CEOs OF MAJOR construction firms are seriously concerned about sourcing, developing and keeping key talent, according to a recent study
CEOs OF MAJOR construction firms are seriously concerned about sourcing, developing and keeping key talent, according to a recent study.
A KPMG study of construction companies found managing risk was the biggest challenge they face, closely followed by skills shortages and securing forward workload.
Australian construction firms are, not surprisingly, very focused on managing risk, with 70 per cent believing their framework for managing risk during a project life cycle is either advanced or sophisticated.
“Even though such a high number of companies were satisfied with their framework for managing risk, they still saw it as a key issue going forward,” said Steven Gatt, head of KPMG’s real estate and construction group.
“However, the real emerging issue which is worrying the CEOs of major constructions firms is sourcing, developing and keeping key talent.”
The shortage of skilled resources is an issue across the construction industry with 54 per cent nominating it as their top concern and 70 per cent nominating recruiting and retaining people with the right skills as a top three issue.
One respondent highlighted the issue of the Australian construction industry where he said that 80,000 to 100,000 skilled resources will leave the industry in the next few years, replaced by just 30,000 to 40,000 workers.
“This study shows the shortage of skilled people is a global phenomenon; it is across all levels from apprentices, to tradesmen to executives and it is certainly worrying the leaders of the construction industry,” said Gatt.
“Many industries, including construction, are vulnerable to losing talent in a skills-tight market. Factors increasing the risk of skills shortages include exchange rates, tax rates and the attraction of working overseas.”
The third highest issue, securing forward workload was considered a key challenge. However, Gatt believes companies would be better placed to focus on securing high margin work, particularly in Australia where margins had stagnated.
The report found that the majority of European firms saw improvement over the past five years in margins for large construction projects, attributing this success to the careful selection of projects, improved cost control and improved market conditions overall.
