Spring is in the Air
Here
we are over a quarter of the way through a new year. Who has kept their new
year’s resolutions? Are things looking up? Better or worse than expected?
With
the government announcing it will pump billions into the construction arena for
the next five years, this will enable a sense of optimism to return to our
industry – won’t it? The construction industry is very important to the UK for
more reasons than most realise. When the car industry collapsed a couple of
years ago, it didn’t take long for the ‘anti-car’ government and councils’ to
realise that it was an essential spine of British industry.
It affected 1 in 8
jobs in the UK, so the government had to introduce the car scrappage scheme to
help the industry sell vehicles, which in turn aided the suppliers, caterers,
health services, insurance companies, banks etc etc. In fact it has now been
realised that the car industry is bigger now than it ever has been.
The UK is
the second largest manufacturer of cars in Europe.
What
has this got to do with the construction industry? Well, that is even bigger
and affects 1 in 5 people in the UK. When house-builders build, councils can
loan from banks and get income from the builders, which means people move into
the new houses, and more jobs are created, new roads, facilities and
infrastructure, and employers move into the area, and then the circle of
influence grows and grows.
The
government also announced that Britain’s economy will ONLY grow by 0.6%. That
is good; look at Spain, Italy, Greece. 0.6% is growth. The economy is
growing. Turn that 0.6 into pound notes and it’s an increase every month of
£16bn turnover. How great is that for a small island in the middle of a world
cash crisis?
OK so we’re not the States or Germany, but then we’re not Japan or
China who are in negative growth (to use an Americanism). We are the world
financial capital, and it’s the financial powerhouses that are in trouble, so
we’ve done well as a country so far.
Why
is this relevant to this column? Well, there is still a major skills shortage
in the UK, we have vacancies that we cannot fill. Our sister company We Are
Recruitment is now recruiting teachers from Canada, New Zealand, Australia and
Ireland to fill much needed roles in schools in the UK. In those countries,
teachers have taken pay cuts and reduced working conditions. The UK has not –
and it has an increase in job roles.
However,
the reason for the skills shortage in UK engineering is because the salaries
and conditions offered for skilled engineers is below what other countries
offer. Councils have signed up to supply companies which stifle mark-ups for
agencies, apparently to get the best deals. However, many agencies are shunning
these councils and their supply companies as the profit line is negative.
These
arrangements are also putting engineers off working for councils. It is also
affecting private companies too. Very soon the UK will have to look at this, as
generations are now shunning our industry, and this is bad for 1 in 5 people!
Call us on 0845 021 2-4-6-8
www.findtheengineer.com