Skills gap challenges the rise in offsite construction

Offsite construction methods for building are on the rise, but there is concern over a lack of the necessary skills to meet the increase in demand.

Factory where building sections are assembled before delivery to the site.

A version of this article appeared on The Fifth Estate on 27 April.

Offsite construction for both office and house building – where sections are assembled in factories then transported to the building site for assembly – has a number of advantages:

• Greater speed of construction
• Lower assembly cost
• Higher quality and sustainability – especially airtightness for energy efficiency
• Increased reliability
• Improved health and safety
• Less disruption to the site’s neighbourhood.

Its use is increasing. In a recent UK survey, 42 per cent of employers with over 100 staff said they expect to be using offsite construction methods more in five years’ time, and all of them said they expected the use of precast concrete panels to increase. In particular, 91 per cent anticipated the use of precast concrete frames to rise.

Percentage by which construction companies think offsite construction will increase over the next five years.

Types of offsite construction and how much companies expect them to increase over the next 5 years.

Benefits

The benefits are potentially huge. In the UK the use of “flying factories” by Skanska and Costain for phase one of the Battersea Power Station housing redevelopment resulted in a 44 per cent cut in cost, 73 per cent less rework and a 60 per cent reduction in time.

In another case, 80 per cent of the Leadenhall Building was constructed offsite by Laing O’Rourke, resulting in a 50 per cent reduction in deliveries to site. The same was true of Vinci’s Circle Health building in Reading, England, resulting in a 20 per cent program reduction and a 28 per cent cost saving.

Half of the clients of building companies expect offsite construction only to increase, according to the report. But if this is to happen, from where will the skills to meet this demand come?

The skills gap

The report outlines six key skills areas related to offsite construction:

• digital design
• estimating/commercial
• offsite manufacturing
• logistics
• site management and integration
• onsite placement and assembly.

 Offsite construction skills and functions.

Increasingly, workers will need these skills to move between offsite and onsite environments and so the training for these six areas must evolve to meet the changing demand, says the Construction Industry Training Board (CITB).

Of businesses expecting to use offsite construction over the next three to five years, 38 per cent told the CITB they believed they will need new or significantly improved skills within their workforces. Handling and assembly skills are those most in demand, with 81 per cent of employers citing them.

Seven in 10 also mentioned skills relating to the operation of powered equipment, health, safety and welfare, site preparation, disposal of waste, team working and quality control.

Mark Farmer, author of the 2016 Farmer Review on the future of construction for the UK Government, says there is a need to attract high quality talent from among the new generation of students who aspire to a very different, digitally led career.

In the foreword to the new report by CITB, he says we need a two-pronged approach:

“Firstly, adopting more integrated precision engineered ‘pre-manufacturing’ techniques, in turn supported by growing client led demand. Secondly, to evolve a new skills and training landscape alongside the more traditional pathways that enables and supports the implementation of innovative techniques and technologies.”

So let’s take a closer look at the emerging required skillsets:

Designers

Designers will need a new range of digital capabilities. Arguably the most important is the adoption of 3D digital models with rich data (using Building Information Modelling) so that designs can be robustly tested and agreed in advance of manufacture to avoid costly errors and modifications at later stages.

Aligned to this is the need to integrate the design function into early stage planning with the contractor and client. This is a significant break from the norm and challenges designers to adopt a more holistic approach to their role.

Estimators

Given that cost saving is one of the key advantages of offsite, the estimating function becomes an even more crucial one in the sector.

Estimators must account for – and have an understanding of – materials used, transportation costs and risk factors.

For offsite projects, the costing model often puts a far higher proportion of the cost at the outset (that is, before being onsite).

But this can deter clients. Being able to make the case for an alternative value proposition is, therefore, vital.

The technical skills required include developing whole life cycle costs, analysing tender documents and contracts, developing tenders, and understanding the use of BIM.

Offsite manufacturing skills

Offsite manufacturing requires technical skills, like welding, joinery, pre-casting and steel fixing, already present in the construction workforce, plus product and process knowledge.

Product knowledge of concrete, light gauge steel, hot rolled steel, open and closed timber frame, cross laminated timber and structural insulated panels are perfect for most factories in the current market.

Many factories use traditional trades, meaning there is still a healthy market for these skills and those who train them.

However, a growing number of companies are moving towards having multi-skilled operatives who are comfortable with a wider variety of tasks and responsible for quality assurance of finished components.

This means that machinists and other multi-skilled operatives would benefit from basic design knowledge to understand what a finished output should look like and to address any issues that might affect assembly onsite.

Logistics

Offsite logistics requires more patience and control, while the traditional function is frequently “more chaotic”.

Much of this skillset revolves around coordination and integration, so it is important that those involved develop soft skills such as listening and distilling information, as well as problem-solving capabilities.

