Quantity Surveying Commercial Management Dissertation Help

Quantity Surveying Commercial Management Dissertation Help

Quantity Surveying Commercial Management Dissertation Help

UK construction industry, Ecomony, Assignment Help UK, Online Assignment Help

Chapter 1- Introduction

1.1 Overview of UK construction industry  

From the past few years it has believed that construction sector is a key area supporting the UK economy and includes wide range of products, services and technologies. Even these factors have got variation in terms of economic value they generate, reflecting difference in the particular use of the factors and value derived out of it (McGraw Hill Construction, 2013). Hence, it could be said that construction sector of UK is composed of variety of industries.

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                    Figure 1: Composition of the UK construction sector

From the above composition of UK construction industry, it could be identified that within UK contracting work there have been generation of 2,030,000 jobs 234,000 businesses £63 billion GVA, services 580,000 jobs 30,000 businesses £14 billion GVA and products 310,000 jobs 18,000 businesses £13 billion GVA.

Around the globe it has been seen that construction industry has been hit hard all due to economic and financial crisis incurred during the period of 2008 and is to be in a declining face in majority of the developed economies. Despite of all these scenarios UK construction sector has been at the top of the industry and has been largest in the Europe in terms of employment, number of enterprise and gross value added (ONS Labour Force Survey, 2012). Even at the similar time it could be said that UK construction industry has got large number of privately owned enterprise and is seen to be more fragmented when compared with their major competitors such as Germany of France.

1.2 Background of the study

After undergoing the potentially of UK construction industry it has been seen that it is a favourable sector for the domestic employment in UK. But it has been identified that UK construction industry is undergoing greatest skills crisis since the period of 1998. In this regard it has been said by the construction firm that skills shortage has threatened to delay majority of the building projects. Eve research showed that output of the industry has fallen down by 4.3% on the previous month and has surprised the city economists who were expecting the rise of the sector by 1%. A breakdown of the industry indicated that every construction types have seen a fall for the first time in the period of December 2010 (Afolabi.et.al, 2016). Owen Goodhead, managing director of the Randstad CPE recruitment firm showed that such a problem in the construction of UK could be expanding instead of retreating if right individuals would have been at the right jobs. Even it has been said that there is a need for acceleration in the training, skills and flexibility to be kept within the construction jobs for enhancing the demand. Further, Mark Robinson, chief executive of the consultants Scape Group states that shortage in skills within the construction has still been a problem within UK and required lot of work (McGraw Hill Construction, 2013). Under this study research is going to study the factors those are responsible for shortage of domestic skills within UK construction industry.

1.3 Rationale of the study

The research has been undertaken for identifying the gap that is seen to be within UK construction industry for identifying lack of domestic skills to work under the industry. In this respect it has been found that in UK there is shortage of domestic skills to carry out work in the construction industry of UK. Hence, it has become important for the researcher to explore the factors that are the cause of such an issue. It is because the construction industry in UK is considered to be one of the largest sectors and has been contributing towards the GDP of the economy.  Thus, undergoing this research in an appropriate manner will help out researcher to study the impact of construction on the UK economy, understanding factors those are responsible for shortage of domestic skills within UK construction industry. Further, this study will be exploring the influence laid down by immigration on UK Construction industry. Finally, it will be identifying the challenges and opportunities that UK construction industry is going through within the market.

1.4 Aims and objectives of the study

1.4.1 Aim of the study

The main of this research is to evaluate the shortage of domestic skills and its impact on the UK construction industry.

1.4.2 Objectives of the study

  • To study the impact of construction on the UK economy
  • To understand the factors those are responsible for shortage of domestic skills within UK construction industry
  • To explore the influence laid down by immigration on UK Construction industry
  • To identify the challenges and opportunities that UK construction industry is undergoing

1.5 Research questions

  • What are the factors responsible for shortage of domestic skills within UK construction industry?
  • What is the impact of shortage of domestic skills on UK construction industry?
  • What influence laid down by immigration on UK Construction industry?
  • What are the challenges and opportunities that UK construction industry is undergoing?

1.6 Outline of methodology

In order to carry out the present research investigator is going to adopt interpretive philosophy and deductive approach as researcher has got the knowledge with respect to present research subject. Then study is going to adopt exploratory research design as it will help in exploring the factors responsible for shortage of domestic skills within UK construction industry. The research type selected for this research is qualitative as complete research is based on the subjective nature. Data for this research will be collected from secondary sources only. For the collection of data researcher is going to access various international journals, books and online website sources. Then on the basis of secondary data analysis will be carried out using thematic analysis.

1.7 Structure of dissertation

The complete dissertation has been divided into 5 chapters. Under this research first chapter will be Introduction that is going to discuss about background, rationale, aim and objectives of study, research questions and outline of methodology. Then in the second chapter there will be discussion with respect to review of literature covering past theories that have been formulated by other researchers and scholars concerning skill shortage in UK construction industry. In the third chapter discussion will be laid down concerning research methodology, it will be indicating about various research techniques that will be adopted in order to achieve findings of this particular research. Further, researcher is going to carry out data analysis and interpretation in their fourth chapter based upon the techniques that have been discussed in the methodology section. Finally, chapter five will be discussing about conclusion and recommendation that researcher is going to draw in relation to the present findings of this study.

Chapter 2- Review of literature

2.1 Introduction

The construction division is a key segment for the UK economy and involves an extensive variety of projects, administration and concepts. These are accountable to the economic waves they create, which reflects their utilization of specific components for preparation (crude materials, physical capital, immaterial venture, talented and non-skilled work and learning) and the worth which is produced by them (British Standards Institute 2010).

