The gloomy future predicted for the construction industry is at odds with the experiences of recruiters in the sector as they struggle to find staff to fill the huge number of roles needed to complete the large building projects that are flooding in. Lucia Cockcroft reports

Last week, press reports warned of a bleak outlook for the construction industry, fuelled by doom and gloom predictions surrounding the credit crisis.

Research by the Royal Institution of Chartered Surveyors — the UK construction market survey for quarter one, 2008 — showed workloads had dipped to the lowest level in more than a decade.

But for recruiters providing staff for the £13.9bn sector, the struggle is how to attract enough people for the building projects that are still flooding in.

In February, the Construction Skills Network said 182,000 more workers are needed for building works for the 2012 London Olympics. The projected workforce in the run-up to the Games includes 122,000 bricklayers.

A November 2007 report by the Construction Industry Council (CIC) revealed that 70% of construction firms believe a shortage of recruits is the biggest problem facing the sector.

A flood of large-scale building projects in recent times — which include the St Pancras regeneration and Heathrow Terminal 5 and now the 2012 Olympics — have been pushing up demand for staff of all levels.

In addition to the pressing need for unskilled workers, the CIC estimates that 12,340 "competent new professionals" are needed to meet demand.

So what are the challenges for construction recruiters?

Bridget Francis, operations manager for Reed Property and Construction, says economic uncertainty should not detract from the fundamental issue facing construction recruiters — that of a severe skills shortage.

Francis says: "Although fluctuations in the UK economy have had an impact on property and construction companies' willingness to recruit, the underlying issue is that the industry as a whole is struggling to attract sufficient numbers of people at grass roots level."

Adam Stephenson, marketing executive of North-East construction recruiter Protech, recruits for a wide cross-section of roles, from site labour to architectural and surveying positions.

Stephenson says the best supply of recruits is for unskilled jobs, mainly because of the steady influx of eastern European labour. The real challenge, he says, is finding skilled recruits such as project managers, directors, graduates and contract managers.

He says: "It is a concern. The general shortage is affecting everyone, not just in the north-east. One other knock-on effect is that salaries are rising. The majority of construction firms are offering benefits such as cars and bonuses to retain the people they have."

Colin Woodward, director of construction recruiter Contract Scotland, echoes that view. He says that project managers, site engineers and quantity surveyors are especially in demand. He adds that there is increasing competition among employers who are making counter offers to attract the best candidates, as well as improving staff benefits.

Woodward explains: "There is not much difference between the firms for candidates to chose from. We are encouraging clients to offer good staff benefits, such as early finishing times on Fridays and gym membership. But many in the sector are slow to change."

Dan Angell, business manager, Reed Property & Construction, agrees that construction firms are turning their attention to attraction, market positioning, the provision of benefits, and applicant tracking.

He says: "Expert advice from agents and specialist suppliers to develop and implement integrated talent acquisition management systems is being sought far more frequently, as are the services of specialist search practices for the assessment and acquisition of senior and operational professionals."

The drawing power for staff of the large construction projects in London and the south-east is placing a further strain on recruiters seeking staff in the rest of the country.

Protech's Stephenson says the need for a vast workforce for the Olympics site is proving a strain: "Candidates have moved down to London because already the rates they can get are twice what they can get here.

"We have massive projects — such as the Newcastle city centre development — for which we will need a lot of high quality professionals. So, while there is a general shortage of good talent, to make the situation worse there is a talent drain towards the South-East."

So how can construction recruiters weather a storm that is blowing on several fronts?

Protech's consultancy-style model, or "synergy business", means it works with a handful of construction firms on a sole supply basis, instead of a volume-driven approach with longer, more involved partnerships.

"We don't believe in firing out CVs to as many clients as possible," says Stephenson. "Our consultants are trained to think about a small number of companies that will be suitable for candidates."

Recruiters could also look to the overseas market as a source of supply.

Bambos Eracleous is head of construction at consultancy Rockpools, which recruits for top posts such as chief executives and directors. He points out that while huge construction projects in the Middle East, China and India are providing tempting opportunities for UK workers, the same markets can also prove a valuable source of labour.

He says: "Employers are becoming more open-minded in terms of where people are coming from, and overseas staff are now filling higher roles. A few employers have made that step and I can see a lot more following in the next three or four years."