest in the country.

Nevertheless, great differences in earnings exist (twofold) by subsectors. The lowest average

monthly gross earnings are paid for the building completion activities. In 2006, it was 1,7 times as

lesser as the analogous national indicator.

56

Value added per one actually worked hour.

46

• The prospects of the construction sector development are considered as sufficiently positive. They

are associated with the demand for the construction of non-dwelling buildings (offices, logistics and

commercial premises); increase of efficiency; land reform; modern technologies; development of the

construction services related with the installation of Lithuanian products in the EU markets. On the

other hand, certain data of the recent years imply that the development of this activity will begin slow

down in the coming years. According to the EUROSTAT data, working conditions in the construction

sector are more attractive in the EU countries than those in Lithuania. This may exert negative

influence on both the search of new workers and retaining workers in Lithuanian construction

enterprises.

• The main factors which will have influence on the development of the construction sector in the

future include the increasing environmental requirements, energy saving necessity, changes in the

immovable property market, growing assortment of new building materials and technologies,

completion of the land reform, market internationalization and decreasing demand for workers (with

regard to the number and qualification).

47

4. CHARACTERISTICS OF THE CONSTRUCTION SECTOR BASED ON SURVEY FINDINGS

4.1. Introduction

This section provides the description of the construction sector on the basis of the survey findings. It

comprises the analysis of the trends of activity of construction sector enterprises and the demand for

workers.

Sample for the mail survey was has been drawn on the basis of the data from the Register of Legal Persons

and taking into consideration the prevailing type of economic activity (on the basis of the European

Communities Statistical classification of economic activities NACE) and the size of enterprise. A total of 1620

enterprises were selected. Respondents participating in the mail survey were asked to return the completed

questionnaires within a couple of weeks. Upon sending out the questionnaires, respondents were phoned for

reminding about the deadlines of returning the questionnaires. In order to ensure the sufficient rate of

returning the filled in questionnaires, the assumption was made that the greatest influence on the

development of the sector will be made by the results of medium-sized and large enterprises. Data on the

distribution of the return rate by the subsectors and the size of enterprises are provided in table 4.1.

Table 4.1. Distribution of the return rate of the responses by respondents by the size of enterprise

Number of employees

Number of enterprises that

were sent questionnaires

Return rate %

Up to 9 671 8%

From 10 to 49 571 20%

From 50 to 249 332 39%

250 and more 46 42%

Total 1620 20%

Interviews with respondents from the leader construction sector enterprises were conducted. The total of 10

enterprises from the construction sector were interviewed.

4.2. Performance Indicators

Enterprise characterisation. According to the findings of the sociological survey, the majority of enterprises

are established in the largest Lithuanian cities (about 63%). The sector is prevailed by „independent

economic entities“. The major part of them is comprised of the Lithuanian capital enterprises (96%). About

12% of the construction sector enterprises have their branches, the majority of them have one branch. About

6% of the respondents intend to establish new branches.

The answers provided by the respondents show that the geographical distribution of enterprises correspond

with the statistical data, i.e. the largest concentration of such enterprises is represented by Vilnius and

Kaunas Counties.

48

According to the available data, the construction enterprises own rather big premises (including

warehouses), especially in the BC subsector. The results are provided in Figure 4.1.

Fig. 4.1. Total area of premises that are owned by the construction sector enterprises (including warehouses)

0%

5%

10%

15%

20%

25%

30%

up to 100 m2 from 100 to500 m2

from 500 to1000 m2

from 1000 to5000 m2

from 5000 to10000 m2

more than10000 m2

Competition. In identifying the number of competitors in the market, respondents‘ responses by subsectors

diverged: The majority of the BC and BC enterprises chose the answer “many“, whereas the SP and RE

respondents mostly chose the answer „on the average“. On the basis of the provided responses, it may be

stated that the largest competition is exists among the BC and BC enterprises. The level of competition in

the architecture and building installation subsectors is lower than that in the BC and BC activities,

nevertheless, it is higher than that in the SP and RE fields. In assessing the advantages over competitors,

the most usually specified answer was the quality of works. Also, respondents hold that the competition is

conditioned by such important factors as the price of works, terms, experience, management, competition

and material facilities.

Changes in the market of products/services. Over the last 2 years, about 43% of the respondents introduced

new products and services. Most often this is associated with information technologies (for example, orders

entry by Internet, designing), quality systems, windows and doors production, rent of machines, heating

equipment, building management and maintenance systems. The lowest rate of introducing the new

products and services was observed in the SP subsector.

Changes in turnover. The assessment of the changes in turnover actually coincides in all the subsectors – in

2004, 2005 and 2006 (as compared to the last year) the turnover increased in all the construction sector

activities. These data correspond with the official statistical data. The growth, though not that fast, is

expected to take place in 2007. The distribution of responses demonstrates that the percentage of

enterprises that should retain their turnover the same in 2007 as it was in 2006 is increasing. The said

tendency is most obviously expressed in the site preparation subsector.

Business obstacles. Shortage of workers and taxation system were mentioned by the construction sector

respondents as the most serious obstacles of business. The problem of corruption, fierce competition and

lack of workers‘ competencies is acute in the architecture subsector, site preparation subsector and other

construction sector subsectors respectively.

49

Use of modern technologies. Modern technologies are used by about 93% and are planned to be used by

53% of the respondents of the construction sector. The most popular technologies used in the construction

sector are estimating system software. Installation, maintenance equipment, modern installation and

construction machinery and buildings and constructions development software also prevail. The latter is

used by the majority of the architectural enterprises. The most popular technologies that are planned to be

used include modern construction and installation machines and planning, optimisation and management

software. The information about presently-used and to be used in the future modern technologies are

presented in Figure 4.2.

Fig. 4.2. Distribution of respondents‘ responses about the presently-used and planned to be used modern technologies

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Building and construction computer-aided design software(AutoCAD, ArchiCAD, Staad, etc)

Geodesic, survey and control devices

Estimating software SES 2004, Sistela and other

Installation, maintenance devices

Modern construction and installation machines, other aids

Planning, optimisation and management software - MicrodoftOffice Project 2003

Other

presently-used

planned to be used

4.3. Employees

Employees. On the basis of the statistical data developed precisely for the study, the construction sector

employs approximately 107 thousand employees. The survey findings actually correspond to this number.

The number of people who work part-time compared to all the employees of the construction sector amounts

to 3%. It is noteworthy that the percentage of employees working part-time in the architecture activities is

larger by a several times than that in other construction sector subsectors.

Distribution of employees by the job groups. According to the sociological survey findings, the skilled

workers‘ group is the most numerous in the construction sector. It is noteworthy that the architectural

activities have a bit different distribution of workers by job groups than that in other subsectors of the

construction sector. The majority of the AR subsector consists of specialists and technicians. Detailed

distribution of workers by job groups in the construction sector and architectural activity is depicted in Figure

4.3.

Fig. 4.3. Distribution of employees by job groups.

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

CS

AR

executives

administration

specialists and technicians

skilled workers

unskilled workers

other workers

50

SS AR

Executives 9% 15%

Administration 8% 12%

Specialists and technicians 15% 65%

Skilled workers 57% 5%

Unskilled workers 9% 2%

Other workers 1% 1%

Skills. According to the findings of the surveys conducted by the Lithuanian Labour Exchange, the needs for

professional skills in the construction sector have been changing. Skilled workers are expected to have the

skills of communication and working with modern technologies and materials. The job group of specialists

should have the competence of accounting, designing and information systems management. There is an

growing tendency in the construction sector that a small brigade of specialists and workers must carry out all

the construction works. Therefore, workers, along with their basic qualification, will have to acquire certain

additional knowledge and skills related with other activity fields. For example, according to the findings of the

survey of the construction survey, director of a small enterprise (up to 10 people) usually performs the

function of a manager and engineer and a specialists normally performs the function of an engineer,

manager, electrician, architect, mason and other.

According to the respondents of the construction sector sociological survey, the executive and administration

staff are most of all lacking in general skills. They also point out the shortage of such skill as organisation of

works, decision-making, time planning and flexibility. Specialists technicians and workers should first and

foremost have practical skills. Respondents emphasised that specialists and technicians are lacking

knowledge on the state-of-the-art technologies, project management software and result-orientation.

Workers are lacking in knowledge and competence of working with new technologies and materials as well

as time planning skills. According to the respondents, all the job groups may be characterised by the

shortage of dutifulness, responsibility, situation management, inventiveness and inquisitiveness.

According to the construction sector experts, the educational system during the academic activities

emphasises for the youth general theoretical knowledge and devotes too little time and attention to practical

knowledge, modern decisions concerning production and real construction situation analysis. Employers do

not consider young people with such educational background as solid specialists because they lack special

knowledge, experience and qualification. The interview results witness that the theoretical knowledge of

study programme are outdated, insufficient attention is paid to the quality of specialist training and poor

development of practical training and education. They suggest that planning of the admission to higher

educational institutions should be improved by decreasing the number of students at higher educational

institutions. The programmes should be more focused on new technologies and training of practical skills the

content of which should be more in line with the realia of the construction sector. The young people‘s

motivation to study well is also an important element for the process of improving education/studies.

In future, the growth of the use of automation tools and increase of the need for the brigades of really skilled

workers will be observed. The era of prefabrication is approaching where the duration of the whole building

will be as few as a couple of months rather than 1-2 years. Therefore, advance organisation of works,

51

technological designing and construction planning competencies will be especially relevant. With the fast

growth of the rate of computerisation and automation, competencies of robot management and work with

automation programmes will become increasingly relevant. Due to the growing globalisation, the command

of foreign languages will be an advantage (especially English) because the further communication among

the construction sector shareholders from different countries will take place on the Internet.

