1.6 Trailblazers in construction: how do businesses perceive it?
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1) The document discusses a skills gap in the UK construction industry due to an aging workforce and lack of young people entering the field. It outlines new higher degree apprenticeship programs called "Trailblazers" aimed at addressing this skills shortage. 2) A survey of construction professionals found that 67% said their companies were experiencing skills shortages. However, there was low awareness of the new Trailblazer apprenticeship programs among respondents. 3) The research concludes the apprenticeship programs could help the skills shortage if awareness is increased. However, businesses remain uncertain about commitments and how the programs may impact training costs. Filling apprenticeship places will be a key challenge.
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1.6 Trailblazers in construction: how do businesses perceive it?
- 1. Trailblazers in construction: how do businesses perceive it? Michael Hill and Dr Ramesh Marasini Built Environment School of Art, Design and Fashion
- 2. Outline • Skills gap in Engineering and Construction • Higher Degree Apprenticeships- Trailblazers • Research objectives • Research methodology • Findings
- 3. Skills gap in Engineering and Construction
- 4. Reasons for skills gap • Effect of recession and lack of recruitment • Image of the industry failing to attract young people • Aging workforce Trade skills most affected, including professionals
- 5. Current status of Apprenticeships • Apprentice Framework – promotes closer association with employers and education institutes. • Over 200 different types of apprenticeships, 4,000 apprenticeships in construction for the past 6 years • 3M new apprenticeships planned over the next five years with approximately 210,000 in construction • Industry only achieved 16,000 in 2013/14 (Federation of Master Builders, 2015)
- 6. Trailblazers • Higher Apprenticeship Framework- achieves both academic and vocational qualifications from levels 4 to levels 6 and 7. • New Degree apprenticeships- trailblazers are being developed within the framework will lead to professional qualifications e.g MCIOB, MCIAT etc. • More than 100 companies in conjunction with around 20 universities involved • For every £1 contributed by the employer, the government will pay £2 (HM Government 2015) • Funded by apprentice levy- 700 or more construction companies will be paying the levy
- 7. Research Aim/Objectives To examine the causes and effects of the skills shortage in the construction industry, the nature and extent of the shortage and evaluate the current status of New Degree Apprenticeships.
- 8. Data collection and analysis • Questionnaire sent to managers and professionals, 42 responses. • 55/45% split between members and non-members of professional bodies Recruitment 8% Project management 34% Company management 19% Supervision of work 34% Work at operation level 5% What are your current responsibilities?
- 9. Questionnaire Survey- Findings Retiring Workforce 25% Lack of Young People 31% Lack of Women 13% Lack of Government Incentives 18% Other 13% Which of the following factors do you believe are responsible for the skills shortage? Total Professionals 35% Total Trades 63% Total Support Staff 2% Percentage breakdown of Professionals, Trades and Support Staff perceived shortages
- 10. Questionnaire Survey- Findings Retiring Workforce 25% Lack of Young People 31% Lack of Women 13% Lack of Government Incentives 18% Other 13% Which of the following factors do you believe are responsible for the skills shortage? Poor image of the industry 25% Working conditions 17% Employment consistency (Effects of recession) 25% Career opportunities 12% Wage levels 19% Other 2% Do you believe any of the following have a negative effect on recruitment in the construction industry?
- 11. Questionnaire Survey- Findings Yes 33% No 43% Don't know 24% Does your company currently have an apprenticeship scheme or employ apprentices? Recruiting from other industry sectors Apprenticeships Recruiting more women Encouraging young people through closer liaison with educational institutes 2% 79% 14% 62% 36% 21% 31% 38% 43% 43% 19% 12% Do you believe the skills shortage can be addressed by any of the following? Strongly Agree Agree Don't know Disagree Strongly disagree
- 12. Questionnaire Survey- Findings Yes 12% No 88% Are you aware of the new degree apprenticeships, also known as “Trailblazers”? Yes 20% No 80% Are you aware of any educational institutes in your area that will be participating in the new degree apprenticeships?
- 13. Questionnaire Survey- Findings Currently participating 20% Planning to participate in the near future 40% Will not be participating in the scheme 40% Is your company currently participating in the scheme or planning to in the near future? Yes 0% No 100% Are you aware of the format of the new degree apprenticeships?