Modern construction is a complex, very involved procedure. Not just is it a science and a business; however, it is an innovative art. From the most up to date enlightened person through to a developed specialist of many years’ experience, it is a remunerating, regularly intense and appealing discipline. Each and every individual that forms part of the construction process makes an immediate commitment to the overall group as well as to the country at large. The Industry has failed to appeal to and recruit and retain or advance, women, ethnic minority groups and disabled people (de Graft-Johnson et al., 2009, CIC and C skills 2009). For a sector with huge potential employment growth, these under-represented groups offer an obvious ability pool of talent. This identifies the need for a clear framework to achieve good practice.

The construction area has been influenced excessively since the recession of 2008. In 2007 the development area represented 8.9% of the UK's GVA yet by 2011 the area commitment had diminished to 6.7%. In mid-2012, the development contracting industry came back to subsidence for the third time in 5 years (UKCES, 2012).

In spite of late monetary and money related emergencies which influenced most created economies, the UK development contracting industry stays at one of the biggest in Europe, measured by job, number of endeavours, and gross worth added. Be that as it may, the UK development industry is additionally more divided than its real European rivals and the proof demonstrates it has larger amounts of sub-contracting (UKCES, 2012).

2.2 Impact of construction on the UK economy

In UK construction industry is seen to be among the largest sectors. The total contribution of the sector is seen to be around £90 Billion to the UK economy in value added that comprises over 2,80,000 businesses with an employment generation of 2.93 million jobs that is seen to be equivalent of 10% of total UK employment.  In this regard it has been seen that contracting industry is the largest sub-sector in the construction sector and it accounts for 70% of total value added generated by UK construction and almost 70% within the service sector jobs. Further, construction product and service are seen to be smaller in size but have been contributing significantly towards the sectors performance and in generating substantial economic benefits (Killip, 2013). Even construction has got a much wider significance to the economy. It has been creating, building and maintaining the workplace under which organization carries out their functioning and flourish. Even it has been believed that modern competitive and efficient construction industry is seen to essential for the UK economic growth. This sector contribution is also seen to be vital if UK has to undergo climate change act commitments, wider environment and social obligations.

However, it has been seen that construction sector is seen to be affected since the period of 2008 recession. In the period of 2007 construction sector has accounted for 8.9% of UK GVA but from the period of 2011 there has been decline in the sector to 6.7%. Even these declines were seen in all the three sub-sectors of the industry. From the data of ONS for the period of 2012 it could be said that construction contracting industry has returned to recession for the third time in 5 years. However, despite fall in the outputs UK construction has been generating substantial output in the UK economy since the period of 1950.

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Figure 2: Annual volume of UK construction contracting output and change over previous year in UK for the period of 1955-2012

The fall in the output since the period of 2008 recession has been driven by falling private housing and private commercial buildings that has declined with a percentage of 40 to 33 since the period of 2007 (Nadim & Goulding, 2011). Even it has been seen that there was growth in infrastructure and public non-residential activity from the period of 2007. But it could also be identified that there was sharp decline in the infrastructure output that could be seen in first half of 2012 and even there was decline in public non-residential sub sector continuously with a second half of 2010. 

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Figure 3: Change in output performance in construction contracting sub-sectors

Historically, it has been seen that construction sector has undergone a significant path of growth by following downturns in the economy. But it has been forecasted by Oxford economics that recession undergoing the construction contacting is among European countries is expected to stay as twice as previous recessions all due to the combination of various factors. Even there were various factors creating issues such as access to finance impact laid down by public sector austerity measures, dynamics within the property market and higher business and household demand uncertainty (MacKenzie.et.al, 2010). Even the latest forecast laid down by construction product association indicated a fall in construction output by 2.1% in the period of 2013 and it was all due to effect of cuts in the public investment. However, the forecasted growth in the period of 2014 and 2015 indicated a private sector activity by 1.9% and 3.8%. Even these forecasts were seen to be aligned with the latest Experian’s forecast indicating 2.6% fall in the period of 2013 and it has been followed with an increase of 0.8% in 2014 and 3% in 2015. This shows that industry is experiencing great challenging times and its full recovery will take some time.

2.3 Financial and Statistical Perspective

Regardless of financial emergencies and rising unemployment, the development division is experiencing deficiencies across the sector. This is borne out of late quarterly studies of individuals from the Federation of Master Developers (FMB, 2010). The development division is varied and covers a wide variety of employment including designing, engineering, civils, construction etc.

The changes that have been seen have been due to a flexible workforce, venture centres, dependence on capital speculation, workforce versatility, tight timescales and due dates, and dependence on acquisition and contracting through supply chains. The structure of the development industry is defined by organizations that utilize more than 250 individuals and 93 utilize less than 10 (Cskills, 2010). The sector relies intensely on sub-contracting and the utilization of supply chains to convey, plan and scope work programs.

In an industry where the majority of business enterprises are allegedly subsidized, major activities, for example such as Building Schools for the future, are being cut back which is creating a knock on effect. Specific weight has been placed on Small and Medium Enterprises (SMEs), which number around 300,000; approximately 99% of UK development firms (The Construction Index, 2010).

Over the medium term various components influence the interest in construction. These include: globalization, demographic changes, interest for green and practical construction, both in the UK and abroad, expanding significance of innovation in construction and developing interest from rising economies, for example, China and Brazil.