Staff training. 80% of the construction sector respondents organise training for their employees. Usually, they

arrange on-the-job training or training at state and more rarely at private schools. In 2006, about 51% of the

respondents earmarked funds for the training (usually up to 1% of the turnover). The basic problems related

with the training of construction sector workers are associated with the supply of training courses which does

not satisfy the demand as well as costs. The place and facilities for training was also often mentioned as a

problem because they do not meet the nowadays requirements.

Staff turnover. Staff turnover in the construction sector is rather great and amounts to approximately 35%.

Information provided in Table 4.2 shows that the greatest turnover in 2006 was observed in the unskilled

workers‘ group. One of the reasons is the dependency of construction works on the seasons. The turnover in

the specialists and technicians‘ group reaches 23% and that in the skilled workers‘ group accounts for 32%.

The lowest staff turnover is observed among the executives and administration staff. According to the

interview findings, the majority of the workers who resigned remain in the construction sector – they are

employed by other construction enterprises. Over the coming two years, about 71% of the construction

sector respondents are going to employ workers. The growth of the number of employees is expected in

actually all the job groups, except for unskilled workers.

Table 4.2. Turnover of the construction sector workers by the job groups

Job groups turnover CS

Executives 5%

Administration 9%

Specialists and technicians 23%

Skilled workers 32%

Unskilled workers 134%

Other workers 31%

4.4. Forecast of Demand for Employees in the Future

Forecasts on the demand for the production sector workers in the construction sector by the job groups have

been made on the basis of the evaluation of the sector development and staff turnover. It should be noticed

that according to the survey findings the growth of the number of workers is slower that that projected on the

basis of statistical data. This may be explained by the fact that sector surveys are usually participated by

more active and responsive to the market changes enterprises the answers of whom display future trends.

Whereas the basis of the statistical forecasts is composed of the data reflecting the past. In assessing the

demand for workers, two reasons of turnover were identified:

52

• some workers who resign leave the market for ever (for example, they retire on a pension). In order

to establish the number of such workers it was assumed that every tenth worker aged 55 years or

older resigns the office in such a way. According to the findings of the residents‘ employment survey,

in 2006 the number of such workers in the construction sector accounted for 10,3%. The implication

is that about 1% of workers within each job group leave the sector for ever.

• Other workers remain in the market. Thus, they have two possibilities – to be employed in any other

enterprise in the same sector or to be employed in any other economic sector. With a view to

establishing the number of the latter, two assumptions are made: (1) the share of workers who leave

the sector is directly proportional to the intensity of turnover; (2) where workers of certain

professional groups change their job yearly on the average, the probability that by changing their job

they will change the sector is 50%.

The forecasts made on the basis of the survey findings are presented in Table 4.3. Forecasts have not been

made by subsectors due to too little statistical information.

Table 4.3. Forecasts about the demand for workers for the coming five years.

Job groups Number of workers, 2006

Development for the coming 5 years

Yearly turnover

The sector is left within 5 years by

Demand for new workers in the coming 5 years*

Demand for new workers in the coming 1 years**

Executives 9017 1823 5% 496 2300 460

Administration 8412 2694 9% 572 3300 660

Specialists and technicians 15011 7169 23% 2649 9800 1900

Skilled workers 57844 9038 32% 17238 26300 5300

Unskilled workers 9011 -62 134% 40599 40500 8100

Other workers 1429 861 31% 404 1300 260

Total 100724 21523

*Rounded up figures (descending)

Table 4.4 presents annual forecasts about the need for training/studies for the period of five years which

have been calculated on the basis of the sector development and rate of changing employees. The rate has

been assessed taking into consideration the structure of the sector employees by age. The five-year-rate of

changing the construction sector workers totals 1% of the employed. The difference between the annual

demand for new workers and projected need of the training/studies for one year shows the annual need of

the continuing training (qualification improvement or retraining). The latter accounts for about 300 and almost

3 thousand worker per year within the specialists‘ and technicians‘ group and the skilled workers‘ group

respectively.

53

Table 4.4. Forecast about the demand for training/studies for the period of 5 years

Job groups Number of workers, 2006

Development for the coming 5 years

Changing rate for the period of 5 years

Need of training/studies for the period of 1 year

Executives 9017 1823 451 450

Administration 8412 2694 421 620

Specialists and technicians 15011 7169 751 1600

Skilled workers 57844 9038 2892 2400

Unskilled workers 9011 -62 451 80

Other workers 1429 861 72 190

Total 100724 21523

* Rounded up figures (descending)

4.5. Summary

• The construction sector is dominated by „independent economic entities“. The major part of them is

comprised of the Lithuanian capital enterprises. The majority of enterprises became operable

between 1990 and 1995. Later, the establishment of new enterprises slowed down.

• The most fierce competition is observed in the buildings an their parts completion and construction

completion activities. The quality of the construction works is considered to be the most important

factor of competitiveness.

• The market of products/services enlarged in 2006. Turnover grew in all the subsectors of the

construction sector, however, in 2007 the rate of its growth should decrease.

• The most important hindrances to business are as follows: shortage of workers and taxation system.

The problem of corruption, fierce competition and lack of workers‘ competencies is acute in the

architecture subsector, site preparation subsector and other construction sector subsectors

respectively.

• The majority of the construction sector enterprises use modern technologies. The installation of

modern technologies should take place in future as well. Estimating software is among the most

popular technologies used in the construction sector. Installation and maintenance gears, modern

construction and installation machines and buildings and constructions development software are

also popular. The latter is used by the majority of architectural enterprises. The most popular

technologies that are planned to be used include modern construction and installation machines and

planning, optimisation and management software.

• The construction sector employs approximately 107 thousand workers. The number of people who

work part-time of all the employees of the construction sector amounts to 3%. By the job groups, the

most numerous group is that of skilled workers. The majority of employees in the architecture

subsector is made of specialists and technicians.

• The construction sector workforce lacks dutifulness, responsibility, situation management,

inventiveness and inquisitiveness skills. Specialists, technicians and skilled workers are lacking in

practical skills. Knowledge on state-of-the-art technologies and materials and skills at working with

them as well as competencies of project management and time planning are also relevant. The

managers and administration staff are lacking most of all in general skills. Also, there is a shortage of

54

such skill as work organisation, decision-making, time planning and flexibility. The majority of the

construction sector enterprises arrange training for their employees. Usually, they arrange on-the-job

training or training at state and more rarely at private schools.

• Turnover of employees in the construction sector i.e. rather large and amounts to 35%. The largest

turnover is observed in the unskilled workers‘ group where almost all the workers change in the

course of the year. Turnover of workers totals 23% and 32% in the specialists‘ and technicians‘

group and in the skilled workers‘ group respectively. The lowest turnover of workers is observed

among the management and administration specialists. The majority of the sector enterprises intend

to employ new workers over the coming two years.

• Over the coming five years, the need of employees in the construction sector will grow. This will

affect all the job groups, except for unskilled workers. The number of unskilled workers should

slightly diminish. The annual need for the new workers will account for more than 10 thousand

people. The greatest demand will be for the workmen.

• The construction sector is a rather inert industry, therefore, the majority of professions are classic

(for instance, masons, decorators) and eventually are almost not subject to change. However, the

development of the supply of new technologies and materials, increasing level of the automation of

activities and growing globalisation determine the need for new skills. In future, works organisation,

technological design and construction planning skills as well as competencies of robot management

and work with automation programmes and command of foreign languages will be especially

relevant for successful development of the construction sector.

55

5. SUPPLY OF EMPLOYEES

5.1. Introduction

This section presents brief information about education and job groups as well as tendencies of the supply of

workers in the construction sector. The supply of workers is considered as an output of education, i.e. how

many workers are trained and what qualification are they acquiring. The main data comprise the criteria of

admission, graduation, education and/or qualification acquired. The analysis was carried out on the basis of

the statistical data developed for the purpose of the study, available information about education/training

programmes and the findings of surveys about placement of graduates of vocational schools.

5.2. Education and Job Groups

Educational achievements are best of all characterised by the competence57. In order to acquire a certain

qualification, it is necessary to have an appropriate basic education58. The levels of education in Lithuania

are determined by the structure of the educational system. The educational system enables a person to

acquire the primary, basic, secondary, post-secondary and higher education. In compliance with the Law on

Vocational Education and Training, of the Republic of Lithuania (new version)59, qualification is based on

competencies60 which is comprised of knowledge, skills and values. Qualification or individual competencies

are legalised by means of certain documents provided for by the Law on Vocational Education and Training

and the Law on Higher Education of the Republic of Lithuania61. Qualification is the result of formalisation of

formal education62 or otherwise acquired educational achievements. On the basis of their content,

training/study programmes are grouped by the educational fields („Lithuanian Education Qualification“).

Vocational education may be primary and continuing. Primary education enables to acquire the first

qualification and the continuing education allows to improve the qualification acquired or to acquire another

qualification. The study deals with one of the parts of the continuing vocational education – Education of the

Unemployed.

Presently, the primary vocational education is implemented within the framework of four-staged programmes:

I stage – persons without a basic education are admitted to studies based on the first stage

programmes. In order to acquire the basic education, one should study for 2 or 3 years. Upon

the completion of studies based on these programmes, a qualification certificate is issued.

