Firm’s UK boss of cost consulting says government needs to do more to encourage youngsters into industry
Turner & Townsend has warned the ongoing labour shortage and high level of insolvencies continues to dog the sector’s growth.
In its latest market update, Martin Sudweeks, UK managing director of cost management at the firm, called for more action from the government to help the sector address its weaknesses.
He said the recent budget, along with “weakening commitment to major infrastructure, does not show us a government as committed to the growth of this vital industry as it has historically been”.
Sudweeks added: “The number of 16 to 24-year-olds enrolling in construction training schemes is now barely a quarter of its 2007 level, and too many still see the sector as low-tech, manual labour, with limited opportunities for progression.
“This is far from the truth, and it is our joint responsibility – government and industry – to showcase the modern reality of high-tech, high-skilled construction that is powering our economy forward.”
In its spring update, the firm said real estate price increases will fall to 3.5% this year – down from 9.5% in 2022 – which is the same figure it predicted in its winter report in February and its autumn forecast last year.
Turner & Townsend (T&T) said its figures for infrastructure would also remain the same, with the figure expected to fall from 10% last year to 5.5%.
The report comes after Mace Consult yesterday also stuck by its previous tender price forecast for 2023, although its prediction was lower at 2.5%.
The disinflationary environment is being driven by reduced demand and productivity improvements, according to T&T, which forecasts further softening through the rest of this year.
The last 12 months saw an 8.6% rise in productivity according to the consultant, bucking the wider trend of lacklustre productivity growth.
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