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London Skills Forecasting Unit

London TEC Construction Sector Study

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Page 1: London TEC Construction Sector Study

London Skills Forecasting Unit

Page 2: London TEC Construction Sector Study

CONTENTS

1. Introduction

2. Adapting skill forecasting to theindustry’s needs

3. Skills demand and training provision

4. Conclusions

5. Recommendations

BUILDING SKILLSA Study of

Construction Skills for the London Skills Forecasting Unit

By MACEIn conjunction with EDAW

m a c e

Page 3: London TEC Construction Sector Study

1. INTRODUCTIONBACKGROUND AND OBJECTIVES

The Employer Surveys conducted by London TEC Council in 1996 and 1997 identified that theConstruction sector had the highest level of skillgaps in the capital.i Demand was high and therewas a large number of major projects planned in

the capital in time for the new Millennium.

The construction sector has a more diverserange of technology, skills and qualifications thanmany other industries. The industry is undergoingimportant and fundamental changes in:

The introduction of on-site IT, and the increasinguse of pre-fabricated modular construction

The demand from employers for site proven skills, but the reluctance of employersto provide work experience opportunities to trainees

Subcontractors are becoming very specialised in their activity, but requiring a broader range of skills

Less structured job progression arising from a very large number of qualifications, resultingin a complex system of accredited courses

In an attempt to address these challenges andto encourage a co-ordinated response, theLondon TECs initiated a London-wide SectorStudy in the summer of 1998.

The aim of the Study was to provide an investigative and analytical base from which to understand the:

Skill sets with which the construction labour force must be equipped in order to maintain sustainable employment

Demand and supply for these skill sets over a five year period to 2002

Nature of training provision within Greater London

The output of the Study would be:

a model to predict demand and supply

a matrix of priority skill sets

to identify gaps in training provision

The project was financed by the London TECs through London TEC Council, and byWest London TEC who had undertaken someexploratory investigation within the industry and of London training providers. MACE Ltdundertook the Study in conjunction with EDAW.The Steering group for the project comprisedthe London TECs, CITB, and industry representatives.

Page 4: London TEC Construction Sector Study

Companies previously employing large direct labour forces have moved

towards the use of subcontractors.

Industry trends

The construction industry has changed significantly over the last ten years. Changes in employment legislation and the need to improve competitiveness have been key drivers.

Subcontracting is tending towards specialisation in order to compete for business more effectively. The role of the main contractor is becoming more andmore that of a management contractor - managing specialist subcontractors.Fewer construction companies offer in-house apprentice training schemes. Smallcompanies do not invest in training. The quality of new entrants to constructiontraining is declining. Those who left the industry during the last recession in themid-nineties are reluctant to return. The image of the industry is unattractivebecause of the short-term nature of much work and the poor working practicesof some operators.

2. ADAPTING SKILL FORECASTING TO THE INDUSTRY’S NEEDS

Page 5: London TEC Construction Sector Study

Clients are becoming more demanding. They want lower costs, more certainty, quickerconstruction and zero defects. The supply sideof the industry has to be increasingly innovativein order to meet these requirements. Thisinevitably impacts on the ‘skills’ required todeliver projects.

Attempts to rally the industry and plot the way forward include: the Latham Report ii,Setting New Standardsiii, the Levene Scrutiny iv,Construction Round Table’s ‘Agenda forChange’v, the Construction Clients’ Forum’s‘Constructing Improvement’vi and most recentlythe Egan Report.vii

The Egan Report of 1998 summarises the challenge to the industry as

Modern building techniques require fewer specialist craftsmen but more workers able toundertake a range of functions based aroundprocesses rather than trade skills. This is beingaddressed by overseas companies but the UKis in danger of being left behind.” Egan Report p.29

Egan recommends that the industry moves to production based around the processesrequired to meet client requirements, ratherthan traditional trades. From the employer’sperspective, a process-based approach allowsmore accurate business planning and biddingfor projects. Bids and estimates can reflectmore exactly the ‘work items’ to be undertaken.From the employee’s perspective, a process-based approach to construction will provide aclearer picture of responsibilities employees orsubcontractors are expected to undertake, andhow long each is expected to take.

