The UK construction industry has faced skills shortages for years, but many businesses now believe the situation is becoming increasingly critical.
This was one of the key topics discussed during a recent visit to Rockthorn Ltd from Andrea Wilson of the Norfolk and Suffolk LSIP (Local Skills Improvement Plan), an initiative delivered by the Norfolk Chambers of Commerce to help better connect local employers, skills providers, and workforce development across the region.
The conversation highlighted many of the challenges currently facing SMEs within construction, including skills shortages, rising operational costs, recruitment difficulties, and the long-term challenge of attracting more people into the industry.
Across the sector, SMEs are under growing pressure from rising employment costs, increased material prices, tighter margins, and difficulties recruiting skilled labour. At the same time, the industry is expected to need nearly 48,000 additional workers every year until 2029 just to keep up with demand.
One of the biggest concerns being discussed across construction is the growing shortage of skilled workers entering the industry, with many SMEs struggling to recruit and develop the next generation of tradespeople. Alongside this, businesses are also facing increasing pressure from the narrowing gap between skilled and unskilled wages.
The increase in the National Living Wage has understandably raised pay for lower-paid workers, but many employers are now questioning whether experienced tradespeople are being properly recognised for their skills, qualifications, and years of experience when entry-level wages are rising at a similar pace.
For many SMEs, this creates a difficult balancing act. Skilled workers rightly expect higher wages that reflect their expertise, while businesses are simultaneously absorbing rising costs across labour, National Insurance, insurance, compliance, and materials.
The knock-on effect is a growing concern for the future workforce.
Construction businesses have traditionally relied on bringing in inexperienced workers, training them, and developing them into skilled employees over time. However, with rising entry-level employment costs, many SMEs are finding it harder to justify taking on workers who require significant investment in training and supervision before becoming fully productive.
Industry leaders warn this could worsen the long-term skills shortage by reducing opportunities for young people and career starters entering the sector.
According to industry research, 61% of construction SMEs say they are already being affected by skills shortages, with trades such as carpentry, bricklaying, plumbing, roofing, and general labour among the hardest roles to fill.
At Rockthorn, we welcomed the opportunity to contribute to these conversations through the LSIP initiative and as members of the Norfolk Chambers community. Collaboration between local businesses, training providers, and organisations such as the Chambers will play an important role in helping address the challenges facing the construction sector.
We are proud advocates for employing local people and investing in skills development. We currently employ 11 people, with more women than men in our workforce, something still relatively uncommon within construction. We actively support women in construction and believe the industry benefits enormously from greater diversity, fresh perspectives, and wider opportunities for everyone.
For us, delivering quality projects and providing a great service go hand in hand with creating opportunities, supporting local communities, and helping develop the next generation of skilled professionals.
With construction playing a major role in housing, infrastructure, and economic growth, it is our opinion that stronger support for SMEs, apprenticeships, and local training pathways will be essential to securing the future workforce the UK needs going forward.