II stage – persons who acquired basic education and wish to acquire a vocational qualification

only are admitted to the studies based on the second stage programmes. The length of

57 Qualification – ability and right to engage in a certain professional activity, as recognised according to a procedure

prescribed in law or in legislative acts of the Government or its authorised institution.. Law on Education of the

Republic of Lithuania. 58

Education level – competence, knowledge, skills, abilities and values, demonstrating a particular level of personal

development, attainment thereof is recognised according to a procedure prescribed by the Government or its authorised

institution.. Law on Education of the Republic of Lithuania. 59

New version of the law was adopted in 2007 and has been in force since 1 January 2008. 60

Competence – ability to perform a certain activity on the basis of the entirety of acquired knowledge, skills, abilities

and values. Law on Education of the Republic of Lithuania 61

Paragraph 3 Article 39 of the Law on Education of the Republic of Lithuania (the new version has been in force since

28 June 2003). 62

Formal education – education implemented according to programs confirmed in accordance with a procedure

prescribed by the Government or its authorised institution, the completion of which results in the attainment of a

primary, basic, secondary, post-secondary or higher education level and/or a qualification. Law on Education of the

Republic of Lithuania.

56

education is two years. Upon the completion of studies based on these programmes, a

vocational educational diploma is issued.

III stage - persons who acquired basic education and wish to acquire a vocational qualification

and general secondary education are admitted to the studies based on the third stage

programmes. The length of the programmes is three years. Upon the completion of these

programmes, vocational educational diploma is issued.

IV stage - persons who acquired secondary education are admitted to the studies based on

the fourth stage programmes. The length of the programmes is 1-2 years. Upon the

completion of these programmes, vocational educational diploma is issued.

Higher education university studies are oriented towards academic activities and non-university studies are

targeted to utilitarian activities.

In the case of working activity, the main variable is a job, i.e. a collection of functions for the performance of

which earnings are paid. For the performance of these functions, one should have a certain education and a

number of appropriate skills. Therefore, a job may be expressed through education and skills. In order to

group the jobs, ISCO63 or SOC

64 classifications are most often used. These two classifications are

intercompatible. On the basis of ISCO65, the „Lithuanian Classification of Professions“ is developed

(profession is related with the work actually carried out by a worker) with the help of which various statistical

data are collected.

This study analyses the supply of workers by comparing the data on education and jobs on the basis of the

bellow-provided Chart (Figure 5.1).

Fig. 5.1. Employee supply assessment scheme

63 International standard classification of occupations 64 International standard classification of occupations 65

International standard classification of occupations

Initial vocational education and training

Higher education (university and non-university)

Education and training of the unemployeed

1 2 3 4 stages

Plant and machine operators and assemblers

job groups

Education

Service workers and shop and market sales workers

Skilled agricultural and fishery workers

Craft and related trades workers

Professionals Technicians and asociate professionals

Clerks

57

5.3. Supply of Employees by Areas of Education and Level of Education

The analysis about the changes in the employment by job groups shows that from 2004 to 2006 the Group of

skilled agricultural and fishery workers decreased most considerably, whereas the Group of Legislators,

senior public officials and managers of enterprises, institutions, organisations, etc. increased. In 2006, the

share of specialists (including servants) in the employment structure accounted for a little bit less than 30%

and the share of workmen amounted to approximately 60%. (Table 5.1).

Table 5.1. Structure of the employment by the job groups

Change from 2004 to 2006

Job groups 2006 m.

19% ���� Legislators, senior officials and managers 9%

7% ���� Professionals 17%

5% ���� Technicians and asociate professionals 9%

4% ���� Clerks 4%

29,5%

13% ���� Service workers and shop and market sales workers 13%

-27% ���� Skilled agricultural and fishery workers 9%

12% ���� Craft and related trades workers 19%

9% ���� Plant and machine operators and assemblers 10%

50,8%

4% ���� Elementary occupations 11% 10.7%

-8% ���� Armed forces (hired workers) 0%

���� - increase; ���� - decrease

According to the available data, 19913 young people were admitted to the vocational education and training

programmes in 2006, i.e. by 3% less than in 2005. The demand for the higher education bachelor studies

increased a bit in 2006 - 47240 students were admitted, i.e. by 2% more than in 2005. Among those who

chose vocational education and training, the most popular was Business and administration and Engineering

and engineering professions education fields and among those who chose higher education the most

popular was Business and administration education field. The same tendencies were actually prevalent in

2005. Detailed data about the distribution of the admitted young people by education fields are presented in

Figure 5.2.

The distribution of the numbers of graduates coincides with the admission structure, the number of young

people who graduated Business and administration field training/study programmes is dominant and the

number of those who graduated vocational training programmes is more than twofold less as compared to

that of the number of graduates from higher education institutions. It is noteworthy that the number of

graduates from vocational training programmes in 2006 was less by 11 than that in 2005. The number of

higher education graduated grew over this period by about 12%.

The provided data show that though the employment of the workmen group in the market is twofold larger as

that of the specialists (including public servants), the data about the admission to train/study witnesses that

58

the number of young people in vocational education is twice as less than that of young people who chose

higher education studies. This has an impact on the proportions of graduates of vocational education and

higher education. Therefore, the gap between the supply of and demand for workers may widen even more

and give rise to serious problems related with business development.

Fig. 5.2. The distribution of the number of young people admitted to train/study in 2006 by educational fields

0% 10% 20% 30% 40% 50% 60%

personal skillsteacher training and pedagogics

arthumanitarian sciences

social and behaviour sciencesjournalism and information

business and administrationlaw

natural sciencesphysical sciences

mathematics and statisticscomputer sciences

engineering and engineering professionsproduction and processing

architekture and constructionagriculture, forestry, fishery

veterinaryhealth care

social servicespersonal services

transportation servicesenvironment

safety services

vocational higher

5.4. Supply of Employees for the Construction Sector

In implementing an training/study programme, workers are usually trained for a certain group of activities

rather than for a specific and well-defined job. Whereas activities of different economic sectors overlap. For

the performance of certain construction sector works the relevant competences may be also found in the

field of agriculture, geodesy, energetic and land management. Therefore, it is rather problematic to name

which programmes are intended for training of workers of the given sector because graduates of each

programme may normally be employed by enterprises which belong to several economic sectors. Thus, the

examination of the supply of workers was based on the review of all the programmes the graduates of which

could work in the construction sector. These programmes were grouped into two groups on the basis of the

information provided in the AIKOS system about the programmes:

• First group is comprised of the programmes focused on the acquisition of the competencies

relevant for the construction sector. In the context of the survey it was assumed that the majority of

graduates of these programmes are employed by the enterprises of the construction sector.

• Second group programmes are largely oriented to the acquisition of competencies relevant to other

sectors. The majority of graduates of these programmes should be employed in other sectors and

only a small part of them should be employed in the construction sector. For example, woodworkers

are trained to work in the timber industry but it is only obvious that he may apply his competencies in

the construction sector enterprises as well.

5.4.1. Supply of Skilled Workers (including operators) for the Construction Sector

Having selected the primary vocational education programmes relevant to the construction sector according

to the above-described method from all the vocational schools which provide such programmes, the

information was collected about the number of graduates and their employment rate in 2007. The survey

findings are presented in Table 5.2. Findings about the employment are general. The responses provided by

the vocational schools shows that 69% of graduates are employed after graduation. The remaining 31%

serve in the army, study, go to other countries, etc. Vocational schools did not have any detailed information

about what kind of economical sector enterprises employed the graduates.

Table 5.2. Primary vocational education and training programmes of the construction sector and the number of graduates *

2006 graduates Primary vocational education and training programme

Total Employed

Supply of workers for the construction sector

Decorator (constructor) 669 462

Joiners 7 5

Road constructor** 0 0

Mason and concrete layer 45 31

Building restorer 76 52

Building heat insulators** 0 0

Building engineering system installer 13 9

Plumbers 51 35

I group

Mason and plasterer of walls and stoves 26 18

612

Municipal economy worker 46 32

Melioration worker 19 13

Woodworker 395 273 II group

Construction business services supplier 237 163

481

*The specified programmes are briefly described in Annex 1. **Students were admitted to study under this programme in 2006.

The roofer training programme is also registered in the Register of Study and Education Programmes which

is not specified in Table 5.2 because in 2005 – 2006 training under this programme was not provided. One of

the reasons is the fact that this programme is not very popular among young people.

The construction sector workers are also trained under the labour market vocational training programmes

included into the Register of Study and Education Programmes. According to the available information, there

are 43 labour market vocational training programmes. Under these programmes the length of training ranges

from 1 to 30 weeks. Having graduated these programmes, persons acquire the skills of concrete laying,

masonry, plastering, painting, installation, construction machine operating (operators), etc. According to the

information provided by the Lithuanian Labour Market Training Authority, from 2003 to 2006 15870 persons

were trained for construction sector, i.e. 4,5 thousand of persons annually on the average. Besides, there are

quite a lot of non-formal training programmes for the acquisition of competencies relevant to the construction

sector. For example, the Register of Study and Education Programmes (http://www.ldrmt.lt/mod/nf_reg/)

60

includes several such programmes. Unfortunately, information about the graduates who graduated from

continuing vocational training programmes are not systematically collected and therefore the assessment of

quantitative supply has not been performed.

