Private housing sector driving construction revival
Published by Max Salsbury for 24dash.com in Housing and also in Development
The private housing sector is driving the construction industry's revival, according to the latest RICS market survey.
However, 2014's first quarter report warns that a skills shortage is threatening the pace of recovery.
According to RICS, the speed at which confidence is returning to the market is the fastest rate of growth in workloads since the construction market survey began in 1994.
The upturn is being driven by the private sector and, in particular, the commercial housing sector.
And the effects are expected to be felt across the whole of the UK, rather than exclusively reserved to the London and South East hotspots.
But the ‘feel good’ factor is being tempered by a reported skills shortage across many trades and in most parts of the country.
Furthermore, 41% of respondents told RICS that they believe there are insufficient numbers of quantity surveyors currently available to meet rising supply demands for skilled workers.
Despite this, the continuing recovery in output in the sector will see further job gains with respondents forecasting a 3% year on year growth in the employment footprint – an additional 62,000 new employees being recruited into the construction industry.
Alan Muse, RICS director of built environment, said: “Clearly what we are seeing as the recovery takes shape, is that the impact of skills shortages in parts of the country where companies failed to invest in attracting new talent or in the training of existing employees at the height of the economic downturn.
"Now that the industry is experiencing an upturn in workload that is broadening out across the whole of the UK, it must ensure it has the capability to capitalise on these opportunities.”