As with other functions, skills in understanding and using digital models and data become vital here, particularly with regard to planning and project management.

Onsite assembly

Onsite assembly often relies on pre-existing core “tradespeople” skills. However, additional skills, both technical and soft, are also required, together with those traditional ones.

For instance, a crane operator needs new skills in handling much larger, unstable pre-manufactured loads.

Similarly, ground workers need to work to much tighter tolerances so that foundations match precisely the dimensions of the components being assembled.

Technical understanding of products and materials is a key requirement across all roles.

Quality assurance, process management and problem-solving skills are also crucial competencies for both assemblers and site supervisors.

Site management

Adaptability and communication are the key skills for the site management function when it comes to offsite construction.

The role hinges on being able to integrate onsite and offsite functions in one project. In this sense, soft skills, such as time management, attitudes and behaviours are arguably as important as technical skills.

Digital skills are required in reading and using BIM models, to help with correct sequencing and installation. Quality assurance skills and behaviours are also important.

The way forward

Whereas there will always be a space for onsite construction, at least some offsite construction for a project offers so many benefits that it is bound to increase. The infrastructure and industrial sub-sectors have been somewhat slower to adopt the offsite agenda than housing and office space, but they are expected to catch up.

Steve Radley, director of policy at CITB, says:

“The greatest potential currently lies within the housing and commercial sectors, where mass customisation can create the buildings we need more quickly and to higher standards. There are also opportunities to bring the benefits of offsite to large-scale infrastructure projects.

“Successful offsite management hinges on the effective integration of both onsite and offsite functions – and this requires a comprehensive understanding of both aspects,” he adds. 

For anyone considering starting out in the industry, this is a good message to take on board.

David Thorpe is the author of a number of books on energy efficiency, sustainable building and renewable energy, including The Expert Guide To Energy Management In Buildings. Find out more and buy the books here.

UK has the largest green skills gap in Europe - report

Green Deal jobs like insulating this ceiling are going to decline. So much for the Greenest Government Ever.

The UK has been singled out for having skill gaps in more occupations in the green economy than eight other EU countries.

A new study also says that demand for such skilled workers is highly dependent on environmental regulations and subsidies, and governments need to do more to integrate their energy, environment and skills policies.

The shift to a green economy will not only generate new jobs, but will also change the scope and character of existing jobs. Demand for energy auditors, electricians, solar PV installers, sheet-metal workers and insulation workers is forecast to rise in most of the eight countries in the study.

These occupations, which require medium-skill levels, have more growth potential than higher-skilled occupations, which employ fewer people, the report says.

The UK, Germany and Finland are three out of the eight countries that predict future increases in the number of jobs across the widest range of occupations.

But the UK lacks the appropriate skills more than any other country, and is blamed for introducing changes to legislation (along with the Netherlands) that are expected to reduce demand for energy auditors, solar PV installers and insulation workers.

Ministers have suggested that the introduction of the Green Deal will increase employment in two of these sectors. But the Energy Bill's own impact assessment reveals that the number of insulation installations could actually reduce under the Green Deal from previous levels, which will cut the number of jobs in these sectors.

The research comes from Green Skills and Environmental Awareness in Vocational Education and Training, a report from the Institute for Employment Studies (IES) prepared for the European Centre for the Development of Vocational Training (Cedefop), which looked at nine different job roles (see below) in eight EU member states: Germany, Greece, Italy, Hungary, the Netherlands, Slovakia, Finland and the UK.

The need for consistent regulation

It recommends several policies that will help businesses take advantage of opportunities in the transition to a greener economy, and ensure the availability of appropriately skilled workers.

The most important of these is consistent regulation and sustained investment over a prolonged period of time, to ensure that the markets for these products and services become self-sustaining. Secondly, financial incentives need to be phased out gradually to prevent dependency on state funding and to avoid ‘shocks’ that could cause businesses to fail and jobs to be lost.

But it's not just a matter of legislation, the report says. Businesses and private consumers need to be better and more actively informed of the benefits of investment in energy-efficient equipment, systems, products and services, through better marketing and information, advice and guidance from governments.

Generally, the occupations in which job numbers are predicted to increase are in renewable energies, the environment and new technologies, while they are predicted to decline in sectors worst affected by the recession, such as construction.

In the last three years there has been an increase in the number of jobs for insulation workers and electricians and, in relative terms, for nanotechnology engineers and environmental engineers.

The data also show stable or slightly increasing demand for sheet-metal workers and refuse collectors. Only in the cases of solar photovoltaic installers and transport vehicle/energy auditors does it appear that employment has contracted.

Gaps in learning provision

One of the main gaps in learning provision is for insulation workers and solar PV installers.