5.4.2. Supply of Specialists and Technicians for the Construction Sector

There is quite a great number of non-university and university study programmes of higher education for

training specialists of the construction (Table 5.3). According to the available data, in 2006 more than 2000

young people were admitted to study under the construction sector field programmes. In 2006, the

programmes specified in Table 5.3 were graduated by 1320 persons, of whom graduated from the first level

of the study. The possibility of evaluating the chances of employment are very limited because only a small

part of the higher education institutions study the further career of their students. According to their

information, about 70% of graduates are employed on the average. For the purpose of assessing the supply,

the number of graduates from the master‘s study programmes was not included as on the one hand the

majority of those studying for the master‘s degree are already employed and on the other hand only those

who have already acquired bachelor‘s degree are admitted to study for the master‘s degree and those who

have acquired bachelor‘s degree were included in making the assessment of the supply. The overall

assessment shows that the supply of specialists for the construction sector in 2006 totalled 718 persons.

Table 5.3. Higher education study programmes for the specialists of the construction sector*

Graduates, 2006 Primary vocational training programme

Total Employed

Supply of specialists and technicians for the construction sector

Construction 224 157

Building engineering systems 38 27

Hydrotechnics 19 13 Non-university studies

Road construction 51 36

233

Architecture 134 94

Energetics and transport construction 10 7

Hydrotechnics engineering 56 39

Road and railway engineering 31 22

Urban engineering 37 26

Urban and road engineering 35 25

Building engineering systems 15 11

Civil engineering 271 190

Construction products and technologies 38 27

Building materials and articles 8 6

Construction management 31 22

University bachelor studies

Building energetics 28 20

485

718

Architecture 56

Civil engineering 45

Geotechnics 9

Master‘s studies

Interior architecture 0

29 4

61

Town and country planning 8

Building architecture 11

Building engineering systems 11

Building constructions 23

Construction 42

Construction engineering 15

Building materials and articles 17

Construction management 57

* Brief description of the specified qualifications are provided in Annex 2

5.5. Summary

Forecasts about the demand for the construction sector employees by job groups has been based on the

assessment of the sector development and staff turnover (see Section 4.4). The survey is based on the

assumption that the demand for employees caused by the sector development and workers who leave the

labour market because of age and other reasons should be satisfied by the primary vocational training

system. The demand and supply of workers in the construction sector is provided in Table 5.4. The demand

and supply was calculated on the basis of the information provided in Tables 5.2, 5.3 and 4.4.

Table 5.4. Demand for employees and supply of primary vocational training and higher education in the construction sector by job groups where the shortage of employees is established

Job groups Demand for new employees for the period f 1 year

Need of the primary training*

Annual supply (according to the 2006 findings)

Evaluation of the balance of the demand and supply

Specialists and technicians

1900 1600 about 718 Negative

Skilled workers 5300 2400 about 612 Negative

* New employees who will have to change those leaving the labour market and compensate the needs of workers related with the development of the sector

According to the sociological survey findings (Table 4.3), in 2006 the number of skilled workers employed in

the construction sector was larger almost by four times that that of specialists and technicians. According to

the 2006 findings, however, the number of persons admitted to study under the construction sector

programmes and the number of graduates from these programmes show the opposite trends: 1) the number

of young people admitted to study under the higher education programmes is slightly smaller than that of the

young people admitted under the primary vocational training programmes (approximately 2064 and 2689

respectively), (2) the number of higher education institutions graduates is slightly larger than that of the

number of graduates from the primary vocational training programmes (Tables 5.2 and 5.3). Therefore, in

future the gap between the supply of and demand for workers may widen even more and cause serious

problems to the development of business.

According to the survey findings, both the primary vocational training and higher education so far have been

satisfying approximately 50% of the construction sector needs related with employees. On the other hand, in

2006 the number of persons admitted to study under the study/training programmes of architecture and

construction field was larger by 1,4 times than that of persons admitted to these programmes in 2003. Such

62

situation was largely determined by the increase of earnings in the construction sector. Therefore, it is likely

that with the decrease of the sector development and further improvement of operating conditions and

productivity, the gap between the supply of and demand for workers in the construction sector should

considerably diminish over the coming five years.

The continuing training is faced by the same demand – about 300 specialists and technicians and

approximately 3000 skilled workers must be trained within the period of one year. The construction sector

also encounters the great demand for unskilled workers – about 8000 per year. This demand is partly

satisfied by the training of the unemployed. However, according to the sociological survey findings (see

Section 4.2.), the major part of the demand for workers is compensated by enterprises themselves by

arranging on-the-job training and training in training institutions

63

6. RECOMMENDATIONS

Recommendations on the narrowing the gap between the supply of and demand for workers in the

construction sector

• Based on the analysis carried out, shortage of manpower, especially of skilled workers, poses a primal

significant threat on the successful development of economy. Skilled workers are usually trained in

vocational education and training institutions. On the other hand while employment in skilled workers job

group doubles employment in professionals (including clerks) jobs group in the real labour market,

enrolment data presents a reverse picture with number of youth choosing VET being twice lower than

those entering higher education. This has impact on share of graduates from VET and higher education.

Therefore discrepancy between supply and demand of employees is likely to increase in all sectors and

to cause severe problems for the development of business. Taking into account said above it is

recommended to change requirements for the admission to higher education institutions, i.e. to define

requirements of VET background and work experience for certain study programmes, e.g. business and

administration. This measure should help to regulate employees supply, facilitate planning of enrolment

to study/ training programmes and should improve quality of studies in general.

• Amendment of the Law on Vocational Education and Training (2007) establishes apprenticeship as a

new vocational education and training organisation form when training is carried out at the workplace:

company, institution, organisation, farm or is executed by a free lance teacher‘s. Theoretical training may

be carried out in the VET institution or other school. With regard to the experience of other countries the

advantages of apprenticeship are related to lower training costs and work with modern technologies.

Therefore, the companies having used these opportunities would train the employees according to their

needs and at the same time would increase VET attractiveness. In the long term this would have a

positive influence on the workers supply.

• Change of skills in job places groups in the construction sector will be influenced by increase of

environmental requirements, need for energy saving and labour market internationalisation. Enterprises

wish to increase labour productivity by automation of work process and usage of new construction

materials and technologies. In future, works organisation, technological design and construction planning

skills as well as competencies of robot management and work with automation programmes and

command of foreign languages will be especially relevant for the successful development of the

construction sector. Construction enterprises regard the quality of works as the main advantage over

competitors. Therefore it is very likely that requirements for study/ training quality will rapidly increase.

Lack of practical skills is already emphasised for professionals, technicians and skilled workers.

Knowledge on modern technologies and materials as well as skills to work with them, competences of

project management and time planning are also relevant. The managers and administration staff are

lacking most of all in general skills. Also, there is a shortage of such skills as work organisation, decision-

making, time planning and flexibility. Therefore in order to ensure relevant qualification of workers it is

necessary to update study/ training programmes in accordance with identified skill needs with a special

focus on new technologies and practical skills development. It is also recommended to speed up process

of improving study/ training quality by designing specific measures (including modernisation of practical

training basis) and foreseeing resources for their implementation.

64

• Based on analysis carried out in construction sector, there is a large demand for continuing training

services whisch is caused by staff turnover and factors mentioned above. This demand is supplied by

on-the-ob-training or training in education institutions. The basic problems related with the training of

construction sector workers are associated with the supply of training courses which does not satisfy the

demand as well as costs, the place and facilities for training (they do not meet the nowadays

requirements). Therefore qualification of current employees should be improved by organising

presentations of new materials, practical seminars, study visits in other enterprises as well as abroad. In

addition, offer of qualification development courses should be updated by offering specific training

courses. These courses should focus on exclusive, unusual situations, problems and challenges in

construction projects and should provide practical solutions. As a consequence, employees qualification

would correspond requirements and they would have opportunities for continuous development.

• In the situation of huge lack of construction workers and insufficient training capacities to satisfy needs of

the sector both in quantity and quality terms, cooperation between employers and training providers

should be strengthened. Cooperation should be facilitated by applying such measures as joint meetings,

site visits, career days, curricula development, practical training and etc. Based on opinion of interview

respondents a connecting link might be Lithuanian Builders Association. Bilateral information flows

should be also improved, e.g. when preparing targeted information about training of employees and

changes in the construction market. This would help to detail requirements for curricula content and

expand possibilities for training of construction workers.

65

REFERENCES

1. Department of Statistics - ISSN 1648-5106 – Financial indicators of enterprises 2005 I-IV Vilnius

2006 2. Department of Economic Analysis of the Governemnt of the Republic of Lithuania – CERTIFICATE

Overview of the main economic sectors (statistics on non-financial enterprises)¹ 2005, http://www.lrv.lt

3. Department of Statistics - ISSN 1392-2874 –SOCIAL AND ECONOMIC DEVELOPMENT IN LITHUANIA 2005/5 Economic and Social Development in Lithuania, Vilnius 2006

4. Department of Statistics ISSN 1648-5157 – Darbo j÷ga, užimtumas, nedarbas / Labour Force, Employment and Unemployment 1999- 2004, Vilnius 2006

5. Daily “Verslo žinios“ special supplement “Top 1000 Largest Lithuanian Enterprises“ 2006 July 6. Department of Statistics - ISBN 9955-588-88-8 / UDK 331 2(4) Da 305 –Structure of Earnings in the

European Union countries 2002 / Structure of earnings in the European Union countries, Vilnius 2005

7. Eurostat News release 75/2006 – 9 June 2006. First quarter 2006 compared to fourth quarter 2005. Production in the construction sector down by 1,3% in the euro area. Down by 0,8% the EU25.