This report has responded to the requirementsof the Egan report by providing a new skillsdemand model that forecasts future constructionactivity by work item.

Page 6: London TEC Construction Sector Study

Forecasts of construction spending

The upper part of Table 1 shows the mainannual outputs from the traditional forecasts ofconstruction spending in Great Britain andLondon. The traditional model of constructionforecasts is based on client spending, which isgathered by DETR under the following broadcategories:

Public Housing - housing built by public bodies

Private Housing - housing built by private house builders

Infrastructure - transport and utilities projects

Public non-Housing - schools, hospitals and other buildings erected by public bodies

Private non-Housing - public, or non-commercial, buildings erected for private companies

Private Commercial - offices, shops, factories, warehousing

Private Housing Repair and Maintenance

Public Housing Repair and Maintenance

Private Non-Housing Repair and Maintenance

These categories are not consistent in natureand represent more the availability of trends infinancial spending, rather than a useful seg-mentation of client need by construction type.For instance multi-storey dwellings are builtboth in the private and public housing sectors.The model does not reflect defined types ofbuilding clearly, nor the type of skilled labourthat is needed to build them.

The traditional model shows that total construction output for Great Britain is forecastto grow a little over 1% annually. A decline in the Private Industrial market from 1999 and the Private Commercial market from 2001 will be offset mainly by growth in Repair andMaintenance. Infrastructure and PrivateCommercial activity takes up a much largershare of the London market than in GreatBritain as a whole. London will experience asimilar decline in the Private Commercial market from 2001, but the growth in the Repairand Maintenance market is not strong enoughto offset this. Total London output will fall by1.8% in 2001 and 1.2% in 2002. Nevertheless,a £7.5 billion annual output in London in 2001and 2002 is expected to provide significantemployment opportunities.

The construction skills demand model

By comparison the new construction skillsdemand model produced for the London TECs by MACE Ltd, with support from EDAW, forecasts skills requirement by work item (aparticular task or skill). The model quantifiesthese ‘work items’ on a dynamic with the anticipated construction spending, which isdrawn from the traditional forecasting paradigm.

The new skills demand model shows thatdemand for operatives in London will rise until2000 by a range of 1-12% and then decline to2002 by between 7 and 9%. The variability inemployment is stronger than the variability inoutput identified by the traditional model.

The findings of the new model, in terms of gross demand for workers on the most significant work items, are summarised in the lower part of Table 1, and cover those categories identified under the traditional model as private commercial, and public and private non-housing.

