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LCRCA Construction Action Plan 2018-2020

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LCRCA Construction Action Plan 2018-2020 Skills for Growth Action Plan Construction 2018 - 2020 2 Contents 4 Summary 6 Introduction 12 Demand for Construction Skills 15 Skills Supply in Liverpool City Region 24 Skills Supply and Demand Gap 28 Support for the Sector 31 Appendices 35 Trades with Highest Risk of Shortfall 39 Developments Economic Impact Skills for Growth Action Plan for Construction 3 Foreword The Construction Sector is vital to delivering the and secure fair and inclusive growth. The devolution infrastructure and buildings needed for the future of the Adult Education Budget from the 2019/2020 inclusive growth of Liverpool City Region. Making academic year will enable the Combined Authority to sure that people have the skills to get a job and commission construction skills outcomes to meet the progress in construction and that the sector has needs of individuals and employers. Our approach people with the right skills they need for growth are will be in line with the vision and direction set out in key priorities for the Liverpool City Region Combined this Action Plan. Authority. Improving skills levels helps improve the productivity and economic output of our employers, The priorities identified here set the direction for as well as ensuring that they can benefit from skills providers and employers, and will require input this growth. from many partners to deliver. We have made great strides in recent years: but there is more to be done This Action Plan sets out an ambitious programme of to drive collaborative working across providers and work to help people into construction, to ensure they employers for the benefit of us all. This Action Plan realise their potential and to ensure that businesses will not only help build Liverpool City Region as a can access the construction skills they need now and better place, but one with people better placed. in the future. This enables us to improve productivity Steve Rotheram Cllr Ian Maher Liverpool City Region Metro Mayor Liverpool City Region Portfolio Lead, Skills and Apprenticeships 4 Summary Construction as an industry has a wide range Liverpool City Region has a continued demand for of opportunities for career progression, but has new housing, infrastructure projects, refurbishment mixed perceptions. Construction is made up of a and further work to extend the benefits enjoyed by wide variety of trades, from traditional wet trades the refreshed city centre across the City Region. such as plastering and bricklaying, to new trades With projected activity across all local authority including building envelope skills, and professional areas, including multi-billion plans for waterfront roles in architecture and more. It is highly mobile, developments at Wirral and Liverpool Waters, from major infrastructure to meeting housing construction in Liverpool City Region has strong demand, this is an industry highly responsive to not demand for traditional and new skills. only downturns but also boom times. The construction workforce in Liverpool City Region The sector has contributed over £25 billion (ONS) is smaller than predicted future demand. Diversity Gross Value Added (Balanced) to Liverpool City needs to be improved. Current training provision is Region’s renaissance in the last 20 years. This has not completely aligned with future demand and key resulted in a city centre largely refreshed ahead of the trades are substantially under supplied. 2008 Capital of Culture with work continuing beyond through new landmark buildings, refurbishment • 47,000 people work in construction in the activity, major infrastructure projects, housing Liverpool City Region. development, public realm, and public sector • Only 11 % of the workforce is female; mainly buildings in health, education and more. These have in professional and managerial roles. provided not only an improved built environment, but also job and training opportunities in their construction • Most companies employ less than 10 people. and end use. This has represented around 5% of • The GVA of the construction sector is expected Liverpool City Region GVA over the last 20 years. to grow by 19% by 2040. Despite the decline in terms of jobs and numbers • A large number of businesses in the construction of businesses faced by the construction industry industry are sole traders with no employees. over the past few years, predictions for the industry in Liverpool City Region are good and output Action is needed by Training Providers, Employers, is expected to increase by 2.3% over the next the Liverpool City Region Combined Authority 5 years locally. There is a higher than average and CITB to address these issues and ensure proportion of workers aged 55 and over (Table 7), the sector continues to contribute to sustainable therefore there will be a need to recruit to fill the economic growth. gap in preparation for their retirement. Skills for Growth Action Plan for Construction 5 Specific Actions Who What When Meet on a quarterly basis to network and work collaboratively Quarterly Review existing provision to ensure that it is aligned to the needs of End of 2018/19 businesses as set out in this Action Plan academic year Liverpool City Region Using credible grassroots community organisations, engage Construction underrepresented groups (particularly people with special educational Commence in and the Built needs, women, people from BAME communities and people with first year Environment disabilities) and encourage them to take up opportunities in the sector Skills Network1 Share and promote success stories of underrepresented individuals Commence in (particularly people with special educational needs, from BAME first year communities, people with disabilities, and or women) Explore potential of a social enterprise Apprenticeship Training Agency 2019 for Construction CITB and other training boards to support networking and collaborative Quarterly working sharing best practice Improve careers engagement and progression using CITB, other In first year training boards, and training providers Employers Develop clear progression pathways within key trades and professions In first year Share pipeline identification with Combined Authority and training Commence in providers first year Monitor data from planning applications, NOMIS, ONS, CITB, other Ongoing training boards and other sources Provide information to networks to inform delivery Quarterly The Liverpool City Combined Authority Collect, champion and publicise common approaches on planning and In first year procurement Shape Adult Education Budget commissioning (devolved from August From 2019 2019) against identified need 6 Introduction Specific Actions To realise Liverpool City Region’s economic growth The Construction Industry Training Board (CITB) ambitions, more needs to be done and things done were commissioned to research and provide context differently to be truly responsive to the skills needs for this Construction Skills for Growth Action Plan. of employers. The Combined Authority Employment Their detailed research and analysis of labour market and Skills Team is working closely with the Local intelligence from CITB’s Construction Skills Network Enterprise Partnership through a Skills Commission (CSN), which forecasts labour demand in each UK to enable employers and business leaders to take region and provides forecasts of how the industry the lead in identifying the key inhibitors to growth changes year on year. For Liverpool City Region, and success. they applied a Labour Forecasting Tool (LFT) to further calculate labour demand by converting the Under the banner of ‘Skills for Growth’ the volume of construction activity forecast to take place Employment and Skills Board has commissioned into forecast labour demand using labour coefficients 10 existing sector-specific Skills for Growth Action (the number of person years required to produce Plans. These action plans provide a comprehensive £1m of output). This research was shared with analysis of supply and demand issues, detailing training providers, employers and other key what actions are specifically needed to capitalise stakeholders, and their responses together on key growth opportunities within the City Region. with the Employer Skills Survey have informed The Employer Skills Survey 2017 provides a understanding and identified key actions. contextualised analysis of current and future skills needs of Liverpool City Region employers and a firm evidence base to inform both the development of the Skills Strategy and the continuing development of new and existing Skills for Growth Action Plans. The Skills Strategy for the City Region saw detailed data and policy analysis, together with a programme of individual and group consultations, to formulate the key issues, measurable outcomes and actions to secure the key outcomes. Skills for Growth Action Plan for Construction 7 Key Points from the Employer Findings of CITB research for Skills Survey 2017 Liverpool City Region • The Construction sector experiences a reported Construction has played a key role in the high internal skills gap (26% of respondents). regeneration of Liverpool City Region. This has been through both construction and end use roles, • The prevalence of workforce training is high in and providing a better built environment as the Construction (89%). Liverpool City Region has adjusted from a post- • The take up rate of apprenticeships is highest in industrial decline to being on the forefront of the the Construction sector with 41% of businesses fourth industrial revolution. employing
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