UK's Civil Engineering Sector Faces a Talent Cliff by 2026

Friday 10^th May 2024: This week’s civil engineering insights and top stories.

In today’s edition:

• UK's Civil Engineering Sector Faces a Talent Cliff by 2026 👷📉

• Network Rail Launches £3.5bn Eastern Routes Partnership 🚆🤝

• Sizewell C Nuclear Plant License Granted ☢️✅

TALENT

UK's Civil Engineering Sector Faces a Talent Cliff by 2026

Big picture: The UK's civil engineering sector is grappling with a severe talent shortage, driven by emerging projects such as the Lower Thames Crossing, the Great Grid Upgrade, and the Stonehenge Tunnel, in addition to ongoing developments like HS2 and Hinkley Point C. This escalating demand for skilled labour is expected to peak in 2026, risking project delays and heightened competition for skilled workers.

Why it matters:

• Talent Drain: Decline in workforce numbers, dropping from 2.6 million in 2008 to about 2.1 million by the end of 2023, a net loss of 465,000 workers.

• Aging Workforce: Half of construction workforce is aged between 25 to 44, with only 19% under 25.

• Demand vs. Supply: According to the Construction Skills Network, by 2027, the construction sector will need approximately 225,000 new workers to keep pace with ongoing and future projects.

Zoom in:

• Upcoming Projects: Large-scale initiatives such as the £58bn upgrade of the UK’s high-voltage transmission network, the £9bn Lower Thames Crossing and the £1.7bn Stonehenge Tunnel.

• Technological Skills Gap: A significant segment of the industry believes that a lack of technological and digital skills contributes to the talent shortage, highlighting the need for modern skill sets in traditional fields.

What's next: Addressing this critical shortage requires a multifaceted approach:

• Diverse Recruitment: Companies should broaden their recruitment strategies by targeting diverse backgrounds and increasing salaries to attract skilled individuals.

• Apprenticeships and Training: Emphasising apprenticeships and ongoing training to develop a workforce skilled in both traditional and emerging technologies is crucial.

• Enhanced Visibility: Initiatives to improve the perception of the construction industry and the visibility of construction careers, particularly among young people and women, are vital to attract new entrants.

This growing crisis demands immediate action from both industry leaders and policymakers to ensure the UK's infrastructure ambitions are not compromised by the looming skills shortage.

RAIL

Network Rail Launches £3.5bn Eastern Routes Partnership

Network Rail has announced 15 partners for the £3.5bn Eastern Routes Partnership to enhance railway infrastructure through 2029. This collaborative framework involves generalists and specialists across building, civils, signalling, telecoms, contact systems, and distribution, with potential extension into 2034.

TfL Revamps Rail Infrastructure Strategy

Transport for London seeks feedback on a new unified framework for rail upgrades and maintenance, including the London Underground and DLR. Interested parties should engage by 22^nd May to influence and shape the forthcoming strategy.

ENERGY

Sizewell C Nuclear Plant License Granted

The UK's Office for Nuclear Regulation has licensed the Sizewell C nuclear power station in Suffolk. This significant step doesn't yet permit construction, which will begin after Hinkley Point C becomes operational, projected for no earlier than the end of 2029.

INFRASTRUCTURE

Highland Council Announces £2 Billion 20-Year Investment Plan

Highland Council has approved a £2 billion, 20-year investment plan focusing on schools, roads, and community infrastructure. The plan targets widespread enhancements in the Highlands, with over £1 billion allocated for capital investments in the first decade.

HIGHWAYS

Royal Parks Ltd Announces £4m Infrastructure Tender

Royal Parks Ltd has launched a tender for a Highways Contractor Framework from 2024 to 2028 to upgrade infrastructure across London's historic parks, focusing on refurbishments, road markings, and drainage systems with a contract value estimated at £4m.

BRIDGES

WeBuild Proposes Safe New Bridge for Baltimore

WeBuild unveiled a concept for a new Francis Scott Key Bridge in Baltimore, featuring a 700m cable-stayed span designed for enhanced safety and navigation. The design focuses on sustainability and smarter traffic management to boost local mobility.

MOVERS & SHAKERS

Perega Appoints Greg Schmidt as New Head of Civil Engineering

Perega, a Guildford-based engineering firm, has named Greg Schmidt as head of civil engineering. Bringing extensive experience from diverse projects, Schmidt aims to expand the team and capitalise on growth opportunities in the UK’s burgeoning civils and infrastructure sector.

Aecom Hires Dan Meis to Expand Sports Stadium Design

Aecom has appointed Dan Meis, famed for designing Everton's stadium, as director of global sports design. Meis aims to disrupt the sports architecture sector, which has been dominated by a few firms, leveraging his extensive experience and innovative approach.

MERGERS AND ACQUISITIONS

Heidelberg Materials Completes Acquisition of Mick George

Heidelberg Materials has finalised its acquisition of Mick George after UK's CMA clearance. The deal enhances Heidelberg's recycling and construction waste capabilities, aligning with its goal to offer circular alternatives for its concrete products by 2030.