Page 7: London TEC Construction Sector Study

TABLE 1. CONSTRUCTION OUTPUT AND NEW BUILD WORKFORCE DEMAND

FOR LONDON AND GB 1996-2002

1. TRADITIONAL MODEL (CFR)Construction Output £ million 1990 prices

1996 1997 1998 1999 2000 2001 2002

GB

Public Housing 1,403 1,190 1,130 1,130 1,185 1,305 1,410

Private Housing 5,367 6,211 6,335 6,020 6,320 6,575 6,705

Infrastructure 6,282 5,854 5,735 5,735 6,020 6,075 6,240

Public non-residential 4,793 3,963 3,885 3,925 3,965 4,085 4,205

Private Industrial 3,145 3,521 3,660 3,480 3,200 3,135 3,295

Private Commercial 7,428 8,639 9,675 9,965 9,965 9,565 9,280

Housing R&M 12,005 12,191 12,710 13,145 13,290 13,745 14,155

Public non-residential R&M 4,191 3,928 3,850 3,890 3,970 4,050 4,170

Private non-residential R&M 5,625 5,885 6,120 6,365 6,365 6,300 6,175

Total 50,239 51,382 53,100 53,655 54,280 54,835 55,635

Annual change - 2.3% 3.3% 1.0% 1.2% 1.0% 1.5%

London

Public Housing 215 170 160 170 180 200 215

Private Housing 325 545 595 595 610 630 640

Infrastructure 1,305 1,125 1,065 990 930 880 925

Public non-residential 790 615 595 600 605 625 650

Private Industrial 165 125 145 145 140 140 145

Private Commercial 1,715 2,055 2,385 2,470 2,500 2,260 2,020

Housing R&M 1,231 1,264 1,303 1,345 1,358 1,401 1,425

Public non-residential R&M 422 419 432 445 450 465 473

Private non-residential R&M 805 862 888 917 926 956 972

Total 6,973 7,180 7,568 7,677 7,699 7,557 7,465

Annual change - 3.0% 5.4% 1.4% 0.3% -1.8% -1.2%

2. SKILLS DEMAND MODEL (MACE)Demand for construction workers in London

1996 1997 1998 1999 2000 2001 2002

Total construction workers London new build 25,469 27,263 30,625 30,931 31,881 28,929 26,865

Annual change - 7.0% 12.3% 1.0% 3.1% -9.3% -7.1%

Demand for workers - main work items

Service reference specification 1,370 1,450 1,640 1,640 1,670 1,530 1,410

Linings/sheathing/dry partitioning 1,320 1,390 1,560 1,600 1,650 1,500 1,370

Mechanical heating/cooling/refrigeration 780 800 920 930 950 870 800

Surface finishes 670 720 800 820 850 770 710

Electrical supply/power lighting systems 660 720 800 800 820 750 700

Transport systems 650 700 790 780 780 720 680

Cladding/covering 580 620 700 700 740 660 600

Source: CFR, MACE 1998

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Significant work categories identified by the skills demand model

A survey of broad-based construction firmsand specialised companies was essential tomap work categories, work items and skillrequirements by construction type. Survey participants also identified likely changes inskills. Table 2 outlines the most significant workcategories, in terms of labour required, anddetails briefly the main work items of each.

Scope of the skills demand model

The model covers 202 work items incorporated in 22 types of building.

The focus of the model is on ‘new-build’ workon which spending in London is estimated tohave been in excess of £4.5 billion in 1996(1990 prices) accounting for more than 16% of total new-build construction work in GreatBritain, and 40% of construction spending inGreater London.

The most significant categories of new buildactivity in London include private commercial,infrastructure, and public non-housing. Not surprisingly the most prominent segment is private commercial ‘offices’ which representsalmost one quarter of the entire London new-build market. Important results were alsoobtained for other segments of the Londonconstruction market, notably Private Housing,Repair and Maintenance. Infrastructure projectscould not be fully included because of lack oftime and a dependency on responses from afew major clients.

TABLE 2. MOST SIGNIFICANT WORK ITEMS

Work Category

Services

Linings/sheathings/partitioning

Mechanical heating/cooling systems

Surface finishes

Electrical supply/power/ lighting systems

Transport systems

Cladding/covering

Communications/security control systems

In situ concrete/precast concrete

Building fabric

Main work items

Air ductlinesThermal insulationConduit and cable trunkingHV/LV cables and wiring

Demountable partitionsPartitions/ inner walls/ liningsSuspended ceilingsRaised access flooring

Gas/oil fired boilersPrimary heat distributionMedium temperature hot water heatingPrimary/secondary cooling distribution

Edge fixed carpetingPainting/clear finishes

HV supply/distribution/public utility supplyLV distributionGeneral lighting

LiftsTravelling cradlesMechanical document conveying

Curtain walling

TelecommunicationsMonitoring

Formwork in situ concreteReinforcement in situ concrete

Purpose made joineryPurpose made metalwork

Page 9: London TEC Construction Sector Study

Repair and Maintenance

Whereas future spending is available for ‘new build’ activity, Repair and Maintenanceinformation is only available for previous years,and past trends have to be projected forwardto suggest future activity. It also reflects spending by contractors registered in London,many of whose clients may be based outsidethe region. Accepting these limitations, Repairand Maintenance activity is expected to remainmore stable than new build as, in a recession,many clients will attempt to reduce their capitalspend and ‘make do and mend’. It is, however,not possible to produce a detailed segmentationof the London market.

