The Case for Collaboration in the Homebuilding Supply Chain
A Research Report to Highlight the Challenges and Opportunities for Driving Positive Workforce Development Investment amongst Subcontractors that supply the Homebuilding Market in the UK Joint Foreword
Home Builders Federation We look forward to working together to tackle the issues raised by the report and to take Home building faces major challenges in the forward its recommendations. coming years - to build more homes, maintain and further improve quality and to do all this John Slaughter, Director of External Affairs, more sustainably and efficiently. This report Home Builders Federation and Steve Radley, makes a compelling case that we will need to Director of Policy and Partnerships, CITB. do things differently if we are to be successful in meeting these challenges. In particular, it Acknowledgements highlights the need to tackle the constraints to Skyblue Research Ltd would like to thank all growth faced by many existing sub-contractors the contributors to this study since September and the implied barriers for new entrants to 2015. We hope we have managed to capture come in to the supply chain. your voice in an honest and balanced way that Having enough people with the right skills for can help create the case for more workforce today’s and tomorrow’s industry is critical to development collaboration in future. Our supply chain growth. This report identifies thanks to representatives from the 20 that the confidence of subcontractors in their Homebuilders, 204 subcontractor businesses, ability to attract the right people and to invest 5 Federations and 14 staff at CITB, personnel at in training for them is comparatively low and HBF, their Careers Committee and Qualifying needs to be improved to sustain the growth the Workforce Group that have helped shape that is needed. The report’s recommendations the project. Thanks also to the representatives provide valuable ideas for how we can seek to of major contractors who allowed us to do so. compare and contrast their supply chain practices with those found in homebuilding. Encouragingly, it also suggests that many In particular, we would like to thank John developers and subcontractors are embracing Slaughter, Director of External Relations at the need for change, including the need for HBF for managing this commission; and Steve more collaboration on skills. And we can see Radley, Director of Policy and Partnerships in the number of employers that are getting at CITB for having the foresight to sponsor behind the new Homebuilding Skills Partnership this research with the express interest in that there is a willingness to take action on key understanding how potential can be unlocked areas such as attracting people to the industry, within SMEs in the homebuilding supply chain. understanding training and development needs, influencing training provision and Skyblue Authors: Alan Graver, Paul Rhodes, looking at training and skills in the supply chain. Chris Charlton, Mike Dwyer & Sarah Eley. Contents
Foreword 02 Infographic 04 Research Background 06 Research Purpose 06 Method and Scope 06 Executive Summary 07 Recommendations 08 The Homebuilding Supply Chain 09 How Big is the Homebuilding Supply Chain? 010 How Varied is the Homebuilding Supply Chain? 012 Homebuilder Perspectives 014 Growth Ambitions and Supply Chain Importance 016 Supply Chain Relationship Management Approaches 017 Good Practice Example 019 Challenges to Encouraging Subcontractor Workforce Development 020 Drivers that might create positive change 022 Subcontractor Perspectives 024 Subcontractor Characteristics 025 Case Study 1 029 Subcontractor Capacity 030 Subcontractor Confidence to Grow 033 Most confident to meet demand 034 Subcontractor Workforce Challenges 036 Case Study 2 040 Training and Development 040 Key Skills Gap impacting Productivity 041 Summary of the key gaps or deficiencies identified through the focus groups 041 Case Study 3 042 Case Study 4 043 Case Study 5 043 Future Needs and Support 044 Possible Solutions and how to take them forward 045 Good practice to inspire the homebuilding sector 047 Positive practice found within homebuilding 047 Positive practice found in other sectors of construction 048 Conclusions 049 Subcontractor Perspectives 050 Researcher Perspectives 050 Recommendations 052 Research Contributors 054
The Case for Collaboration in the Homebuilding Supply Chain 03 Research Participants - 20 Large UK Homebuilders
c. 60,000 Subcontractor SME relationships per annum c. 2,000 ‘Strategic’ subcontractor suppliers critical to business success Combined c. 2,000 c. 100,000 annual turnover Live sites Subcontractor £15.28bn workforce Research Participants - 204 Subcontractors
Micro (fewer than 10 staff) 22
Key trades 3 in 5 say that homebuilding accounted Small 52 covered for over 75% of their total trading (10-99 staff)
Medium/large Direct workforce of 26 between 8,000 and 32,000 (100+ staff)
Homebuilders supplied in the Subcontractor workforce of 0 25 50 75 past year between 5,200 and 19,300 % of sample Needs of Homebuilders
Groundworks Plumbing Brickwork Carpentry Plastering
Where the majority of work packages go (£ by homebuilders)
Plumbers and Groundworkers Bricklayers Carpenters Plasterers Roofers Painters Electricians
Critical shortages reported by homebuilders Subcontractors' Growth and Ambition
61% 47% 35% 50%
Are planning for Are planning for Are planning for Are planning for growth income/revenue direct employment growth in their in the number of growth in the 12 growth subcontractor areas/sites they carry out months workforce homebuilding work in
57% 58% 23%
Intend to recruit more Intend to take on Intend to take on other directly employed staff some new types of trainee or in the next 12 months apprentices graduate
04 The Case for Collaboration in the Homebuilding Supply Chain 1 in 2 subcontractors are very con dent that they can meet the demand of homebuilders in the next 2-3 years. 1 in 2 are not.
Con dence benchmark - 50% of whole sample 40 75% 80% 35 67% 70% 58% 30 53% 60% 25 46% 50% 50% 44% 42% 20 38% 40% 41% 15 30% 29% 28% 10 25% 27% 25% 26% 20% 5 10% 8 10 11 13 14 14 14 16 19 21 21 22 22 26 29 36 0 0%
Glazing Roo ng Drylining BricklayingPlastering Kitchen tting Scaffold erection
Painting and decorating Repairs and maintenance Flooring and well covering Groundwork/site preparation Mechanical/electrical installation Building completion and nishingNumber of subcontractors Joinery installation and carpentry
% very con dent to meet demand of General home building construction work homebuilders in the next 2-3 years Plumbing, heat and air-conditioning installation Workforce Challenges and Solutions
3 in 5 intend to recruit more direct employees in the next 12 months 3 in 5 intend to take on Apprentices in 2016 (there is demand for 500-600 Apprentices in this sample of rms) 1 in 2 subcontractors that do or wish to take on new staff report dif culties recruiting direct employees 2 in 5 subcontractors that do or wish to take on apprentices report dif culties recruiting them (and frustrating drop-out rates) 1 in 7 report dif cultly training and developing existing staff in new things (e.g. modern methods, new technology) 1 in 5 subcontractors did not think this theme (future skills) was relevant to them or had not thought of it before 1 in 8 report dif culty training existing staff to meet skills/compliance requirements 1 in 4 subcontractors (that directly employ staff) report dif culty keeping hold of good staff as long as they would like
Challenges to growth by theme (193 respondents)
Local recruitment challenges 73
No external issues 55 Responses Biggest single issue: Market issues (continuity of 37 work/pro tability) Lack of good quali ed experienced trades in the Something else (e.g. external macro 27 local area meaning businesses factors or competitiveness issues) can’t get the subcontractors 0 10 20 30 40 50 60 70 80 they need
The Case for Collaboration in the Homebuilding Supply Chain 05 Research exactly, will these new jobs be will need to grow further to Background recruited, selected, trained 2020, there is a great deal and retained? To what extent of uncertainty about the The homebuilding sector will large homebuilders take different behaviours, attitudes is anticipating a sustained ownership for supporting and future practices of not period of growth as it seeks their supply chains through only the largest homebuilders, to meet the demand for growth? And what are the but importantly for this new housing across the UK. workforce development research, their supply chain This will create the need for challenges within the supply of subcontractors to achieve a significantly larger skilled, chain that might be addressed national, regional and local qualified and motivated through collaboration? Whilst growth ambitions together. workforce. But who, and how, the view is that the sector
Research Purpose in relation to recruitment, for the future amongst the skills and training. sub-contractors whose The Homebuilders Federation main business activity is (HBF) on behalf of its members • Identify the perceived homebuilding. therefore approached the CITB barriers to invest in (who have funded this project) training, skills and • Identify what support to undertake research that Apprenticeships amongst these subcontractors would help: sub-contractors that might need in future from belong to the supply homebuilders, CITB (where • Identify the current and chains of the major and eligible for support), HBF future growth ambitions larger homebuilders. and the new Homebuilding of large homebuilders and Skills Partnership (HSP) the extent to which they • Identify perceptions about in terms of meeting will, or could, drive and skills issues and training workforce development support their supply chain and development needs challenges.
Method and Scope
Independent research was conducted in phases by Skyblue Research Ltd between September 2015 and April 2016 as follows:
Definition Phase 1 Phase 2
What we want to Major Homebuilder Subcontractor find out, why we perspectives (Sept- perspectives want to find it out Oct 2015, Sample Telephone and how we want Size: 20) interviews/surveys the research to be CITB Perspectives (204) and focus used HBF Perspectives groups (8)
How could workforce The 20 homebuilders 204 firms from 12 development be influenced in deployed 100,000 homebuilder supply chains the supply chain; what could subcontracted operatives + 81 people from 63 firms at we learn from practice in across c 2,000 live sites at focus groups + self-selecting other sectors of construction* the time of the survey samples from 5 Federations
*See list of research contributors on the inside back cover.
06 The Case for Collaboration in the Homebuilding Supply Chain Executive Summary • Not all subcontractors wish to grow through homebuilding, but two thirds do, • Without increased collaboration between and for now, only 1 in 5 say they receive homebuilders and their subcontractors, any practical support for workforce the potential to identify, and then support development from the homebuilders increased capacity and capability in the they supply. They are not always certain current supply chain will be limited in what training and development they the next 3 years. Subcontractors have need, nor do they anticipate what might greater choice about which developers be required 3-5 years from now. But 3 in to work with at present, and are looking 5 have demand for Apprentices (a latent for prompt payment, fair treatment, safe, demand that deserves support), want well-managed site conditions and trusting specific support to take on older workers, relationships. Those that do invest in their wish to see localised, more contemporary workforce wish to see that investment training course content, would be receptive recognised and rewarded through the to blended learning options and seek procurement approach of homebuilders increased visibility on the future pipeline of that tender out for work. work they might win in order to increase the investment risk they might take to • Without increased collaboration within employ and develop their workforce. Local and between homebuilders and their solutions and activation are critical to supply chains, the potential for systemic success. labour and skills shortages remains for this economic cycle; and for so long as there is • The case for collaboration is strong because no change in the pattern of homebuilding homebuilders and subcontractors appear with intense competition for skills at half to want the same kind of outcomes; year and year end periods, subcontractor profitable work, positive reputations, safe loyalty will likely be a transactional and productive sites. Whilst good practice commodity. Better workload planning, can always be found if you search for it, lead times and longer term negotiated this study finds that subcontractors and contracts could help emulate the beneficial homebuilders believe there is so much partnering arrangements observed in more that could be achieved towards these supply chains in the wider construction aims through a series of co-ordinated sector. solutions aimed at increasing quality, sustainability, productivity and commercial • The opportunity for the homebuilding success. sector to convert its current culture and strategic mind-set from one that • Proactive workforce development that is is formulated around supply chain embedded into homebuilders’ supply chain procurement, to variable levels of supply strategies, activated at local levels, with chain management to one of more the support of CITB, the HSP, interested proactive and consistent supply chain Federations and other stakeholders can development is considerable. Chief play a huge part in bringing long-term Executives of large homebuilders can dividends to the industry; save money; influence this change by incentivising their increase the skills base; improve site regional business units to create advantage efficiency; and improve the quality of by becoming ‘customers of choice’ to learning and image of the sector. In this their subcontractors, and opening up their way both capacity and capability is raised, in-house training infrastructure to key meaning that the growth potential of the suppliers and those who wish to grow. supply chain can be better unlocked.
