Tag Archives: Government Construction Strategy

New: SkillsPlanner Intelligence Briefing 2

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To help keep SkillsPlanner stakeholders updated on key developments relating to construction skills in both industry and government, Plymouth University’s SERIO applied research unit is producing a series of intelligence briefings. The first was published in February (post); the second (PDF) has just been finalised and is now available in our media section.

Written in clear, non-academic English, these briefings are and intended to inform and engage our audiences with the ongoing R&D project. The latest looks at four main topics (some also discussed on the SkillsPlanner blog):

  • Apprenticeship Levy: In April 2016 the government released some additional detail concerning the specifics of the Apprenticeship Levy. This includes a deadline for spending funds raised through the levy (18 months) and the ability of ‘connected companies’ to pool their funds. However a number of details are yet to be released including: precise rules around how and with whom employers can pool funds; and how non-levy paying businesses, which make up the vast majority of construction employers will be funded to deliver Apprenticeships. Based on these emerging details, it is thought that the Apprenticeship fund could be a catalyst for increased levels of collaboration and partnership working between connected companies.
  • Post-16 Skills PlanFurther Education Provision: The London (Central) Area Based Review commenced in January 2016. The Review will examine the Further Education (FE) sector in the area and consider options for rationalising the curriculum and developing greater specialisation, as well as the prospects for any mergers, closures or collaboration. Similarly to the Apprenticeship Levy, the Review could encourage further partnership working and interact with other developments (such as the Sainsbury Review – post) to help simplify the technical and professional training market.
  • Transport Infrastructure Skills Strategy: The new Transport Infrastructure Skills Strategy (published January 2016) sets an ambition for at least 20% of new entrants to engineering and technical apprenticeships in the transport sector to be women by 2020. More widely, a new Strategic Transport Apprenticeship Taskforce will be set up to address skills challenges within the sector.
  • Government Construction Strategy: The Government Construction Strategy 2016-20 (see also this post) sets out how the government plans to develop its capability as an ‘exemplary’ construction client. One of the Strategy’s key aims is to develop collaborative procurement techniques to build skills capacity, including the delivery of 20,000 apprenticeships by 2020.

To change the image, first change construction

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We need to tackle some of the fundamental issues in the construction industry before we can effectively change “the image of construction”, and wider sharing of data should be part of the solution.

“The image of construction” has featured heavily this week for me (to be honest, it often does – as previous posts probably show).

On Tuesday, I was part of a CIMCIG-led roundtable discussion in London with Mark Farmer, the consultant helping the Construction Leadership Council to address issues relating to construction skills and the future needs of the industry (see gov.uk news release).

Yesterday I joined a panel discussion at the Women in Construction and Engineering Awards day, part of which focused on how current images of construction and engineering make them unattractive to potential entrants, parents, teachers and even careers advisors.

And today, I have been reading in Construction News (YouGov poll finds two-thirds of public would not consider career in construction) about a survey for Construction United showing:

  • more than half of the public view construction work as ‘strenuous’ or ‘dirty’, with just 11 per cent saying it was ‘exciting’
  • 23 per cent viewed construction work as creating ‘mess, traffic and inconvenience’
  • people do not see the industry as academically driven, with 41 per cent saying it was one the least likely sectors to require a further or higher education qualification

Such survey findings are nothing new. They simply confirm that the “image” problem persists year after year despite numerous campaigns to change popular perceptions. Industry insiders maintain that we need to “present how fantastic it is to work in construction and change some of those perceptions… all of us who work in construction love it; we just haven’t been very good collectively at expressing that message” (to quote Suzannah Nicol of Build UK).

To change the image, first change construction

At this week’s CIMCIG meeting, I repeated my view that the “image of construction” is a symptom of a more deep-rooted reputation issue. Bluntly, the industry’s reputation is not just the result of what it says and what others say about it, but – importantly – about what it does and how it behaves.

The reality, evidenced in report after report (read my Ethos blog post: Building a better built environment industry), is that the UK construction industry has for decades been recognised as:

  • overly-complex, fragmented and price-fixated in its procurement approaches
  • adversarial in its supply chain relations
  • poor in its payment practices
  • wasteful in its project execution
  • conservative in its adoption of new technologies, and
  • short-termist and reactive in its approach to human skills development and R&D.