Although preceded with financial emergency and rising unemployment, the construction division is yet to come across a skills shortage in expert regions. Skills are frequently divided into two types: genetic and transferable skills. These can be utilized over huge kinds of different occupations and professional skills, which are particularly technical or specialized and are required to work inside an occupation or within a work related team. Hence, the employment market can be seen as not one homogeneous market, yet as a smaller market, each characterized by the expertise levels/skills requested and supplied by the members. Late payment is a specific issue for development organizations, and development contracting SMEs depend on the exchange of credit to receive income amid the period between taking the necessary steps and getting an instalment. In addition, development contracting SMEs are regularly unaware of account activities and existing government support programs accessible to them.

2.4 Skill Surveys

The Employers Skill Survey (ESS) gives two meanings of absence of abilities. The first is skills shortage, characterized as enrolment challenges brought about particularly by a deficiency of people with the required abilities in the open work market. On the other hand, there are skills gaps which are decreases in the abilities of a business's current workforce, both at the individual level and generally speaking, which keep the firm from reaching its business targets (Employers Skill Survey 2001).

Skills gaps can be characterized in two ways: a broad spectrum definition incorporates all foundations that identify the requirement for specific skill sets; tight measures incorporate just those foundations where a critical extent of the workforce was accounted for that lacked full capability (skill). In this day and age, one would always hope to have a workforce where every single person was completely capable of performing their role.

 A few firms encountering skills gaps may accept that fully skilled staffs are hard to come by and the same skills are lacking and are currently in demand. Research on the outcomes from the ESS established that having the skills is imperative. A possible reaction to the skills shortage is that recruitment agencies may struggle to secure or retain existing staff, so one may anticipate that additional income is needed to attract those who can address the skills deficiencies (Employers Skill Survey 1999)

The employee skills survey found that there is a major lack in both the expertise gap and also in the abilities shortage. This recommends that organizations encountering skills gaps either choose not to utilize recruitment as an answer for the skill gaps or recruit new staff without issues. The bosses most influenced by skills shortages were essentially in high skilled occupations that regularly required large amounts of time and commitment. In spite of the fact that the ESS utilizes a tough approach to skills shortages, there are different sources which utilize distinctive definitions (UKCES Sector Skills Insights: Construction, 2012).

The British Chamber of Commerce (BCC) distributes a skills shortage arrangement, with the peak of inclination separating between assembling and management. The downside with its arrangement is that it characterizes a skills shortage as recruitment troubles as opposed to utilizing a more stringent definition. This may possibly imply that the CBI (Confederation of British Industry) and BCC send out conflicting signals.

A shift in the occupational structure from manual to automated work in the course of recent years has suggested a shift in the interest for skills from manual to abilities identified with individual cognitive capacities. The requirement for generic skills, for example, correspondence, issue understanding and the capacity to utilize IT mechanisms is rising, while that for aptitudes identified with manual skills and quality is falling. Skills deficiencies emerge when there are more opportunities with specific skills needed than there are individuals available with those abilities.

The more noteworthy uptake of offsite construction is responsible to gradually affect existing skills and occupation parts despite the fact that the requirement for capabilities is prone to be quicker. The construction business has an expansive inventory network, all of which is sourced inside the UK. It is assessed that for each £1 spent in construction no less than 90% stays in the UK (CBI, June 2012). Investigations conducted by BIS by EC Harris (2013) have demonstrated that for an "ordinary" huge building venture – that is, in the £20 - £25 million range - the primary temporary worker might be specifically overseeing around 70 subcontracts. For a territorial undertaking, the subcontract size might be smaller.

A conceivable reaction to employment challenges might be to increase pay rates to draw in competitors or retain existing staff (Tang.et.al, 2010). Be that as it may, as indicated by the Employer Skill Survey, a portion of firms experiencing skills deficiencies demonstrated a willingness to lift their wages.

The developing discoveries from the same study recognized various variables which decide and plan the passage of a construction project. These include: fair budgetary game plans and conviction of instalment; early contractual worker engagement and proceeding contribution of the production network in configuration advancement; solid relations and coordinated effort with suppliers and capacity for site administration, including the capacity to react to change.

2.5 Demographic Changes

Demographic change additionally drives requests in the construction sector. A maturing population and changes in the general comfort of the public has suggestions for the procurement of social insurance offices, lodging, instruction and foundations. The general public additionally has suggestions for the development of the segment workforce and the supply of abilities in the sector. Key skills can be lost through retirement and there is a need to move and draw in more youthful labourers to the industry with a specific end goal to replace lost skills (UKCES Sector Skills Insights: Construction, 2012).

2.6 Consumer Demand Perspective

The construction sector covers a wide range of sub-areas, including structural building, designing assembling and house building, customer inclinations change significantly over parts of the division. By and large, more consumer weakness and confined credit conditions following 2008 have affected customer interest for a scope of development. Although, in the course of recent years there has been a general developing enthusiasm for property improvement in the UK, people are putting progressively high requests on developers including prerequisites for vitality productivity and fantastic completions. Development in the middle of urban and rural abodes and with respect to home proprietorship versus rental settlement, additionally affect the requests of the demand sector (McGraw Hill, 2013).

2.7 Qualifications and Training Perspective

Worldwide doors in development imply that a gifted and adaptable workforce will be a key to the Assignment Help UK development area's future execution and strength. Proof of capabilities is certain, demonstrating expanding amounts of people with more tailored and niche skills. Despite these, there has been a considerable fall in the number of apprenticeship placements in development related commercial enterprises in the last three years while placements in other areas have kept on increasing.

Late confirmation on capabilities is by and large positive, demonstrating expanding volumes of people with more depth to their capabilities (Wadick, 2010). The number of individuals in development contracting with a degree or similar capabilities (Level 4) practically multiplied in the course of the most recent decade, from around 12% in 2001 to around 22% in 2012.