If gaps, such as Repair and Maintenance and Infrastructure, are filled, the skills demandmodel will allow construction companies to:

Have a better picture of the skills demands of future activities, at national and regional level, which should help improve their recruitment and training strategies

Map the volume and range of skills required for individual projects, to calculate more exactly the labour costs for tendering and project management implications

Manage local sub-contractors more effectively by assessing skill requirements for each contract let.

How the skills demand model operates

The model comprises the following elements:

A new segmentation of construction activity [A] was created based on client need and construction type.

Spending forecasts [B] were redistributed across the activity segments. Construction demand by segment was calculated.

A survey of construction firms [C] provided data on the skill requirements by ‘work item’ for target segments. The skill requirements were categorised and quantified using industry experience. Spending by segment was then restated as demand by skill.

Overall demand for London was then aggregated for [D] across construction types.

A survey of training providers [E] through CITB, mapped the degree to which training for the skills identified in the model was beingprovided in London and the surrounding area. Gaps in provision were identified.

A survey of employers [F] enabled a qualitative interpretation of construction workforce figures from four industry and governmental sources [G]. Skills supply was calculated.

1. Construction demand by segment

A. Construction activity matrix

B. Economic forecasts

E. Survey of training provision

3. London skills demand

4. Gaps & opportunities

5. Skills supply

C. Client survey

F. Employer survey

G. Workforce data

2. Skills demand by work item by target segment

D. Aggregation across

construction type

Fig.1 The Structure of the Skills Demand Model

Page 10: London TEC Construction Sector Study

However, almost all the contractors surveyedfor this report, who were working in London,reported that they drew their labour from thelocal labour pool. Where contractors did drawlabour from outside London this was becauserates of pay were higher in the capital, or thenecessary skills could not be found locally. This would suggest that more could be madeof local job opportunities if trainees were provided with a more competitive set of skills.

Work categories in greatest demand

Table 3 indicates those work categories forwhich the Model predicts a net increase indemand until 2000, but with a downturn indemand in 2001 and 2002. In addition to the new jobs identified by the model, otheremployment opportunities would be created toreplace those leaving the industry and thosere-skilling. Perceived gaps in the skills of thecurrent labour force and skill changes forecastby employers are noted where significant.

There would appear to be an overall lack of training provision in the work categories of Structural Steel, and Cladding. In several categories the model identifies the need fortraining provision to take into account changesin the industry. Current changes include theuse of environmentally friendly materials, moremulti/flexible-skilling, IT skills and the need for increased awareness of and compliancewith Health and Safety regulations. Many of these areas are the subject of shortnon-accredited training.

3. SKILLS DEMAND AND TRAINING PROVISION

LABOUR MARKET OVERVIEWThe labour market for construction activity is characterised by a notable degree of mobility, and it is assumed that companies working in London will employ labour drawn from well outside the city.To accommodate these issues the Association ofColleges (London)viii and the London TEC studieshave also drawn information from training provisionin the broader South-East region.