Add to this the ‘macho’ culture on many sites and the painfully slow progress in addressing diversity issues (see: Let’s share more data on skills and diversity), is it any wonder that the industry currently known as construction has an image problem?

At a Constructing Excellence conference in 2014, I said the industry needed to stop thinking of itself as a monolithic entity and start to identify changes it could make across its many disciplines, and then get them communicating, running long-term, integrated, pan-sector campaigns, and working collaboratively with partners, trade bodies and (most importantly, perhaps) its customers and end-users. Currently though, we seem to be more focused on trying to fix the image, rather than fixing the reasons behind that image.

It’s not just about campaigns

CITB’s Jane Gleave was at the CIMCIG meeting and talked about the GoConstruct campaign (read my pwcom post); last month I noted the launch at Ecobuild of Build UK’s new video; and this week’s story in Construction News (which launched its own #LoveConstruction campaign in July 2013) is based on a poll undertaken for yet another campaign, Construction United, launched in February 2016 and building towards a week of events in October.

And while we’re talking about “image”, to me it is unfortunate that the campaign’s home page perpetuates a view of construction as site-based. Efforts are being made by the Chartered Institute of Building, among others, to get government agencies to accept wider definitions of construction that take account of the inputs of product manufacturers and of professions such as architects, engineers and quantity surveyors, according to a Construction Index report today. We also tend to underplay the key roles played in many construction businesses by accountants, lawyers, marketing, PR, HR and IT people, plus a myriad of administrators.

Nonetheless, Construction United does recognise that there is already an industrial strategy looking to address some of the underlying problems:

constructionunited“Construction 2025 identified a number of areas that needed addressing, so Construction United aims to bring everyone with a vested interest in construction together to raise awareness of the key issues facing the sector, including image, skills gaps and the wellbeing of employees at all levels.”

It’s not just about raising awareness of the key issues, but actually doing something about them. Construction 2025 and the Government Construction Strategy 2016-2020 (see previous post: Tackling skills gaps – can we learn from BIM?) prescribe a suite of changes aimed at making construction and the built environment more cost effective and sustainable. The BIM programme has shown that the industry can collaborate to tackle the underlying fragmented structures, silo-based attitudes, anti-collaborative behaviours and out-dated technologies – and BIM shows we can be sophisticated users of technology and data, not just stereotyped wielders of bricks, concrete and steel.

If government can inspire such changes in project delivery, surely it can work with industry so that construction skills provision also benefits from even more collaboration and more sharing of data? Incidentally, the UK was confirmed yesterday as the world’s leader in Open Data (see the 3rd Open Data Barometer report).

WhereTheWorkIsWhere the Work Is

Through the SkillsPlanner project, we see some signs this is beginning to happen. Yesterday, for example, SkillsPlanner programme director Rebecca Lovelace attended an Institute for Public Policy Research launch of a jobs and skills tool called Where The Work Is. This jobs data platform draws on historic data on over 1.5 million jobs posted online by employers across all sectors in the UK from 2012 to 2014 and normalised against government data on vacancies, and we have incorporated some of the same datasets into our developing SkillsPlanner data catalogue. Clearly, we would welcome more contributions of data to help improve our understanding of the construction skills supply and demand challenges.

Incidentally, Where The Work Is also provided supporting data for a report, “Jobs and Skills in London: Building a More Responsive Skills System in the Capital” (download PDF), which recommended that the Greater London Authority might be given a more active role in funding adult education providers, and be given the capability to shift to a results-based funding model for adult skills in the future. This fits neatly with some of the aspirations we have for SkillsPlanner – if we can demonstrate its success in construction, we feel its data-driven approach can be applied to many other sectors of the economy too.

Digital skills and the fourth industrial revolution

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The Fourth Industrial Revolution will demand a more long-term, whole career view of future digital skills needs.

The SkillsPlanner project aims to create an open linked data platform connecting those needing people with relevant construction skills (demand) with those able to educate and train people to gain those skills (supply). With the UK construction skills gap currently a subject of almost daily debate, it is little wonder the Government Construction Strategy 2016-2020 devoted a large section to meeting near-term needs (see Government recognises skills planning needs), and we read almost daily reports about new initiatives to train new workers and retain existing ones.

