Wales’ Construction Skills Strategies Must Become Place-Based

Workforce mobility has historically played a key role in the Welsh construction industry, with skilled workers travelling to where demand was highest and helping employers deliver projects across the country.

However, workforce mobility is changing. We’ve recently published research – the Workforce Mobility and Skills in the UK report – which suggests workers are becoming less willing to travel long distances for employment, with family and lifestyle considerations playing a growing role in decisions about where to work. In Wales the population is relatively dispersed and close links with neighbouring English regions mean that where workers live can have a significant bearing on how easily employers can access the skills they need.

During the Senedd election in May came a historical break in political control in Wales with Plaid Cymru forming a new-look Welsh Government with, from what we’ve seen so far, a continued focus on skills policy. On the back of that election victory the Welsh Government quickly announced a package of reforms to vocational skills and training, a nationwide skills audit and a commitment to convene a Summit on the future of the skills system. In the months since, it’s become clear that the limited fiscal tools available to the Welsh Government for increasing investment in different priority areas is driving a focus on efficiency, underlined by a strong narrative around ensuring education and training opportunities are aligned with the real needs of Welsh employers and industries and reflect future opportunities in the Welsh economy.

As workforce mobility declines, building a strong pipeline of local talent will become increasingly important to meeting the government's housing targets, as well as broader needs in construction.

A localised construction workforce

Our research shows workers in Wales are generally staying closer to home for work, with 35% travelling less than 10 miles from their permanent home address to the site, compared to 24% in 2022. The research shows that 54% of Welsh workers have spent their entire construction career in Wales. Around 14% of Welsh construction workers commute mainly from the North West and West Midlands.

While mobility will always remain an important part of the industry's DNA, the geography of Wales means that mobility will not disappear, but it may increasingly be shaped by the proximity and needs of neighboring labour markets. For employers in more rural areas, the distances involved can make it difficult to draw workers from elsewhere, while in other parts of Wales, particularly those close to the English border, employers may be competing for skills across a wider labour market.

The answer lies in developing more place-based skills strategies. Rather than relying on workers arriving from elsewhere, local talent pipelines that align with local demand are needed. This includes collaboration between CITB, government, employers, colleges, training providers, and local industry partners, as well as labour market intelligence gathered directly from those on the ground, to identify upcoming shortages before they emerge.

Earlier this year, CITB, National Construction College (NCC), Bridgend College and The National Federation of Roofing Contractors (NFRC) launched the first Roof, Slating and Tiling Apprenticeship to create a vital pathway into one of South Wales' most in-demand construction trades. The first cohort of 10 apprentices started in July this year with recruitment to the next intake already proving to be popular. The initiative is a prominent reminder of what collaboration can achieve across the construction industry when backed by the right insight about skills gaps, demand and competency requirements.

Strengthening regional approaches to workforce development

This shift towards a more place-based approach enables local leaders, employers and training providers to work together to identify emerging skills gaps before they become critical. It helps ensure training priorities are relevant to local employment opportunities. And it creates stronger pathways into construction careers for people who want to build a future close to where they live.

Significantly, the new Wales Local Growth Fund with over £500m in funding will bring with it a busy capital programme of work but along the lines of the softer regional devolution we’re seeing in Wales, a combination of local authorities, Regional Skills Partnerships and Growth/City deals in partnership with training providers and industry will shape how that funding meets local priorities.

By developing skills that are transferable across projects and sectors, it can also give workers greater long-term career resilience while helping employers respond more flexibly to changing demand. Our Construction Skills and Training Conference, which we hosted in Cardiff at the start of the year, is an example of bringing together CITB, government and industry stakeholders to engage and consult with its registered employers and training providers face to face to fully understand how we can align to best meet skills needs.

Businesses that have traditionally relied on attracting workers from outside their region may find recruitment becomes more challenging in the years ahead. The competitive advantage will increasingly belong to organisations that invest in developing local talent pipelines and build stronger relationships with schools, colleges, training providers and communities.

The opportunity ahead

Our research shows that Wales’ future construction workforce may be less mobile than previous generations but also highlights the importance of understanding how Wales’ construction labour market operates across geographical boundaries.

CITB, government and industry now need to work together to make sure skills strategies are place-based, so that those in training can take on the jobs that are in demand in their local area, while existing workers and employers are better equipped to respond to changing local skills needs. That does not mean Wales should rely less on mobility. Instead, it means recognising that mobility cannot be the only answer to skills shortages, and that skills strategies need to reflect the different labour markets in which Welsh employers operate.

Wales’ construction industry has a long history of adapting to change. The increasing localisation of labour markets presents us with a real opportunity to rethink how we develop construction skills across Wales through strengthening connections between skills provision, employers and communities. If we get this right, we can create a more resilient, productive and sustainable workforce that is equipped to meet Wales’ future construction needs.

You can view the latest Workforce Mobility and Skills in the UK Construction Sector report here.