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Pestle Analysis SECTORAL STRATEGIC APPROACH TO COOPERATE ON SKILLS IN THE CONSTRUCTION INDUSTRY WP2. Status Quo and Sectoral Skills Strategy; Deliverable 1. PESTLE ANALYSIS Table of contents Introduction 4 Methodology 5 Stage 1. Documentary research 6 Stage 2. Development of the questionnaire 8 Stage 3. PESTLE analysis interviews 9 PESTLE factors results derived from interviews 10 Political factor 12 Economic factor 31 Social factor 45 Technological factor 59 Legal factor 75 Environmental factor 87 Conclusions 104 Appendix 1. Factsheets 110 Appendix 2. Final questionnaires per factor 174 Appendix 3. Respondents per country 185 Version: 4 Date: September 2020 Author: Construction Blueprint consortium / FLC Introduction One of the tasks foreseen to be implemented in WP2 of the Construction Blueprint project (WP2. Status Quo and Sectoral Skills Strategy) has been the analysis of different external factors that may affect the construction industry and its evolution in terms of professional skills and competences. These factors are: ✓ Political: local, regional, national or international factors that may affect the construction industry in the future. ✓ Economic: current or future economic issues that may affect the strategy to be created. ✓ Social: socio-cultural elements that may have an effect in the construction industry. It is recommended to pay attention to current social trends in order to know how they are changing. ✓ Technological: these are essential factors, since technological changes are currently happening very quickly. Whatever technological factor developed today will doubtless affect the future of the construction industry. ✓ Legal: these factors deal with the obligations to comply with the national/European legislation. Changes in the legislation will lead to changes in the markets and industry. ✓ Environmental: factors that directly or indirectly are related to the natural environment that could have an influence in the construction industry. These conform what is known as PESTLE analysis. The revision of these factors is a key to understand the construction industry context, because it provides relevant knowledge about current and future trends, therefore, allowing to define in advance the sectoral skills strategy to be followed. The study of these six macro-environmental influences affecting businesses, products, or industries is a technique of strategic analysis for the description / definition of any given environment (it is not analysis of target group needs). This analysis has made possible to identify and reflect, in a systematic way, the different factors of study to have a clear overview of the context in which the Blueprint project is moving, and subsequently to be able to strategically act on them. That is, the consortium has been trying to understand what will happen in the near future that will shape the construction industry, making use of the opportunities and anticipating risks. 4 Methodology The following flowchart shows the methodology used for the carrying out of the PESTLE analysis. Design of a template to guide the 1. Design of template and partners towards a relevant result circulation among partners Each country identified trends, barriers, challenges and opportunities and proposed 2. Identification of related questions that could be included in trends/topics per factor a common questionnaire through documentary research 3. Completion of the template + proposal of related questions May the topic and its related questions be 4. Categorization of applicable at EU level? trends and topics NO YES 5. Compilation of questions + selection Not considered 6. Design of common questionnaires for the questionnaire per factor 7. Conduction of interviews 5 Derived from these steps, several internal documents have been developed during the Pestle development: Stage Phase Generated document 1. Documentary research 1. Design of template and Methodology document and circulation among partners template for factsheets 2. Identification of trends/topics N/A per factor 3. Completion of the template + Compilation of completed proposal of related questions factsheets 2. Development of 4. Categorization of trends and Excel file questionnaire topics 5. Compilation of questions + Compilation of questions selection 6. Design of common Questionnaires per factor questionnaires per factor 3. Pestle analysis interviews 7. Conduction of interviews National reports ❖ Stage 1. Documentary research As stated in the Methodology flowchart, the analysis of the six PESTLE factors has been developed in several phases. The first one has consisted of a documentary research resulting in a series of factsheets, that have been used to find out information that would be afterwards translated into questions (PESTLE questionnaires). These questionnaires were used in the subsequent personal interviews addressed towards national respondents, whose professional profile corresponded to any of the factors, and whose experience and knowledge could provide a reliable view of the topics to be analysed, from their own personal perspective. Sectoral general context analysis For each country, the designated partners (VET providers and Polish trade union) have completed a factsheet with information about identified main topics, trends, barriers, challenges and opportunities in the construction industry (with a maximum of 2) in their countries concerning each ‘letter’ of the PESTLE approach, based on the analysis of reference documents, such as Build Up Skills projects (information that is available on the European Portal for Energy Efficiency in Buildings: http://www.buildup.eu/en/skills/bus-projects ), and other national and international relevant projects in which partners may take part. Also, partners were requested to identify and analyse different future skills needs that will potentially be required by the Construction industry in the short-medium term. For analysing the trends and the question proposed, the following template was circulated among involved partners for completion (March 2019): Factsheet Template Trend Barriers Challenges Opportunities Related question/s for the questionnaire 6 The table above was completed with one or two trends per PESTLE factor: o POLITICAL FACTOR: Political factors determine the extent to which a government/policy may influence the economy or a certain industry. o ECONOMIC FACTOR: These factors are determinants of an industry’s performance that directly impacts companies and have resonating long term effects. o SOCIAL FACTOR: These factors scrutinize the social environment of the construction industry, and gauge determinants like demographics, population analytics, etc. o TECHNOLOGICAL FACTOR: These factors pertain to innovations in technology that may affect the operations of the industry and the market favourably or unfavourably. o LEGAL FACTOR: These factors refer to laws that affect the business environment in a national and European level. Legal analysis takes into account both of these angles and then charts out the strategies in light of these legislations. For example, consumer laws, safety standards, labour laws etc. o ENVIRONMENTAL FACTOR: Factors of a sectoral environmental analysis, including global changes in climate, environmental offsets, their impact on economy, etc. A second table was completed by partners for the definition of different future skills that, according to the documentary research, will be needed in the Construction Industry: Skills and training analysis Future skill needed Current situation Barriers Measures to be undertaken Related question for the questionnaire The purpose of this documentary research has been to obtain a wide picture about the current and future situation of the Construction Industry in the countries and in the EU (as a complementary content to the Status Quo report), and to provide the preliminary material through which the consortium could start designing a questionnaire composed of relevant questions derived from those topics and trends considered as most significant. Once the factsheets were completed by the partners, the following first step consisted of analysing the different topics, trends and skill needs identified in the countries, in order to find out comparable results. Trends (and the related questions proposed by the partners at the end of the table) where grouped according to categories, such as Industrialisation, Digitalisation, Renovation, VET or Sustainability, among others, to facilitate the analysis and the subsequent selection of questions. The complete relationship of the factsheets provided by the consortium is available in Appendix 1. The reading of this material is highly recommended to fully understand the results 7 obtained in this Pestle analysis through the interviews, and to find out to what extent the factsheets’ contents based on documentary research are afterwards confirmed in the interviews. Indeed, most of the trends and topics identified in the factsheets have effectively been taken into account by the respondents, which proves that, in the wide sense, the Construction Industry in the EU shares the same problems and barriers, regardless the country. ❖ Stage 2. Development of the Questionnaire As it has been indicated, the final part of the factsheets was to propose 1-2 questions per trend to be potentially included in the final questionnaire, if selected among all the proposed (the questions proposed per trend are shown in the factsheets in Appendix 1). The most relevant questions were categorised and collected. The level of
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