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How will Brexit affect construction search and selection practises?

29th March 2018 | Richard Goodall

How will Brexit affect construction search and selection practises?

Brexit has left the construction industry in a state of uncertainty. Although there has been an increased demand for housing and commercial space, alongside the further growth of infrastructure projects, particularly in the North, Brexit negotiations are still causing questions in relation to the stability of the sector. There are a number of strengths within the sector that look to provide it with further stability in the future, which includes government programmes to fund the building of a huge number of new homes, with the expectancy that more young people will utilise new incentives to purchase homes. Moreover, changes in developing areas, such as the North, are expecting to experience an uplift in appetite to create new and refurbish existing office space. What changes should we expect to see? Strength within the sector is anticipated, despite Brexit fears, with the demand for housing looking to increase between now and the mid-2020’s. Government initiatives are expected to spur on the number of homeowners in the UK whilst they aim to convert brownfield sites to support in hosting the 300,000 homes to be built per year. Commercial property numbers also look to boom, with more independent businesses springing up and requiring office […]

Brexit has left the construction industry in a state of uncertainty. Although there has been an increased demand for housing and commercial space, alongside the further growth of infrastructure projects, particularly in the North, Brexit negotiations are still causing questions in relation to the stability of the sector.

There are a number of strengths within the sector that look to provide it with further stability in the future, which includes government programmes to fund the building of a huge number of new homes, with the expectancy that more young people will utilise new incentives to purchase homes. Moreover, changes in developing areas, such as the North, are expecting to experience an uplift in appetite to create new and refurbish existing office space.

What changes should we expect to see?

Strength within the sector is anticipated, despite Brexit fears, with the demand for housing looking to increase between now and the mid-2020’s. Government initiatives are expected to spur on the number of homeowners in the UK whilst they aim to convert brownfield sites to support in hosting the 300,000 homes to be built per year.
Commercial property numbers also look to boom, with more independent businesses springing up and requiring office space. From refurbishment projects to fresh construction, demand for office space doesn’t look to deplete dramatically.
Furthermore, the construction sector is also buoyed by infrastructure projects, which look to offer further opportunities and further support the resilience of the sector. From the HS2 to nuclear power plant developments, there are around 700 projects in the pipeline for the construction industry over the next 5 to 10 years.
However, despite all this, uncertainty still causes unease within the industry, with many in the construction sector expressing that they are preparing for conditions to only worsen in the coming money.

How will this effect search and selection recruitment efforts?

Leaders within the industry see one of their largest issues currently as labour, with around 26% of the construction workforce from elsewhere in the EU, the Brexit decision could see even more skilled workers exiting the UK. Labour costs could rise significantly due to EU workers leaving and with demands for construction increasing, the industry could face difficulties in the next few years.
Construction search and selection efforts should look to promote the construction industry and the benefits of working Britain, even post-Brexit, to both EU and overseas workers from further afield. This could include promoting their efforts with integrating overseas workers, offering extra services and relocation packages and ensuring that their local workers are also supportive in facilitating talent from abroad.
Moreover, the reduced numbers of skilled workers could lead to an increase in more robust risk management. Search and selection efforts can assist in reducing time and costs spent by effectively vetting candidates ahead of securing a role. This could include an in-depth exam and then further training and skills development throughout their career. Investing in tomorrow’s workers can also benefit construction companies, offering apprenticeships which can also support succession planning and reduce the need to actively look for talent with a steady flow of junior level workers already on hand.

If you need to build a better search and selection strategy within your construction firm, get in touch with Goodall Brazier today for expert advice and support.