- 14. Questionnaire survey- Findings Filling course places 46% Involving businesses in the structuring of the courses 36% Mentoring of apprentices in the workplace 9% The assessment of apprentices work completed in the workplace 0% Other 9% What key challenges do you believe the new degree apprenticeships will face in achieving their goal of addressing the skills shortage? I am aware of the levy but don’t know which companies have to pay it 26% I am aware of the levy and know which companies have to pay it 10% I am not aware of the levy 64% Are you aware of the new government apprenticeship levy and which companies will have to pay it?
- 15. Questionnaire Survey- Findings Yes 29% No 71% Would you be interested in learning more about the new degree apprenticeships by attending a presentation at your local college or university? I am aware of the levy but don’t know which companies have to pay it 26% I am aware of the levy and know which companies have to pay it 10% I am not aware of the levy 64% Are you aware of the new government apprenticeship levy and which companies will have to pay it?
- 16. Questionnaire Survey- Findings • Although 33% believed businesses should be responsible; all four groups are perceived to have an almost equal degree of responsibility in addressing the skills problem. Government 25% Education 22% Business 33% Professional Bodies 20% Which of the following do you believe is most responsible for addressing the skills shortage in the construction industry?
- 17. Conclusions • 67% of construction companies are experiencing problems with the skills shortage which is affecting their business growth. • The new degree apprenticeships could address the skills shortage, although there is much work still to be done in promoting the scheme; there seems to distinct lack of awareness in the industry. • Variable views from businesses; no significant commitment yet. Key challenge is to fill apprenticeship places. • Businesses are not clear as to how this will impact on current levies already being paid and what impact if any the new funding will have on businesses ability to train staff other than apprentices.
Editor's Notes
- Skills gap: Main reason- effect of recession and lack of recruitment Image of the industry failed to attract young people Trade skills most affected, professional side QS appear to be in short supply BuildForce – one of the successful initiative-but limited potential Apprentice Framework – promotes closer association with employers and education institutes.
- The secondary data review suggested the possible causes of the current skills shortage are; the effect of recession on the industry leading to employment uncertainty and lack of recruitment during these periods, the poor image of the construction industry which is perceived as being dirty, difficult and dangerous and an ageing workforce which presents an even greater problem in the future if not addressed. Further, the secondary data proposed that this shortage has the potential to effect a significant number of construction projects and consequently the UK economy as a whole. Increasingly, both businesses and professional bodies are perceiving the skills shortage as having a major effect of business growth. Trade skills appear to be perceived as the most affected areas of the industry with bricklayers, carpenters, site managers and supervisors in short supply, although from the professional side of the industry quantity surveyor are being identified as the most affected profession. The BuildForce initiative appears to have had some success although it has only been run as a pilot scheme to date. However indications are that it may have the potential ability to address the skills shortage to a limited extent. The secondary data suggested that the recruitment of young people to the industry is the key factor in addressing the skills shortage and that in order to do so, industry needs to promote a closer association with educational institutes as well as promoting the industry in a more positive manor. The new degree apprenticeships appear to by embracing this philosophy and are being developed by educational institutes in conjunction with construction businesses. They are being promoted as a balance of both academic and practical learning delivering key skills required within the construction industry. These new apprenticeships will be funded by a new government levy but the secondary research appears to highlight that businesses are not clear as to how this will impact on current levies already being paid and what impact if any the new funding will have on businesses ability to train staff other than apprentices.
- Apprenticeship levy which will come into effect in April 2017 (HM Government 2015). The levy will be 0.5% of company payrolls for businesses with a wage bill of more than £3m, meaning that approximately 98% of UK employers will be exempt and is expected to raise around £3bn (Johnston 2015). According to Construction Manager (2015), when the levy scheme was first proposed on the basis of companies with 250 or more staff being affected, it was calculated that around 200 construction companies would be affected. However, with the government’s criteria now confirmed, the CITB believes that approximately 700 companies will be included. Construction Manager (2015) points out that the CITB figure does not account for either the product manufacturing or consultancy sectors of the construction industry and that when a payroll of £3m roughly equates to 100 employees, a significantly larger number of companies will be affected.