Downturn prompts shift to public sector projects
- Published: 26 August 2008 14:09
- Last Updated: 27 August 2008 10:45
The financial downturn is leading more construction professionals to apply for public sector jobs in London and commercial work in East Anglia, recruitment experts have said.
Lynne Crowe, regional manager for London at Hays Construction, said that the firm's local office had seen a recent push from people applying for work on public sector projects due to the fact that this sector is considered more stable during a downturn.
She said: "The education, healthcare and social housing sectors remain popular and workers are in demand on a range of projects, including Building Schools for the Future and Decent Homes."
Hays associate Michael Pleasants said recruitment was also being affected by the credit crunch in East Anglia, although more local workers were aiming to move into the commercial sector rather than public sector.
He said: "There has been an influx of applicants with a housing background looking to break into the commercial sector, due to the housing and residential markets clearly suffering over recent months."
"The commercial contracting market remains relatively buoyant. Pre-contract, estimating and business development are areas that continue to thrive.
"Employers are always looking for an edge in the market, so candidates will benefit from a knowledge of the local area and traditional methods of construction are desirable, as is an
understanding of partnering."
Both Mr Pleasants and Ms Crowe said they expect to or are already seeing interest from people keen to get work on large-scale London projects such as the Olympics, although most interest was coming from those already living in the capital.
Ms Crowe said: "Over the next few years, we are expecting that more and more candidates will want to be involved in the Olympics as we have already had plenty of interest."
Astrid Warmington, UK & Ireland director at recruiter BBT, said many construction professionals with a housing background are looking for employment with public sector projects – such as the Olympics and Crossrail – and in some cases seeking work overseas.
She added: "No-one wants to work in housing and a lot of workers want the security of 2012 work. Also, a large number of people are approaching us because they want to work in the Middle East."
Analysis: Infrastructure to drive growth in the capital
By Jacki Bell
Infrastructure is expected to provide the main driver of construction output growth across Greater London over the next few years.
Other construction sectors are facing less positive growth forecasts, underlining the wider importance of delivering projects such as Thameslink, Crossrail and London 2012 on time and to budget.
The strength of the infrastructure sector depends heavily on the capacity for London's civil engineers to deliver – a capacity diminished by poor planning and an engineering skills shortage.
Unpredictable, stopstart procurement by Government is resulting in projects having to compete for resources, increasing the cost to the taxpayer.
This cycle of boom and bust has made it difficult for companies to make longterm investment in skills and innovation, in turn limiting their capacity to attract and retain staff.
The construction industry employed just over 340,000 workers in London last year. By 2013, this is forecast to rise by six per cent. To meet increased demand, over 2,500 new architects, surveyors and engineers will be needed each year.
Jacki Bell is the regional director of the Institution of Civil Engineers in London
John Canton, East of England regional director, Institution of Civil Engineers
Analysis: East looks resilient to downturn
By John Canton
The East of England seems in good shape and equipped to weather the downturn.
Significant projects are contributing, including the Thames Gateway, A14 upgrade, Felixstowe and Great Yarmouth ports expansion, Stansted and Luton Airport improvements, and Cambridge Guided Busway.
Regeneration, flood alleviation, energy and utility projects are also helping.
But engineers are in short supply, as the current decline in private house building is not mirrored in infrastructure spend where average annual growth is still predicted by the Construction Skills Network at over 7 per cent between 2009 and 2013.
Overall construction output growth is predicted at 2.4 per cent. It might be another 12 to 18 months before the current fiscal problems feed through to the market.
The Government's drive to build over half a million new homes in the East of England might have suffered a setback but will drive future infrastructure projects.
John Canton is the regional director of the Institution of Civil Engineers in East of England
