6 ways contractors are tackling the construction skills shortage

The UK construction sector is facing a pressing challenge: a deepening shortage of skilled workers. According to the latest forecast by the Construction Industry Training Board (CITB), the industry will need around 251,500 additional workers by 2028 just to meet expected demand. In response, contractors, trade bodies, and policymakers are turning to a variety of strategies to build a more sustainable, resilient workforce. Here are six of the most effective approaches underway.

1. Investing in apprenticeships and vocational training programmes

Contractors are increasing investment in structured training pipelines to cultivate new talent. Apprenticeships, technical colleges, and employer-led training academies are on the rise, offering young people and career-changers a direct route into construction jobs.
The Construction Industry Training Board (CITB) reports a 19% increase in apprenticeship starts in 2024, a strong indicator that contractors are prioritising early-stage skills development. Major players like Balfour Beatty and Kier have launched in-house academies focused on digital construction, green skills, and site-based trades.
By integrating hands-on experience with theoretical knowledge, these programmes not only fill immediate roles but also create long-term loyalty and career progression. Vocational training has the added benefit of being adaptable, allowing contractors to align curricula with evolving market demands, such as sustainability and modular construction.

2. Upskilling and retraining the existing workforce

With the pace of technological change in construction, many contractors are focusing on upskilling their current teams. Internal training initiatives help workers stay competitive, particularly in areas like Building Information Modelling (BIM), sustainable building techniques, and digital site management.
Retraining is also being offered to workers from adjacent industries. For example, former manufacturing or oil and gas workers are being retrained for roles in modern construction, particularly in offsite and modular methods, where transferable skills are highly valued.
According to a recent McKinsey report, companies that consistently invest in employee upskilling report 2.5 times higher productivity gains over time. Contractors see this as a dual benefit: improving project efficiency while reducing recruitment costs.

3. Improving retention

Contractors are realising that recruitment alone will not solve the skills shortage. Retention is just as critical. This has led to a renewed focus on improving working conditions, boosting pay, and offering clear career progression.
Flexible working hours, mental health support, and better site safety protocols are becoming standard among leading firms. These improvements are not just about compliance. They are seen as essential for attracting and retaining younger workers and underrepresented groups.
The Construction Leadership Council (CLC) has emphasised the need for structured career ladders within companies. Firms that promote from within and support continuous professional development are seeing higher employee engagement and reduced turnover rates.

4. Embracing technology, digital tools and modern methods of construction

Technology is a game-changer for the construction sector, especially in how it can ease the pressure of the skills gap. Contractors are increasingly using digital tools such as drones, laser scanning, and project management software to improve site efficiency and reduce reliance on labour-intensive practices.
Modern Methods of Construction (MMC), such as prefabrication and modular building, require fewer onsite workers and enable faster, safer, and more predictable project outcomes. This shift is also expanding the appeal of construction jobs, especially to younger, tech-savvy candidates.
The UK government’s Construction Playbook promotes digital adoption and innovation as core to sector resilience. Contractors aligned with these standards are positioning themselves to lead in both productivity and talent development.

5. Promoting diversity, inclusion and new talent pipelines

To address the skills gap comprehensively, contractors are targeting groups historically underrepresented in construction, such as women, ethnic minorities, and veterans. These initiatives not only expand the talent pool but also support a more inclusive and innovative workplace culture.
Organisations like Women into Construction and the Armed Forces Covenant are helping bridge the gap, with many contractors signing pledges and funding outreach programmes. Mentorship schemes, returnship programmes for those re-entering the workforce, and school engagement campaigns are now widespread.
By reframing construction as a progressive, tech-enabled sector, contractors are slowly shifting public perception and encouraging broader participation.

6. Collaborating with government, educators and industry bodies

Contractors are increasingly recognising the value of collaboration. Joint initiatives with local authorities, educational institutions, and industry bodies like CITB and CLC are shaping a more strategic approach to workforce planning.
For example, regional training hubs funded by public-private partnerships are providing targeted upskilling aligned with infrastructure pipelines. Large contractors are also sitting on advisory panels to help shape policy and educational standards, ensuring alignment between supply and demand.
These partnerships are helping to standardise training, reduce duplication, and ensure that future workers are equipped for the realities of modern construction. Long-term thinking and cross-sector coordination are now seen as essential to futureproofing the industry’s workforce.

The UK construction industry is facing an escalating skills shortage, with over 250,000 additional workers needed by 2027, according to the Construction Skills Network. Contractors are responding with innovation, long-term planning, and collaboration. Here are six key strategies being adopted to build a resilient and skilled workforce.