8. Department of Statistics - ISSN 9955-588-90-X, International Migration of Lithuanian citizens 2005 m., Vilnius 2006

9. Primary vocational training system in Lithuania Detailed thematic report developed by the Methodological Centre for Vocational Education and Training on the basis of the structure of the European Centre for the Development of Vocational training (Cedefop), 2005.

10. Vocational training system in Lithuania. General report developed by the Methodological Centre for Vocational Education and Training on the basis of the structure of the European Centre for the Development of Vocational training (Cedefop), 2005.

11. Quarterly panorama of European business statistics. Luxembourg: Office for official publications of Eurpean Communities, 2006

12. An assessment of skill needs in construction and related industries. Skills dialogue. Business strategies limited. 192 Vauxhall Bridge Road, London.

13. Dalius Viršilas. Statybos projektų valdymo ypatumai. 2006 m., http://verslas.banga.lt 14. E. K. Zavadskas, A. Kaklauskas, A. Banaitis. Development Startegy of the Construction Sector. 15. Eurostat, http://epp.eurostat.ec.europa.eu 16. Lithuanian construction market is aimed by Polish. BNS. 4 September 2006, http://www.delfi.lt 17. Jurgita Jakimavičiūt÷. Vocational schools – a platform to further studies, daily “Panev÷žio balsas“, 21

August 2006. 18. Law on the Amendment of the Law on Construction of the Republic of Lithuania, 8 November 2001.

No. IX-583, Vilnius 19. Law on Territorial Planning of the Republic of Lithuania, 1995 m. gruodžio 12 d. Nr. I-1120, Vilnius 20. Lithuanian Department of Statistics , http://www.std.lt 21. Lithuanian constructors left for Scandinavia. BNS. 4 September 2006, http://www.delfi.lt 22. Lithuanian Economic Development till 2015 Long-Term Startegy. Ministry of Economy of the

Republic of Lithuania. Lithuanian Science Academy. Vilnius, 2002. 23. Lina Navickait÷. Lithuanian emigrants are replaced by foreigners. “Kauno diena“, 17 August 2006. 24. MoneyCafe.com, 28 September 2006., http://www.moneycafe.com/library/libor.htm 25. Meeting on the issues of providing vocational training to construction workers. Lithuanian

Association of Constructors. 9 February 2006., Kaunas. http://www.statybininkai.lt 26. Vocational training will be more related with the labour market needs. 23 August 2006,

http://www.delfi.lt 27. Profit of the construction sector grew by 70%. “Jūsų tarpininkas“, 21 April 2006., http://www.delfi.lt 28. The demand for and use of skills in the modern economy. A briefing by professor Francis Green.

Futureskills Scotland. 29. Vigantas Danilavičius. Constructions are impeded by the deficit. “Klaip÷da“, 21 August 2006. 30. Internet references: http://epp.eurostat.ec.europa.eu/portal/, http://www.lrv.lt/, http://www.std.lt/,

http://www.statyba.lt/, http://www.arch.lt/, http://www.lsm.lt

ANNEX 1

SS sektoriaus darbininkų (operatorių) įgyjamų kompetencijų ir geb÷jimų aprašai pagal pirminio profesinio mokymo programas

Apdailininko (statybininko)

Dailid÷s

Kelių statytojo

Mūrininko betonuotojo

Kompetencijos ir

geb÷jimai

Saug

iai d

irbti.

Pa

rinkt

i sta

tybo

s m

edži

agas

. M

ontu

oti p

alyp

÷jim

o įra

ngą.

M

ūryt

i nes

ud÷t

inga

s ko

nstru

kcija

s.

Apdi

rbti

med

ieną

rank

inia

is įr

anki

ais.

Įre

ngti

beto

ninį

pag

rindą

. Sk

aity

ti da

rbo

br÷ž

iniu

s.

Apši

ltint

i pas

tatą

term

oizo

liaci

n÷m

is

plok

št÷m

is.

Tink

uoti

rank

iniu

ir m

echa

nizu

otu

būdu

. Kl

oti p

lyte

les

ant h

oriz

onta

lių ir

ver

tikal

ių

pavi

ršių

. D

ažyt

i ran

kini

u ir

mec

hani

zuot

u bū

du.

Kliju

oti a

pmuš

alus

. Tv

irtin

ti gi

pso

karto

no p

lokš

tes.

M

ontu

oti a

pdai

los

plok

štes

ir ti

esin

ius

elem

entu

s.

Pa

ruoš

ti m

edie

ną a

pdirb

imui

. M

atuo

ti žy

m÷t

i med

ieną

. At

likti

rank

inio

med

ieno

s ap

dirb

imo

oper

acija

s.

Dirb

ti ra

nkin

iais

ele

ktrin

iais

med

ieno

s ap

dirb

imo

įrank

iais

. D

irbti

mec

hani

zuot

o m

edie

nos

apdi

rbim

o st

akl÷

mis

ir įr

engi

mai

s.

Skai

tyti

darb

o br

÷žin

ius.

Įre

ngti

verti

kalia

s pa

talp

ų in

terje

ro d

alis

. Sk

aity

ti rę

stin

ių p

asta

tų s

taty

bos

br÷ž

iniu

s.

Stat

yti r

ęstin

ius

past

atus

. Ži

noti

past

atų

tipus

, kon

stru

kcin

es

sche

mas

ir p

agrin

dini

us e

lem

entu

s.

Stat

yti m

edin

ius

past

atus

. M

ūryt

i ir b

eton

uoti

past

ato

kons

trukc

ijas.

M

ontu

oti m

edin

es s

togo

kon

stru

kcija

s.

Apsk

aiči

uoti

med

žiag

as.

Apši

ltint

i pas

tatu

s.

Med

inių

gam

inių

mon

tavi

mas

. N

usta

tyti

defe

ktus

. Pa

rinkt

i gam

inių

rem

onto

med

žiag

as.

Paša

linti

defe

ktus

.

Sa

ugia

i dirb

ti.

Atlik

ti ke

lio ti

esim

o pa

ruoš

iam

uosi

us

darb

us.

Parin

kti k

elių

sta

tybo

s m

edži

agas

. At

likti

žem

÷s s

anka

sos

darb

us.

Įreng

ti ke

lio p

agrin

dus.

Kl

oti k

elio

dan

gas.

At

likti

kelio

ties

imo

baig

iam

uosi

us d

arbu

s.

Skai

tyti

darb

o br

÷žin

ius

ir na

udot

is k

elio

st

atin

ių s

taty

bos

doku

men

taci

ja.

Atlik

ti ai

kšte

l÷s

paru

ošia

muo

sius

dar

bus.

St

atyt

i, re

kons

truot

i ir r

emon

tuot

i kel

io

stat

iniu

s.

Mok

÷ti d

irbti

su k

elių

sta

tinių

rem

onto

m

ašin

omis

ir įr

engi

mai

s.

Priž

iūr÷

ti ke

lius

ir ke

lio s

tatin

ius

paga

l ke

liam

us re

ikal

avim

us.

Reg

uliu

oti t

rans

porto

sra

utų

jud÷

jimą.

Įv

ertin

ti ve

rslo

apl

inką

.

Sa

ugia

i dirb

ti.

Mon

tuot

i įva

iriam

e au

kšty

je d

arbo

įran

gą.

Tink

uoti

papr

asta

is s

kied

inia

is.

Apdi

rbti

med

ieną

rank

inia

is įr

anki

ais.

Sk

aity

ti da

rbo

br÷ž

iniu

s.

Apsk

aiči

uoti

atlik

tų d

arbų

api

mtį

ir m

edži

agų

sąna

udas

. M

ūryt

i kon

stru

kcija

s iš

pap

rast

ų ir

apda

ilos

plyt

ų.

Mūr

yti i

r bet

onuo

ti la

ukak

men

io

kons

trukc

ijas.

M

ūryt

i len

gvųj

ų ko

nstru

kcijų

sie

nas.

M

ūryt

i šal

tyje

. Ar

dyti

mūr

ą ra

nkin

iu ir

mec

hani

zuot

u bū

dais

. R

emon

tuot

i ir s

utvi

rtint

i mūr

ines

ko

nstru

kcija

s.

Atlik

ti pa

virš

ių h

idro

izol

iaci

nius

dar

bus.

Su

rinkt

i ir m

ontu

oti k

lojin

ius.

Ar

muo

ti ir

beto

nuot

i kon

stru

kcija

s.

Sand

÷liu

oti s

uren

kam

us b

eton

iniu

s ir

gelž

beto

nini

us g

amin

ius.

M

ontu

oti k

onst

rukc

ijas

mūr

iniu

ose

past

atuo

se.

Profesin÷ veikla, kuria

gali verstis

pažym÷jimo

savininkas

Bend

rieji

stat

ybos

dar

bai;

past

ato

apši

ltini

mas

ir ti

nkav

imas

; pas

tato

apd

aila

pl

ytel

÷mis

; pas

tato

pav

iršių

daž

ymas

ir

apm

ušal

ų kl

ijavi

mas

; apd

ailo

s pl

okšč

ių ir

tie

sini

ų el

emen

tų tv

irtin

imas

.

