SKILLS shortages in building and plumbing are causing problems at a time when the UK construction industry is increasingly healthy.

The Royal Institute of Chartered Surveyors (RICS) has said warnings that went unheeded a few years ago are now having a profound impact on the sector.

Despite this, huge investment in public building projects such as schools and hospitals, has meant the construction industry is enjoying a boom period.

Michael Henning, RICS North-East spokesperson on construction, said: "The industry warnings of recent years regarding the lack of trainees and apprentices entering the industry are now coming home to roost, with skill shortages in key trades being a major headache for builders.

"Plumbers and electricians are in demand, as well as finishing trades such as plastering, with several large projects in the region nearing completion."

He added: "The North-East construction market is generally following the trends being seen nationally. Public funding of projects in the health and education sectors and private house-building are still very buoyant.

"Although the commercial sector is certainly not as strong as these other areas, there is still a demand for modern premises and developments such as Newcastle Great Park, and developments in the A19 corridor are certainly examples where the outlook for the North-East market is more positive.

"Additionally, the proactive work of regeneration companies such as Sunderland ARC and local strategic partnerships will encourage sustainable commercial development in urban and rural areas."

More than 40,000 surveyors work in UK construction and are ideally placed to spot trends in the industry because of their early involvement in projects, particularly the cost analysis and procurement phase.

But the picture is not entirely positive across the UK. Flow of new private construction projects is generally weak, with the exception of private house building, which will help the struggling supply side of the housing market. The volume of work in infrastructure and commercial construction is also slowing.

A slowdown in the service sector has adversely affected areas such as distribution, which has in turn affected associated construction projects such as warehouse building.

The RICS said businesses were to blame as they were not growing fast enough to ensure higher capital investment.