SECTOR PROFILE – CONSTRUCTION

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					                             SECTOR PROILE – CONSTRUCTION

Background to the industry
                                                                 Age distribution

Construction and related industries
(engineering construction and building                               55+            16-24
services engineering) in Scotland cover a                            14%            15%

wide range of occupations, such as
building, civil engineering, site preparation,               45-54                      25-34
plumbing, electrical wiring, mechanical                      24%                        21%
engineering, roof building and demolition.
                                                                            35-44
Sector performance                                                          26%


The turnover in the sector (not including
engineering construction and building
services engineering) for 2006 was £14.3
bn.                                              Full time/part time spread

The Minister for Enterprise, Energy and                     Full time/part time spread
Tourism held a discussion session with the
sector - the mind map attached at the end
                                                                                part time
of this profile summarises the main points.                                    employees
                                                                                 12%

Workforce

There are around 39,700 businesses in
                                                                full time
the sector, employing approximately                            employees
430,000 people. The bulk of employees                            88%

are in the construction industry.

Gender balance
                                                 Main challenges identified by the sector

               Gender balance                           •    Attracting appropriately trained
                                                             staff
                                                        •    Business regulations
              Female                                    •    Keeping existing customers
               21%                                      •    Changes in market structure
                                                        •    Diversifying business
                                                        •    Technology challenges
                         Male                           •    Fuel prices
                         79%                            •    Expansion costs
                                                        •    Training.

                                                 Skills shortages and gaps
Age distribution
                                                 Skills shortage

                                                 A skills shortage exists where an employer
                                                 faces difficulties recruiting individuals with
                                                 the required skills and can lead to hard to
                                                 fill vacancies. An average of 10% of
                                                 workplaces in the sector reported a
                                                 skills shortage.




Obj ref: D179771
Skills gaps                                                         in the UK and comes complete with 3
                                                                    classrooms. In addition to the hangar,
Skills gaps exist where an employer thinks                          there is approximately 4500 square metres
that a worker does not have the skills to                           of training and office space within the main
perform their job to full proficiency.                              building which includes a further 9
                                                                    classrooms. The new facilities are
                                                                    expected to train up to 160 apprentices
      30
                                                  27                and 6,000 adults in the first year.
      25

      20
                                                                    Sector Skills Councils
  %




      15                                                            Sector skills councils (SSCs) are UK wide
                        10
      10                                                            employer led organisations which cover
                                                                    sectors of economic or strategic
          5
                                                                    significance. Their main task is to identify
          0                                                         and articulate skills needs and issues in
              % of employees not fully % of workplaces reporting    their sector and work with key skills bodies
                     proficient              a skills gap
                                                                    and delivery organisations to address
Employers report the main areas of skills                           these. The SSCs covering the sector are
gaps are-                                                           ConstructionSkills     and     Summitskills
                                                                    (Building Services Engineering). The
      •       Team working                                          Engineering Construction Industry Training
      •       Written communication                                 Board also covers parts of the sector.
      •       Technical and practical skills
      •       Customer handling                                     Issues for debate
      •       Oral communication
      •       Strategic management                                  ConstructionSkills    and     Summitskills
                                                                    believe that the main skills issues which
Impact of skills gaps                                               the sector face are -

Employers report that skills gaps cause                             •   Ensuring that colleges are delivering
them difficulties in a number of areas,                                 on courses that meet industry needs.
including-
                                                                    •   Ensuring that the funding available is
      •       Increased operating costs                                 focussed on industry needs.
      •       Meeting customer objectives
      •       Meeting quality standards                             •   Promoting the development of e-
      •       Loss of business                                          learning/mobile-technology    as   a
      •       Developing new products                                   Scottish initiative, building on the
      •       Introducing new practices                                 success of LearnDirect & Build.
      •       Slowing of operational speed.
                                                                    Sources
National Construction                        College          for
Scotland                                                            ConstructionSkills Scottish  Sector
          nd
                                                                    Profile 2007, Futureskills Scotland
On the 2 of September, the Minister for                             (2007)
Schools and Skills opened the National
Construction College for Scotland and new                           Internal Scottish Government briefing,
HQ for ConstructionSkills. Facilities                               2008
include a 1200 square metre scaffolding
training hanger which is the second largest




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                   SECTOR MINDMAP




    Construction




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