Building the Welsh Economy Brick by Brick

There are few silver bullets when it comes to the intractable issues of sluggish economic growth, the cost of living crisis, the housing emergency and a deepening climate crisis.

But investing in construction and green skills would come pretty close. It’s a win-win-win-win. Investment in skills means a larger workforce who can build homes and upgrade existing homes. More good quality, energy efficient homes means lower bills, as well as less carbon in the atmosphere.

More workforce means more jobs in a future-proofed sector. More jobs means more money in people’s pockets. Money in people’s pockets becomes money being spent in the local economy, supporting businesses and communities across the country.

We know the demand is out there. Welsh Government analysis shows a current 13% gap in the workforce needed to green Wales’ older homes. Over the next decade, this shortfall is projected to swell to 75% .

At the same time, there is a crisis in the construction and trades sectors that has been long in the waiting. An aging workforce, not enough young people coming into training and rising costs are all a factor. Research from the Federation of Master Builders found 72% of firms were affected by affected by a lack of skilled tradespeople .

We need a step change. Housing could be a vital part of the answer.

Housing is already a huge economic contributor to Wales, with the housing association sector alone supporting over 37,000 jobs including indirect supply chain impacts.

Research by Savills in 2025, commissioned by Community Housing Cymru, found that investing in 20,000 new housing association social homes would result in:

• Over 14,000 jobs during construction
• Over 2,500 direct and indirect jobs a year on an ongoing basis
• Construction could create over 2,000 apprenticeships and more than 1,200 work placements
• Over 800 unemployed people could be helped back into employment

Over the long term, the research found that tenants and communities would feel long term benefits, totalling £2.8bn from boosts to productivity, savings on rent and energy bills. Public services would be saved £1.8bn.

Sounds great, doesn’t it?

But we are not there yet. The next Welsh Government has a choice to make about the future of Wales. We can continue to manage symptoms – or this can be a turning point, a moment when we tackle systemic issues for the long term.

To ignite a skills based revolution in Wales we need a national construction skills strategy that enables the further education sector and private supply chains to maximise opportunities for Wales.

And to kick that off – Community Housing Cymru recently brought various stakeholders together to develop an action plan for the incoming Welsh Government. We identified five priority areas underpinned by actionable next steps that can get Wales’ economy moving.

1. Map regional skills need and forecast demand for different sectors
2. Reform funding cycles
3. Prioritise accessible pathways and an agile curriculum
4. Make it easier for SMEs to participate and grow
5. Rebrand ‘green tech’

This is not just a blueprint for the next Welsh Government – it is an invitation to those across Wales who train or employ people in this sector to join us in calling for action.

Every corner of Wales would benefit from more investment in construction and retrofit skills. Every community has families that desperately need homes and young people that desperately need good jobs.

So, let’s work together – because when we invest in homes, we invest in health, education, jobs and opportunity. We invest in Wales’ future.