U.K. Construction in Crisis
Published By : 09 Feb 2015 | Published By : QYRESEARCH
2019 could be the year by which thousands of U.K. construction projects could possibly halt. There has been a growing crisis in the construction industry, according to the Royal Institute of Chartered Surveyors.
According to the organization, the shortage of skills is getting even worse and nearly 27,000 construction projects could end up being scrapped because of it. The projects could face termination within the next five years.
Members of the organization brought forth the facts that nearly four-fifths of them had problems due to a gross lack of candidates who were qualified enough. The lack of skilled labor implies that the firms that are surveyed need to turn away paid work, which puts construction projects at risk.
The Royal Institute of Chartered Surveyors also revealed that two in five companies, or roughly 43 per cent companies, are actually turning down business prospects solely due to the lack of staff. They are currently refusing around 5 contracts per year.
Another one per ten surveyors, or 11 per cent, said that they hold expectations to turn down work within the next four years for reasons similar to the above.
This means that at least half of the 10,000 businesses in the construction sector will be turning down roughly 27,000 projects.
The work in the construction sector is reliant heavily on the performance of the economy, which is expected to do fine over the next five years. The Institute of Fiscal Studies estimated an annual GDP growth of over 2.5 per cent beyond the next parliament. The economy is currently receiving an unexpected boost due to the falling oil prices around the world.