In the meantime, the development contracting industry has a higher extent of representatives with Level 3 capabilities than any other UK sector. The development vertical is undoubtedly an imperative supplier of apprenticeships. Companies in the development sector are more likely to offer formal apprenticeships: 17% compared with 13%. Additionally, in the meantime financial conditions have prompted a significant fall in apprenticeship fruitions in development related commercial ventures: from around 22,000 in 2008/09 to around 16,000 in 2011/12. This is during a period when apprenticeships in other industry markets proceeded to develop. Studies demonstrate that nearly 86% of managers in the development division said they would be unlikely to begin to learn a new discipline in the next 12 months

The self-employed are half as likely to take an interest in preparing themselves for re-skilling or training as representatives in the development sector (Construction Skills Survey 2011).

Numerous organizations in development do not have a well-structured management set up. Just around 27% of organizations in development said they had suitable arrangements in place and 19% had a preparation spending plan. This analyses to around 38% and 29% individually for organizations across all UK segments by and large (UK Commission’s Employer Skills Survey 2011).

A society of 'multi-skilling' could be implemented at an earlier stage. This preparation could look to include understudies about offsite activities and how to learn the use of various settings, processes, materials and frameworks (Smyth, 2010). Preparing and instructing suppliers could be a way to deal with offsite procurement in other countries to distinguish best practice, which in turn can be exchanged to the UK.

2.8 Management and Technology

Administration skills are the key to the execution of the development sector. The examinations conducted by EC Harris for BIS (2013) in the structure and execution of development supply chains have illustrated the potential capacity of an overseas workforce. Because of the disaggregated way in which development production operates, and the unpredictable sequence of events, there is a high dependence on reliability in order that the processes are cohesive. This capacity is turning out to be more essential as the development production network is locked before work starts, and also as venture groups coordinate (CITB-Construction Skills, 2013).

The use of innovation and development, as BIM, MMC and offsite generation, is relied upon to have an imperative part in understanding the UK Government's vision for the development business. BIM specifically is recognized as a key driver, the Development Industrial Strategy focuses on the significant advancement being made on the execution of BIM, which will get to be obligatory for all open area development ventures from 2016 onwards (Ness, 2012). A comprehension of the abilities required to tackle these advancements and accomplish their maximum capacity is in this way basic. This study is one of a number aligned with the UK Commission for Employment and Skills with the motivation behind clarity, progression, and the need to encompass the assistance of the Government.

2.9 Influence laid down by immigration on UK Construction industry

The report of Migration Advisory Committee indicated that in different studies there has been estimation of impact of migrants on UK wages have laid down very little or no impact on average wages. But in some of the research migrants were seen to have higher wages at top of UK wage distribution and lower wages at the bottom level. Even it has been seen that construction industry is highly flexible and volatile in nature in labour market and a high level of self-employment. Toner, (2008) indicated that greater amount of skilled workers is going to reduce risk that firm undergoes in relation to wage shocks when there is increase in demand. But in the similar manner it also brings out dramatic cuts in wages when there is fall in demand when net flow of migrants within the industry slows down or reverses. The analysis carried by ONS in the period of 2010 showed that impact of job losses in the period of 2009 was seen to be lesser on UK born construction workers than on non-UK born. Majority of the surplus UK-born workers falls back on benefits and other end redundant migrant workers will be returning home. Further, House of Lords Economic Affairs Committee report of 2008 indicated some evidence concerning the impact of migrant labour on unemployment. There evidence was seen to be insufficient for drawing out clear picture with respect to impact laid down by immigration on unemployment within the construction industry of UK. It has been said that there is no prove that immigration is going to adversely affect employment opportunities of young individuals who have been competing with young migrant’s from A8* countries (Dowson.et.al, 2012). Even both construction employers and union representations have been laying down emphasis on the need of migrant workers in the construction sector.

2.10 Challenges and opportunities that UK construction industry is undergoing

According to Glass.et.al, (2008) it has been indicated that lack of investment from industry and government is seen to be the biggest threat in relation to future skills agenda. This has showed a 4% rise in 2011 CIOB skills survey. This shows that within UK there have not been any sort of long term investments that have been carried out towards skills, within public sector projects for promoting growth within the industry. In this regard it has also been identified that ageing workforce and lack of education with respect to construction industry at the school level is seen to be a great threat on future skills agenda. In the period of 2011 CIOB skills survey it has been identified that around 57% of the respondents in their survey believed that removal of UK default retirement age is going to lead towards an ageing workforce. This clearly indicates that within UK construction industry it is still a concern that there has been no attracting of young individuals towards the industry at a very early stage. Further, it has been said that government must play an important role for resolving skills shortage within the industry. The shortage of skills is seen to be a complex problem and it has been indicated that construction must be higher on the political agenda (Worrall.et.al, 2010). In UK it has been seen that construction output has been contributing for 7% of total GDP and it has become necessary for the government to seek opportunities for carrying out further investments. This aspect must particularly be carried out on large scale infrastructure projects. Even there is a need for increasing provision with respect of quality of education and training that has been cited as a key issue for government that is required to be addressed in a proper manner. Research also show that there is a need for laying down strict laws against immigration that suggest that immigration cap will help in utilizing current UK workforce and reverse trend in order to search immigrants for fulfilling the skill gap.

