Construction industry training boards require a ‘fundamental re-set’

A Department for Education-commissioned independent review has recommended a “fundamental reset” of the current Industry Training Board to ensure growth.

The government published Transforming Construction Workforce last week. It was led by Mark Farmer, an industry expert. He said that the current system does not adequately address the needs of the construction sector and that it is essential to adopt a more strategic and unified approach in order to create a workforce more productive, resilient and skilled.

Mark Farmer’s report calls on a “completely rethink” in terms of training and skills priorities, to combat the “hollowing-out” of the construction industry’s workforce.

The review offers 63 recommendations for changing the way in which industry approaches workforce development. The Department of Education’s Response accepted all 34 recommendations, without any amendments. Another 26 recommendations were partially or in principle accepted.

The review recommends a shift from focusing on only new entrants or apprentices to a “whole-workforce” approach, which includes upgrading and reskilling current workers.

Industry Training Boards need to develop more innovative and impactful programs to improve industry productivity and retention. The review highlights the need to focus both on employed and selfemployed workers.

Farmer stated: “There’s a feeling that many people are persevering in order to make a change, but they feel like they are fighting against the tide. We need to act and think differently as a collective if we want to make our hard work and efforts count in the future.

He said: “If you are serious about future-proofing your industry and cementing its growth, then we can’t ignore the capacity gaps that are widening in our construction sector.”

The report shows that the construction industry has seen its lowest level of employment since 1998. Construction employment has declined by 20% since 2008’s previous peak, while the UK population has increased by 10%.

Farmer said that we can’t just set ever higher targets for new entrants and expect to solve the crisis. This review confirms the industry’s basic absorption and attraction problem, which needs to be addressed urgently. In the meantime, however, we must be able do more with what we have.

“The industry struggles to modernise its workforce and increase productivity for many reasons, but training is a great way to improve the capability and capacity of current and future workers.

“I’m convinced that, with the right leadership and a reformated ITB intervention from the ministers, key sectors of the engineering and construction industries, as well as the homebuilding industry, will support the call to arms in the review and agree to the need to think different.

“Doing nothing, is not an alternative. There is a clear and immediate danger to Britain’s plans for growth, which is underpinned by the construction of new housing, infrastructure, and green energy sources.”

The Farmer review includes:

• ITB should retain its basic statutory mandate, but its core capabilities and activities need to be transformed. All of this must be focused on the fundamental workforce challenges that face the construction and engineering industries.
• The statutory grant-levy system should be kept, but it needs to be modernised and refocused in order to achieve measurable results linked to new industry priorities. It is important to develop SMART KPIs that maximise the outcomes of levy expenditures with a more balanced accountability between government and industry.
• To change direction and improve effectiveness, both ITBs are in need of a fundamental reset. Both industries share a fundamental challenge in that their workforces are becoming less resilient, resulting in a growing skills gap and workforce shortage. A more strategic and united approach should be taken across both industry sectors including a merger or operational convergence after a smooth transition to minimise disruption.

Tim Balcon is the chief executive officer of the Construction Industry Training Board. He said, “Importantly the report acknowledges the significant challenges that face the construction and engineering industry and the crucial role the ITBs have in helping to address them. It also asserts that retaining the ITB model, as well as industry-specific levies, is the best option to address the skills challenges facing the construction and engineering industries.

Grant funding is essential for new entrants and apprenticeships, as more than two thirds of the apprenticeships in construction are started by firms with fewer than fifty employees.

We are well on our way to improving our engagement with learners and employers, as evidenced by the national roll-out of our Employer networks and the improvements made at our National Construction Colleges.

Andrew Hockey, CEO, Engineering Construction Industry Training Board, said: “We are pleased to work with CITB in areas such as infrastructure skills, where the ITBs share the greatest amount of commonality.

As the review acknowledged, both ITBs can benefit from collaborating closer on infrastructure. A good example is the nuclear new build where workers in civil construction and engineering construction (ECI) collaborate together.

Brian Berry, CEO of the Federation of Master Builders said that the construction industry is plagued with a skills crisis, which has been preventing economic growth for too long. Mark Farmer’s report outlines the path forward.

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