However, given that many of today’s teenagers have a working life of 50 or more years ahead of them, they – alongside existing workers – will need to be constantly updating their knowledge and digital skills throughout their careers, or planning for future career changes.

The Fourth Industrial Revolution

Evidence certainly suggests they cannot rely on their employers equipping them with the right expertise. In November 2015, for example, a study published by Vodafone and YouGov (news release) showed that, while businesses were aware of the need to keep pace with technological developments (in particular, digital technologies), around half doubted they would be able to keep up over the next five years – let alone five decades.

We only need to look back over the past 30 years to see how technology has transformed just about every aspect of our daily lives. Many of today’s business leaders in their 50s started their careers before email, before the worldwide web, before mobile telephones. Digital technologies have already transformed how we interact and work – and the pace of change shows no signs of slowing down.

Indeed, the World Economic Forum says we stand on the brink of a technological sea change – the Fourth Industrial Revolution – that will fundamentally alter the way we live, work, and relate to one another. WEF founder and executive chairman Klaus Schwab describes this latest Revolution:

Fourth Industrial Revolution“The possibilities of billions of people connected by mobile devices, with unprecedented processing power, storage capacity, and access to knowledge, are unlimited. And these possibilities will be multiplied by emerging technology breakthroughs in fields such as artificial intelligence, robotics, the Internet of Things, autonomous vehicles, 3-D printing, nanotechnology, biotechnology, materials science, energy storage, and quantum computing.

“Already, artificial intelligence is all around us, from self-driving cars and drones to virtual assistants and software that translate or invest. Impressive progress has been made in AI in recent years, driven by exponential increases in computing power and by the availability of vast amounts of data…. Digital fabrication technologies, meanwhile, are interacting with the biological world on a daily basis. Engineers, designers, and architects are combining computational design, additive manufacturing, materials engineering, and synthetic biology to pioneer a symbiosis between microorganisms, our bodies, the products we consume, and even the buildings we inhabit.”

Future built environment

Shwab says our response to this Fourth Industrial Revolution must be integrated and comprehensive, and involve all stakeholders. Yet, according to some critics, UK construction policy-makers seem focused on meeting immediate or short-term skills and physical infrastructure needs, and applying a narrow view of current technologies.

In Workplace Insight, for example, Mark Eltringham says “the Government seems to be largely unaware of or uninterested in what is happening beyond its bubble,” noting the Government Construction Strategy 2016-2020 “uses the word technology three times and, even then, only with regard to the application of BIM [building information modelling] as a way of improving the construction process.” He continues:

“Perhaps more worryingly, the very short section at the end of the document on whole life approaches only deals with the issue of sustainability. It makes no mention of creating the physical infrastructure capable of dealing with a rapidly changing world. [And] … the Government’s commitment to invest in technological infrastructure is woefully inadequate compared to its focus on physical infrastructure.”

Future skills

BIM2050 logoWhat also seems to be lacking is a more wide-ranging and longer-term debate about future digital skills. One exception is SkillsPlanner collaborator BIM2050 which – as its name suggests – dares to look decades ahead; in 2014 it produced a report: Built Environment 2050: A Report on our Digital Future (available here, PDF) which, alongside some wider views of other trends, made some predictions about future skills needs:

  • In the 2020s: “construction roles will be diluted/hybrid versions of their previously heavily-siloed forms. There will be a significant focus on up-skilling the existing workforce. … Computational and analytical skills will emerge as a valued area.”
  • In the 2030s: “Skills within the industry will focus on the flow and process of information procurement and transactions throughout the supply chain. Sought after skills … will surround analytics and the ability to understand ‘big data’, [and] predictive data analysis.”
  • In the 2040s: “the skilled workforce will be reduced to 50% of its level in 2013. … Skills and roles will become more focused on the operation, maintenance and redevelopment of existing assets rather than the building of new assets. … Automated assembly and digital manufacturing will see a need for further support in designing digital systems which will allow for the creation of smarter material that ultimately responds to its environment.”

