JV North has seen no impact on its housebuilding development work despite construction employment dropping to its lowest level since 2000.
Figures from the Office for National Statistics (ONS) show the construction workforce fell 1.3 per cent in the third quarter to just over two million, marking a 15 per cent collapse in capacity since a peak just before Covid.
This amounts to 367,000 jobs, leading JV North to stress the need for builders to invest in skills and training and do more to promote the array of benefits that come from working in construction.
JV North Chair, John Bowker, said: “The latest ONS figures are unsurprising; 18 contractors collapsed in the North West over the course of the current 2021/26 Affordable Homes Programme with a subsequently negative impact on sub-contractors down the chain.
“It is an ageing workforce so when contractors enter administration, many leave the sector either to retire or want a change and find alternative employment.
“Construction has slowly but significantly changed in the last couple of decades.
“Many SME contractors now operate as project management companies more than contractors as they do not directly employ large numbers of people but sub-contract work when needed.
“Despite this, there are currently enough people employed in the North West so there has been no impact on our development work.
“We are still building our target of two new homes every working day in the current Affordable Homes Programme with over 3,000 more in the next four years with work going through our framework.
“To safeguard ourselves and reflect the current market conditions following this downward trend in construction employment we changed our relationship with contractors.
“Over 12 months ago we made a concerted effort to make contractors feel more valued as key partners instead of the traditional client-supplier relationship focusing on narrow economic goals.
“We have given more leeway on construction terms and share more risk.
“In turn this will make contractors healthier businesses that can then invest more in apprenticeships, training and recruitment – the latter of which we feel the construction industry could make more appealing.
“Construction has many advantages that will appeal to large numbers of people but currently it doesn’t shout loud enough about the benefits such as being part of a team, human interaction, the rewarding experiences that come from creating homes which make a difference to peoples’ lives and varied, fulfilling careers.
“All of which are in complete contrast to the often lonely, isolated experience of working from home found in many other sectors so there is a market that can be tapped into.”