The UK was especially picked out for having employers who lack experience of transparency in the content and quality of training in solar PV.

In their survey responses, learning providers across the eight states said they were enthusiastic to change the content of curricula to meet new demands. However, action has been rather piecemeal and reactive so far, although less so among those providing tuition for new occupations such as energy auditors and solar PV installers.

All states were criticised for not doing enough to steer unemployed workers, young people or disadvantaged groups into the target occupations. It said there are very few examples of this kind of project, which could do a lot to help the long-term unemployed.

It recommends also revision of existing curricula, qualification standards and training programmes, and the promotion of green career opportunities hand-in-hand with the raising of their status in society. The occupations most crucial to the green economy, like energy auditors, environmental engineers and insulation workers, are not necessarily known to people as career options.

The sectors examined are:

• nanotechnologist, engineering technologist and environmental engineer as examples of high-skilled occupations
• 
  energy auditor, transport vehicle emissions inspector, insulation worker, electrician, solar photovoltaic installer and sheet-metal worker as examples of medium-skilled occupations
• 
  refuse/recycling collector as an example of a low-skilled occupation.

Can we leap the skills hurdles for the low carbon economy?

In order to create the low carbon, environmentally sound economy that is touted a way of getting the country out of the recession, tens of thousands of jobs are going to be needed in the environmental sectors of the economy.

But a skills gap in these sectors is well documented, with one in three firms being hampered by a shortage of skilled staff, from those needed to install new technology to scientists and engineers, according to a report by the Commission on Environmental Markets and Economic Performance.

The Environmental Audit Committee recommended two years ago that the Skills Funding Agency support training in this area and called for a leader to help "deliver green skills across all sectors".

This is slowly happening, with a number of academies opening specialising in part of this huge and varied area.

In a report issued earlier this month, Greening the Economy, the Aldersgate Group called on the government to "build on [this] national skills strategy to ensure that its support for skills and training matches the focus and ambition of its strategies for promoting investment in green innovation and infrastructure" and compared the situation here unfavourably with France’s mobilisation plan for green jobs.

In terms of manufacturing, the UK is unlikely to be cost competitive with emerging economies in many sectors and so must ensure that instead it builds on its vast experience and skills for higher value-added manufacturing activities and services.

It can cost such tradespeople upwards of £6000 to get suitable qualifications. If they want to go on to be a registered installer they have to register under the Microgeneration Certification Scheme which can cost many thousand pounds more.

Not surprisingly, many wonder if it's worth the hassle and cost in terms of the increase in income they can expect to receive.

In other words, is there a cost barrier to entering the low carbon economy?

Well, in one sector of this economy there is good news. A survey carried out by The ENDS Report in collaboration with the Chartered Institution of Water & Environmental Management (CIWEM) and the Society for the Environment (SocEnv) has revealed that gaining professional qualifications can lead to a direct increase in your salary.

The online survey, published in the March edition of the ENDS Report, of over 2,200 environmental practitioners revealed that half are Chartered Environmentalists (CEnv). Among those working in the water sector, half are CIWEM qualified.

Similarly, of those describing their main professional activity as 'engineering’, over 50% are Chartered Engineer (CEng) qualified.

SocEnv says that "as well as raising their status, gaining professional qualifications has also led to monetary reward for around 20% of respondents...as a direct result of gaining additional professional qualifications".

Among those able to recall a percentage rise, almost half had enjoyed one of 10% or more. The median increase was 6% and half of rises were in the 5-10% range. One in seven enjoyed an increase of 20% or more, after gaining additional professional qualifications.

And despite many organisations facing tighter budgets, the level of employer support for professional development remains generally high.

Two-thirds of respondents said their organisation offered financial assistance for professional development and most have taken advantage of it; almost three in five said they had undertaken formal training in the past year.

Acting Chief Executive of SocEnv, Kerry Geldart, said “this particular finding from the ENDS survey reflects the importance employers and individuals place on professional registration, particularly in times of austerity, giving individuals a competitive edge in the market place.”

Rosemary Butler, Director or Membership & Professional Development at CIWEM agrees. "This is an extremely valuable piece of research," she said, "and bears out our findings that more and more applicants for CIWEM membership also seek the CEnv qualification to add real and tangible value to their career progression."

The Energy Saving Trust (in its 'Economics and Impact Model: Data and Assumptions', 2010) cite a multiplier of at least 1.93 for every £1 invested by local authorities in industries related to renewable energy, in terms of the benefit to the local economy. They say that farsighted councils can support local electricians and plumbers to access training courses that will qualify them to install renewable generators.

Hopefully, further research will bear out this success story in other sectors of the green economy. It means that, if true, there will not only be benefits for society as a whole, but individuals partaking in the green sector and those around them will benefit financially as well.