Construction Demand Outstrips Building Skill Deficit
A SHORTAGE of skilled tradesmen has sent rates charged by sub-contractors rising to record levels as the construction industry has seen a surge in output.
The sector expanded at its fastest pace in seven months in August, said the Purchasing Managers’ Index (PMI) by researcher Markit and the Chartered Institute of Purchasing & Supply (CIPS).
It showed recruitment was close to a record high but there was a strain on the availability of materials and sub-contractors.
Demand for workers meant sub-contractors were able to raise the rights by the steepest level since the survey began in 1997.
CIPS chief executive David Noble said: “The sector is struggling to find enough skilled tradesmen to keep pace with new work and the labour market will continue to put pressure on costs until the next wave of apprentices begin to enter the jobs market.”
The 16th monthly rise in a row was led by house-building but there was also strong growth in commercial activity and civil engineering.
Markit chief economist Chris Williamson said shortages of raw materials and sub-contractors could cause growth to slow.
“All good signs for the building industry as a whole” say’s Greengates Builders Merchants Accrington, Lancashire.