We will have to wait until spring 2005 for the final report, where many of the issues identified could turn into policy propositions or even funding streams.
But it does point to a very pressing issue right now: the lack of skilled workers in the construction industry.
Better development strategies, increased links between agencies, public and private sector partnerships, even increased funding: all these are essential, but if we can't find anyone to build anything, it is difficult to foresee housing supply improving.
This is not a new problem. For a long time now, commentators have warned of the deleterious impact of under-recruitment, poor training and worse wages in construction. The many makeover shows on television advise people to get their building work done now, as costs will continue to rise because of the labour gap.
The problem is clear, but what about the solution? Some argue that the market will correct itself eventually. Pay will rise in response to scarcity, more people will want to work in construction – problem solved.
But even if an equilibrium occurs, it will take a long time before we see a difference. So now is the time to think about how the housing sector might contribute.
Many organisations already support apprenticeships and other forms of training in agreements with their contracting organisations. Perhaps housing associations could promote job training with a focus on construction? Working to promote community maintenance co-ops and start-up construction businesses might also help.
Better strategies, partnering, more funding: all essential, but if we can’t find anyone to build anything, it’s difficult to foresee housing supply improving
The biggest issue, though, relates to the millions of pounds worth of maintenance work that registered social landlords require every year.
As construction workers grow ever more scarce and expensive, drawn to higher paid work on major developments, maintenance will become the least favoured option for the workers that are around. Not only will it be difficult to get a decent contractor, but costs will continue to rise. With rent restructuring limiting the scope for increased income, this could become a major problem.
How can we find the synergy between construction training, employment and maintenance activities? Some organisations in our sector already run their own maintenance operations, but they tend to be small and regionalised. However, they could expand their operations, help other associations, offer a strong training element.
Larger associations need to give some thought to how they can boost maintenance resources, improve services and play a part in attracting, training and developing future construction workers.
Some will say this area is fraught with risk. They're right, but the risks can be managed.
Others will think that the sector should not train people to be construction workers, as they will simply move onto other jobs. This is also true. It won't be for everyone: some organisations' stock holdings may not make community businesses or maintenance operations with a strong training focus attractive propositions.
However, accepting that we are constantly trying to find a balance between running our organisations as businesses and achieving wider social benefits, we should accept that many of those we train will seek employment elsewhere.
Source
Housing Today
Postscript
David Cowans is chief executive of the Places for People Group
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