🛠️ Workforce Crisis: Wage Bidding War

Monday 31st October 2022

The Scramble for Talent – Skilled Labour Wages Soar as Exodus Hits UK Construction
A key industry report released in late 2022 (e.g., CITB/BCIS analysis) highlighted that the exodus of skilled EU workers following Brexit and the post-pandemic recovery meant vacancies for trades like bricklayers and carpenters were up 65% in some regions, driving annual wage inflation for skilled labour to double digits.

After wrestling with material costs, the final punch came from the labour shortage. By late 2022, the price of timber had mostly stabilised, but the cost of the hands required to install it had ballooned.

We've always prided ourselves on our team. But when every major housebuilder is struggling to hit their volume targets, they start engaging in a literal bidding war for reliable, skilled tradespeople. A good bricklayer or carpenter could demand—and get—a significant premium over the rate they had just six months prior.

Impact on the Quote: Labour costs form a significant part of the total cost, especially in quality-focused firms like ours. This inflation made it incredibly difficult to price competitively and kept overall build costs permanently high.

Risk of Compromise: The biggest danger was the temptation to hire cheaper, less experienced labour just to stay on Timeline. As Robbins Construction, we refused to compromise our quality, which meant occasionally having to take a pause while waiting for our trusted trades.

Our Opinion: This is the most serious long-term issue. The material price spike was cyclical; the skills gap is structural. The industry needs massive, coordinated investment in apprenticeships and training, but the return is too slow for us to meet today's demands. We need short-term visa solutions for specialised roles while we train the next generation.

Debate Point: Given the severe labour shortages, should the government introduce a specific, fast-track vocational visa scheme for experienced construction trades (like bricklayers, roofers, and plumbers) from the EU to stabilise the workforce and bring down crippling wage inflation?