Chapter 3- Research Design and Methodology

3.1 Introduction

Various research techniques are required to carry the research. These techniques are defined in research methodology. Thus, research methodology is a process to define various techniques utilized to carry out the research. This report studies the various techniques to achieve the objective of studying in a particular manner. On the basis of study of Panneerselvam, (2014) the data is collected for this study from secondary source i.e. books, international journal and websites. There are two sources of collecting data- primary source and secondary source. Primary sources are first-hand information and secondary source is the data already present. The researcher has utilized and studied the already present data to carry out his research. The other aspects of the study are as under:

3.2 Research Philosophy

Explanatory research philosophy has been initiated in order to carry out the present study. Explanatory research is generally carried out when the problem of research is not clearly defined because of conceptual distinction. It helps researcher to focus on particular area of research. It is also helpful in indicating factors those are responsible for shortage of domestic skills within UK construction industry. It is most effective phase of interpretive research philosophy. According to this philosophy, the focus of study is in drawing meanings and the study involves various methods to reflect the characteristic of the study. In this study also the researcher has tried to draw inferences on the basis of work of other researchers.

3.3 Research Approach

Deductive research approach is adopted in this study as researcher is utilizing the outcomes of other studies and already present data. In a deductive approach, the inferences are drawn on the basis of already existing theory. As in the study of Panneerselvam (2014) the researcher has utilized secondary data in this present study because there is no formulation of new theory in this aspect. Researcher is benefited by adopting this method as it helps him to remain focused to particular area. It also helps researcher to give a different insight into the subject. It saves researcher time and money in collecting data and drawing inferences. The researcher can also compare his study with the previous study. He can also identify the change in the subject during the gap of time.

3.4 Research Design

Exploratory research design has been utilized to initiate this research study. This research design helps in gaining familiarity and insight for later investigation. Researcher is benefitted by utilizing this design as objective and nature of the study need is fulfilled (Ott and Longnecker, 2015). The objective behind adopting this research design is to gain significant knowledge in the current field of study of research. It helps in increasing understanding of the subject. This research design assists the researcher to carry his research work. It helps researcher to gain answer of the problem.

3.5 Research Type

Research type is significant part of any research study because it helps in describing the nature of research. As in the study of Creswell (2013) qualitative nature of research study has been initiated in order to undertake this research. The basis of study is subjective manner of research, thus qualitative nature of research study is undergone and not any other statistical analysis. Subjective nature of data has been undertaken under this study to achieve the objectives of the study. Qualitative research helps in understanding the phenomena and provides its explanation. It addresses the questions such as what, why and how.

3.6 Data Collection

In the present study, secondary sources are used to collect data as the nature of study of this research is qualitative. Proper data can be collected by research for achieving the objective of study using this method. Researcher has looked appropriate database in order to collect data from the secondary data. As in the study of Knobe & Nichols (2013) the source of data collection is books, international journals and websites. While collecting information from various sources, appropriate exclusion and inclusion criteria have been laid down. The articles and data of study are in English language and after the period of 2008. To enhance the overall quality of above study, the articles before the period of 2008 are not included.

3.7 Data Analysis

Data analysis is most significant part of research methodology. In this section, appropriate findings of the research study are drawn. As per the study of McMillan & Schumacher (2014) thematic analysis is used to analyse the data collected from secondary source. In regard to above statement, the report studies the data collected from literature review will be analysed and appropriate theme has been developed on this basis for achieving the objective of research. Appropriate tables and graphs have been drawn while analysis process is undertaken. Tables and graphs present the findings in a most significant manner. In qualitative research, there is no coding of data collected. Thus it becomes difficult to draw inferences. Tables and charts help to present the data in a manner that it becomes easy to draw inferences. The presented data helps in establishing relationships between data and study the pattern.

3.8 Ethical Consideration

Appropriate focus has been laid down while carrying out the present research in respect to collection of secondary data. The researcher has not involved any unethical or unauthentic data while undertaking this study. Ethical consideration involves how to act for analysing the research problem. The researcher has taken care of the fact that no secondary data is mis-represented. As per the study of Lewis (2015) in this study also, the data has been collected from reliable and authentic data such as websites, international journals, books etc. The most authentic online sources are used to collect information. The online websites from which data has been collected are emerald insights and science direct. Researcher has laid down proper citation in an ethical manner. In relation to the present research subject, other authors’ works have contributed to the knowledge of the researcher. Thus, to give the credit to their work, proper citation is laid down.

3.9 Limitation

There are certain limitations in carrying out any study. The condition which a researcher cannot control is termed as limitation. It is required to mention the limitation in a research as limitations influences the result of the study. Limitations restrict methodology, inferences and conclusions. These limitations restrict the researcher from carrying out the research smoothly. In this study also there are few limitations. In relation to present study; the major limitation which can be laid down is lack of experience in relation to carrying out the research and lack of time. On the basis of research of Robson & McCartan (2016) the major issues faced by the researcher while carrying out the research is in regard to collection of secondary data. The problem was that there was ample secondary data available in respect to present study. Thus, it was difficult to sort the relevant data from the pile of data, distinguishing the irrelevant data from relevant data and handle the large amount of secondary data. Another complex aspect while carrying out the present study is the researcher’s lack of knowledge with regard to the use of various research techniques. The researcher has undergone appropriate reading of various research techniques while carrying out the research to lay down the justification. The researcher has adopted various research methods to carry the research. 

