Specialist contractors face skills drought

Four out of 10 specialist building contractors can't bid for work due to a lack of skilled labour, according to new research. Despite rising workload demands, they claim late payment prevents them from investing in training in order to tackle the problem.

The findings are from the latest state of trade survey by the National Specialist Contractors Council (NSCC), which described the trend as "worrying". It found the number of firms hindered by skill shortages has doubled since the first quarter of the year.

Suzannah Nichol, NSCC chief executive, said: "Lengthy payment terms and skill shortages are linked. Specialist contractors find it extremely difficult to invest in the training of their workforce that is necessary to fulfil the needs of the industry when they are constantly battling to get the money they are owed."

The average wait for payment is said to remain consistently between 30 and 60 days.

Nichols said the effects of the shortage will be felt more acutely as, for the first time since 2004, the NSCC survey shows more than 50% of respondents anticipate an increase in work availability. In the second quarter of this year, there was also an increase in the number of firms reporting an increase in orders - 37% compared with 27% in the previous quarter and 21% in the second quarter of last year.

The findings of the survey carried out by the NSCC - which represents 28 specialist trade bodies - match those of both the Construction Confederation and the Federation of Master Builders. A recent FMB survey reported that more than half of all respondents were experiencing skill shortages.

(Contract Journal, 15 August 2007, p 3)