11, 000 extra construction workers required in Wales by 2028 to meet demand

Industry faces ongoing need to match growth with workforce 

·                     Recruitment and retention are key opportunities for sector resilience 

The annual industry forecast from the Construction Industry Training Board (CITB) highlights the continuing persistent gap between what Wales needs to keep up with demand and the workforce available to meet the challenge.  

CITB’s Construction Skills Network (CSN) 2024-28 report reveals that in Wales:  

·         Construction output is set to rise by 1.2% annually between now and 2028 

·         11,000 extra workers (2,200 a year) are needed in order to meet the continued construction growth expected over the next five years 

·         The initial demand will be in repair and maintenance, with other future opportunities in new work across: 

o    Public non-housing 

o    Public housing 

o    Private housing. 

Despite the industry managing to recruit around 200,000 people every year UK-wide, in 2023, an average of 38,000 vacancies were advertised per month. For almost a third (31%) of construction employers, finding suitably skilled staff remains their key challenge, particularly with more older workers retiring and not being replaced. 

 Although the UK construction industry welcomed 200,000 new workers, it saw the loss of more (210,000 workers). With the ongoing difference between the predicted need for construction work and the available workforce, CITB’s forecast shows how important it is for the industry to tackle the issues with effective recruitment and training to replace those leaving and better prepare for the future, as well as to take advantage of key opportunities such as productivity improvements and meeting net zero retrofit targets. 

 In response to the challenges, CITB has invested £267m to help the industry improve diversity, quality and productivity as well as making construction a more attractive career choice for future generations. Among the areas this investment will directly support are three expanded initiatives:  

·         New Entrant Support Team (NEST) – helping employers to better navigate the recruitment process, access grants and suitable training, when and where needed 

·         Industry Impact Fund – making direct funding available for employers to design and test new solutions for talent recruitment and retention challenges 

·         Employer Network – rolling this out across Great Britain, to enable local employers to set their own funding priorities and meet area-specific skills needs. 

 CITB Wales Engagement Director, Julia Stevens, said: “Construction is an essential sector for our regional and national economic prosperity. We anticipate continued industry growth in Wales, but we need to meet demand with more people in the workforce with the right skills.  

 “CITB’s CSN report highlights how Welsh employers can address the challenge by recruiting and developing a skilled, competent and diverse workforce that is able to meet current and future needs. 

 “Wales has a range of schemes moving forward that will be major drivers for growth, namely the recent approval of the Awel y Môr wind farm project off the coast of Llandudno which will generate 500MW of electricity, enough to power 500,000 homes by 2030. Work is continuing on the £590m Dowlais Top to Hirwaun section of the A465 Heads of the Valley Road, which will run through to the middle of 2025. Cardiff Council has also approved proposals for the £360m Embankment site, 47 acres of brownfield land to the south of the city which will be regenerated to provide 2,500 homes alongside 54,000 square metres of business space. In Pontypridd, the University of South Wales is constructing a new academic building for its Treforest Campus. 

 “We are committed to ensuring that the skills system is fit for purpose to deliver on the great opportunities across Wales, now and in the future. The industry has shown particular resilience throughout what has been an undeniably tough few years. Here at CITB, we have a crucial role to play in supporting its growth through recruitment, training, development and upskilling.”