The Case for Collaboration in the Homebuilding Supply Chain 07 Recommendations what is already available; via the Homebuilding Skills prioritising the many solutions Partnership - to upskill the The research has discovered described in the study; workforce, increase the quality three key opportunities, and developing a resourcing plan of homebuilding, increase site makes a small number of for the priority solutions; productivity and attract new recommendations for each and then designing and talent to the industry. area. Recommendations delivering new collaborative require a mix of promoting solutions – co-ordinated
Opportunity 1:
• Creating more responsive subcontractor supply chains in homebuilding Opportunity 2:
• Improving subcontractor supply chain quality in homebuilding Opportunity 3:
• Driving financial benefits through greater levels of collaboration
08 The Case for Collaboration in the Homebuilding Supply Chain The Homebuilding This study focuses on the Supply Chain labour component only The subcontracted workforce includes, • The vast majority of The Definition for this but is not limited homes are built by the Research to: groundwork/site subcontractor workforce. preparation; bricklaying; “It is who you actually Homebuilders report joinery installation and do trade with.” that they employ at carpentry; scaffold most 15% of their site erection; roofing; • The supply of new housing workforce, and some glazing; flooring and wall comprises many types suggest this is as little as covering; painting and of organisation: financial 5%1. The exceptions are decorating; plastering; institutions, land agents/ found amongst those dry lining; kitchen fitting; promoters, professional homebuilders that have plumbing and heating; services organisations, their own contracting mechanical and electrical homebuilders, division. contractors, suppliers, installation; other housing associations and In practice, this translates building completion management companies into a large trade-oriented activities; and general fulfilling different roles: workforce employed by many homebuilding finance, land, planning thousands of businesses construction work. and design, construction, ranging from sole traders Some respondents also materials, sales, rent and and micros, to small, medium subcontract design and management. and larger ‘main contractors’. planning roles to their There are multiple tiers in supply chain. Some of This study focuses on the this labour supply chain, these roles are outside construction role only and on site we find that the the formal scope of Site Manager role (typically CITB’s footprint. • Most interviewees from directly employed by the large homebuilders homebuilder) has an essential interpreted the ‘supply role to creating its culture and chain’ in construction • Whilst Group or National efficiency. 2 as encompassing the long-term deals can, purchasing of materials, and are, being agreed 3 products and labour. for certain materials , no homebuilder has a Group or National deal for labour. This is all organised at a ‘business unit’ level which Key Points • Multiple trades have to can be regional, local or be procured, managed some variant spatial level • There are multiple tiers in and sequenced on a that is ‘not national’. the labour supply chain for homebuilding site. homebuilding. • Inefficiencies on site can • Homebuilders do not lead to lower productivity directly employ many of levels, re-work and the people constructing negative behaviours. the homes.
1 2 Up to 5 years for some of the largest homebuilders. 3 Typically, with manufacturers and wholesalers for commodities from roof slates, timber kits to kitchen and bathroom fittings.
The Case for Collaboration in the Homebuilding Supply Chain 09 How Big is the Estimating the size of their It was easier for them to think Homebuilding supply chains was a challenge about an individual site and for over half of the 20 extrapolate from that; noting Supply Chain? homebuilders interviewed for variations by region and type “It’s a mystical number” this study in October 2015. of new build.
Sample Estimate of their Live sites at Average subcontractor subcontractor the time of workforce operatives workforce Oct’ 2015 the survey per site4
8 of the largest 66,265 operatives 1,425 sites 46 homebuilders able to estimate numbers
Extrapolated and A range between 1,803 sites 46 modelled data for all 83,000 operatives5 (this varied per 20 homebuilders in the and 108,3246 site from 25 to 200 survey operatives operatives)
Many attempts are being “Our survey results would In context, this research made to estimate the total suggest the number of interviewed 20 homebuilders size of the workforce in personnel on site (including in September and October homebuilding, and given both direct employees 2015. It is reasonable to its fluid, dynamic nature and subcontractors) is suggest that in this period and complex labour supply equivalent to 939,000 they were working on chain model, it is extremely over the course of a year, approximately 2,000 live difficult to arrive at a single although this figure is sites across the UK with a figure that can be relied not full time equivalent subcontractor workforce of upon. Sites are opening all figure and indeed is likely around 100,000. the time, labour is being to include some double- deployed across and between counting reflecting multiple sites and subcontractors are contracts and sites.”8 typically working for multiple homebuilders so there are significant mobility and double-counting issues7.
4 The units built per site varied from 14 to 61 turnover of less than £200m we found that This last figure is also influenced by amongst 14 firms able to estimate in this for every direct employee, four were likely organisations in the sample with their own way. to be in the subcontractor workforce (20%: contracting divisions. 5 This applies our 46 operatives per site 80%); for firms with turnovers between 7 The HBF-led Qualifying the Workforce proxy derived from eight estimates and £300m and up to £1 billion the proxy was initiative is worthy of note as it does extrapolates to 15 respondents with different and data suggested for every capture data for 10 of the largest comparable ‘site’ models. directly employed member of staff nine homebuilders participating in this ongoing 6 Using the data from those able to estimate were likely to be in the subcontractor tracking activity whilst also helping their subcontractor workforce size and workforce (10%;90%); and for the largest identify the extent of carded and qualified factoring in their turnover, number of firms with turnovers of over £1 billion the workforce on their sites. sites and directly employed workforce, dynamic was different again, and for every 8 Source: The Economic Footprint of UK proxies were applied to derive estimates direct employee three were likely to be in House Building, HBF and NLP March 2015. for all 20 respondents. For those with a the subcontractor workforce (23%:77%).
010 The Case for Collaboration in the Homebuilding Supply Chain Key Points • There were noticeable differences in this figure amongst companies within specific • The research suggests a mean of 46 financial turnover thresholds10 and those subcontractors per live site. This proxy with bespoke rather than standardised masks wide variations, however, because design and construction. site type and complexity9 determines the volume and type of labour demand and intensity required at each site.
9 E.g. it may be useful to differentiate supply chain levels on larger inner city developments which tend to be predominantly apartment blocks. The build techniques are very different to those for housing. 10 For companies with a turnover of less than £200 million the average was quite consistent at around 45 operatives; for firms with a turnover between £200m and <£1 bn variability was observed between 26 and 200 operatives per site; and for firms with a turnover in excess of £1 bn the average was a tighter range between 25 and 37 operatives per site.
The Case for Collaboration in the Homebuilding Supply Chain 011 How Varied is the Homebuilding Supply Chain?
There is huge diversity in the homebuilder supply chain. Insights provided by homebuilders in October 2015 suggest that subcontractor firms can differ in many ways including:
Their Specialism Their Attitude Subcontractor (core trade) Performance towards risk Differences (cost (e.g. to employ performance and more) service levels)
Their Size Their Ambition (i.e. Length of (capacity to Motivations for to grow their relationship with deliver/size of doing business business or a homebuilder workforce) in homebuilding ‘steady away’) (new to very long term)
Employment Their Experience Realism Attitude to Patterns (in homebuilding/ (i.e. some Partnering (direct or other overstretch with a labour only) construction their workload developer contexts) in pursuit of /‘brand loyalty’ profit)
Travel to Their Reach Mindset (e.g. Attitude Work Area (local, traditionalist; towards taking (preferred regional or here and now; on any new locus of national) or forward blood e.g. business) thinking) Apprentices
012 The Case for Collaboration in the Homebuilding Supply Chain When asked what it is they • Available at critical times “Those who share our look for in their selected values, our ethics, care suppliers, homebuilders • Keeping up with the new about safety and the offered these insights: regulations working environment, care about quality and care • Insurance • Willingness to do what’s required, deliver to set about customer care and • Strong H&S culture and specifications especially the end user.” documentation • Demonstrate a good “Companies that will help • Build quality understanding of us promote our brand and the homebuilder’s support our growth.” • Performance reliability and marketplace11 delivery levels “Willingness to grow with • Ability to provide a good us, build smarter, build • Cost performance workforce more efficiently with processes we introduce.”
Key Points • Homebuilders have expectation that suppliers different emphases when will have appropriate • Differences are not it comes to working insurance and compliant limited to simply size, with those they know H&S documentation; in specialist trade or location. and bringing in fresh addition, build quality, Differences include more blood; this variability is performance attributes, intangible aspects that compounded at individual reliability, availability at demand a close dialogue local / regional business critical times, willingness between homebuilder level. to try new things and and subcontractor to • Homebuilders select ‘shared values’ are also understand what, if suppliers differently; at factors. any, collaboration could a base level there is an meaningfully be explored.
11 E.g. for one homebuilder they said “suppliers must understand the diversity of our marketplace i.e. social housing brings specific code obligations; different from lifetime homes, sustainable homes and spec. market.”
The Case for Collaboration in the Homebuilding Supply Chain 013 Homebuilder Perspectives
This chapter explores the views • Growth ambitions and supply chain importance. and experiences of supply chain engagement from 20 of the • Supply chain relationship management approaches. UK’s largest homebuilders. It is organised across the following • Challenges to encouraging subcontractor workforce themes that emerged from the development.
research. • Drivers that might create positive change in supply chain collaboration.
014 The Case for Collaboration in the Homebuilding Supply Chain Does this sound familiar?
“We have an outlook as a “We are starting to “We would like to see business to 2018 but cannot do bring more people increased commitment manpower planning as in house.” from our supply chain for apprentices, but again con dently to that period given can’t insist in it.” the regional autonomy and responsibility for identifying subcontractors who in turn manage their workforce.” “The supply chain is very important - their inability to grow would inhabit our ability “A piece of paper to achieve our targeted per doesn’t prove “Coaching is probably annum growth.” common sense.” as important as training of operatives.”
“It’s vital. Without “There simply aren’t enough them we can’t build subcontractors out there, not anything.” the breadth we need.” “We’re a numbers industry more than a people industry.”
The Case for Collaboration in the Homebuilding Supply Chain 015 Growth Ambitions Most large homebuilders or not, attract new talent or and Supply Chain are planning strong, if not, build smarter or differently aggressive growth12 and there using new techniques and Importance is consensus that this can only knowledge. “We can’t deliver without it increase pressures on the The growth ambitions of - we can’t build to value or ability to secure a sufficiently private homebuilders, allied quality.” large supply chain, especially (trades for sites) in a climate to the Government’s call for All homebuilders have of intense competition for these developers to increase reported that their supply labour. They mention very their build output in the chain is absolutely vital to different market conditions current Parliament (to 2020) their success as a business in London and the South East will increase the already and to enable their growth compared to other English stretched labour challenges strategies to succeed in the regions; and compared to locally. next 3-6 years. The drivers Scotland and Wales. “Growth at 7% per for homebuilders to have annum (which could be an effective supply chain “The supply chain is very described as incremental) are many, but principally important - their inability is possible from a materials include: enabling them to to grow would inhibit perspective, but growth build homes in the volume our ability to achieve at a rate higher than this required to a quality that will our targeted per annum (which could be described meet customer needs; to growth.” as aggressive) would cause enable a good return of profit Despite this reality, real challenges because to shareholders; and to build homebuilders also recognise there isn’t enough labour to brand reputation that leads to that their business models satisfy current demand.” higher average selling prices. do not allow them to control All decisions, business models the way in which those All homebuilders report the and supply chain interactions subcontractors make decisions dependency they have on, and models are therefore about how to grow, how to and the importance of their intrinsically linked to the employ or recruit and how supply chains but have limited commercial performance of to develop their capability. control over the decisions the overall business. Section 10613, minimum that their subcontractors make regarding whether to “Very important because compliance around health and take on more staff, employ it effects our productivity safety and some aspects of Apprentices or train their and our bottom line - if qualifying some parts of the workforce to meet current we get it wrong it effects site workforce to an extent and future workloads. our customer service influence behaviours, but results because there are essentially the choice is left delays, the budget on site to individual firms to decide is missed, and issues with how and if they improve what contra charging can arise.” they do, take on more staff
Key Points
• Major homebuilders have 3-6 year growth strategies, but some report having been unable in the past 12 months to achieve all targets in all regions/business units owing to labour and skills shortages.
12 Growth was explained in terms of profit margin and shareholder return; turnover; landbank; direct employment; operating unit expansion; number of dwellings that will be built. Most companies have a range of very commercially focused KPIs, others with a more overt human capital orientation include KPIs for workforce diversification e.g. members of the 5% club taking on Apprentices, graduates and trainees. The Lloyds Bank Building for Growth Report (2015) suggests the average turnover growth in the housebuilding industry is forecast to grow by 25% by 2020. 13 For example in London Boroughs all the requirements differ but we were provided with some examples of what homebuilders needed to respond to for an Employment Skills and Supply Plan.
016 The Case for Collaboration in the Homebuilding Supply Chain Supply Chain Relationship Management Approaches
Almost all large homebuilders operate ‘regional’ or spatially specific business units – interchangeably referred to as Divisions, Operating Units or Offices14. Amongst this sample of 20 homebuilders, collectively they operate 181 such operating units15. All decisions regarding ‘labour’ are made at this level typically with some support • Larger contracts tended • Key accounts tend to be from a centralised or group to go to larger firms that arranged around core complement of staff across have been known to the trades “because you need procurement, commercial homebuilders for some about 10 trades per home and human resources. time (and often those who and you need a number remained ‘loyal’ during of preferred suppliers per Contractors are selected recession). trade.” usually through a tendering process, though often • Whilst supply chains • Up to 75% of total supply through limited preferred are reported to be chain expenditure may be supplier contractor refreshed and maintained spent on subcontracted frameworks (or equivalent at continuously, of those ‘labour’17. local level), and sometimes respondents able to give • As a proportion of total even through less formal a view, most said that if subcontracted labour negotiation with suppliers you went back 5 years work packages across with long term partnerships and looked at their supply groundworks appear or relationships. chains then and now 80% of suppliers would be the consistently to be the Respondents were less keen same. largest (c 25%); followed to share commercial insights by plastering, plumbing, about the exact volume and • Larger contracts tended brickwork, and carpentry. proportion of work placed to go to firms with a These five areas alone with subcontractor firms, capability to work across may account typically but in aggregate terms some multiple sites, mostly for approximately 80% patterns were noticed: within a region, on of total subcontractor occasion across some expenditure when neighbouring regions, but aggregated at corporate rarely ‘nationally’16. level (highlighting their criticality).