Chapter 4- Findings

Theme 1: Impact of construction industry on the economy of UK

Contribution of UK construction industry

Figures

Total contribution of sector

£90 Billion

Value added

2,80,000 businesses

Employment generation

2.93 million jobs (Equivalent of 10% of total UK employment)

From the research it has been found that UK construction industry is seen to be among the largest sectors. Even the above table indicates that total contribution of the sector is seen to be around £90 Billion to the UK economy in value added that comprises over 2,80,000 businesses with an employment generation of 2.93 million jobs that is seen to be equivalent of 10% of total UK employment. Study also showed that contracting industry is the largest sub-sector in the construction sector and it accounts for 70% of total value added generated by UK construction and almost 70% within the service sector jobs. Even it has been identified that construction product and service are seen to be smaller in size but have been contributing significantly towards the sectors performance and in generating substantial economic benefits. Study also indicated that construction has got a much wider significance to the economy. It has been creating, building and maintaining the workplace under which organization carries out their functioning and flourish (Killip, 2013). Even it has been believed that modern competitive and efficient construction industry is seen to essential for the UK economic growth. At the end it could be said that this sector contribution is seen to be vital if UK has to undergo climate change act commitments, wider environment and social obligations.

Impact of recession on construction industry

 Percentage

2007

8.90%

2011

6.70%

 

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From the above table it could be said that construction sector is seen to be affected since the period of 2008 recession. Even in the period of 2007 construction sector has accounted for 8.9% of UK GVA but from the period of 2011 there has been decline in the sector to 6.7%. Even these declines were seen in all the three sub-sectors of the industry. Further, study identified the data of ONS for the period of 2012 that showed that construction contracting industry has returned to recession for the third time in 5 years (Nadim & Goulding, 2011). However, despite fall in the outputs UK construction has been generating substantial output in the UK economy since the period of 1950.

Forecasted growth in construction output of UK

Percentage

2014

1.90%

2015

3.80%

 

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From the above figure it could be said that construction product association indicated a fall in construction output by 2.1% in the period of 2013 and it was all due to effect of cuts in the public investment. However, the forecasted growth in the period of 2014 and 2015 indicated a private sector activity by 1.9% and 3.8%. Even these forecasts were seen to be aligned with the latest Experian’s forecast indicating 2.6% fall in the period of 2013 and it has been followed with an increase of 0.8% in 2014 and 3% in 2015. This shows that industry is experiencing great challenging times and its full recovery will take some time. It has also been identified that construction sector has undergone a significant path of growth by following downturns in the economy (MacKenzie.et.al, 2010). But it has been forecasted by Oxford economics that recession undergoing the construction contacting is among European countries is expected to stay as twice as previous recessions all due to the combination of various factors. Even it has been seen that there were various factors creating issues such as access to finance impact laid down by public sector austerity measures, dynamics within the property market and higher business and household demand uncertainty.

Theme 2: Factors responsible for shortage of domestic skills within UK construction industry

As per the (Cskills, 2010) it has been found that there are various diversified factors which had influenced the shortage of domestic skills in the construction industry of UK. The major factors are as follows: 

Financial and Statistical Perspective

It has been found that the development division covers a wide variety of employment including mainly designing, engineering, civils, construction etc. The major changes which due to a flexible workforce, venture centres, dependence on capital speculation, workforce versatility, and timescales and due dates, and dependence on acquisition and contracting through supply chains. It has also been observed that with financial emergency and rising unemployment, the construction division is experiencing a skill shortage in expert regions.  The financial factors also contribute towards the shortage as lack of adequate remuneration, facilities or the resources. With the help of the secondary data it is been observed that due to the late payments the development organizations, and development contracting SMEs depends on the credit exchange to receive income among the period of taking the necessary actions and attaining an instalment (Clarke.et.al, 2008). Even it has been found that developing contracting SMEs are normally unaware and lacks in the knowledge of account activities and the existing government support programs accessible to them. However, it has been also identified that the financial and statistical perspectives had hampered the construction sector to the large extent.  It has been also found that the localities lack in the skills with the shortage in the adequate financial resources and the knowledge required for the same.

Demographic Changes

With the help of the collected data it has been extracted that the demographic changes drive the requirements in the construction industry. It has been found that with the increase in the population and their preferences of obtaining different factors such as social insurance offices, lodging, instruction and foundations.  The diversified population leads towards the increase in the competitors to grab the opportunities and acquire the desired outcomes effectively.  It has been also found that the local people had proposed to bring development in different segments of workforce supply and their capabilities in the construction industry (Clarke & Gribling, 2008). In addition to this it has also been seen that the essential skills could be lost due to the retirements of the existing people and there is a need to attract and employ more youthful employees in the industry with a specific set of objectives with the purpose to replace the significant lost skills and reinforce the industry with the newer resources (UKCES Sector Skills Insights: Construction, 2012). Even it has been observed that with the immigration of the skilled labourers in search of new opportunities had also made to lose the skills at local levels in the industry.

Skill Surveys

According to Tang.et.al, (2010), it has been found that the Employers Skill Survey (ESS) gives two meanings of absence of abilities. The first is skills shortage, characterized as enrolment challenges brought about particularly by a deficiency of people with the required abilities in the open work market. On the contrary to this, the skills gaps which are decreasing the capabilities of a business's current workforce, both at the individual level and generally speaking and limits the firm to achieve the desired levels. Moreover, Skills gaps could be characterized in two ways: a broad spectrum definition incorporates all foundations that identify the requirement for specific skill sets; tight measures incorporate just those foundations where a critical extent of the workforce was accounted for that lacked full capability. With the help of the data it has been recognised that a possible reaction to the skills shortage could make the recruitment agencies struggle to secure or retain existing staff, so one may anticipate that additional income is needed to attract those who can address the skills deficiencies. As per the employee skills survey there is a major lack in both the expertise gap and also in the abilities shortage (Employers Skill Survey 2001). However, this recommends that organizations encountering skills gaps either choose not to utilize recruitment as answer for the skill gaps or recruit new staff without issues.