M

edie

nos

apdi

rbim

as ra

nkin

iu ir

m

echa

nizu

otu

būdu

; int

erje

ro ir

eks

terje

ro

įreng

imas

; ręs

tinių

pas

tatų

sta

tyba

; sk

ydin

ių ir

kar

kasi

nių

past

atų

stat

yba;

st

ogo

kons

trukc

ijų m

onta

vim

as; p

asta

tų

apši

ltini

mas

; med

ieno

s ga

min

ių

mon

tavi

mas

ir re

mon

tas.

Ke

lių ir

gat

vių

tiesi

mas

ir re

kons

travi

mas

; ke

lio s

tatin

ių s

taty

ba, r

ekon

stra

vim

as ir

re

mon

tas;

kel

ių ir

sta

tinių

prie

žiūr

a; v

ersl

o įm

on÷s

org

aniz

avim

as.

Be

ndrie

ji st

atyb

os d

arba

i; ko

nstru

kcijų

m

ūrijim

as; m

ūrin

ių k

onst

rukc

ijų re

mon

tas;

hi

droi

zolia

cijo

s įre

ngim

as; k

onst

rukc

ijų

beto

navi

mas

; bet

onin

ių ir

gel

žbet

onin

ių

kons

trukc

ijų m

onta

vim

as m

ūrin

iuos

e pa

stat

uose

.

67

Pastatų restauratoriaus

Pastatų šiltintojo

Pastatų inžinerin÷s įrangos

montuotojo

Santechniko

Kompetencijos ir

geb÷jimai

Saug

iai d

irbti.

Sk

aity

ti st

atyb

iniu

s br

÷žin

ius.

N

audo

tis in

form

acin

÷mis

tech

nolo

gijo

mis

. Ta

ikyt

i pas

tatų

rest

aura

vim

o ir

kons

erva

vim

o te

chno

logi

jas.

At

likti

mūr

o da

rbus

. Ti

nkuo

ti pa

stat

us.

Daž

yti p

asta

tų p

avirš

ius.

At

likti

pavi

ršių

dek

orav

imo

darb

us.

Atlik

ti pa

virš

ių a

pdai

lą a

pmuš

alai

s ir

pl÷v

el÷m

is.

Atlik

ti fa

sadų

apd

ailą

ply

tel÷

mis

. At

likti

dailid

÷s ir

sta

liaus

dar

bus.

Įre

ngti

med

ines

sto

gų, l

aipt

ų, g

rindų

ko

nstru

kcija

s.

Sand

÷liu

oti s

taty

bine

s m

edži

agas

. Įv

ertin

ti ve

rslo

apl

inką

Sa

ugia

i dirb

ti.

Nau

dotis

info

rmac

in÷m

is te

chno

logi

jom

is.

Mon

tuot

i dur

is ir

lang

us, p

ertv

aras

. Ši

ltint

i pas

tatu

s.

Šilti

nti š

laiti

nio

stog

o ko

nstru

kcija

s.

Surin

kti i

r šilt

inti

kark

asin

ius

nam

us.

Tvirt

inti

gips

o-ka

rtono

plo

kšte

s.

Išm

anyt

i api

e m

ūro

darb

us.

Šilti

nti p

ožem

inę

past

ato

dalį.

At

likti

suta

pdin

tų s

togų

ir g

elžb

eton

inių

pe

rden

gim

ų ko

nstru

kcijų

, šilt

inim

o da

rbus

. Iš

man

yti k

rovo

s, s

and÷

liavi

mo

ir tra

nspo

rtavi

mo

darb

us.

Įver

tinti

vers

lo a

plin

ką.

Pa

rinkt

i šild

ymo,

van

dent

ieki

o, n

uote

kų

bei o

ro k

ondi

cion

avim

o si

stem

ų va

mzd

žius

, vam

zdyn

ų ar

mat

ūrą

ir m

edži

agas

. At

likti

šaltk

alvi

škas

ope

raci

jas.

Pa

gam

inti

vam

zdin

es d

etal

es p

agal

br

÷žin

ius.

Su

geb÷

ti su

virin

ti va

mzd

žius

ele

ktra

ir

dujo

mis

. M

ok÷t

i aps

augo

ti va

mzd

ynus

nuo

ko

rozi

jos.

Su

jung

ti ke

tiniu

s, p

lieni

nius

, var

iniu

s ir

plas

tikin

ius

vam

zdži

us.

Sum

ontu

oti v

amzd

yną

ir ar

mat

ūrą.

Įre

ngti

šild

ymo

sist

emą

paga

l klie

nto

pore

ikiu

s.

Pasi

rinkt

i pas

tato

dal

ių k

irtim

o bū

dus.

Sk

aity

ti sa

ntec

hnin

ių s

iste

mų

sche

mas

ir

br÷ž

iniu

s.

Mon

tuot

i ir a

ptar

naut

i prie

šgai

srin

į va

nden

tiekį

. M

ontu

oti p

asta

tų v

idau

s va

nden

tieki

o ir

nuot

ekų

sist

emas

. Pa

gam

inti

v÷di

nim

o si

stem

os ti

pine

s de

tale

s.

Mon

tuot

i v÷d

inim

o ag

rega

tus

ir įre

ngin

ius.

Pa

rinkt

i ir s

umon

tuot

i kon

dici

onie

rius.

Pr

ofila

ktiš

kai a

ptar

naut

i van

dent

ieki

o,

šild

ymo,

nuo

tekų

ir o

ro k

ondi

cion

avim

o be

i v÷d

inim

o si

stem

as.

Paži

nti v

ersl

o ap

linką

, prit

aika

nt s

avo

prof

esin

es g

alim

ybes

. Pr

itaik

yti d

arbo

teis

÷s p

agrin

dus

savo

pr

ofes

in÷j

e ve

iklo

je.

Sa

ugia

i dirb

ti.

Gam

inti

vam

zdyn

ų de

tale

s, n

esud

÷tin

gas

met

alin

es k

onst

rukc

ijas

paga

l br÷

žini

us,

eski

zus

ir m

atav

imus

dar

bo v

ieto

je.

Mon

tuot

i pas

tato

van

dens

tiek

imo

sist

emas

, aps

kaito

s m

azgu

s, v

ande

ns

÷mim

o ar

mat

ūrą

ir pr

ieta

isus

. M

ontu

oti p

asta

to n

uote

kų š

alin

imo

tinkl

ą ir

jo v

÷din

imo

sist

emas

. Įre

ngti

prie

šgai

srin

į van

dent

iekį

. Įre

ngti

lieta

us v

ande

ns n

uota

kus.

M

ontu

oti m

ažo

(iki 1

00 k

w) g

alin

gum

o ka

tilin

es.

Mon

tuot

i šild

ymo

prie

tais

us ir

vie

tines

ši

ldym

o si

stem

as, j

as a

pšilt

inti

ir iš

band

yti.

Mon

tuot

i šilu

min

ių s

iurb

lių iš

orin

ius

ir vi

dini

us ž

iedu

s pa

talp

oms

šild

yti i

r ka

ršta

m v

ande

niui

ruoš

ti.

Mec

hani

škai

regu

liuot

i šild

ymo

ir va

nden

tieki

o si

stem

ų be

i prie

tais

ų pa

ram

etru

s.

Atlik

ti sa

ntec

hnin

ių s

iste

mų

apži

ūrą,

pl

ovim

ą ir

hidr

aulin

į ban

dym

ą.

Rem

ontu

oti s

ante

chni

nius

prie

tais

us ir

si

stem

as.

Paru

ošti

past

ato

kons

trukc

iją, d

arbo

įra

nkiu

s ir

kom

plek

tuoj

amąs

ias

dalis

sa

ntec

hnin

÷ms

sist

emom

s m

ontu

oti b

ei

paša

linti

past

ato

kons

trukc

ijos

defe

ktus

, at

sira

dusi

us m

onta

vim

o m

etu.

At

likti

v÷di

nim

o si

stem

ų, d

ujot

ieki

o ir

išor

inių

tink

lų m

onta

vim

o da

rbus

, kur

iem

s at

likti

nere

ikia

spe

cial

aus

mok

ymo.

Ve

rstis

indi

vidu

aliu

san

tech

nini

ų pa

slau

gų

vers

lu.

Profesin÷ veikla, kuria

gali verstis

pažym÷jimo

savininkas

Past

atų

rest

aura

vim

as b

ei

kons

erva

vim

as; m

ūro

darb

ai; p

asta

tų

apda

ila; m

edin

ių k

onst

rukc

ijų m

onta

žas.

St

ogų

šilti

nim

as; s

ienų

šilt

inim

as;

kark

asin

ių n

amų

surin

kim

as; l

engv

ų st

atyb

inių

kon

stru

kcijų

mon

tavi

mas

.

Va

mzd

inių

det

alių

gam

yba

ir at

skirų

va

mzd

yno

dalių

mon

tavi

mo

darb

ai;

šild

ymo

sist

emos

mon

tavi

mas

; kar

što

ir ša

lto v

ande

ntie

kio

sist

emos

mon

tavi

mas

; nu

otek

ų si

stem

os m

onta

vim

as; v

÷din

imo

ir or

o ko

ndic

iona

vim

o si

stem

ų m

onta

vim

as; p

asta

tų in

žine

rinių

sis

tem

ų pr

ieži

ūra

ir re

mon

tas;

indi

vidu

alau

s ve

rslo

or

gani

zavi

mas

.

Va

mzd

inių

maz

gų g

amyb

a; p

asta

tų

vand

entv

arka

; pas

tatų

šild

ymas

; sa

ntec

hnin

ių s

iste

mų

eksp

loat

avim

as ir

re

mon

tas;

ben

drie

ji st

atyb

os d

arba

i.