14 This structure varies of course by size of firm and nature of firm (i.e. if they are part of a wider contracting organisation). 15 These business units often have structures including its own Board, Chairman, MD and Directors. Within these units although job titles differ slightly, there are a range of individuals ultimately involved in the selection of suppliers, including Managing Director, Production/Construction Director, Commercial (Team), Regional Buyer(s) and Senior Construction Managers. 16 It is rare for such supplier firms to operate across the homebuilders’ total (national) operation at trade level because of the over-reliance this might create for homebuilders. There were examples however (a) where groundwork contracts were the largest on offer and sometimes secured by a small number of major firms (especially in Scotland) (b) large, rather than major, homebuilders did place sizeable contracts for the majority of their operations with one or two larger companies where it had suited both parties’ ambitions. 17 I.e. as compared to (25%) expenditure on materials.
The Case for Collaboration in the Homebuilding Supply Chain 017 There is positive practice Seven respondents observed in terms of bringing willing to provide an these kinds of company estimate collectively together through supplier managed 763 ‘key roadshows / events or similar accounts’ i.e. specialist to outline future plans and firms who could provide some visibility about supply labour for contracts that will be coming their developments up. The objectives here are suggesting an average varied, but certainly these of approximately 109 key events aim to provide a greater sense of confidence Supply chain relationship firms per homebuilder. amongst key firms so that they management is variable across One major homebuilder in turn can plan ahead and the homebuilders in this suggested at the HBF think about how they could research sample. Policy Conference in March 2016 that of over respond to the need for ‘more’ “Supply chain relationships 5,000 relationships of their service from the are transactional, nomadic managed they had homebuilder; and potentially and transitional.” 150 strategic suppliers take a more positive attitude and differentiate their towards recruiting or “I keep telling my Building proactive support increasing their workforce Managers to build those accordingly. Interestingly capacity. In turn, homebuilders relationships in their areas.” though, the smaller hope to engender more loyalty amongst these firms One common trait is that the homebuilder the whilst also updating on all appear to have preferred larger the number of key 18 important issues such as suppliers, key or primary accounts managed . health and safety, quality and accounts where some firms sustainability depending on are subcontracted for a Homebuilders appear to the company’s messaging reasonably sizeable proportion particularly support their ‘key priorities at the time. of work across multiple sites relationships’ and those firms for their specialist trades – with potential: “We are looking at but never so large that the special support for 9 homebuilders become over- “Longer term relationships subcontractors (e.g. reliant on any one firm in any are the ones where we can painting and decorating) one region. These companies more confidently pay for seen as critical to the firm’s are the ones where more and deploy Apprentices to growth plans and to see collaboration and support is work with them for us.” what support they might often in evidence and where need to develop their “We’re starting to provide engagement is greatest. service, grow their business. more support to certain The main emphasis is on subcontractors that do a encouraging those firms to quality job, appear to have bring new people in not the potential for growth just rely on old hands and and could take more work mobilise them around sites volumes on in future so a - that’s what we expect.” ‘special group’ if you like that have typically been in a relationship for a longer period of time and / or whose recent performance has really caught the company’s eye.”
18 i.e. 1 in 5 accounts might be ‘strategic’ in a business with an annual turnover of <£100m, whereas only 2-3% of accounts are strategic for homebuilders of £500m+. The benchmarks in this regard are though highly variable depending on multiple factors examined including number and type of sites, number of units produced per site, size of directly employed workforce by homebuilders and total size of subcontractor supply chain per homebuilder.
018 The Case for Collaboration in the Homebuilding Supply Chain Homebuilders typically Good Practice Example maintain a central register or database of suppliers and subcontractors that are One homebuilder used an existing SHEA Site Management continually refreshed and Forum to bring together directly employed Site Managers updated by local teams; and and a cross-section of their key subcontractors. The event as new suppliers are attracted was well attended because it was promoted in a hierarchy to their chain as new outlets that would be attractive to the delegates i.e. health and are planned. Once selected, safety / compliance (first) with other topics covered ‘later’ local teams typically stay in including coaching and support for Site Managers and an touch with key suppliers and update for subcontractors on what workload would be conduct performance reviews coming up as well as how to keep on top of, and resolve, focusing on service levels and any health and safety and employment law issues in their cost performance. business.
Key Points
• Contractor selection and labour decisions are essentially a decentralised model across the largest homebuilders in the UK. This means decisions and approaches to supply chain procurement, management and development vary a great deal open to local and individual interpretation of those with responsibility for these stakeholder relations. • The background, mind- process on a site by site or supply service; and ‘supply set19, networks and culture development basis. chain development’ of these individuals at local • Homebuilders vary in their which infers a greater business unit level directly approach to engaging sense of collaboration as effects the approach with their supply chain, it involves taking a joint to the selection of from ‘supply chain and shared responsibility subcontractors and how procurement’ which is a to grow or succeed ‘old’ or ‘new’ suppliers relationship limited to the together recognising are brought in to their transactional aspects of a the inter-dependency local chain; although relationship only; ‘supply of the relation between the process of supply chain management’ which homebuilder and chain refresh and quality infers a greater sense of subcontractor. assurance is described engagement and dialogue by all as a continuous with contractors that
19 A different behaviour is exhibited when they are from an accountancy contrasted with a production/construction background.
The Case for Collaboration in the Homebuilding Supply Chain 019 Challenges to “There’s no way we can overcome this vary from Encouraging influence the labour market the increased use of labour issues too far in advance; agencies to a trend for Subcontractor but we do make the link some larger homebuilders Workforce between increasing our to increase the number of Development homes and not necessarily trades they directly employ. increasing the workforce at The preferred option would “We’re a numbers industry the same growth ratio - we be for more subcontractors more than a people have to grow but also hold to take on direct employees, industry.” our fixed cost base so we but risk aversion and the fluid need to build smarter, have nature of needing to bring Whilst overall homebuilder smarter processes and look people in and pull people off business strategies vary in at collaborative working.” developments on a site by site future outlook – typically basis is reported as being the between 3 and 6 years in their Most homebuilders see the main barrier. time horizon - the ability to critical challenge as being do workforce planning for about ‘capacity’ rather than “We’re limited about what non-direct employees (i.e. the ‘capability’. Their key concern we can do around labour.” subcontractor workforce) is in for the future is being able to reality much more inhibited to secure a sufficient volume of Large homebuilders have a around 6-12 months or site by subcontractors and operatives great deal of control over their site. to build more homes they directly employed workforce wish to build; something and have in place structured “12 months in reality that becomes more acute training programmes and despite having a 2 and and competitive at half year infrastructure for their 3-year view because and year end cycles in the development needs, but exert everyone knows the industry where wage inflation, limited and selective influence market conditions, quality poaching and “stealing labour on the way in which their of labour, and sales means from one site to another” is supply chain subcontractors they can all affect workforce reported as rife. make decisions about whether planning very quickly and to grow, how to grow or we need to be flexible “There simply aren’t enough become better at what they do. and responsive to all those subcontractors out there, conditions as a company.” not the breadth we need.” “Other than health and safety requirements ‘they’re Some homebuilders have Homebuilders were more not our employees’ so ‘growth’, ‘efficiency’ and enthusiastic to talk about the it’s hard to influence the ‘replenishment’ plans problem with attracting talent investment in training and which aim to forecast to the industry than training skills above and beyond our net recruitment and the existing subcontractor minimum compliance or deployment needs, but workforce, because of the contract requirements.” this is fairly inconsistent in current and predicted labour approach when we compare shortages. Responses vary to The majority of subcontractors homebuilder methods this continued skills shortage do not directly employ either, for their subcontractor challenge. say homebuilders, so in effect workforce planning. It was by the time you get to the notable that a number of “We are starting to bring individual firms specialising in homebuilders said they, nor more people in house” trades, and the individual gangs their supply chain were HR or deployed by those firms, there Pinch points are being employment, recruitment or is hardly any influence exerted found within specific trades. training experts and so they by homebuilders in respect Groundworkers, plumbers felt practices and behaviours of ensuring the workforce and electricians, bricklayers, were probably less mature or is as good as it can possibly carpenters, plasterers, capable than other industries be above and beyond H&S roofers and painters were in this respect. compliance. all mentioned. Tactics to
020 The Case for Collaboration in the Homebuilding Supply Chain “We don’t really get too having good health and safety All homebuilders would, involved in the training documentation (for audit trail however, be keen to see more side of things, but we purposes) and appropriate of their subcontractor firms do insist on certification, insurance certificates22. actually taking on more direct SMAS20, CHAS21 and some employees themselves and qualifications. We won’t “A piece of paper doesn’t recruiting more in future. ever select unqualified prove common sense.” Most of the homebuilders labour because of health Compounding this challenge have either in the past, are and safety.” is the reality that suppliers currently, or plan to increase the number of Apprentices Quality assurance processes can currently pick and choose which developer they work they take on directly and / are reported to be strong or deploy within their most once firms are doing their for at present, and it is reported that if one private trusted subcontractor firms in work on site, but there was future23. honest admission from some homebuilder insists on ‘more’ homebuilders that they do in terms of skills and training “The main thing we not insist on anything too in a supplier’s workforce above can report success on is onerous when selecting mandatory compliance, and around Apprenticeships suppliers in terms of skills, another ‘down the road’ does because we pay for a small competence, qualifications not insist on the same level of number (trades) and most or a commitment to take on requirement, they will walk to of those work for our Apprentices above and beyond the one that asks for less. subcontractors.”
Key Points people more generally, drivers include Section 106 and whether they are agreements mandating Barriers to encouraging seeking long term the need for specific skills, workforce development workforce retention (more training and educational investment in the supply likely to train) or a scalable outputs. chain include: model that can increase • The subcontractor’s views or decrease depending • The subcontractor’s size about whether they need on which stage of the and resource to employ to do anything beyond homebuilding cycle they directly, at a time when compliance training or are in. the trend is more towards not as they have a great increased labour only • The subcontractor’s deal of choice given the within their own supply ambitions and aspirations; amount of work around chain. whether they wish to and which developers to grow and profit from the work with. • The subcontractor’s predicted growth and attitude towards risk • Homebuilders report demand for their specialist and overall business that small firms are more trade services in the next confidence to take on new risk averse to investing 3-5 years. employees, in addition to in recruits and training, replacing any that leave. • The extent to which especially if they had been they are in supply chains through the last recession. • The subcontractor’s where procurement attitude towards its
20 Safety Management Advisory Services – genuinely be in place to check the ‘reality’ 23 Models vary. Some homebuilders pay the essentially a health and safety assessment of someone’s competence. Labour is being full cost of Apprentices when deploying process to help companies demonstrate brought in dynamically from many different to their supply chain (and claim back CITB their health and safety competence to channels too, so inconsistency in quality is grant), whereas most will offer a tapered clients. thought to be a big challenge that typically cost model where the subcontractor 21 http://www.chas.co.uk/ The Contractors has to get resolved at site level after the pays an increased contribution each year Health and Safety Assessment Scheme workers have already been deployed. Site over 3 / 4 years (England / Scotland) as 22 Some respondents expressed concerns Managers are under extreme pressures on the Apprentice moves towards higher that whilst it is good practice to encourage a day-to-day basis and make decisions that productivity and earnings potential that certification and qualification, and have are often equally short-termist to hit site benefit the firm. carded workforces, processes have to targets.