Management and Technology

The data reveals that Administration skills are the key to the execution of the development sector. It has been found that the use of innovation and development, as BIM, MMC and offsite generation, is relied upon to have an imperative part in understanding the UK Government's vision for the development business. It has been observed that the comprehension of the abilities required tackling these advancements and accomplish their maximum capacity is in this way basic (Ness, 2012). The study is one of a number aligned with the UK Commission for Employment and Skills with the motivation behind clarity, progression, and the need to encompass the assistance of the Government. It has been identified that there is a high dependence on reliability in order that the processes are cohesive or interconnected with each other.

Qualifications and Training Perspective

It has been found that there has been a considerable fall in the number of apprenticeship placements in development related commercial enterprises in the last three years while placements in other areas have kept on increasing. It has been identified that the number of individuals in development contracting with a degree or similar capabilities practically multiplied in the course of the most recent decade, from around 12% in 2001 to around 22% in 2012 (Smyth, 2010).  Even it has been observed that Companies in the development sector are more likely to offer formal apprenticeships: 17% compared with 13%. Additionally, in the meantime financial conditions have prompted a significant fall in apprenticeship fruitions in development related commercial ventures: from around 22,000 in 2008-09 to around 16,000 in 2011-12

Theme 3: Influence laid down by immigration on UK Construction industry

Influence laid down by immigration on UK Construction industry

UK

Other nations immigrants

Skill set

Low

High

Impact of Job losses

Low

High

Competition

Low

High

Construction employers and union representations emphasis towards migrants

Low

High

After undergoing the secondary research, it has been identified that Migration Advisory Committee have undergone different studies in relation to estimation of impact of migrants on UK wages have laid down very little or no impact on average wages. But in some of the research migrants were seen to have higher wages at top of UK wage distribution and lower wages at the bottom level. This shows that higher level of income laid down within the UK construction industry is allowing immigration to capture their sides within this industry (Toner, 2008). Even it has been seen that construction industry is highly flexible and volatile in nature in labour market and a high level of self-employment. Study also showed that that greater amount of skilled workers is going to reduce risk that firm undergoes in relation to wage shocks when there is increase in demand. But in the similar manner it also brings out dramatic cuts in wages when there is fall in demand when net flow of migrants within the industry slows down or reverses.

Further, it has been identified that analysis carried by ONS in the period of 2010 showed that impact of job losses in the period of 2009 was seen to be lesser on UK born construction workers than on non-UK born. Majority of the surplus UK-born workers falls back on benefits and other end redundant migrant workers will be returning home. Then it has been found that House of Lords Economic Affairs Committee report of 2008 indicated some evidence concerning the impact of migrant labour on unemployment. There evidence was seen to be insufficient for drawing out clear picture with respect to impact laid down by immigration on unemployment within the construction industry of UK (Dowson.et.al, 2012). It has been said that there is no prove that immigration is going to adversely affect employment opportunities of young individuals who have been competing with young migrant’s from A8* countries. Even both construction employers and union representations have been laying down emphasis on the need of migrant workers in the construction sector.

Theme 4: Challenges and opportunities that UK construction industry is undergoing

Challenge that UK construction industry is facing

Factors

Lack of investment

Ageing workforce

Lack of education

Shortage of skills

 

From the study it has been found that lack of investment from industry and government is seen to be the biggest threat in relation to future skills agenda. It has also been identified that within UK there have not been any sort of long term investments that have been carried out towards skills, within public sector projects for promoting growth within the industry. In this regard it has also been identified that ageing workforce and lack of education with respect to construction industry at the school level is seen to be a great threat on future skills agenda. In the period of 2011 CIOB skills survey it has been identified that around 57% of the respondents in their survey believed that removal of UK default retirement age is going to lead towards an ageing workforce (Glass.et.al, 2008). This clearly indicates that within UK construction industry it is still a concern that there has been no attracting of young individuals towards the industry at a very early stage. Further, it has been said that government must play an important role for resolving skills shortage within the industry. Even it has been found that shortage of skills is seen to be a complex problem and it has been indicated that construction must be higher on the political agenda. In UK it has been seen that construction output has been contributing for 7% of total GDP and it has become necessary for the government to seek opportunities for carrying out further investments. Study also indicated that it must particularly be carried out on large scale infrastructure projects. Even there is a need for increasing provision with respect of quality of education and training that has been cited as a key issue for government that is required to be addressed in a proper manner (Worrall.et.al, 2010).

 

Opportunities that UK construction industry is facing

Factors

Role of government to resolve skill shortage

Strict laws towards Immigrants

 

The above table indicated that there is a need for laying down strict laws against immigration that suggest that immigration cap will help in utilizing current UK workforce and reverse trend in order to search immigrants for fulfilling the skill gap. From this analysis it could be said that it has been important for the government of UK to enhance the domestic skills for reducing the skill shortage within the UK industry. It has become crucial for the government to carry out various education campaigns in which they can focus upon the skill shortage within the construction industry and on that basis appropriate action can be undertaken for bringing out important within the sector (Worrall.et.al, 2010). Even it has become important for laying down strict laws against the immigrants for reducing the flow of migrants to the UK. This is going to enhance the overall use of domestic skills in a most appropriate manner for carrying out the operations of construction industry in a most effective manner.