68

Sienų ir krosnių mūrijimo bei tinkavimo

Kompetencijos ir geb÷jimai

Mūr

yti k

onst

rukc

ijas

iš p

lytų

, blo

kelių

ir la

uko

akm

enų.

At

likti

mūr

o ar

dym

o ir

rem

onto

dar

bus.

Įre

ngti

pam

atų

hidr

oizo

liaci

ją.

Mon

tuot

i nes

ud÷t

inga

s ge

lžbe

toni

nes

kons

trukc

ijas,

su

siju

sias

su

mūr

o da

rbai

s.

Mūr

yti n

esud

÷tin

gas

šild

ymo

kros

nis,

viry

kles

ir š

ildym

o si

enel

es.

Rem

ontu

oti š

ildym

o kr

osni

s, v

irykl

es ir

šild

ymo

sien

eles

. Ti

nkuo

ti pa

pras

tu ir

pag

erin

tu ti

nku

vida

us p

atal

pas,

fasa

dus

rank

inia

is įr

anki

ais.

Pa

rinkt

i sta

tybi

nes

med

žiag

as.

Mon

tuot

i pal

yp÷j

imo

įrang

ą.

Skai

tyti

darb

o br

÷žin

ius.

M

ok÷t

i sau

giai

dirb

ti.

Profesin÷ veikla, kuria gali

verstis pažym÷jimo savininkas

Sien

ų m

ūriji

mas

ir ti

nkav

imas

. Šild

ymo

kros

nių,

viry

klių

ir

šild

ymo

sien

elių

mūr

ijimas

; mūr

o, ti

nko

šild

ymo

kros

nių,

vi

rykl

ių re

mon

tas;

nes

ud÷t

ingų

gel

žbet

onių

kon

stru

kcijų

m

onta

vim

as.

69

Komunalinio ūkio darbininko

Melioracijos darbuotojo

Staliaus

Statybos verslo paslaugų teik÷jo

Kompetencijos ir

geb÷jimai

Saug

iai d

irbti.

G

eb÷t

i pas

irink

ti, p

aruo

šti i

r san

d÷liu

oti

stat

ybin

es m

edži

agas

ir ž

alia

vas.

Sk

aity

ti ne

sud÷

tingu

s br

÷žin

ius

ir sc

hem

as.

Atlik

ti be

ndro

sios

šal

tkal

vyst

÷s d

arbu

s.

Suvi

rinti,

par

inkt

i suv

irini

mo

para

met

rus

ir r÷

žim

us.

Rem

ontu

oti i

r priž

iūr÷

ti sa

nita

rines

, ši

ldym

o, v

ande

ntie

kio,

kan

aliz

acijo

s si

stem

as.

Suju

ngti

nesu

d÷tin

gas

deta

les

mec

hani

niu

būdu

. M

ontu

oti i

r priž

iūr÷

ti va

nden

s, š

ilum

os

apsk

aito

s pr

ieta

isus

. M

ūryt

i įva

irias

nes

ud÷t

inga

s ko

nstru

kcija

s ir

atlik

ti m

ūro

rem

onto

dar

bus.

R

emon

tuot

i, pr

ižiū

r÷ti

ir su

rinkt

i sta

liaus

ga

min

ius,

stik

linti

ir sa

ndar

inti.

M

ontu

oti,

rem

ontu

oti i

r priž

iūr÷

ti ne

sud÷

tingą

ele

ktro

s in

stal

iaci

ją.

Atlik

ti ne

sud÷

tingu

s tin

kavi

mo,

daž

ymo,

pl

ytel

ių k

lojim

o, m

ūro

darb

us.

Vairu

oti a

utom

obilį.

Įv

ertin

ti ve

rslo

apl

inką

. N

audo

tis in

form

acin

÷mis

tech

nolo

gijo

mis

.

Sa

ugia

i dirb

ti.

Atlik

ti ne

sud÷

tingu

s m

elio

raci

jos

ir re

mon

to d

arbu

s.

Dirb

ti įv

airiu

s m

echa

nizu

otus

žem

÷s ū

kio

ir m

elio

raci

jos

darb

us.

Atlik

ti m

ašin

ų re

mon

to d

arbu

s ša

ltkal

višk

ais

suvi

rinim

o ir

kalv

iška

is

įrank

iais

. N

audo

tis te

chni

n÷s

prie

žiūr

os ir

rem

onto

di

rbtu

vių

įreng

imai

s, a

tlikt

i maš

inų

prie

žiūr

os d

arbu

s.

Eksp

loat

uoti

mel

iora

cine

s m

ašin

as.

Vairu

oti a

utom

obilį.

Įv

ertin

ti ve

rslo

apl

inką

. N

audo

tis in

form

acin

÷mis

tech

nolo

gijo

mis

.

Sa

ugia

i dirb

ti.

Skai

tyti

darb

o br

÷žin

ius.

M

atuo

ti ir

žym

÷ti m

edie

ną.

Paru

ošti

med

ieną

apd

irbim

ui.

Atlik

ti ra

nkin

io m

edie

nos

apdi

rbim

o op

erac

ijas.

D

irbti

mec

hani

zuot

o m

edie

nos

apdi

rbim

o st

akl÷

mis

ir įr

engi

mai

s.

Apsk

aiči

uoti

med

žiag

as.

Gam

inti

med

ieno

s ga

min

ius

paga

l pa

teik

tus

br÷ž

iniu

s.

Atlik

ti m

edin

ių p

avirš

ių a

pdai

lą.

Mon

tuot

i med

iniu

s st

atyb

iniu

s ga

min

ius,

ba

ldus

. Įre

ngti

pata

lpų

inte

rjerą

. St

atyt

i med

iniu

s pa

stat

us.

Mon

tuot

i med

ines

sto

go k

onst

rukc

ijas.

Ap

šilti

nti p

asta

tus.

Pa

šalin

ti m

edie

nos

gam

inių

def

ektu

s.

Sa

ugia

i dirb

ti.

Įver

tinti

vers

lo a

plin

ką.

Pasi

rinkt

i pal

anki

ausi

as v

ersl

o or

gani

zavi

mo

form

as.

Pare

ngti

indi

vidu

alio

s st

atyb

os įm

on÷s

ve

rslo

pla

ną ir

ste

igim

o do

kum

entu

s.

Atlik

ti rin

kos

tyrim

us.

Form

uoti

įmon

÷s įv

aizd

į ir v

iziją

. Pa

rinkt

i, pa

ruoš

ti ir

sand

÷liu

oti s

taty

bine

s m

edži

agas

ir ž

alia

vas.

Ti

krin

ti m

edži

agų

ir ko

nstru

kcijų

kok

ybę.

At

likti

pagr

indi

nius

sta

tybo

s da

rbus

. O

rgan

izuo

ti st

atyb

os d

arbu

s ir

tvar

kyti

tech

ninę

dok

umen

taci

ją.

Priž

iūr÷

ti vy

kdom

us d

arbu

s.

Sprę

sti s

taty

bos

darb

ų te

chno

logi

jos,

pa

stat

ų pr

i÷m

imo,

mui

tų ir

lice

ncijų

kl

ausi

mus

. N

audo

tis in

form

acin

÷mis

tech

nolo

gijo

mis

. Be

ndra

uti i

r ben

drad

arbi

auti.

Profesin÷ veikla, kuria

gali verstis

pažym÷jimo

savininkas

Past

atų

inži

nerin

ių s

iste

mų

rem

onta

s ir

prie

žiūr

a; v

ande

ns, š

ilum

os a

pska

itos

prie

tais

ų, n

esud

÷tin

gos

elek

tros

inst

alia

cijo

s m

onta

vim

as ir

prie

žiūr

a;

past

atų

prie

žiūr

a.

M

elio

raci

jos

įreng

inių

eks

ploa

taci

ja ir

re

mon

tas;

mel

iora

cijo

s įre

ngin

ių

mon

tavi

mas

; kel

ių ir

hid

rote

chni

nių

stat

inių

sta

tyba

bei

prie

žiūr

a.

M

edie

nos

apdi

rbim

as ra

nkin

iu ir

m

echa

nizu

otu

būdu

; med

ieno

s ga

min

ių

gam

inim

as; m

edie

nos

gam

inių

m

onta

vim

as; m

edin

ių p

asta

tų s

taty

ba;

med

inių

gam

inių

ir p

asta

tų re

mon

tas.

Vy

kdom

ų st

atyb

os d

arbų

prie

žiūr

a;

stat

ybin

ių m

edži

agų

tieki

mo

orga

niza

vim

as, s

and÷

liavi

mas

; med

žiag

ų ko

kyb÷

s tik

rinim

as; d

arbo

j÷go

s be

i m

echa

nizm

ų po

reik

io a

pska

ičia

vim

as;

tech

nin÷

s do

kum

enta

cijo

s tv

arky

mas

.

ANNEX 2

SS sektoriaus specialistų ir technikų rengimo studijų programos

Programa Suteikiama kvalifikacija Kvalifikacijos aprašas

Neuniversitetinių studijų programos (trukm÷ 3-3,5 metai)

Statyba Studijų sritis: Architektūra ir statyba

inžinierius; statybos inžinerijos profesinis bakalauras, inžinierius

Absolventai gal÷s projektuoti pastatų statybinę dalį, apskaičiuoti statybines konstrukcijas, rengti sąmatinę dokumentaciją, vadovauti pastatų statybai ir remontui, pritaikyti statybines medžiagas, inžinerinę įrangą, valdyti statybos įmon÷s padalinį, apibendrinti ir analizuoti įmon÷s padalinio veiklos rezultatus.

