The latest forecast from the Building Cost Information Service (BCIS) predicts that tender prices will increase by 15.5% and building costs by 13.1% over the next five years.
At first glance, that may sound like a challenge for the construction sector. In reality, it highlights a much bigger issue that the industry has been grappling with for years: People.
As project pipelines grow, infrastructure investment continues, and major developments move forward, the demand for skilled labour will only intensify.
What does this mean for contractors and developers?
- Increased competition for skilled workers
- Greater pressure on project margins
- Longer lead times to secure labour
- Higher wage expectations across key trades and professional roles
- Increased importance of workforce planning
The industry is already facing shortages in areas such as:
- Site Management
- Quantity Surveying
- Planning & Project Controls
- Civil Engineering
- Electrical & Mechanical Trades
- Skilled Operatives and Supervisors
The organisations that plan ahead and secure talent early will be best positioned to deliver projects on time and within budget. But there is another side to the story.
Opportunity for Construction Professionals
As demand continues to outpace supply, skilled professionals can expect:
- More career opportunities
- Greater job security
- Increased earning potential
- Faster progression pathways
- Greater flexibility in choosing projects
For those entering the industry, the long-term outlook remains extremely positive.
The CCR View
While rising costs will continue to challenge the sector, investment in people remains the most important investment any business can make.
The projects of tomorrow will not be delivered by materials or machinery alone.
They will be delivered by the right people.
At CCR Recruitment, we continue to work closely with contractors, developers and infrastructure businesses across the UK to help them build the workforce needed to meet future demand.
How is your business preparing for the skills challenge over the next five years?
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