The Case for Collaboration in the Homebuilding Supply Chain 021 Drivers that might in for no more than 12 workforce development or create positive months. The will to invest skills or training’ was not is affected negatively by the message to lead with. change the relationship between Instead, to drive investment “Contracting is so pay rate vs productivity behavioural change, and to fragmented. Everything is differential.” change the nature and style priced on a job by job basis. of supply chain engagement When asked what ways The sector comprises such a and relationship management, homebuilders could be large self-employed market ‘investment in workforce encouraged to be more so firms don’t have interest development must be proactive in their strategies to to train an individual for designed and ‘sold’ to the develop, if not manage, their 18 months-3 years when, industry in a way that will subcontractor supply chain for example, a carpentry drive these more attractive they suggested that ‘selling package for a site is costed outcomes:
Productivity Quality
Noticed in things like Because this is noticed costs for snagging and by customers, affects rework and lost time reputations and the – affecting margins ability to sell at a across each site and premium business Productivity
QUALITY
Commerciality Sustainability
Commerciality Sustainability
All targets are hard- Affecting the way in nosed in the industry; which a homebuilder is targets must be hit and seen as future-looking shareholders need to and creates savings be satisfied e.g. reducing labour intensity
022 The Case for Collaboration in the Homebuilding Supply Chain Key Points • Medium-large sized businesses are thought • Factors that appear to work ‘harder because to effect a company’s they have to’ at nurturing approach to their supply positive supply chain chains include: relationships. This is so • The vision of the CEO and they can differentiate their attitude towards their ‘offer’ to the majors ‘partnering’. Companies who have the benefits of that have a Chief Executive competing on volumetric keen on ‘industry building, brand presence, relations’ and being seen competitive packages to look after their own and a pipeline of contract staff and their supply chain visibility to attract appear to drive behaviours suppliers. within their regional • The attitudes and business units more than preferred practices of others. commercial directors, • Companies with a production / construction • Drivers such as driver towards being directors, divisional MDs, ‘sustainability’ appear ‘employers of choice’, senior construction to impact on the supply or are members of the managers and regional chain management 5% club, or have specific buyers at ‘local business practice and relationship workforce diversity unit level’ as this is where management in targets, or who have most decisions are made homebuilding for some of strategies with specific about who is selected as the largest homebuilders objectives around skills subcontractors for new as another way of creating and leadership converging sites. a useful dialogue with their suppliers around with supply chain quality • The interpretation of better methods of are typically quite positive ‘quality’ (i.e. a quality construction, innovation about the ideas they supplier, a quality piece of and achieving efficiency as have for increasing the work) is very inconsistent a consequence. engagement they have at local level, something with subcontractors in central or group HR, the next 12 months; and procurement and supply feel their reputation could chain managers say benefit accordingly. needs to improve and are increasingly likely to intervene with in the next 12-24 months.
The Case for Collaboration in the Homebuilding Supply Chain 023 Subcontractor Perspectives
This chapter explores the views • Subcontractor characteristics. of 204 subcontractors who told us between January and • Subcontractor capacity. April 2016 about the workforce • Subcontractor challenges they faced, and their confidence to grow. attitudes towards meeting the • Subcontractor workforce challenges. ambitious growth targets of the homebuilders they supply. It is organised across the following themes that emerged from the research:
024 The Case for Collaboration in the Homebuilding Supply Chain Subcontractor recruited with the help of subcontractor companies Characteristics 12 large homebuilders and 5 in the supply chains of the Federations supporting this organisations participating. Independent research was study. The sample is therefore The reader should please bear conducted through a mix likely positively skewed this in mind when interpreting of telephone interviews, towards the more engaged the results. focus groups24, face to face interviews and online survey with a sample of 204 subcontractors,
Survey Collection Method Summary Sample: 204 Subcontractors
Self-completion/online Self-completion via Federations postal
7 23
Self-completion/ Phone online via interviews 34 Homebuilder 76
56 8
Self-completion Face to face at subcontractor interviews events/focus groups
The Case for Collaboration in the Homebuilding Supply Chain 025 Analysis of the data was their business activity to meet possible in a number of homebuilder growth demands standard ways, including size in future, and their intentions of organisation, specialist to develop their workforce trade, location, propensity to capacity and capability. Here travel to a job/contract, and are some of the essential proportion of business activity characteristics of the sample dedicated to homebuilding; to help the reader visualise the but also by a number of other kind of companies that have interesting factors such as kindly given their valuable their confidence to grow insights to this research.
Chart 1: Trade breakdown
Description of Subcontractor Business Activity. Sample: 204 firms, April 2016. Multiple responses possible.
General home building construction work 36 Mechanical/electrical installation 29 Scaffold erection 26 Joinery installation and carpentry 22 Plumbing, heat and air-conditioning installation 22 Groundwork/site preparation 21 Roo ng 21 Plastering 19 Bricklaying 16 Drylining 14 Kitchen tting 14 Repairs and maintenance 14 Flooring and wall covering 13 Painting and decorating 11 Glazing 10 Building completion and nishing 8 Other trades 29
0 5 10 15 20 25 30 35 40
Further analysis revealed ‘Other’ trades included Moreover, the sample that 77% of firms in the things like landscaping, comprises companies that rely sample practised solely green technologies, on homebuilding trade for a one of the specialist trades land management, plant good proportion of their total described, and a further hire, waste management business activity; in fact three 14% offered two trades, and a small number of in five say that in the past 12 whilst the reminder (9%) manufacturers, and firms months homebuilding related offered three or more of the specialising in alarm systems, activity accounted for more listed trades as part of their telecoms and whitegoods than three quarters of their business offer to customers. supply. total trading.
24 81 representatives from 63 subcontractor firms attending 3 homebuilder supported events in the South East, East Midlands and Yorkshire regions.
026 The Case for Collaboration in the Homebuilding Supply Chain Chart 2: Homebuilding as a proportion of total business turnover in 2015
% of total business £ turnover in past 12 months homebuilding related. Sample 202 firms. April 2016.
140 70% 117 120 60% 100 50% 80 40% 60 30%
40 27 20% 22 21 20 15 10% 0 0%
Subcontractors reported that they had helped build homes in No of rms the following locations, demonstrating a useful spread within % of sample the research sample.
Chart 3: Location of homebuilding sites that subcontractors have supplied in 2015
Where subcontractors have built homes in the past 12 months. Sample 204 Firms, April 2016. Multiple-response option.
80 70 60 50 40 30 20 10 70 48 44 36 34 29 28 28 27 25 19 18 0
Wales London Scotland South East South West North West North East East MidlandsWest Midlands Combinations East of England No of rms
Yorkshire and the Humber % of sample
The sample comprises a mix of firms working on sites across the UK, but further analysis reveals that the vast majority work within 30-60 minutes or ‘regionally’ more than 60 minutes away. The larger the business, the wider the radius the firm was likely to travel for jobs.
The Case for Collaboration in the Homebuilding Supply Chain 027 Chart 4: Propensity to Travel to Homebuilding Jobs/Sites
Travel Patterns to Homebuilding Contracts/Jobs Sample: 202 firms, April 2016
90 45% 40% 39% 80 40% 70 35% 60 30% 50 25% 40 20% 14% 30 15% 20 10% 3% 4% 10 5% 0 5 82 79 28 8 0% We mainly work We mainly work We work within our We work anywhere Some other locally (up to 30 within 30-60 region (more than in the UK for our pattern or minutes travel minutes of our an hour away) homebuilding dynamic time of our main main base for around our main activity, depending base) for most of most of our base for most of where the job is our homebuilding home building our homebuilding No of rms activity activity activity % of sample
028 The Case for Collaboration in the Homebuilding Supply Chain Case Study 1 In 2016 they will be recruiting When asked about on an ad hoc basis for staff housebuilder support, he A general housebuilding and and hope to employ two replied, that housebuilders construction firm, South West, graduate level people for “support us in their own funny 10-24 employees health and safety and for little way.” But he said that quantity surveying. They have “the mentality is ‘boots on the With 100% of business activity 15 Apprentices at any one ground’ rather than training dedicated to homebuilding, time and are looking at an and development” He clarified this company works largely innovative approach to serve by saying that subcontractors within the M25, and in their needs by setting up their are the driving force, while the past year they have own training centre to take 20- homebuilders have a ‘pounds, worked for 6 of the 14 major 30 Apprentices a year. shillings and pence mentality.’ homebuilders in that time. Of “They set the bar, but we’re the housebuilder selection They feel very confident about picking the tab up.” process, the MD commented: being able to supply to the “It’s a very personal industry. housebuilders over the next In terms of financial support It’s relationships. If they’re not 2-3 years, adding, “Planning is from the CITB, the MD said too boisterous, decent with the key thing to sustain us.” that the company tries to payment...” He added that The MD commented that there claim back as much as it can. homebuilders vary by region: is a major skills shortage in the “We pay the levy. We have a “one can be horrendous while sector: “You can go through very extensive training plan for another are superb and nice a few people before you find our employees - easy to get it people.” someone who ticks the boxes.” back.”
The Case for Collaboration in the Homebuilding Supply Chain 029 Subcontractor Subcontractor Directly Employed Workforce Size Capacity Sample: 198 firms. April 2016
198 firms provided an estimate 120 60% of their directly employed workforce, and this may 52% have been as little as 8,00025 100 50% employees or as many as 32,00026 employees depending on the assumptions one has 80 40% to make from the survey data about the larger firms in the 60 26% 30% sample27. Just over one in five 22% were micro businesses (with less than 10 staff), a half were 40 20% small (employing 10-99 staff) and a quarter were medium- large employing more than 20 10% 100. 43 102 53 In terms of capacity to grow, 0 0% analysis revealed a number of Micro Small Medium/large possible scenarios: less than 10 employees 10-99 employees 100+ employees
No of rms Between a half and two thirds of firms said they intended % of sample to grow their homebuilding activity and to help with this Growth intention in the next 12 months ambition, expected to increase Sample: 204 firms, April 2016 the number of people that would directly employ in the 140 70% next 12 months.
58% 120 57% 60%
100 50%
80 40%
60 30%
40 23% 20%
20 10%
117 119 46 0 0% Recruit more Take on Take on other 25 Total estimate: 8,019 of which a third (2,719) staff and employ some new types of trainee were employed by 145 firms with < 100 staff. them directly Apprentices or graduate 26 Total estimate: 32,038 of which a sixth (5,538) were employed by 145 firms with < 100 staff. No. of businesses intending in the next 12 months 27 Sole trader, 2-4 employees, 5-9 employees, 10-24 employees, 25-49 employees, 50-99 employees and 100+ employees. % businesses intending in the next 12 months
030 The Case for Collaboration in the Homebuilding Supply Chain Minimum and maximum planned recruitment over next 12 months. Sample: 204 firms, April 2016
Other trainees 141 /graduates 98
Apprentices 582
509
Staff 1160
946
0 500 1000 1500 Maximum recruitment
Minimum recruitment
The total number of new staff least one Apprentice (119 out Some firms do not wish these firms would take on of 204 firms) and collectively a to increase the amount would be between 946 and demand for between 509 and of homebuilding they do 1,160. This equates to between 582 was expressed28. despite being regarded as 3% and 14% of their current ‘select’ subcontractors in workforce. However, this Furthermore, a quarter supply chains so there is would be a total recruitment of the sample (23%) said limited capacity that can figure i.e. meaning some of they intended to recruit be developed within those the people being employed other types of trainees companies. The majority of would be replacement staff for and graduates expressing subcontractors appear to have those expected to leave their a collective demand for an ambition to grow, however, firm in that time. between 98 and 141 staff from they prefer steady rather than these sources. One in three rapid growth with four out of Very encouragingly, and also said they would grow ten saying they will never take one of the most positive their homebuilding activity on more than can be managed discoveries of the entire through deploying a larger owing to the need to maintain research, is that there was subcontracted workforce, their trusted relationships, the intention amongst three but the overall finding is that reputation and performance fifths of firms to take on at more firms intend to directly levels. employ.
28 NB.the actual demand may be higher because only 99 (or 83%) of the 119 firms saying they intend to recruit Apprentices were willing or able to provide an actual numeric estimate. The HBC Careers Committee that reviewed this result in May 2016 felt this to be a high level of latent demand, much higher than for the construction industry as a whole and important enough to elevate to discussions around how to specifically support this ambition in these firms and others like them in the wider supply chain. Demand is especially evident from general homebuilding construction work (133-145), mechanical and electrical installation (92-114) and scaffold erection (91-92), roofing (73), plumbing heating and air conditioning (55- 58) and bricklayers (52-54). Most popular demand by intensity is found amongst scaffolders and roofers in the sample.
The Case for Collaboration in the Homebuilding Supply Chain 031 Attitude towards homebuilding for the next 12 months Sample: 197 Firms, April 2016
100 50% 90 43% 45% 80 40% 70 35% 60 30% 50 25%
40 18% 20% 14% 30 12% 15% 10% 20 10% 10 5% 21 36 28 25 87 0 0% We want to take We want to take We could take on We don’t want to Something on more work for on more work for more homebuilding increase the amount else homebuilding but homebuilding but work but more of homebuilding cannot keep up the competition pro table work can work we do as a No of rms with demand for cost/labour is be made elsewhere business, happy too great in construction with what we do % of sample
Key Points • Within this sample there is • The qualitative research a demand for between 500 found that for most, the • Considering that major and 600 Apprentices in the idea of rapid growth is homebuilders report next 12 months; equivalent a turn-off but managed wanting c.5%+ increases to 2%-7% of their current growth is a turn-on year on year (and as much as workforce (higher than and any support with 25% at some local levels) to wider construction recruitment and selection 2020 this data suggests not benchmarks). This is a real is likely to be appreciated. enough capacity is being opportunity. It is important planned for collaboratively that whatever the outcome to achieve this kind of of the Apprenticeship Levy growth especially if the arrangements this kind pressures of half year and of latent demand is not year end persist. adversely affected.