Ethos, SkillsPlanner and Future Cities

As we enter the Fourth Industrial Revolution, we will increasingly – as Schwab said – need a comprehensive, integrated and inclusive response embracing all stakeholders, with silos broken down and connections made between public policy-making, infrastructure planning, and investment in education and technology.

Future-gazing is all very well, but it also needs to be matched by a willingness to test new ways of living, working and interacting in our built environment. This fits with the vision of Ethos, and in particular its recent establishment of a business sector focused on Future Cities, in parallel with Ethos Skills. Future Cities currently has three product lines – focused on Parking, Retail and Active Mobility – all focused on particular human interactions with their surroundings, and deploying technology and using real-time data to help people and organisations better manage transportation and other aspects of their built environment.

Like our friends at BIM2050, we are excited about the prospects of creating new combinations of people, processes and technologies. We believe tomorrow’s leaders – some of them, perhaps, just about to start their careers – in the industry currently known as construction will be the ones that anticipate best and respond quickest to the multi-faceted challenges of delivering an increasingly digital built environment in the mid 21st century.

 

Government recognises skills planning needs

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GCS 2016-20

It was with some trepidation that we looked at the latest UK Government Construction Strategy 2016-20, released last week (available here). The previous strategy, Construction 2025 (published in July 2013) and the wider-ranging Digital Built Britain strategy (February 2015 – read our July 2015 blog post: Building a better built environment industry) were both produced under the coalition government, but the current administration has reduced some elements of government engagement with the construction sector – the Construction Leadership Council was pared back, and the post of Government Chief Construction Advisor was discontinued. Would the Government, collectively construction’s biggest single client, be reining back its industry ambitions?

Data and skills

The initial signs, however, are encouraging. The direction of travel remains broadly the same, with heightened commitment to “digital and data capability,” and to improving the sector’s skills and resilience. In the ministerial forward, Lord Bridges says:

“we need to improve skills, both within government and the construction sector overall. Our strategy aims to improve government’s capacity and capability as a client, while helping the sector recruit and retain skilled employees.”

The body of the strategy mentions apprenticeships (“delivering 20,000 apprenticeships through central government procurement over this Parliament”), it talks about the need for skills in building information modelling (BIM; read our previous post: Tackling skills gaps: can we learn from BIM?) – still a major component of the digital vision – and then underlines the major skills challenges:

“Employers are facing difficulties in attracting skilled employees and 13% of employers reported not having enough skilled employees for some of 2014. This skills gap, if not addressed, will lead to inflation and reduced productivity in the way the industry operates. … Young people are currently underrepresented in the construction industry compared to the economy as a whole, only around 10% are aged between 19 and 24.”

Skills planning tools

Interestingly, to support its skills drive, the strategy says the Construction Leadership Council is developing a guide on what good skills investment looks like, to aid both government procurers and the industry when bidding for future government contracts. And since publishing its National Infrastructure Plan for Skills (September 2015), Infrastructure UK, now part of the Infrastructure and Projects Authority, is developing a tool to help clients utilise pipeline data to model current and future skills requirements. There is also talk of “sharing market intelligence.”

We hope these ambitions are carried through, and that there is a lot of joined-up thinking. As we have previously argued (Data for efficiency and growth), there is considerable scope to take the government’s enlightened approach to open data, and to pair this with ongoing initiatives – such as SkillsPlanner (part government-funded through Innovate UK) – that are focused on improving the match of skills to jobs and enabling training provision to be responsive to industry needs.

Building a better built environment industry

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Shard and crane

With collaborative platforms, mobile, BIM, ‘Big data’, the ‘internet of things’, we are tinkering with enablers of change. “Digital Built Britain” envisages entirely new business models for the industry currently known as construction.

21 years (and more) of industry reports

While some industry sectors have changed profoundly in recent decades, some have remained resistant to change. The UK construction industry, for example, has for decades been recognised as overly-complex, fragmented and price-fixated in its procurement approaches, adversarial in its supply chain relations, wasteful in its project execution, conservative in its adoption of new technologies, and short-termist and reactive in its approach to human skills development and R&D.