Page 11: London TEC Construction Sector Study

TABLE 3. WORK CATEGORIES IN GREATEST DEMAND TO 2002

Work Category

Linings/sheathings/partitioning

Surface finishes

Furniture/ equipment installation

In situ/precast concrete

Structural steel

Cladding/covering

Mechanical heating/ cooling systems

Services

Skills problems identified by study

growing complexity of interface with other building components e.g. mechanical and electrical services

standardisation of wall components will lead to deskilling

none

some deskilling as equipment becomes more standardised

greater knowledge of proprietary formwork systems and optimum bay layout required

greater understanding required of interface with other building components

need to understand computerised detailing

manufacturers/installers tend to train ‘in-house’

installation skills tend to be product specific

none

increased use of prefabricated modules is leading to deskilling e.g. accommodation pods, plant units

very broad category with many ‘high task focus’ skill requirements

Page 12: London TEC Construction Sector Study
Page 13: London TEC Construction Sector Study

Other key areas for skills development

In addition to the gaps noted above, the Studyindicates that training provision in the followingareas, by colleges, TECs and NTOs, needs toadapt to changes in the industry:

TABLE 4. OTHER KEY AREAS FOR SKILLS DEVELOPMENT

Work Category

Demolition

Groundwork (piling/landfill)

Masonry, including brick and stonework

Electrical supply/power lighting

Waterproofing

Building fabric

Skills problems identified by study

need for greater knowledge of materials and forms of construction including temporary works

need for improved Health and Safety training

need to categorise waste materials for recycling

increased use of plant and IT is leading to multi-skilling

more all-round training required especially at interface with other work items

need for improved Health and Safety training

more all-round training required especially at interface with other building components

wider familiarisation with fixings, sealants and adhesives required

standardisation of components is leading to some deskilling

Modular construction

Modular construction has been applied successfully in the construction of standardfacilities, such as petrol stations, hotels andquick service restaurants. It is only a matter oftime, however, before this innovation becomesmore widespread. Currently demand for modules exceeds supply, and there are nosuppliers based in the London area. Likely areasof growth include facilities where there is furtherscope for repeat/standardised construction,such as schools, offices and superstores.

This form of construction can lead to deskilling. Workers are expected to perform a wider range of less specialist tasks, as the need for bespoke craft work is removedfrom the process. If modular firms started tobecome established in the South-East, thenthere may be opportunities for training coursesin both manufacture and use of such materials.

Page 14: London TEC Construction Sector Study

BUILDING CRAFTS

Current training provision

There are 35 further education colleges inLondon and the surrounding area offering construction-related training. In 1997/8 over24,000 people attended construction-relatedcollege courses. London TECs funded construction training for some 2,200 people, of whom 1,000 were trained by major construction companies, 200 were trained by further education colleges (also included intheir provision figures), and 100 were trained by CITB.

CITB data indicates the following numbers of CITB sponsored trainees in London and the surrounding area:ix

There were 6,916 trainees registered on the Construction Skills Certification Scheme (CSCS), between January and October 1998; and

There were 2,529 operatives registered on various CITB NVQ courses at Levels 2 and 3,between October 1997 and October 1998.

The Construction Skills Certification schemeprovides a means of grouping appropriateNVQs into career progression towards one of the main construction trades. This reportsupports the broad approach adopted by this scheme and believes further take-up byemployers should be encouraged.

2000

1800

1600

1400

1200

1000

800

600

400

200

0

Fig 2. Construction Training in London. Numbers on craft-related NVQs, City and Guilds and other qualifications funded by Further Education and TECsSource: London TEC Council, FEFC (London)

London TECs and CollegesTrainees in Construction 1997/8

BUILDING SERVICES

TECHNICAL TRAINEES

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Car

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Wo

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Occ

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Pai

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& R

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Page 15: London TEC Construction Sector Study

Figure 2 gives an approximate breakdown ofthe NVQs relating to traditional constructioncraft trades. Building Crafts covers trades usedin erecting buildings, Building Services coverstrades for utilities installation, and TechnicalTrainees covers general, lower level certificatesacross broad trade areas. It is not intended asa comprehensive picture of all trades for whichtraining was offered in London. It sets out thebroad volumes of training in the main constructioncrafts, and does not include a large number ofspecialist courses with only a few students in1997/8.x The figure for Electricians excludes4,159 people who took City and Guilds coursesin 1997/8, as including them would reduce thesize of the graph and make comparison withother trades difficult. City and Guilds qualificationshave been included for other trades.