Chapter 5- Conclusions and Recommendation

With the above study it could be concluded that contracting industry is the largest sub-sector in the construction sector and it accounts for 70% of total value added generated by UK construction and almost 70% within the service sector jobs. Even it has been believed that modern competitive and efficient construction industry is seen to essential for the UK economic growth. At the end it could be said that this sector contribution is seen to be vital if UK has to undergo climate change act commitments, wider environment and social obligations. The study has also revealed that the industry is experiencing great challenging times and its full recovery will take some time. It has also been identified that construction sector has undergone a significant path of growth by following downturns in the economy. Even these forecasts were seen to be aligned with the latest Experian’s forecast indicating 2.6% fall in the period of 2013 and it has been followed with an increase of 0.8% in 2014 and 3% in 2015. Even it has been found that developing contracting SMEs are normally unaware and lacks in the knowledge of account activities and the existing government support programs accessible to them. However, it has been also identified that the financial and statistical perspectives had hampered the construction sector to the large extent.

With the help of the study it has been recognized that a possible reaction to the skills shortage could make the recruitment agencies struggle to secure or retain existing staff, so one may anticipate that additional income is needed to attract those who can address the skills deficiencies. Even it has been observed that Companies in the development sector are more likely to offer formal apprenticeships: 17% compared with 13%. Furthermore, it has been identified that analysis carried by ONS in the period of 2010 showed that impact of job losses in the period of 2009 was seen to be lesser on UK born construction workers than on non-UK born. It has also been found that within UK construction industry it is still a concern that there has been no attracting of young individuals towards the industry at a very early stage. Further, it has been said that government must play an important role for resolving skills shortage within the industry.

Even it has been found that there is a need for increasing provision with respect of quality of education and training that has been cited as a key issue for government that is required to be addressed in a proper manner. The study had also identified that it has become important for laying down strict laws against the immigrants for reducing the flow of migrants to the UK. This is going to enhance the overall use of domestic skills in a most appropriate manner for carrying out the operations of construction industry in a most effective manner. Even it has been observed that modern competitive and efficient construction industry is seen to essential for the UK economic growth. At the end it could be said that this sector contribution is seen to be vital if UK has to undergo climate change act commitments, wider environment and social obligations. Along with this, the study also reveals that recession undergoing the construction contacting among European countries is expected to stay as twice as previous recessions all due to the combination of various factors. Even it has been seen that there were various factors creating issues such as access to finance impact laid down by public sector austerity measures, dynamics within the property market and higher business and household demand uncertainty. The financial factors also contribute towards the shortage as lack of adequate remuneration, facilities or the resources.

With the help of the study it is been observed that due to the late payments the development organizations, and development contracting SMEs depends on the credit exchange to receive income among the period of taking the necessary actions and attaining an instalment. Even it has been observed that with the immigration of the skilled labourers in search of new opportunities had also made to lose the skills at local levels in the industry. With the help of the study it has been recognized that a possible reaction to the skills shortage could make the recruitment agencies struggle to secure or retain existing staff, so one may anticipate that additional income is needed to attract those who can address the skills deficiencies. It has been also found that one of a number aligned with the UK Commission for Employment and Skills with the motivation behind clarity, progression, and the need to encompass the assistance of the Government. It has been identified that there is a high dependence on reliability in order that the processes are cohesive or interconnected with each other. Even it has been observed that Companies in the development sector are more likely to offer formal apprenticeships: 17% compared with 13%.

Additionally, in the meantime financial Resource conditions have prompted a significant fall in apprenticeship fruitions in development related commercial ventures: from around 22,000 in 2008-09 to around 16,000 in 2011-12. The research also indicates that there is no prove that immigration is going to adversely affect employment opportunities of young individuals who have been competing with young migrant’s from A8* countries. Even both construction employers and union representations have been laying down emphasis on the need of migrant workers in the construction sector.  In UK it has been seen that construction output has been contributing for 7% of total GDP and it has become necessary for the government to seek opportunities for carrying out further investments.

Recommendation for the Study

On the basis of above Quantity Surveying Commercial Management Dissertation Helpconclusion recommendation that can be drawn with respect to the present study is as follows:

  • Enhancement in the investment - For the government of UK and for private institution working in construction industry must enhance investment in the construction industry in order to attract larger number of domestic skills in the search of high wage.
  • Educating individuals towards construction industry- It has also become important in laying down appropriate education at the level of school with respect to opportunities within the construction industry. This is going to lay down individuals with knowledge of jobs within the construction industry that can be achieved by resident of individual at a domestic level not allowing immigrants to be the part of construction industry.
  • Skills enhancement - For the UK construction industry, it has become crucial for laying down appropriate strategy in order to train the employees working in construction in an appropriate manner. The appropriate training is going to enhance the skill set of the employees in a most appropriate manner.
  • Government must enhance skill shortage - It has been important for the government of UK to enhance the domestic skills for reducing the skill shortage within the UK industry. It has become crucial for the government to carry out various education campaigns in which they can focus upon the skill shortage within the construction industry and on that basis appropriate action can be undertaken for bringing out important within the sector.
  • Strict laws against immigrants - For the government of UK, it has become important for laying down strict laws against the immigrants for reducing the flow of migrants to the UK. This is going to enhance the overall use of domestic skills in a most appropriate manner for carrying out the operations of construction industry in a most effective manner.

References

Books and Journals

Afolabi, A., Emeghe, I., Oyeyipo, O. and Ojelabi, R., 2016. Professionals’ Preference for Migrant Craftsmen in Lagos State. Mediterranean Journal of Social Sciences7(1), p.501.
BCC Quarterly Economic Survey
British Standards Institute (2010) PAS 91 – construction industry PQQ standards. http://www.bis.gov.uk
CBI (June 2012) Construction bridging the gap