032 The Case for Collaboration in the Homebuilding Supply Chain Subcontractor revenue through growth Confidence to Grow in homebuilding trade, but whether they have strategies We have learned that large in place to put in sufficient homebuilders are planning resource to enable that for growth – sometimes growth is questionable given incremental, sometimes rapid the challenges they report and even aggressive. But do in terms of securing cash- subcontractors want to grow flow to take risk and securing in the same way? The chart appropriate labour to deliver below certainly suggests the work. Moreover, in order that two thirds like the idea to achieve revenue growth do of growing their income and they have the right workforce planning outlook in place?
Intention to grow as a business through homebuilding activity in next 12 months Sample: 204 firms, April 2016
140 64% 70% 120 60% 47% 50% 100 50% 80 35% 40% 60 30% 40 20% 20 10% 130 96 72 102 0 0% Income/revenue Direct Subcontractor Number of growth employment growth areas/sites growth No of rms
% of sample
Remembering that this sample they can meet the demands is likely to be more positively of the homebuilders they skewed than a randomly trade with. A third feel quite identified sample of micro, confident and the remainder small and medium sized were less confident or could businesses contributing to the not say with any certainty how homebuilding sector, we find they would fare in this period that 1 in 2 feel very confident of predicted growth.
The Case for Collaboration in the Homebuilding Supply Chain 033 Most confident to Least confident to • Joiners and carpenters meet demand meet demand (26%). • Repairs and maintenance • Larger businesses > 100 • Sole traders (29%). (27%). staff (70%). • Firms employing 10-24 • Roofers (28%). • Glazers (75%). staff (32%). • Plasterers (29%). • Mechanical / electrical • Dryliners, flooring and wall installers (67%). coverers (25%). Please see the infographic chart on page 5 detailing the confidence levels of each trade compared to the ‘50% very confident’ benchmark recorded across the sample.
Confidence to meet growth demands of large homebuilders in the next 2-3 years Sample: 184 firms, April 2016
Not at all Very confident confident 2% 50%
Not that confident 13%
Quite confident 35%
034 The Case for Collaboration in the Homebuilding Supply Chain Confidence to Meet Homebuilder Demands by Trade
40 75% 80%
35 67% 70%
30 58% 60% 53%
25 46% 50% 50% 44% 42% 20 38% 40% 41% 15 30% 27% 29% 28% 10 25% 25% 26% 20%
5 10% 8 10 11 13 14 14 14 16 19 21 21 22 22 26 29 36 0 0%
Glazing Roo ng Drylining BricklayingPlastering Kitchen tting Scaffold erection
Painting and decorating Repairs and maintenance Flooring and wall covering Groundwork/site preparation
Building completion and nishing Joinery installation and carpentry
General home building construction work
Mechanical/electrical construction installation Plumbing, heat and air-conditioning installation Number of subcontractors
% very con dent to meet demand of homebuilders in the next 2-3 years
Con dence benchmark 50%
Key Points
• Large homebuilders estimated that of 75% of their total supply chain expenditure is on subcontractors (and 25% on materials). Of expenditure on subcontractors, five trades are thought to account for up to 80%. These are:
Groundworks Plumbing BrickworkC arpentry Plastering
• These 5 trades are also the ones that the same homebuilders said were in greatest shortage, with the addition of roofers and painters. Compared to the all-trade average level of confidence to grow in order to meet homebuilder demands in the next 2-3 years29 carpentry and plastering are significantly lower (suggesting the potential for deep pinch points ahead), plumbing and bricklaying being slightly behind the benchmark and only groundworks being marginally above the benchmark. In fact across all 16 trades only groundworks, glazing, completion and finishing trades, scaffold erection and mechanical and electrical installation exhibited higher than benchmark confidence to meet demands. And this is amongst a sample of more select, engaged subcontractors attuned to homebuilder demands.
29 The benchmark across this sample of 16 trades was 50% feeling very confident.
The Case for Collaboration in the Homebuilding Supply Chain 035 Subcontractor Workforce Challenges Does this sound familiar?
“We want to work “Most of the youngsters “Most kids don’t want to work 2-3 with companies drop out when they nd years as an apprentice because who pay on time.” out it’s hard work!” they think they can earn more money working for Tesco. These kids don’t have a longer term view of training to be a skilled “I question if even 40% of it is tradesman.” relevant for what these guys actually have to install in a new “I don’t want trainees home and if they stay in on site they make too homebuilding they will never many mistakes.” “I don’t know what get to use that other 60%.” we would do without our Polish workers.” “Financial support to allow us to recruit more people who need “There isn’t enough training. Small companies don’t have labour to satisfy training budgets or if they do the demand.” training is to meet legislation e.g. “Colleges are expensive Health and Safety, Gas Safety etc.” and that they only deliver the training their way.”
And this?
“We all earn good “We look for skilled “The people who can do the money... you can people rst or those job are in demand. You get your downgrade and who we think don’t nucleus, your local ones, nut the improve your need much training.” others. They don’t sign a lifestyle.” contract; they just move on if they are offered more money.”
“There’s only one thing that’s stopping this industry going “We want training that forward, and that’s people.” meets what we do on site.” “Our lads sometimes know more than the trainer.” “We rely on experienced “There’s no more employees to provide some levels “We have in-house blokes out there so of training and/or guidance to trainers for our directly the only solution is to new workers in-house. We pay employed workforce and rob off each other.” them a few quid extra for it. It’s for our sub-contractors more effective, quicker and we we expect them to come then know their abilities.” in at a certain level anyway.”
036 The Case for Collaboration in the Homebuilding Supply Chain The research has found a number of significant challenges for subcontractors:
• 1 in 2 subcontractors that do or wish to recruit staff report difficulties recruiting direct employees. Recruitment • 2 in 5 subcontractors that do or wish to recruit Apprentices report difficulties recruiting them (and frusrating drop out rates).
• 1 in 7 subcontractors report difficulty training and developing existing staff in new things e.g. modern methods, sustainable construction, using new technology or materials (nb 1 in 5 Training and subcontractors did not think this theme relevant to them or Development had not thought of it before). • 1 in 8 subcontractors report difficulty in raining existing staff to meet skills/compliance requirements of homebuilding requirements.
• 1 in 4 subcontractors (that directly employ staff) report Retention difficulty keeping hold of good staff as long as they would like.
Barriers to doing more homebuilding
Lack of good quali ed experienced trades in the local area meaning we can’t get the sub-contractors we need 55 There’s nothing stopping us doing more, we just choose not to as a business in the next 12 months 31 Nothing at all stopping us 24 Lack of con dence in the continuity of work that will come through so you can only plan job to job 20 We struggle to recruit people to our business as direct employees from the local area 18 Lack of good pro t margins in homebuilding because it’s mostly labour only 17 Local/national supply chains are closed to rms like ours 4 We struggle to win work from homebuilders because they are asking for things we don’t have or can’t do 3 We cannot deliver the work required because a lot of the training and knowledge we need is out of date at local… 3 We cannot afford the wages of skilled trades for homebuilding because there’s so much work on… 3 We struggle to establish relationships with local homebuilders or major contractors working locally 2 Something else 13 0 10 20 30 40 50 60
Number of respondents
The Case for Collaboration in the Homebuilding Supply Chain 037 For three in ten businesses Foreign workers are significant (28%) there are no barriers; for some sub-contractors they can grow with confidence (to the point of dependency and / or choose not to do for a number), and whilst any more homebuilding as recruitment and labour a proportion of their total agencies are routinely used business activity. However, for short term fixes they are this does mean the research described as expensive and as has confirmed a number unable always to deliver the of barriers do exist that right level of quality for the are inhibiting the sector to homebuilding roles required. perform to its full potential. The stop-start nature of home Local, qualified labour, Subcontractors report building work is a problem for workload certainty and extreme difficulty in securing subcontractors and leads to profit margin challenges are skilled labour leading to a a disincentive to train and a important factors driving variety of behaviours from barrier to retention, meaning behaviours in the supply chain. taking on less, or indeed more orders, than they have an increase in sporadic Labour Challenges: capacity to deliver, each recruitment drives. If demand Recruitment scenario leading to less than for their services was “lumpy” optimum results. staff left in quiet periods to Wage inflation and poaching join other firms. are current challenges, but are There was a very widespread of course a consequence of reliance on informal network Subcontractors bemoan the the shortage of suitable skilled recruitment through family, labour challenges arising from and experienced workers. friends and other contacts. a pressured half-year and year There is a general view Word of mouth therefore still end. The perception was that that the impact of the last appears to be the single most the focus of the home builder recession on the loss of skilled used medium for recruitment was on managing its finances labour was particularly severe. amongst subcontractors rather than optimising the Double-digit annual growth and where fast solutions are wider operation of the supply increases the squeeze on an required – because more chain. already over-tight indigenous units need delivering quickly labour market. “There’s no – labour agencies will be a more blokes out there so the simple, but costly means of only solution is to rob off each securing labour ‘now’30. other.”
30 Some of the ‘younger’ people (less than 40-50 years-old) we met at the focus groups talked about use of social media to recruit but reported little tangible gain at this stage of their experimentation.
038 The Case for Collaboration in the Homebuilding Supply Chain Key Points • Although it is encouraging • In 2013 subcontractors to report that just under were thought to employ • Short-term fix labour three-fifths (57%) of this an average of 70% of shortage solutions are sample of subcontractors their labour direct31. This routinely applied at sites say they intend to recruit sample directly employs across the UK in the staff directly to their 60% in 2015 (and 40% is absence of a sufficiently business, we should therefore subcontracted). skilled indigenous pipeline also take note that 1 in The proportion of of talent meaning that 2 of these firms say they direct employment systemic problems are not already have difficulties by subcontractors is being addressed i.e. these with recruitment so expected to grow in 2016 routines and behaviours they may not be entirely because 3 in 5 say they will continue if unchecked, successful – and/or may intend to recruit this and higher than optimum take on hires without the way whilst only 1 in 3 recruitment costs will skills required. expect to recruit through unlikely alter without • Similarly, three fifths subcontracted labour. intervention. intend to recruit • Fluidity of the workforce Apprentices in the next 12 is a deeply embedded months, but 40% will find and systemic aspect of this process quite or very the homebuilding sector difficult based on recent labour model that will be past experience. hard to change without dynamic leadership, homebuilder-supply- chain-collaboration and an emphasis on recruiting for the future not just today.
31 Source: Home Building Skills Research Report 2013
The Case for Collaboration in the Homebuilding Supply Chain 039 Case Study 2 They try always to accept work home-trained management, from their regular customers which has a positive impact. Plastering and drylining and decline those who are company, London-based, too far away or when they are The company had taken 100+ employees too busy to cope. They find on people through expert it difficult to cope with the agencies, but he said the This company works in fluctuations of homebuilders success rate had been low. the South East and East of trying to hit year end. The MD added that they England, the majority of the always used to struggle to time in housebuilding. In When asked about meeting recruit management but that deciding which homebuilders increasing housebuilding they now have a training to work with, the MD targets in the next couple of programme providing day commented that they get years, he said that there was releases. They sometimes tenders from everyone still a skills shortage, although get trainees from building automatically and win around he felt it was less than last contractors. “We have to train 25% of those contracts. year. “It’s easy enough to find them! 3-4 are successful out staff, but harder to access of 10.” He added that they Apprentices and graduate normally get complaints that level people.” In terms of staff some are unreliable and that retention, he said that they it’s hard to get them out look after them and pay them of bed in cold weather. His on time. He added that there is final comment was that the transparency of payment and funding of Apprentice training was vital.
Training and Many subcontractors focus on Upskilling is undertaken Development the providing themselves the though mostly limited to training they think is needed product or process specific There were general and strong and use experienced staff or driven by changes in concerns about the lack of and manufacturers to help regulatory requirements. sufficiently local or suitable deliver this. The result is that Manufacturers and the training from colleges and many trainees do not go on to companies themselves are others. Many focus group achieve formal qualifications. the main conduits for such participants felt that training training. While many take on provided by colleges and Apprentices, there are very Subcontractors that directly others was not sufficiently diverse views about the employ tend to train just work-practical or home effectiveness of the system, those people and rarely building specific and therefore the managing agencies they collaborate or offer support did not provide work have relationships with, the to other firms that they ready trainees. All this also quality of the Apprentices then also sub-contract with; contributed to perceptions and the extent to which the when a subcontractor places that discouraged young expectations of Apprentices – work with another firm to people from entering the especially younger ones – are help them deliver the home industry. increasingly difficult to meet building work package they Employers very clearly wanted and manage. expect that other firm to the ability to pick and choose have appropriately skilled and suitable modules to meet their trained staff. needs and effectively discount qualifications if they don’t provide this.
