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Industry leading regional construction growth as energy and road projects highlighted

The construction industry in Yorkshire and Humber is set for steady growth led by the industrial sector, according to a leading five-year forecast from the Construction Industry Training Board (CITB).

Industry leading regional construction growth as energy and road projects highlighted

The annual Construction Skills Network (CSN) report shows that the region’s overall average construction output will increase by 0.8 per cent between 2018 and 2022. Output is projected to be just short of its 2004 peak level by 2022, meaning a total of over 10,000 new construction workers will be needed in the region over the next five years.

Roles in particular demand will include 1,350 senior executives and managers, 1,800 carpenters and joiners, 450 plant operatives and 800 surveyors.  

With a forecast average annual growth rate of 3.9 per cent in output over the five year period, the industrial sector is likely to see the biggest average percentage increases per annum. The region’s economy will also be buoyed by infrastructure projects in 2018, including the development of Hornsea Project One wind farm and work to improve a section of the A63 Castle Street in Hull scheduled to begin in 2018/19.

Private housing output in Yorkshire and Humber will also grow by an average of 0.6 per cent per year between 2018 and 2022. By 2022, private housing output is anticipated to reach a new high of £2.34 billion.

An annual average increase of 1.5 per cent is predicted for the commercial sector between 2018 and 2022. Modest expansion is likely for 2018, but where Brexit-related uncertainty impacts investor confidence, growth is expected to slow. As the terms of Brexit become clearer, confidence is anticipated to increase and lead to growth in commercial output from 2021.

Public non-housing output is predicted to rise by an annual average of 1.5 per ent over the next five years.

Between 2018 and 2022 the region’s construction employment is likely to see moderate growth, reaching just under 200,000 by end of the forecast period.  As is the case across the UK, managerial/administrative and professional skills are projected to be in higher demand than trades and manual.

With 2,010 additional new workers required every year over the five years to 2022, the region’s annual recruitment requirement (ARR) is 1 per cent of base 2018 employment – only slightly lower than the UK rate of 1.2 per cent.

Jeremy Wright, partnerships manager at CITB, said: “This solid pipeline of work should give employers in the Yorkshire and Humber region confidence to plan their skills needs and to modernise.

“The area has significant and exciting opportunity for local careers in construction, with more than 10,000 new construction workers needed over the next five years. This represents a great opportunity for those considering a career in construction – or who might be interested in a change of career.”

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