Statinių inžinerin÷s sistemos Studijų sritis: Architektūra ir statyba

statybos inžinerijos profesinis bakalauras, inžinierius

Absolventai gal÷s analizuoti inžinerinių sistemų būklę, vadovauti eksploatavimo ir remonto darbams, parengti įmon÷s (padalinio) ūkin÷s veiklos planus, vertinti turimus materialinius ir finansinius išteklius.

Hidrotechnika Studijų sritis: Architektūra ir statyba

aplinkos inžinerijos profesinis bakalauras, inžinierius

Absolventai gal÷s dirbti hidrotechnikos ar kaimo statybos srities konsultavimo, projektavimo bei statybos įmon÷se (projekto bei statybos vykdytojo lygmuo); statybų administravimo ir kontrol÷s įstaigose.

Kelių tiesimas Studijų sritis: Architektūra ir statyba

inžinierius Absolventai organizuos ir vykdys kelių tiesimo darbus, taikys atskirų darbo procesų ir kelio statinių įrengimo technologijas, užtikrins geodezinį kelių tiesimo darbų aptarnavimą, kontroliuos kaip realizuojami standartų ir techninių sąlygų reikalavimai, keliami kelių statybin÷ms medžiagoms, sudarys kelio statybai reikalingą projektinę bei sąmatinę - finansinę dokumentaciją.

Universitetinių studijų programos (trukm÷: bakalauras - 4-5 metai; magistras – 2 metai)

Architektūra Studijų sritis: Architektūra ir statyba

architektūros bakalauras, architektas; architektūros magistras

Absolventai gali dirbti mokslo ir mokymo įstaigose, savarankiškai projektuoti architektūros pastatus ir urbanistikos kompleksus.

Energetikos ir transporto statyba Studijų sritis: Architektūra ir statyba

statybos inžinerijos bakalauras

Absolventai gali dirbti energetikos bei transporto statybos organizacijose bei firmose, šių statinių projektavimo įmon÷se, energetikos bei transporto statinių priežiūros bei eksploatavimo žinybose, Ūkio ir Susisiekimo ministerijų tarnybose, miestų savivaldyb÷se;

Hidrotechnikos inžinerija Studijų sritis: Architektūra ir statyba

aplinkos inžinerijos bakalauras

Absolventai gali dirbti melioracijos, statybin÷se įmon÷se, Hidroprojektuose, aplinkos apsaugos, vandens kelių, energetikos tarnybų žinybose

Kelių ir geležinkelių inžinerija Studijų sritis: Architektūra ir statyba

statybos inžinerijos bakalauras

Absolventai gali tiesti (statyti) ir prižiūr÷ti susisiekimo sistemų tiesinius ir statinius: automobilių kelius ir jiems reikalingus statinius, geležinkelius, aerodromų takus, uostų statinius, dirbti statybos (tiesybos) ir projektavimo organizacijose.

Miestų inžinerija Studijų sritis: Architektūra ir statyba

statybos inžinerijos bakalauras

Absolventai gali dirbti įvairiose miesto ūkio statybos įmon÷se, miesto ūkio infrastruktūros priežiūros įmon÷se, kurių veikla yra susisiekimo sistemos objektų statyba, projektavimas bei priežiūra arba teritorijų tvarkymas, apželdinimas.

Miestų ir kelių inžinerija Studijų sritis: Architektūra ir statyba

statybos inžinerijos bakalauras

Absolventai gali tiesti (statyti) ir prižiūr÷ti susisiekimo sistemų tiesinius ir statinius: miestų gatves, automobilių kelius ir jiems reikalingus statinius, geležinkelius, aerodromų takus, uostų statinius, dirbti statybos (tiesybos), projektavimo, miestų ir rajonų savivaldybių organizacijose.

Pastatų inžinerin÷s sistemos Studijų sritis: Architektūra ir statyba

statybos inžinerijos bakalauras; statybos inžinerijos magistras, inžinierius

Absolventai gali dirbti restrukturizuojamose, rekonstruojamose ir naujos statybos pramon÷s įmon÷se, miestų savivaldybių ūkin÷se struktūrose, gyvenamųjų namų ūkin÷s priežiūros sistemose, vykdyti statybos priežiūrą, dirbti projektin÷se organizacijose, d÷styti aukštosiose mokyklose;

Statybos inžinerija Studijų sritis: Architektūra ir statyba

statybos inžinerijos bakalauras; statybos inžinerijos magistras

Absolventai gali dirbti mokslo ir mokymo įstaigose, statybos ir statybos pramon÷s įmon÷se, projektavimo, mokslinio tyrimo ir statybos valstyb÷s kontrol÷s įstaigose.

Statybos konstrukcijos ir technologija Studijų sritis: Architektūra ir statyba

statybos inžinerijos bakalauras

Absolventai gali dirbti statybos organizacijose bei firmose, statybos projektavimo įmon÷se, statybos priežiūros institucijose, miestų bei rajonų savivaldyb÷se.

Statybos medžiagos ir dirbiniai Studijų sritis: Gamyba ir perdirbimas

statybos inžinerijos bakalauras ; statybos inžinerijos magistras

Absolventai gali dirbti statybinių medžiagų gamybos bendrov÷se ir įmon÷se, statybinių medžiagų projektavimo organizacijose, statybinių medžiagų ir dirbinių kokyb÷s kontrol÷s ir jų gamybos priežiūros institucijose, statybos organizacijose

Statybos valdymas statybos inžinerijos Absolventai gali dirbti statybos įmon÷se ir bendrov÷se, medžiagų ir gaminių prekybos

71

Programa Suteikiama kvalifikacija Kvalifikacijos aprašas

Studijų sritis: Architektūra ir statyba

bakalauras; statybos inžinerijos magistras

įmon÷se, savivaldyb÷se

Pastatų energetika Studijų sritis: Inžinerija ir inžinerin÷s profesijos

energetikos bakalauras Absolventai gali dirbti pagrindiniais specialistais šilumą gaminančiose, šilumą ar dujas tiekiančiose įmon÷se, patalpų šildymo, v÷dinimo, oro kondicionavimo ir v÷sinimo sistemas įrengiančiose, prižiūrinčiose, projektuojančiose įmon÷se, šias sistemas naudojančiose gamyklose ir visuomeniniuose pastatuose.

Civilin÷ inžinerija Studijų sritis: Architektūra ir statyba

statybos inžinerijos magistras

Galimos 3 specializacijos.

Absolventai su specializacija „Keliai“ gali tiesti (statyti) ir prižiūr÷ti (remontuoti) susisiekimo sistemų tiesinius (statinius) ir įrenginius; dirbti tiesybos (statybos), projektavimo organizacijose, privačiose firmose; dirbti d÷stytojais; dirbti tiriamąjį darbą mokslo institutuose; dirbti kontrol÷s ar tyrimo darbą atestuotose arba akredituotose kelių laboratorijose.

Absolventai su specializacija „Miestų transporto sistemos“ gali dirbti aukštosiose mokyklose, mokslo tyrimo institucijose, projektavimo organizacijose, kolegijose, konsultacin÷se įmon÷se, miesto infrastruktūros valdymo institucijose ir aptarnaujančiose įmon÷se, miestų ir rajonų savivaldyb÷se; Absolventai su specializacija „Miestų inžinerin÷s informacin÷s sistemos“ gali dirbti aukštosiose mokyklose, mokslo tyrimo institucijose, projektavimo organizacijose, kolegijose, konsultacin÷se įmon÷se racionalios bei efektyvios miesto pl÷tros srityje, teritorijų planavimo projektus rengiančiose įmon÷se, miestų bei rajonų savivaldyb÷s administracijose.

Geotechnika Studijų sritis: Architektūra ir statyba

statybos inžinerijos magistras

Absolventai galidirbti statybos organizacijose bei firmose, statybos projektavimo įmon÷se, pastatų priežiūros bei eksploatavimo institucijose.

Interjero architektūra Studijų sritis: Architektūra ir statyba

architektūros magistras, architektas

Absolventai gali dirbti individualų kūrybinį darbą, steigti architektūros biurus

Miestų ir krašto planavimas Studijų sritis: Verslas ir administravimas

viešojo administravimo magistras

Absolventai gali dirbti projektuotojo darbą, rengti bendruosius ir savivaldyb÷s lygmens detaliuosius teritorijų planavimo dokumentus, siekti būti šių projektų ir jų dalių vadovais

Pastatų architektūra Studijų sritis: Architektūra ir statyba

architektūros magistras, architektas

Absolventai gali dirbti individualų kūrybinį darbą, steigti architektūros biurus.

Statinių konstrukcijos Studijų sritis: Architektūra ir statyba

statybos inžinerijos magistras

Absolventai gali dirbti pastatų ir specialiųjų statinių statybos, projektavimo ir tyrimo organizacijose, miestų savivaldyb÷se, statybos priežiūros tarnybose.

Statyba Studijų sritis: Architektūra ir statyba

statybos inžinerijos magistras, inžinierius

Absolventai gali dirbti specialistais ir vadovais projektavimo, statybos ir statybos pramon÷s įmon÷se, statybos priežiūros bei valstybin÷s statybos kontrol÷s įstaigose, bankuose, draudimo įstaigose, aukštosiose mokyklose ir kt.