040 The Case for Collaboration in the Homebuilding Supply Chain Key Skills Gap impacting Productivity
One area of specific deficiency identified as being quite common was the lack of planning and site management preparation which led to a number of frustrations (down-time), loss of wages, poor sequencing and a lack of properly planned work schedules, and gangs physically leaving sites and not returning because the sites were not ready for them. This appears to interact with wage structures e.g. bonus rates. Interestingly there was some evidence of changes in practice to combat the challenges of holding on to people such as lump sum payments and providing vans. One of the larger subcontractors suggested this inefficiency was equivalent to a loss of 15% in productivity on site.
Summary of the key isn’t delivering the actual There needs to be more gaps or deficiencies training their men need. planning and co-ordination “It’s a training scheme on site. Most felt that poor identified through for the plant people not programming/planning ended the focus groups training to meet what we up with trades overlapping in need our operators to do” homes and productivity and Focus group delegates quality was impacted. One suggested they needed to • Carpentry – “we need company interviewed said have training that actually carpentry training for how they used CAD systems and meets the needs and practices we build houses”. A range extensive planning for their on site – “do these people of modules that we can off-site assembly products but who create the training know pick to suit our needs. found this wasn’t reciprocated what we actually do?” A core on-site and they turn up to of companies also stated that • Glazing – “we have to train find their products don’t fit taking people off site to train ourselves as we can’t find as nobody gave the first fix made it very costly for them anyone who trains what trades any detailed drawings through lost production time we need.” to work with. This experience so they would prefer more There is doubt around was echoed by a number of access to on-site training. course content in a number the trades present at the Examples of where current of Apprenticeships and VQs focus groups and all felt better training programmes be with a request for content co-ordination of design, detail they VQ or other accredited that is more relevant to and planning would benefit qualifications did not meet the the actual process of many of the trades and needs of their workers when homebuilding. Electrical and product suppliers. on site: roofing contractors gave examples of content being Identifying future needs • Plasterers – the current VQ “too wide and general” and was more difficult. Some does not include coving or not actually reflecting what participants said: “there have screeding. happens on site. Interestingly, been efforts to update, but there were examples from we keep coming back to • Dry-lining – there is no roofing and wall and floor traditional building methods.” formal Apprenticeship and tiling contractors that have Building homes that are the quality of programmes employed training managers sustainable was, however, do not address the who work alongside new seen to be an important conditions and processes entrants to train and develop change expected to drive they need for working on their standards in work. They different knowledge and skills a Homebuilding site. said can get people up to a needs in the coming years. • Roofing – too few places good standard for producing available to train work on site within 6 months where colleges take 18 months • Groundworks – the CPCS or more due to the added and scheme is failing them and irrelevant content.
The Case for Collaboration in the Homebuilding Supply Chain 041 Key Points • Manufacturers are an • Some subcontractors (and important provider larger homebuilders) felt • Fewer firms feel that of knowledge as well that parts of the training training is an issue as traditional training curriculum in courses was compared to recruitment providers. an over-requirement and and retention. • FE College provision was would like to see a more • One in six hadn’t really quite harshly criticised modular, industry-specific thought about future skills within these particular content in evidence. or knowledge until this focus groups either • There are opportunities research. for being out-of-date, to ‘promote’ training • As expected perhaps, not sufficiently local or and development to there is a divergence of offering training courses improve productivity, opinion between those that do not deliver the reduce snagging and who see training as a cost techniques used on increase margins; and if and those who see it as an site. This may act as a the industry wishes to investment. disincentive for some to be more future thinking train. this will have to be ‘sold proactively’ rather than react to a latent demand.
Case Study 3 system is not a model There seems to be no difficulty weighted in subcontractors’ in finding training though: Joinery Company, working in favour: “The housebuilder only “We’re bombarded by people Yorkshire and Lincolnshire, takes on the Apprentice so offering training - what training 50-99 employees they can tick a box. Then they can you give them? Housing charge us as subcontractor for isn’t going to change. Basic This firm is 100% engaged the Apprentice’s wages.” principles haven’t changed.” in new build houses. When In terms of other support, the selecting a housebuilder to When it comes to recruiting director commented that he work for, the owner of the staff in-house, he says, “People would like an academy. “I’d company said, “I like to work don’t want to be on the books. like 10 Apprentices every year for the ones who want to They want flexibility. There’s from our locality, and I’d pay do a really good job and get never a company that’s busy all a quarter, government would awards.” He said there was an the time and people want to pay a quarter and the housing over-emphasis on cost and go where the work is.” When company pay too. But none of speed rather than quality. asked about incentives to them would ever do it.” They are actively recruiting recruit, the owner said, “The graduates and have five at only way I’d take on more staff the moment. The director’s is more work. Only way to get opinion is that the Apprentice more work is to cut prices.”
042 The Case for Collaboration in the Homebuilding Supply Chain Case Study 4 One of the homebuilders that can be audited and supports by helping to fund verified via the payroll. He also Plumbing and heating one of their Apprentices. suggested that developers company working in Scotland, SNIPEF (Scottish & Northern should consider allowing an 50-99 employees Ireland Plumbers Employers additional sum or percentage Federation) also provides against the contract value This firm looks for a good funding for Apprentices’ towards training and working relationship technical college costs. The Apprenticeships. with their homebuilders, respondent said that training which includes good site is essential to the future of the organisation, continuity of industry and that it should be work, the opportunity for supported by the government repeat business and prompt offsetting a proportion of payment. While they anticipate corporation tax towards modest growth, they can’t training and Apprenticeships keep up with demand in the housebuilding market.
Case Study 5 of Roofing Contractors, rival sub-contract companies, Roofing Industry Alliance which frankly makes direct Roofing contractor, working and Roofing Training Groups. employment unattractive in the East Midlands/UK, What would incentivise for both employer and self- 50-99 employees them to train and recruit employed tradesman. He more? “It would be useful to added that, “This restricts the This firm is looking to employ receive financial support in number of Apprenticeships another 17 staff in the next bridging the earnings gap for we can deliver due to duty of 12 months. In addition, they self-employed tradesmen to care and Apprentice retention have employed over 100 switch to direct employment reasons - we won’t place subcontractors in the last 12 as trainers for new employees our Apprentices and trainees months. They are happy with (such as Apprentices) in the with sub-contract workers to their workload and not looking trade.” The MD said that they gain on-the-job experience/ to grow. They access grant need to deal with the ‘bidding training.” and practical support from wars’ for labour between CITB, the National Federation
The Case for Collaboration in the Homebuilding Supply Chain 043 Future Needs and Support
This sample of subcontractors mentioned 86 different homebuilders that they worked with in 201532. On average, subcontractors have relationships with 6 homebuilders but this masks wide variations ranging from 1 to as many as 18 relationships per year. 1 in 5 subcontractors report supplying more than 10 homebuilders last year.
Whole Sample 6.1 100+ employees 8.54 50-99 employees 8.21 25-49 employees 5.15 10-24 employees 5.17 5-9 employees 3.38 2-4 employees 2.31 Sole Trader 1.5
41 out of 204 subcontractors • Toolbox talks. “We maintain a training matrix (20%) said they received some for all our employees which is form of support from the • A grant from a local subsidised by the CITB grant homebuilders towards their Training Group. system.” skills, training or recruitment One company in particular, needs. This typically took the 17 subcontractors (8%) get that has other divisions that 34 form of information events support from Federations solely homebuilding, was and 24 (12%) say they get or occasional seminars with mentioned the most times as an emphasis on H&S and support from other types of being supportive with a very organisation35. monitoring; and some support proactive training programme with Apprentices – usually for their suppliers. Overall Interestingly, questions about a stepped or tapered cost though, this means that 80% what future support might model. In rarer circumstances, of subcontractors did not be welcomed or make a named homebuilders were receive any support of this difference to their business mentioned by a minority kind from homebuilders. 83 is a subject that many of subcontractors who also subcontractors (41% of the subcontractors struggle with. offered slightly more bespoke total sample) said they access For some, they don’t feel the support in tune with the funding support for skills, need for support because needs of the subcontractor’s training and recruitment they are content with their business: needs from CITB33. Typically business model and appear to • NVQ2 training to ‘older this included grants for be relatively set in their views, workers’ to supplement Apprentices, attendance and attitudes, routines, practices their CSCS cards. achievement grants, funding and behaviours when it comes towards NVQs, advice, funding to taking on work, taking on • Payment towards / of via Training Groups, funding people and delivering their SMSTS refresher training support for CSCS cards and service. for relevant staff. grant rebate assistance.
• A contribution towards SSSTS training for relevant staff.
32 Either through a direct contract or as part of the wider supply chain i.e. subcontracted in by another ‘larger’ subcontractor higher up in the supply chain who might hold the direct contract with the homebuilder. 33 Nb. not all subcontractors will be in scope for grant support from CITB depending on their specialist trade. 34 Mentions included: CECA, CFA, NFB, FMB, NFRC, NASC, Roofing Industry Alliance, NICEIC and SNIPEF. 35 Mentions included Roofing Training Groups and National Skills Academy for Construction.
044 The Case for Collaboration in the Homebuilding Supply Chain Possible Solutions The research tested the and how to take attractiveness of a range of ideas and solutions with them forward subcontractors:
How attractive do you find Very attractive Quite attractive How to take this any of the following if they forward. were available to you - assuming they are free for you to access?
Funding for training/ 91 64 Promote CITB grant coaching for skilled (45%) (31%) to eligible firms. tradesmen you employ Homebuilder (76% very or quite proactive support. attractive). HSP funding.
Funding for training/ 88 61 Promote CITB grant coaching to help any (43%) (30%) to eligible firms supervisors you employ Homebuilder. (73% very or quite proactive support attractive). HSP funding.
Having access to a regional 38 81 Promote the training training group so it’s easier (19%) (40%) groups relevant to to find what’s available trades in each region locally for your staff or other via the Homebuilder sub-contractors (59% very regional business or quite attractive). contacts to raise awareness.
Local business breakfast 44 76 Homebuilders organise events for homebuilders (22%) (37%) at local level and invite to talk to you about CITB experts to raise their future needs and awareness of available growth plans along with support; linked to information about training specialist topics such as: and grants available to your SHEA, productivity and business (59% very or quite quality, ‘innovation’. attractive).
An annual conference for 36 82 The HSP could explore homebuilding suppliers (18%) (40%) this as part of its 4 and subcontractors to year industry-wide get updates on issues communications such as health and safety, campaign. Majors recruitment, training, coming together development and good with key accounts in practice in the industry (58% ‘one space’ or ‘key very or quite attractive). regions’ to promote best practice and encourage supply chain development.
The Case for Collaboration in the Homebuilding Supply Chain 045 Access to free e-learning 37 80 Link to existing /training to do with (18%) (39%) resources such as your specialism in a the Supply Chain homebuilding context (57% Sustainability School very or quite attractive). HSP to audit existing and planned e-learning approaches and co-ordinate future approach through CITB Flexible Fund.
Getting personal face to 41 59 CITB Apprenticeships face / phone support from (20%) (29%) Officers. an expert that can help you CITB Company take on new Apprentices in Development Officers. future (49% very or quite attractive).
Getting free technical 33 63 Link to existing tips and homebuilding (16%) (31%) resources such as knowledge relevant to the Supply Chain your trade online from a Sustainability School dedicated website (47% very HSP to consider which or quite attractive). portals are best to promote to meet this need. Manufacturers can also assist with this.
Getting an expert to come 24 46 HSP funding and in and do an analysis of (12%) (23%) provision in place your firm’s training needs to deliver 120 ‘free’ to find out what’s missing company assessments and how to fill gaps so in 2016 and 2017 with you can win more work funding in place to when proving competence incentive first 1,000 for homebuilder PQQs or employees taking tendering for contracts (35% up training and very or quite attractive). development needs identified (available from Autumn 2016).
Taking part in a Shared 18 38 CITB to work proactively Apprenticeship Scheme with (9%) (19%) with the 56 firms other firms like yours to expressing interest share the risk of employing in this idea and scope Apprentices (28% very or out feasibility of such quite attractive). a Scheme within their locality.
Other solutions we should expect to feature in any co-ordinated response could include accessing the training of manufacturers especially if that ‘user training’ is “put on a more formal footing”36; and new solutions emerging from proposals for a Site Management Centre of Excellence37.
