Industry survey shows growth remains flat as skill shortages and volatile pricing persist

The latest quarterly Building Engineering Business Survey, carried out by ECA in partnership with BESA, SELECT and SNIPEF, shows that for the twelfth quarter in a row the biggest obstacle to growth in the sector is a shortage of skilled electricians. 

Over a third (37%) of respondents cite a significant shortage of qualified electricians as holding back growth in the sector. The survey shows the shortage has been a perennial issue for the last 36 months. Sentiment in the industry is summed up by one respondent:

“The only way we can sustain our workforce with quality skilled labour is to train them ourselves.”

Andrew Eldred, ECA’s Chief Operating Officer added:

"The electrical industry is the backbone of the net-zero transition, but the sector is struggling to train new talent at the required scale or speed. The issue is not just the recent drop in apprenticeship starts—there is also a fundamental disconnect between further education and employment.

“Fewer than 10% of individuals completing government-funded, classroom-based electrical courses progress to apprenticeships within a year. This means thousands of enthusiastic young people keen to enter the industry are unable to do so because the system does not have the capacity to support them.”

Volatile material costs

Material costs are of increasing concern to respondents, with 23% citing this as a major issue. With fixed price contracts agreed many months in advance, a volatile world leaves many contractors out of pocket by the time the work is completed.

Rob Driscoll, ECA’s Director of Legal and Business commented:

“In an industry where net-zero demand is growing within wider construction stagnation, uncertainty over trade tariffs and a volatile geopolitical environment is flattening anticipated growth. The practice of fixed price contracts can leave contractors out of pocket with no recourse to recouping costs, which is particularly damaging for business interests. 

"Businesses in the supply chain are most exposed to price fluctuations. ECA suggests taking advice before agreeing fixed price contracts with expected completion dates many months ahead."