Such issues have been debated many times in a sequence of industry reports stretching back to World War 2: Simon, Emmerson, Banwell, Latham, Egan …. The ripples of the 1994 Report by Sir Michael Latham continue to be felt, not least because it stimulated some changes to procurement (we started to talk about strategic partnering and frameworks), and the change potential of IT was eventually picked up by Sir John Egan in his 2002 report Accelerating Change, and later championed by the first chief construction advisor, Paul Morrell from late 2009 onwards.

By this stage, the global financial crisis was scything through weak companies, projects were being moth-balled or cancelled altogether, thousands of workers lost their jobs, and the industry was desperate to find positive routes forward. Morrell responded to the challenge. Low Carbon Construction (2010) set the foundations, then the 2011 Government Construction Strategy instigated a more wide-ranging set of measures.

To many, this has all been about building information modelling (BIM), but it also created the conditions to test new models of construction procurement. Much of the endeavour, however, has remained siloed. To deliver the latest industry strategy (Construction 2025, published in 2013), we need to break down these silos, build on the progress made during the recession (lessons learned are being forgotten and businesses are ‘reverting to type’), and ensure they extend beyond just the progressive fringe.

‘Disruptive’ trends

The web, broadband and Software-as-a-Service (SaaS) have all helped change perceptions about technology and information management (a once paper-centric industry is moving more online). Information mobility has been a factor since the advent of smartphones (c. 2007) and tablets (c. 2010). BIM has, of course, been an increasingly dominant theme over the past five years and is set to continue as the government’s 2016 mandate comes into effect; social media has – maybe somewhat grudgingly – begun to challenge existing models of communication; and we have also become more aware of the power of data – ‘Big data‘, interoperability, linked open data, and outputs from the ‘Internet of Things‘ (in short, some of us are no longer document-centric but data-centric).

However, these technological changes are not, on their own, going to overhaul the construction industry. They are, at best, enablers. We also have to tackle the existing siloed structures, attitudes, cultures and resulting behaviours within the industry. These are holding back business; they helped create the industry’s poor reputation, and this reputation makes construction less attractive to potential home-grown employees at a time when there are deep skills shortages and the existing workforce is ageing.

The future direction and shape of the industry currently known as construction is more likely to be influenced by political, economic, social, legal and environmental factors. Globalisation, carbon, population growth and resource shortages will have an increasingly important and direct bearing on what industry clients identify as desirable business outcomes, making them more alert to whole-life performance and to wider business, social, economic and sustainability outcomes.

New business models

New Business Models

Digital Built Britain, published in February 2015, is therefore a key document. It synthesises four industry strategies: Construction 2025, Information Economy, Smart Cities, Business & Professional Services; it tells a wider audience than construction that it needs to build and exploit a “new digital economy”. It talks about the need for:

  • New ways of doing things
  • New business models
  • New business relationships
  • New institutions
  • New performance metrics

This fits with the Ethos VO view and with Constructing Excellence’s vision which says delivering ‘best practice’ is not enough. The successful businesses of tomorrow will break through the current industry ceiling, making radical changes and building collaborative business relationships so they can deliver exceptional performance:

New Business Models

BIM, mobile and data are part of this picture but only as enablers. Over time, they will become normal – as much part of the way of doing things as CAD, spreadsheets and email. Supply chain organisations in the industry currently known as construction will be rationalised and more integrated, transformed into providers of leaner, safer, lower-carbon and data-supported “asset services” (delivering ‘illumination’, not light fittings, for example – “Buildings-as-a-Service”, BaaS perhaps), rewarded across the life-cycle for the value delivered by the built assets they create, and having the reputations and market valuations more commonly found among sophisticated manufacturers.

And workers will be rewarded for their value-adding contributions; many will be recruited and trained to apply their skills in off-site manufacturing facilities; there will be a more strategic and long-term view of employment supply and demand (managed through platforms such as Ethos’s SkillsPlanner project), and new professions will emerge as we start to exploit the rich data opportunities of Future Cities.

This is not achieved by focusing on technology – it is achieved by radically overhauling existing structures, processes and cultures, driving out waste, creating collaborative business relationships (both corporate and interpersonal) that nurture innovation, and having supply chains focus on what delivers best whole life value.