95% of SME home builders say apprenticeships are essential, finds HBF

The research showed that although micro businesses make up around 80% of the construction industry, less than 16% currently employ apprentices. 
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Research from the Home Builders Federation (HBF) found that 95% of small and medium-sized enterprise (SME) home builders see apprenticeships as essential to tackling skills shortages, but current market pressures are stopping them from recruiting and training new talent.

The research showed that although micro businesses make up around 80% of the construction industry, less than 16% currently employ apprentices. 

The high cost of taking on an apprentice, especially when they are still training and less productive, was named as a key issue. 

With the current outlook, many businesses said it is hard to absorb this risk.

When asked about the main barriers, 17.5% of respondents cited challenging market conditions, and another 17.5% pointed to the difficulty subcontractors have in supporting apprentices before they become productive. 

A further 12% said finding suitable candidates was a problem.

The construction sector is expected to need around 47,860 extra workers each year to hit Government housing targets. 

Apprenticeship numbers would have to rise by between 200% and 300% to meet demand.

Neil Jefferson, CEO at the HBF, said: “This latest insight demonstrates the impact of broad market pressures on SMEs, slowing down housing delivery and preventing them from investing in their future – and the long-term talent pipeline.

“Through engagement with the Construction Skills Mission Board, industry is influencing change to improve access to training provision and greater support to train apprentices. 

“However, more needs to be done to mitigate the financial and operational risks that currently make it unviable for many small businesses to invest in junior talent.”

Marvin Onumonu

Marvin Onumonu is a Reporter for Workplace Journal and The Intermediary

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