Local labour initiatives

The interface between training supply andemployer demand in London has increasinglybeen through local partnerships. These partnerships allow trainers to familiarise themselves with local labour demand, andemployers to gain more confidence in the quality of trainees in the local market.

In East London The Partnership involvesCanary Wharf Management as a key playeralong with LETEC, the local EmploymentService offices, and local Boroughs. They areseeking to improve employability of local labourin Newham and Tower Hamlets with tworecruitment centres and a Skills Register.

In West London West London ConstructionNetwork is being led by the ConstructionIndustry Research and Information Association(CIRIA), West London Chamber of Commerceand WLTEC. It is concentrating activities onimproving the competitiveness of local sub-contractors by encouraging the sharing of bestpractice and providing business support services.

Other similar schemes include the King’s CrossPartnership and the Wimpey Edmonton ParkInitiative in Central and North London, as wellas a construction ‘one stop’ shop set up byNWLTEC and the College of North West London.

Greenwich Local Labour and Business is acompany set up by Greenwich Council in 1996,with the aim of securing jobs for local peopleon local construction projects, and to supportthe local economy.xi Residents can receive guidance, financial assistance, registration with CSCS, and training including ModernApprenticeships. Local businesses can obtain advice on tendering, introductions todevelopers, and other support services.

In a similar private sector initiative BAA hasestablished the Airport Construction TrainingAlliance. Founders are BAA, AMEC, Laing Civil Engineering, O’Rourke, and Crown House Engineering. Other members include: Bovis, MACE and Warings. BAA consulted itspartners to define the gaps in constructionskills, which should be addressed as a priority.Particular problem areas identified included:civil engineering, electricians, and scaffolding. They also established that there was a need forgeneral operative skills to be supplemented byspecialist skills, tailored to the individuals’ needs.In response to this requirement, BAA decidedto develop a ‘competency passport’. Informationon the skills needs and training courses attended is being collected and managed usingthe passport and a skills database. To ensurethat trained workers are most effectivelyutilised, a full time job placement co-ordinatoris employed. A Board of Training Managementhas been established to monitor quality.

These partnerships are doing useful work inbringing employers and suppliers of trainingtogether to meet identified needs. Participationin such partnerships should be widened toencourage more employers to express theirskills requirements, and relationships should be strengthened so that employers can havemore influence in local training programmes.

PASSEDELECTRICAL SAFETY

Page 16: London TEC Construction Sector Study

Industry needs

There is a greater requirement for operatives to be multi-skilled to meet the requirements of project-based work areas, but some areas are becoming more specialised (eg. precast concrete and demolition)

The new work areas do not relate directly to traditional ‘trade skills’

Operatives often need modules of competence drawn from several occupational/qualification areas, rather than one narrow trade qualification

Health and Safety awareness, risk assessment, and compliance with those regulations across all training areas is increasing

Use of IT skills and understanding of computerised detailing across several work areas

Revised qualifications and a modular framework of training certification are required to accommodate these changes

Strengthened interface with training providers.

Training providers

Are supplying most trainees in traditional trade areas which relate to the qualification framework

These trainees may find it increasingly hard to enter jobs in London that require multi-skilling across broad work areas

There are some work areas in demand for which no training provision is currently available in the London area eg. Cladding and Structural Steel

The issue that trainees are regarded as not ‘work ready’ is no longer an issue only of skills speed on site, but of irrelevant skills

If training was offered in the ‘work areas’ in demand there are substantial job opportunities for local people

The qualification framework does not provide a useful benchmark for skills in demand.

Skills demand model

The traditional industry forecasting model, based on spend, does not provide an accurate measure of skills demand. A new model is needed to capture the pace of change going on in the construction industry

The new skills demand model produced by MACE for London TEC Council has the potential to provide the industry with a new national model for estimating skills demand by work areas, in line with recent recommendations in the Egan report

The new skills demand model provides a robust assessment for the new build and refurbishment areas of the industry

More work is needed to extend the model to Repair and Maintenance, and Infrastructure.