36 Source: CPA Skills Report 2015. 37 Being developed by NHBC with Redrow at the time of publication.
046 The Case for Collaboration in the Homebuilding Supply Chain Good practice The emphasis elsewhere is on are deeper and based around to inspire the supply chain development, joint aspirations and mutual slightly more nuanced than support more than past or homebuilding sector supply chain management and current performance KPIs. “As an industry we are not it means that relationships the best at doing supply chain management. There Homebuilding Wider Construction is much better practice in Sector other industries.” Keynote Contributor, HBF Policy Lot of rigour at PQQ stage to Conference March 2016 get on to supply chain. Some negotiated, longer There are some good term contacts but exception examples of positive supply Long-term contracts and not the norm. relationship management to chain procurement and grow more the norm. management practice within Some offer subcontractors training but mostly limited the homebuilding sector, but Training well beyond to SHEA. compliance e.g. supervisory, it is reasonable to suggest management support. that this practice is both Key Accounts are identified inconsistent and less mature and differentiated for Strategic accounts identified support. than other approaches found and nurtured. within the wider construction sector.
Positive practice • Some homebuilders parent company had other found within support longer- (sometimes larger) divisions term suppliers with dedicated to civils, contracting homebuilding Apprentices38. and infrastructure. Within • Relationship managers for these kinds of organisation, • Qualifying criteria/ key accounts. the supply chain management accreditation schemes of their homebuilding division • KPIs and performance to be accepted as an appeared to be inspired by 39 reviews (360°) at local approved supplier CHAS . practice elsewhere in the levels. • ‘Subcontractor Charters’ business and so there was a 40 slightly different approach • Action Planning and or ‘Supply Chain Guides’ to procurement pre- monitoring of that Plan. (e.g. Stewart Milne). requisites41 and emphasis on • Supply chain annual The researchers observed supporting subcontractors conference. slightly different (and with a significant training increasingly positive) supply programme42 as well as • Regional supply chain chain practices of those behavioural coaching and events and seminars. homebuilders, whose toolkits43.
38 Often on a tapered cost model over each year of the Apprenticeship whereby the supplier makes an increased contribution each year and the homebuilder typically claims CITB grant. 39 This is one of the example schemes that satisfy qualifying criteria for the Keepmoat supply chain, along with the need to demonstrate operational capability, commitment to safety and evidence of relevant operative training as well as confirmation of adequate insurance cover too. 40 E.g. the Guide provided by Stewart Milne Homes. 41 E.g. Kier insist on ConstructionLine or SSIP accreditation encouraging subcontractors to develop their wider business capability. 42 E.g. Keepmoat report on the thousands of training days they support their subcontractors with each year. 43 E.g. Galliford Try’s ‘Challenge Beliefs, Affecting Behaviour’ programme extended to subcontractors in their supply chain.
The Case for Collaboration in the Homebuilding Supply Chain 047 “We ensure our supply chain schemes through our Academy. In part we believe this is partners’ skills, and the Conditions in our supply because these companies materials they supply, meet chain remain challenging. are used to having skills, our customers’ expectations It is still difficult to obtain employment and educational and our environmental and skilled tradespeople. We engagement conditions placed social standards. To ensure have introduced supply chain on them by major clients; the availability of future forums to address this issue whereas private homebuilders talent we remain committed and we use our Supply Chain that are solely homebuilders to promoting careers in Business Briefing to engage are the clients and can choose construction and supporting with our strategic supply the extent to which they wish Apprenticeship and trainee chain.” Homebuilder. to drive such behaviours in their supply chains or not.
Positive practice • Supply chain strategy • Suppliers are often found in other includes emphasis on and categorised at the start recognition of the role of of the relationship as sectors of upskilling and support. verified, preferred or construction strategic within the • Many Tier 1 companies contractor’s procurement Supply Chain Strategy and have their own ‘branded’ database with the latter Motivations philosophy to drive supply two categories typically chain relations above and “A great supply chain can needing to be Achilles beyond health and safety44 be a source of competitive accredited in preferred or e.g. ‘Perfect Delivery’45. advantage. We want to stated schemes. raise the bar and help our Supply Chain Procurement • Suppliers are expected suppliers to consistently to contribute to main deliver excellence.” • Pre-requisites are strict contractors’ sustainability Balfour Beatty e.g. suppliers must follow specified assessment goals, and in return they • Stated objective to routes and demonstrate get support in a number of “become the customer credentials that often ways e.g. Balfour Beatty’s of choice to the best cost them thousands Sustainability Roadmap suppliers.” of pounds (such as includes commitments to externally via an Achilles maximise the engagement • Discrete supply chain accreditation scheme46, of local labour and strategy with annual, ConstructionLine, suppliers which means national resource and 48 SSIP47 or internally opportunities for SMEs . budget behind it. via the contractor’s • Supply chain strategy own subcontractor about capability and questionnaire). ambition not just capacity and (past) performance.
• Supply chain strategy founded on the premise that ‘collaboration is key’.
44 Although ‘zero harm’ will almost always be 47 Safety Schemes in Procurement (SSIP). businesses become more sustainable and a key component of said philosophy. 48 The virtual Supply Chain Sustainability a number of large contractors encourage 45 Morgan Sindall. School is an online industry-wide free their supply chains to use free resources 46 Examples include: ‘Building Confidence’, resource, helping small to medium sized and the online learning available. UVDB, FPAL or RISQS.
048 The Case for Collaboration in the Homebuilding Supply Chain Supply Chain Management Supply Chain Development • Emphasis on supervisory and management support “Effective supply chain “It’s our responsibility to to induce wider skills management relies on help our suppliers stay safe, development in firms. good communication and be greener and become a strong, collaborative more efficient in everything • Emphasis on behaviours working relationship, they do.” and behavioural training which are all central to our Skanska and development. strategy.” Costain General Manager • Stated responsibility by • Support with upskilling for Procurement and the main contractor to and new entrants Supply Chain Management support their suppliers (Apprenticeships). with skills and training. • Supplier Code of Conduct “A company’s success relies – to emphasise ethics • Some parts of the sector on the effectiveness of its and behaviour standards benefit from leveraging supply chain, whether it’s expected. National Skills Academy for in promoting collaboration Construction. and technical innovation • Supply chain management or by improving customer conference. • Performance management satisfaction.” aims to progress the Costain • Regional supply chain status of each e.g. from events. ‘approved’ to ‘preferred’ to ‘strategic’ – rewards • Relationship managers for for performance take key accounts at local level the form of longer-term with emphasis on one-on- contracts. ones. • Emphasis on innovation Clear performance criteria and support for the supply KPIs measured with each key chain including innovation supplier. forums.
Conclusions Homebuilders say they fear that can provide good introducing anything ‘beyond performance and service Homebuilder Perspectives minimum’ training compliance delivery, appropriate insurance conditions in PQQs at present and H&S documentation, Homebuilders say their supply because subcontractors have availability at critical times chain is vital to success but more power to choose who in the year, the provision they have limited control and to work for than before and of a ‘good workforce’ and a influence on subcontractor will gravitate towards those variety of more intangible workforce investment that insist on less rather than assets including shared decisions. They are concerned more. values, ethos, commitment that growth targets will not be to quality, customer service achieved owing to persistent Subcontractor relationship and willingness to adopt labour and skills shortages, management is all done at new processes as they are and some report being unable regional/local levels and introduced over time. to achieve regional targets as practice is reported to be a consequence in 2015/16. inconsistent and not always progressive. Homebuilders are looking for suppliers
The Case for Collaboration in the Homebuilding Supply Chain 049 Subcontractor 12 months. One in two requirements; and training Perspectives of these firms say it is them in new things quite or very difficult to e.g. modern methods, • Two thirds of interviewed recruit direct employees sustainable construction, subcontractors want to at present. Recruitment using new technology or grow their homebuilding solutions being used are materials. business activity revenues traditional, short-term • Subcontractors differ but at a managed rather in nature, more costly widely in their training than rapid pace. and likely at the expense of more sustainable, and development • Key factors that influence indigenous solutions that practices, awareness of subcontractors’ choice of build talent for their firms available support and homebuilder to work with or the wider industry. propensity to engage with include: ‘workforce development’ • There is a real divergence opportunities in general. • Payment Practice of opinion about taking There are concerns about on young people and the work-readiness and • Match between Apprentices who are attitude of younger new subcontractor capacity reported as lacking the entrants, the quality / and the ‘job’ (size, type right skills, mind-set and currency of FE training and location) work readiness and / or provision and an appetite • Quality of relationships who walk away part way for more contextualised, and fair treatment through Apprenticeships modular training and for a few pence more to a development • Subcontractors prefer competitor. 6 in 10 firms developers that give say they intend to recruit • 1 in 5 subcontractors greater visibility of their new Apprentices to their in this sample said future workload to avoid business in the next 12 they receive support peak and trough demands months. Of these, 4 in 10 from a main contractor for their services, because experience difficulties at homebuilder towards their otherwise this exacerbates present. Subcontractors workforce development. pressures on their ability also welcome practical, Four in ten get support to secure an appropriate financial support to recruit from CITB and one in mix of labour and skills. older workers. ten get support from This is especially acute at a relevant Federation. half year and year end. • 1 in 7 subcontractors During the research many report difficulties subcontractors said they • 6 in 10 subcontractors with training existing either did not know they say they intend to recruit staff to meet skills/ could get support, or more staff and employ compliance requirements purposely elected not to them directly in the next of homebuilding access support.
Researcher a shift in the way in emphasis is limited to Perspectives which subcontractors performance management are procured, managed rather than a more Growth limitations because and developed by progressive dialogue of a lack of supply chain homebuilders at local about how to ‘develop’ development levels. Whilst there is key suppliers. some evidence of good • The industry’s growth practice in relation to ambitions can only supply chain procurement be achieved through and management, the
050 The Case for Collaboration in the Homebuilding Supply Chain Homebuilders are encouraged reported as being costly need to be stimulated to make their training assets and lower quality. by the homebuilders available to subcontractors and manufacturers in Apprenticeship and older unison. The forthcoming • Homebuilders could elect worker financial support Homebuilding Training to be more proactive requested by subcontractors and Development Needs in supporting those Analysis tool can be subcontractors in their • The demand for Apprentices was strong pointed firmly at some supply chain who have the of the subcontractors in potential and ambition to within this sample, and yet complaints about this study to benefit their grow; and could open up business and help identify the training infrastructure their work readiness, attitude and propensity specific skills and unmet they have in place for training needs. their direct workforce to drop-out or walk away to staff employed by to a competitor for a few Homebuilder cultures can their key accounts e.g. pence more were equally more positively influence training centres, branded striking. Subcontractors subcontractor behaviours in Academies, e-learning, said they welcome future. behavioural training, support with tackling coaching, dedicated tutors this challenge, but also • The market is operating and assessors. asked for additionally almost entirely around or enhanced financial the driver of cost KPIs for subcontractor support to bring on and instead of best value say training and development develop older workers subcontractors; they want days and investment a procurement model There is a relatively passive, where those who invest in • Strong, visible KPIs for traditional approach to their workforce have this ‘training days offered training and development recognised and rewarded to subcontractors’, • Training and development through ITTs and the benchmarked across the offer of longer, secure industry might also be practices are largely driven by regulation. contracts. Homebuilders a useful development more likely to succeed in in future. Some There is little advocacy amongst this sample future are those that focus homebuilders already do joint success by doing this, but not all. of homebuilders and subcontractors for the work more effectively on Incentives to drive quality and quality and relevance of site and in a more evenly ‘new’ talent as well as ‘old training and qualifications planned way with built in hands’ in supply chains available from Colleges. reward and recognition Subcontractors that do for subcontractors that • Given that growth will not really value training, say perform well and have a be achieved solely through there is a ‘testing’ rather view to building future the capacity of the existing than ‘learning culture’ capacity and capability supply chains because and not enough on-site i.e. collaboration. of their preference for practical training. Very The researchers call managed rather than few subcontractors were for a shift towards a rapid growth, more new however able to articulate culture of ‘supply chain entrants will need to be what they felt their future development’ within attracted, procured and training needs might be homebuilding and a supported. At local level, or say what exactly is co-ordinated effort to those with responsibility missing from the mix or target resource and for designing and growing what needs changing. support through collective the subcontractor base Vision was myopic in solutions at those firms must be incentivised to this regard and would who aspire to grow, and attract new suppliers improve the quality of and develop longer term their output. pipelines of talent rather than default to short- term fix labour solutions
The Case for Collaboration in the Homebuilding Supply Chain 051 Recommendations Opportunity 1 Homebuilders Subcontractors Creating more • Give greater visibility to the future pipeline • Be proactive in seeking out homebuilders’ responsive of work at regional levels. workload plans for the next year; attend • Reduce the half year and year end pressures. their events. subcontractor • Identify each subcontractor that has • Be active in accessing financial support supply capacity to grow and prioritise support available to recruit Apprentices so that a chains in for these firms. future pipeline of talent is continuously built within the supply chain. homebuilding • Pay promptly and increase CSR supply chain commitments.
