Despite the current economic challenges and rising material and labour costs, the Construction Industry Training Board (CITB) said construction output is set to grow for all nations and regions, with recession expected in 2023 with slow growth returning in 2024.

The major sectors for demand are private housing, infrastructure and repair & maintenance.

If projected growth is met, by 2027 the number of people working in construction will be 2.67 million.

The CITB’s annual Construction Skills Network (CSN) report highlights that construction is expected to remain a sector where there is demand for workers despite the current economic uncertainty. As a result, recruitment, training, development and upskilling remain major priorities for the industry for 2023 and beyond.

Key predictions for Scotland include:

• 1.0%: Output average annual growth rate (AAGR)
• 19,550: Extra workers needed in Scotland by 2027
• 3,910: Scotland’s annual recruitment requirement
• £5bn Scottish Water’s capital investment plans: Main growth driver.

CITB is responding by investing in apprenticeships, launching a range of targeted initiatives and working collaboratively with industry, to help the construction sector have a skilled, competent, and inclusive workforce.

Tim Balcon, CITB chief executive, said: “The latest CSN report clearly shows that despite current economic uncertainty, recruiting and developing the workforce remains vital to ensure the industry can contribute to economic growth.

“We know the next 18 months won’t be easy, however, I remain inspired by the construction industry’s resilience shown in the pandemic and throughout 2022.

“In short, it makes clear that the need to recruit and retain talent in the sector has never been greater. Whether that’s for building the homes the country needs, constructing energy and transport infrastructure or retrofitting the built environment to help drive down energy bills and meet net zero targets.

“To bolster industry’s resilience, CITB will strive to attract and train a diverse range of recruits for industry, equipping them with modern skills for rewarding construction careers. I look forward to working with and supporting industry and stakeholders in the challenging times ahead and to emerging stronger when the recession ends.”

CITB’s Scottish Academy for Construction Opportunities (SACO) commission has awarded £1.3 million across the Highlands and Islands.

Further CITB initiatives range from localised solutions for funding and training such as an employer network pilot project, available to more than 3,800 levy-registered construction businesses across five locations in England, Scotland and Wales; to a £10.5 million leadership and management commission which will provide funded courses for businesses to equip supervisors and managers with a recognised qualification.

Tim Balcon added: “This coordinated and comprehensive approach to helping recruit, train, develop and upskill talent, whilst continuing to work collaboratively with industry and stakeholders means CITB will continue to play a central role in supporting an industry that is a key driver of the UK economy through these challenging times.”