The data shows evidence that a gap has opened between the needs of industry and the

relevance of available training provision. The conclusions that can be drawn regarding

the industry’s needs are:

4. CONCLUSIONS

High visibility clothingmust be worn in

this areaWear gloves

Protective footwearmust be worn

in this area

Wearhard hats

Page 17: London TEC Construction Sector Study

Qualifications and training

The qualifications framework must continue to keep pace with changes in the working pattern of the industry, some areas of which are becoming more specialised, while others require a broader base multi-skilled approach to work

Training continues to be based on traditional qualifications and a gap has opened betweenindustry’s need and the training supplied

In practice employers require people with competencies in several work areas and the ability to build up modules from several different qualifications

Trainees will find it hard to get jobs from existing training

Were training to follow industry’s needs there would be good job opportunities, and the survey showed that employers do recruit from the London labour pool

Trainees need both work-based and off-site training provision to meet employers’ demands

There is a significant need for the industry to play a major role to ensure that qualifications and training supply meet their needs.

Page 18: London TEC Construction Sector Study

CITB and DETR should consider the resultsof the skills demand model, and whether itcould be applied in other regions

The adoption of this model would ensure thatconstruction forecasts directly express employerdemand for skills. They should considerextending the model to Infrastructure andRepair and Maintenance. Once complete themodel could be used by employers to enhancejob specification and project management.

ACTION CITB and DETR

Construction NTOs should continue to work with the industry to determine a corecurriculum for construction training, whichmeets industry’s needs

The TEC and FE reports demonstrate that traditional crafts dominate construction training (e.g. house building). Some areas ofconstruction work are deskilling (e.g. lining and partitioning) resulting in a demand for a broader knowledge of less specialised tasks.Some areas of construction work are becomingmore specialised resulting in a requirement for people with particular skill sets (e.g. precastconcrete and demolition). Modules of trainingwill be more important than complete qualifications for some work areas.

ACTION Construction NTOsxii and employers

DfEE should allow more flexibility in TEC and FE funding

To meet industry needs DfEE should enableTECs and colleges to train on a modular basisuntil a new qualification structure can befinalised. DfEE should help gear the SkillsDevelopment Fund to enable gaps in provisionto be met.

ACTION DfEE

Employers should keep records of the skills of their workforce and those of theirsubcontractors.

The study found that companies were oftennot able to specify the skills required for their work programme, and the skills of theiremployees. If companies held better records of skills, it would help in business planning, purchasing, specification of contracts, as suggested in the Egan report. It would alsoensure that training provision was better able to meet their requirements.

Greater support is also needed from employersfor the Construction Skills Certification Scheme,which will help to establish a broad base ofskills information for the industry.

ACTION Construction NTOs and employers

5. RECOMMENDATIONS

Page 19: London TEC Construction Sector Study

Employers should work with NTOs, TECs and colleges to promote the industry,encourage a better quality of entrant, andimprove investment in training facilities

There is a widely shared concern that employersneed to have access to trainees with high levelskills and site readiness, and that the standardof entrants into training needs to improve.Employers should work with training institutionsto encourage potential trainees.

Construction training requires a higher level of investment than many other disciplines. The need for plant, equipment and workshopspace places a financial strain on existing training providers and raises a serious barrier toentry for new providers. Employers, colleges,NTOs and TECs develop stronger partnershipsto find alternative and complementary funding.The scope for more Modern Apprenticeshipsand National Traineeships should be explored.These actions could be taken by local construction partnerships.

ACTION Construction companies, TNC, NTOs, and FEFC

Actions by agencies in other regions

Other regions should use the model to providea similar assessment for their region.