CITB Homebuilding Skills Partnership • Consider engaging with the HSP on a and other Stakeholders nationally co-ordinated programme • Involve the supply chain in designing of supply chain collaboration events solutions that emerge as a result of which would see CITB personnel raising the Homebuilding Skills Partnership’s awareness of, and giving advice and ‘Attract’ Action Group which will guidance to, subcontractors at agreed seek to co-ordinate a sector-wide regional/local level events. image, attractiveness and recruitment • Provide brokerage support and the skills campaign. matching service to those subcontractors • Promote best practice and practical saying they require support to become toolkits that subcontractors can apply. more responsive to homebuilder needs. • Co-ordinate an industry bid to support • Encourage support for ‘growth aspirant’ growth aspirant SMEs starting with subcontractor micro and small businesses those in this sample. who wish to grow the % of homebuilding business activity to 2020 making use of channels such as Structured and Flexible Funds (particularly the Skills and Training Fund for smaller companies).
Opportunity 2 Homebuilders Subcontractors Improving • Make the training infrastructure they • Put themselves forward for a subcontractor have in place for their directly employed (free) Homebuilding Training and workforce available to a greater Development Needs Analysis visit supply chain proportion of their key subcontractors which will help identify areas that can quality in and those who aspire to grow. improve quality. homebuilding • Agree a national supply chain strategy • Seek feedback from homebuilder which embeds ‘workforce development’, performance reviews to identify areas supplier codes of conduct/charter for improvement, and invest in training and agreed resource to make blended or development, or site behavioural learning opportunities available. training to increase capability. • Consider mandating half day learning • Commit to using the new sessions for all key suppliers on homebuilding specific resources commencement of significant contracts. available from the Supply Chain • Explore the appetite for more e-learning Sustainability School. and coaching solutions. • Join the HSP and champion the • Explore opportunities for collective ambitions of the Supply Chain bargaining with Managing Agencies and Collaboration Group, especially where it Colleges to meet Apprentice demands. will need local ‘champions’ in future.
CITB Homebuilding Skills Partnership • As part of the ‘Right Training for and other Stakeholders Construction’ Strategy and ongoing • Share widely the development work being development of the ‘Supply and Demand’ undertaken in 2016 by the ‘Occupational evidence base, work with the homebuilding Working Group’ to identify industry sector to provide an assessment of the standards for critical roles. key shortfalls to tackle i.e. relevance, • Ensure the 70 firms showing interest accessibility and quality of training in this research are ‘first customers’ provision at an agreed local level (e.g. with of the new Homebuilding Training and each LEP area) to meet local demands. Development Needs Analysis tool and • Ensure the Strategic Partnership Directors service in 2016/2017. at CITB are aware of this research and the • Co-ordinate collective investment opportunity to work together to identify bids and business cases to establish a small number of prioritised localities at least 3 local ‘HSPs’ between 2016 towards which joint investment could be and 2020 that will support a critical targeted in future. mass of subcontractors that aspire to • Explore any potential for a National Skills grow and improve their capability in Academy for Construction inspired approach homebuilding. to support developers embed skills and • Revisit solutions suggested in 2013 employment planning at scale across http://www.homebuilding-skills.com/ multiple UK sites in a co-ordinated way. where they still feel relevant in 2016.
052 The Case for Collaboration in the Homebuilding Supply Chain Recommendations Opportunity 3 Homebuilders Subcontractors • Be inspired by supply chain development • Where they exist, maximise support Driving practice in other parts of the construction via Regional Training Groups and financial sector, with procurement, incentives Federations at local levels. and programmes that emphasise • Be proactive to join the Homebuilding benefits innovation, sustainability, supervisory and Skills Partnership in 2016/17 in order through management capabilities and behaviours. to connect to the various workforce greater • Explore the potential for bespoke development solutions that will be productivity-focused programmes such promoted and developed through that levels of as the ‘Good to Great’ pilot funded by vehicle in the 2016-2020 period. collaboration the UK Commission for Employment and • If local ‘Homebuilding Skills Skills that might be co-ordinated across a Partnerships’ evolve, be proactive in number of large homebuilders and their joining such Partnerships as they can growth aspirant suppliers at scale. likely join up industry needs for skills • Help shape the design and promotion of with local training provision. industry standards and vocational learning • Joint effort to meet latent demand for to support subcontractors in supply Apprentices. chains. • Joint effort to meet latent demand for Apprentices.
CITB Homebuilding Skills Partnership • Be ready to receive co-ordinated bid(s) and other Stakeholders from the HSP to take the multiple • Empower the new Supply Chain solutions identified through this research Collaboration Group to prioritise this forward from 2017-2020 so they are joined report’s many solutions. up and cost effective for the industry. • Use this research as an evidence base • Look at opportunities for effective On from which to then create collective Site Assessment and Training (OSAT) bids to address identified workforce opportunities where this is most needed challenges. and appreciated in the sector. • Consider early prioritisation of • Explore opportunities for helping co-ordinated efforts to raise the homebuilders and those subcontractors capabilities of site managers employed looking to grow with recruitment support by homebuilders in parallel with the for older workers. capabilities of supervisors employed by • Make a joint effort to meet latent demand subcontractors. for Apprentices identified in this research. • Target those specialist trades, where • Maximise Grant reform, Structured and homebuilders believe they are most Flexible Funding routes to support critical in terms of shortage and value, collective bids submitted by the HSP over and where those firms are reporting time. least confidence to grow to homebuilder • Communicate new opportunities and demands in the next 3 years. investment priorities to the sector around • Seek supply chain input to formulating CITB’s approach to support training e.g. training requirements and standards. any changes to the scope of Training Plans in future.
More generally, 1. Disseminate the 2. Use the evidence 3. Galvanise the greatest findings of this research to develop bids and subcontractors to be opportunity to stakeholders that need investment cases to secure proactive in accessing to know about it and who the support required by the support available and presented by can be encouraged to subcontractors in this joining the Partnership this research is collaborate on the small study. Route these bids to become active by co-ordinating number of key areas. through the HSP as a users of new solutions collective where possible developed over time. actions through to achieve scale and the brand new impact. Homebuilding Skills Partnership who can: 4. Commission follow up 5. Influence and 6. Consider how best research in 2016/17 to positively shape the use to activate solutions at address the questions of CITB’s resources and local levels – including raised by this study e.g. expertise to support the on-site - where the the quality and relevance homebuilding sector subcontractors do their of training to meet the in future, especially in business and need to sector’s needs; as well as respect of Grant Reform access the labour market repeat this study in 2018 and its Structured and and training provision to to see if anything has Flexible Fund processes. solve their most pressing changed. workforce challenges.
The Case for Collaboration in the Homebuilding Supply Chain 053 Research Contributors
Our thanks to representatives49 of the following 20 homebuilding organisations for providing extremely detailed insights about the way they manage supply chain relationships in their business.
• Avant Homes • Grainger PLC • Persimmon
• Barratt Developments Plc • Hill Residential • Redrow Homes
• Cala Homes • Jones Homes North West • Strata
• Countryside Properties • Keepmoat Limited • Taylor Wimpey
• Crest Nicholson • Kier Living
• Croudace • Linden Homes
• Davidsons Homes • Lovell
• Galliard Homes • Miller Homes
49 Representatives included a mix of individuals with job titles including: Production Director, Group Development Director, HR Director, Commercial Director (3), Central Procurement Manager, Group Head of HR, Divisional Managing Director, Building Director, Land and Planning Manager, Group Procurement Director, Human Capital Investment Manager, Group Training Manager, Head of Learning and Development, Supply Chain Director, MD Logistics Division, Group Learning and Development Manager, Head of Strategic Procurement and Supply chain.
054 The Case for Collaboration in the Homebuilding Supply Chain Our thanks to representatives from all of these SMEs in the homebuilding supply chain:
3D Flooring Ltd Crest Roofing Ltd J N Dunn Patrick Traves Joinery Ltd
A J Ashcroft and Sons Ltd Crest Scaffolding Ltd J.O.M Construction Ltd Paul Pittock Painting
A J Moran Ltd D P Lawless (Painting & Jackson Jackson + Sons Limited Paul Sellick Brickwork Ltd. Decorating Services)
A Kennedy Construction Ltd D S McG Ltd Jacksons Plastering Paula Rosa Manhattan Kitchens
A.J. Shooter Decorators D Sellars Joinery James Lammond Ltd PGM Carpentry Contractors Ltd
Access 2 Ltd D&B Scaffolding Limited Jim's Carpets Phoenix Flooring Services Ltd
Acorn Scaffolding D&E MAckay ( Cont ) Ltd JNJ Bricklaying Plastering Contractors (Stanmore) Ltd
Alarmfast Supervision Security DA Cook Builders John Cawrey Prestige Plastering. Systems Ltd
Allied Scaffolding Ltd DBD Distribution Justin Swales Ltd PRS Plumbing
Alno Contracts Scotland Dickinsons (Plumbing and KJW Drylining Ltd PRS Plumbing and Heating Heating Contractor) LTD Services Ltd
Altrad NSG Ltd. DJR Smith LTD. Knox and Wells PSS Scaffolding Ltd
AM Flooring Services DKB Electrical Services Ltd L. Cain & Son R G EVans
Anthony Waite Building and Dovend Electrical L+P Walton Construction Ltd R M Poole Decorating Ltd Roofing Ltd
APE Scaffolding Ltd Edenway Contractors Ltd Lakeside Plumbers Ltd R Thomson Electrical
Applebridge Construction Editquest Lanes Landsape Contracors RBK Engineering Ltd
Aqua Interiors Electract LD Plumbing Reconomy
Arrow Elite Scaffolding Yorkshire LTD Leamick Building Systems Ltd Rilmac Scaffold
Artisan Brickwork Ltd Ellicon Lightline Rolec Electrical and Mechanical Services Ltd
Astral Communications F.P. Heating and Son PLC. Lintill S&I Groundworks Electronics Ltd
Atkinsons Fencing Ltd Flahive Brickwork Ltd Llyo Clough & Sons Ltd Scotia Double Glazing Ltd
Avonside Flannery Civil Engineering Luro Electrical Service Electrical
Avonside Group Services Focus Scaffolding Ltd Lysander Scaffolding Sharland Roofing Ltd
Avonside Roofing Ford Windows M Bryan Groundworks SIK Electrical Ltd
AW Tiling Formark Scaffolding (Holdings) Ltd M.A. Broughton Electrical Sliderobes
B Gallagher Forster Roofing M.C. Phillips Smarta Construction and Technology
B Woods Foster Group Marley Contract Services SMP Brickwork
Barkemp Construction Freaher Finish Services Marshall Construction ltd SP Cleaning Services LTD
Bassett + Ryder Ltd G.S.James Carpenter and Builder MDM Roofing Services Ltd Speedier Scaffolding
Bilson Manufacturing Ltd GlenAvon Plumbing & Heating Ltd MDM Specialist Trades Ltd SPS (Plumbing Contractors)
Bracknell Roofing Limited Gleneast (UK) Limited Mitchell and Urwin Stanmore Ltd
Brackwell Roofing Glevum Windows Munster Joinery UK Symphonm Group PLC
Brandwells Construction Co Ltd Gordon Bow Engineeing Ltd MV Kelly System Method Building Ltd
Brick Baron Gregor Plumbing NC Plastering and Rendering Ltd T Costello Building Services Ltd
Bridges and Buckle H2O Plumbing & Heating Neal Stoneman Scaffolding Ltd Tilecraft Services Ltd
Browns Plasterers Harker's Neil Shacklocks Plumbing TONE Scaffolding Services Ltd Heating and Electrical
C + D Harley Finishings NJS scaffolding Tonic Construction
Cary Samways Carpentry Harlyn Enterprises Ltd Nolan Hardman Total Protection (Painting Solutions) Ltd
Chestman Decorators Henry Boot Norfolk Dry Wall Ltd Toulson Carpentry and Joinery Ltd
Choice Plumbing Houlihan Excavations Ltd North London Lofts Train
City Scaffolding Houseman Joinery Northern Groundcare Ltd Treforest Tiling Ltd
Clarkson Evans Howard Plastering Olphert and Lambe Ltd Wallace Electrical
CMB Building Contractors Ltd Ian Okby Joinery Ltd Oregon Timber Frame West Yorkshire Joinery
Colne Valley Electrical (South) Ltd Ibstock Brick Oxford Spires Scaffolding Ltd Westpoint Construction Ltd
Connaughts Construction Interserve Industrial Services Ltd P.W.Phillips Carpentry and Joinery Wheeler Electrical
Connect Scaffolding Ltd J & L Carpentry Ltd Parker Tiling Whitcrom
WM Donald
The Case for Collaboration in the Homebuilding Supply Chain 055 The Case for Collaboration in the Homebuilding Supply Chain
Skyblue Research welcomes feedback on this report. Please direct it to Alan Graver, MD Telephone 01904 340942 Email: [email protected] www.skyblue.org.uk
Professional Research and Evaluation Specialists based in York.
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Disclaimer: Information is presented in this report in good faith and is deemed accurate at the time of publication, May 2016, but the authors cannot accept responsibility for errors or omissions.
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