The construction sector is facing one of its biggest challenges yet at a time when, with Olympic bid victory, it is facing a period of its biggest demand. John Dean reports

IT'S a huge irony. At a time when the region's construction sector is booming - with promises of more to come after the successful Olympic bid - it is facing one of the most serious situations in its history.

The problem is the industry's less than sexy image, which means that not enough young people are being recruited, something which is causing severe difficulties for many companies.

And yet this happens at a time when the region is witnessing massive housebuilding programmes, investment in new business parks and significant public sector spending on major construction projects.

The figures speak for themselves: 22 per cent growth in construction output in the North-East in two years, public spending up by 52 per cent in 2003 alone and increases in housing hitting 56 per cent in the same year. It is an upward trend which has continued over the past two years.

However, these figures, contained in the recent report issued by a number of organisations, including CITB Construction Skills, were balanced by a statistics that pointed to a severe worker shortage, equivalent to 10,000 people.

Wherever you look there are skill shortfalls, particularly when looking at those companies prepared to embark on training programmes for younger workers.

Last year, for instance, the number of trainees dropped in many areas, down two per cent in wood trades such as joinery, 74 per cent for painters, 83 per cent for floorers and 96 per cent for glaziers.

CITB Construction Skills, the umbrella body which represents the industry's training interests, has identified the problem recruiting young people as a major issue; the other is the migration south of skilled northern tradesmen, lured by the promise of lucrative work.

Ben Dures, advisory service manager for CITB Construction Skills, based in Sunderland, believes the industry needs to take firm action, something echoed in the recent report - Regional Construction Sector Skills Agreement - which highlighted the problems.

The report's partners, who also included the Learning and Skills Council (LSC), the Regional TUC and Business Link North-East, called for more work to promote the industry within educational and careers organisations.

It also called for increased diversity, attracting more women and people from ethnic groups, and recommended improving the qualifications of the existing workforce through training in areas such as safety, and improving business performance through qualifications like Investors in People.

Appealing to young people is a crucial part of that strategy.

Mr Dures said: "We have to engage with education. The opportunities offered by the industry are enormous, but the problem is that the industry has been perceived as a career for under-achievers. We are working to change that.

"The emphasis is on quality; companies want work-ready individuals, but the pool is getting smaller."

That is one of the reasons CITB Construction Skills wants to see more women and people from ethnic minorities entering the industry

Mr Dures said: "Traditionally, it has been an industry for white males, but we need to reflect the communities in which we live and that means more women - and not just in clerical jobs.

"We hear of women taking their degrees in subjects which are part of the construction sector, but not going on to take jobs. We need to address that."

In addition, he believes the pool of skilled foreign workers is not being tapped anywhere near enough at a time when companies are struggling to recruit.

He said: "The strategy means more people from ethnic minorities and that could include immigrant workers.

"There is a cohort of foreign workers with the appropriate qualifications and experience but who are unaware of, or find difficulty finding out about, the construction sector. We would be delighted to work with those people with appropriate skills and qualifications."

Another issue for CITB Construction Skills is some of the courses being offered at colleges, which train people in areas where there are not shortages of workers but which tend to ignore those where a real need exists.

Mr Dures said: "Too often, there is an imbalance between the courses that are popular, but for which there are not jobs out there, and the needs of the industry. We must align the system to the demand."

For Mr Dures and many like him, it all comes back to changing the image of an industry long considered as grim, dirty and for poorly-qualified people.

Mr Dures said the industry is not just about labouring and that there are opportunities in areas as diverse as graphics, IT, architecture and design.

He said: "For too long, schools and careers officers have seen construction as for under-achievers and we are challenging that and pointing out that it is an attractive option.

"The perception is that it is about getting up on a cold December morning and lifting scaffolding around, but our message is that it does not need to be like that."

Reversing the trend is crucial, because the successful bid to stage the Olympics in the UK illustrates the massive opportunities for the industry.

It also highlights the dangers that skilled North-East workers will head south to follow the work, leaving the region unable to respond if its companies win contracts as part of the huge building programme that will be required, including sporting stadiums and transport infrastructure.

Research carried out into workforce migration last year found that the North-East construction sector lost about 21 per cent of its people annually, something Mr Dures believes must change rapidly.

He said: "The construction industry is buoyant and we do feel there will be an effect on the industry in the North-East from the successful Olympic bid, but we have to be mindful of the need to recruit more people, of keeping them in the region, of promoting diversity and of improving business performance."

The Learning and Skills Council (LSC) is one of the other organisations working to improve the recruitment situation in the region.

Sally Gardner, head of skills at LSC Tees Valley, said: "The construction industry has seen sustained growth over the past ten years. Both output and total employment have increased by 30 per cent during this period.

"It is well documented how demand for skilled workers outstrips supply, meaning high levels of earnings are available to those with a high skill level.

"Therefore, far from being an industry for under-achievers, construction skills are now in high demand from school leavers to graduates. And, as demand rises for such skills, so does the calibre of applicants.

"Where there is an imbalance is in the proportion of female workers within the construction industry.

"Currently, women account for approximately nine per cent of the total employment in the industry, but only one per cent of manual employment.

"This makes the manual portion of the sector amongst the most gender-imbalanced in the UK economy.

"We are tackling the issues of gender stereotyping in construction apprenticeships by increasing the number of female learners in construction.

"Using additional money secured through Europe, a proposal has been developed to encourage young women to work within construction."