Dr. R isn Murphy Technological University Dublin Indicator - PowerPoint PPT Presentation

CITA Digital Transformation Series 2019 How to Solve the Construction Industry’s Shortage of Skills and Talent Gap 2 nd May 2019 Solving construction labour market imbalances: information, collaboration, innovation & incentivisation Dr. R ό isín Murphy Technological University Dublin

Indicator Economy Construction OUTPUT €312.4bn €20.8bn (6.6%) 2,281,300 145,500 (6.3%) EMPLOYMENT 203,700 (8.9%) 5.4% 6.7% UNEMPLOYMENT 1.1% 7.5% CPI / TENDER PRICES Dr. R ό isín Murphy 2019 INSERT LOGO HERE Source: Central Statistics Office, Statbank [Accessed: 24-04-19]

GNP v’s Construction Output 45000 40000 Value of Construction Output 35000 30000 (€ 000,000s) 25000 20000 15000 10000 5000 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Years Construction Output Optimum Output @ 12% GNP Source: Central Statistics Office, Statbank [Accessed: 24-04-19] Dr. R ό isín Murphy 2019

Who are our construction workers? Civil & Carpentry & Joinery Architect Structural Engineer Plumbing & heating Painter & Decorator Mechanical & Quantity Electrical Plasterers, Floorer & Wall Tiler Surveyor Engineering Brick and Stone Laying Stone Cutting & Stone Masonry Project Facilities Manager Manager Wood Manufacturing & Finishing Dr. R ό isín Murphy 2019

Direct and Indirect Employment Trends Direct Indirect 8.9% of total employment Total Number employed in 000's 93.28 76.04 58.2 53.9 48.8 46.2 44.2 40.2 233.2 36.4 35.24 35.1 33.4 190.1 145.5 134.8 122.1 115.5 110.6 100.7 90.9 88.1 87.9 84.9 2007Q4 2008Q4 2009Q4 2010Q4 2011Q4 2012Q4 2013Q4 2014Q4 2015Q4 2016Q4 2017Q4 2018Q4 Dr. R ό isín Murphy 2019 Source: CSO Statbank, Q 4 2018. *Estimate of indirect employment (40%) [Accessed 24-04-19]

Direct & Indirect Employment: Current (Q4 2018) v Peak (Q2 2007) 136,500 261,800 7,500 13,400 144,000 273,900 57,600 * 109,500 * 201,600 383,400 Dr. R ό isín Murphy 2019 Source: CSO Statbank, Q 4 2018. *Estimate of indirect employment (40%) [Accessed 24-04-19]

Overall employment v’s Construction employment 2500 400 350 2000 300 Construction Employment Overall Employment (Persons '000s) (Persons '000s) 250 1500 200 1000 150 100 500 50 0 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Overall Employment (Q3 annually) Construction Employment (Q3 annually) Source: Central Statistics Office, Statbank [Accessed: 01-02-19] Dr. R ό isín Murphy 2019

Shortage of Qualified Quantity Surveyors Total Projected Additional Demand for and Supply of Quantity Surveyors 2018-21 3000 Supply of graduates: number of registered 2500 students 2000 853 Graduate 1500 Output 2,558 Demand for QS: all levels 1000 1,652 based on 3 scenarios of 500 898 economic growth 0 Optimistic Median Pessimistic Murphy, R. (2018) Employment Opportunities and Future Skills Requirements for Surveying Professions 2018-2021. Dr. R ό isín Murphy 2019 Report undertaken on behalf of the Society of Chartered Surveyors Ireland (SCSI)

Trades & Apprenticeship Skills Survey 86 % Not sufficient skills Previously employed available 46 % apprentices Do not employ Employ tradespeople 71 % 81 % apprentices O’Murchadha , E. and Murphy, R (2018) Trades and Apprenticeships Skills Survey: An Employers Perspective. Report undertaken on behalf of the Construction Industry Federation (CIF) Dr. R ό isín Murphy 2019

Shortage of c. 2,162 surveyors to 2021 SCSI 86% confirmed not enough skilled CIF tradespeople 40% skills/talent largest factor AECOM impacting project delivery 46% skills shortage largest challenge RICS for construction 65.5% regions surveyed face skills shortage T&T Dr. R ό isín Murphy 2019

Additions to the Critical skills list Quantity Civil Engineers Surveyors Construction M & E Engineers Project (with BIM Capabilities) Managers Dr. R ό isín Murphy 2019

Causes Pro-cyclical demand for education Pro-cyclical demand for employees programmes Industry reputation Lack of diversity Emigration Sub-contract labour

Consequences Wage inflation Tender price inflation Delivery of productive & € Value for money and social infrastructure needs volume of output Insufficient inward migration Quality

Incentivisation Innovation Collaboration Information

Information Quantify the shortage Determine the number of additional people required across all trades & professions Awareness Of the varied opportunities (for male and female) within construction, Role of construction in the development of the built environment Knowledge Tools required What do stakeholders require to facilitate addressing the shortage and what can stakeholders contribute to the solution? Ongoing monitoring Continuous market and industry intelligence

Collaboration Funding Industry informed € SME’s curriculum Technology Create awareness

Innovation Continuous Professional Curriculum content, Development design & delivery. Strategic approach & Benchmark leadership Technology Subsidize

Incentivisation 01 New entrants Apprenticeship 02 03 Subsidies Technology 04 05 Lifelong Learning Diaspora 06

THANK YOU Dr. R ό isín Murphy 2019