ACTION Regional Development Agencies

Strengthening local labour initiatives in London

Successful partnerships between employersand training institutions provide a way of influencing recruitment procedures throughsupply chain relations. Such partnerships canprovide employers with the assurance of thequality of potential recruits. The partnershipsshould seek wider employer participation andstrengthen the links between employers andtraining provision. Exchange of information on skills demand at local level through these partnerships will help to inform training institutions, and the London TECs skillsdemand model.

ACTION London TECs, Colleges, Employers

Modular Construction

The report has noted that increasing demandfor modular construction may lead to furtherneed for recruitment in skills for manufacture,and on-site assembly. TECs and colleges inLondon should consider further training in thiswork area.

ACTION London TECs, and Colleges.

Page 20: London TEC Construction Sector Study

MARKET INFORMATION

Jim Turner, Construction Forecasting and Research Ltd

The late Henry Neuburger, DETR

The Housing Corporation of London

London Research Centre

Association of Local Government

London Housing Federation

CLIENT AND CONTRACTORINFORMATION

There are many clients and contractorswho have provided invaluable informationon major projects, work items and skillssets. Their commercial confidence isrespected by not publishing their names.

WORKFORCE INFORMATION

Andy Hulcoop, DETR

Simon Lunn, DETR

Ian Bushnell, Office of National Statistics

Linda Gilardoni, CITB

The main and specialist contractors also helped in this section.

TRAINING PROVIDER INFORMATION

Alf Barnard, Camden Training Centre

Joe Pojunas and Martin Yallop, BAA

Margaret Miland, CITB

A wide range of training organisationsalso provided useful information for this section.

PROJECT STEERING GROUP FOR LONDON TECS

Simon Ellis, LTC Project Manager

Paula Raper, WLTEC, Assistant ProjectManager

Chris Buss, WLTEC

Roger Morfey, LETEC

Charles Jarvis, NWLTEC (now with Manchester TEC)

Phil Page, CITB

Mark Lunn, Laing Training Services

FURTHER EDUCATION ADVICE AND INFORMATION

Geoff Melling, AoC London

Frank Horan, College of NW London

Kate Anderson, FEFC London

Elaine McWilliam, FEFC London

Chris Wright, FEFC London

EDAW TEAM

David Fell, Econometric Consultant

Patrick Gulliver, Consultant

MACE TEAM

Mike Townsend, Project Manager

Hamish Calder, Programme Manager

Tom Sidaway, Data Manager

Krishna Topan, Data Manager

Chris Pilsworth, Analyst/Programmer

ACKNOWLEDGEMENTS

Many individuals and organisations have provided input on thisproject. We are very grateful for the major contributions from thefollowing parties, who gave freely of their time and information:

Page 21: London TEC Construction Sector Study

Notes

London TEC Council (1997), London Employer Survey

1996-7, p.59. London TEC Council (1998), London

Employer Survey 1997-8, p.44.

Latham, M. (1994), Constructing the Team:

Final Report of the Government/Industry Review of

Procurement and Contractual Arrangements in the UK

Construction Industry, London: HMSO.

White Paper Cm 2840 (1995), Setting New Standards:

A Strategy for Government Procurement, London: HMSO.

Efficiency Unit Cabinet Office (1995), Construction

Procurement by Government: An Efficiency Unit Scrutiny,

London: HMSO.

Construction Round Table (1997), The Agenda for Change.

Construction Clients’ Forum (1998), Constructing

Improvement.

Construction Task Force (1998), Rethinking Construction:

The Report of the Construction Task Force, London: DETR.

Horan, F.X. (1998), Construction Review, Association of

Colleges (London).

Information provided by Linda Gilardoni, CITB.

Such as Glaziers, Tilers, Mastic Asphalt, Building

Maintenance, and Environmental Management.

Greenwich Local Labour and Business (1998),

Creating Construction Jobs and Business Opportunities

for the New Millennium.

Construction NTOs include the Construction Industry

Training Board, and the Electrical Installation Engineering

Industry Training Organisation, as well as allied organisations

such as Building Engineering Services Training Ltd, and

Joint Training Ltd.

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