The latest CITB Construction Skills Network (CSN) forecast shows a rapidly recovering market led by housing demand.

And skills shortages are predicted in some occupations including plant mechanics, civil engineers and construction process managers.

Planned new nuclear builds will also see the UK experience the biggest increase in demand for scaffolders for four years.

Over the next five years, performance across the UK construction industry is expected to show:

·       Output growth will be strongest in the South West (+3.5%), Wales (+3.4%) and East Anglia (+3%) – all set to perform above national average of 2.2%;

·       The North West (+1.3%), the East Midlands (+1.1%) and the West Midlands (+0.8%) will be slower to feel the effects of the return to growth;

·       Employment growth will be a mixed bag across the UK, with East Anglia at the top end set to see its construction workforce increase by an average 2.0% a year, while the West Midlands is predicted to experience an average reduction of  0.2%;

·       Private housing will be the chief driver for construction’s growth and the sub-sector will see a 7.0% rise in output in 2014, followed by 5.0% in 2015. On average, it will grow by 4.6% a year to 2018.

James Wates, Chairman of CITB, said: “The CSN report shows that the economy is turning the corner and the UK construction industry will benefit from that.

“But growth needs to be sustainable; underpinned by long-term infrastructure projects and continued investment.

“Employment in 2018 is predicted to be 196,000 below pre-recession levels, which is why measures must be taken now to ensure growth is sustained over the long-term.”

Stewart Baseley, Executive Chairman of the Home Builders Federation, said: “Help to Buy has addressed the biggest short term constraint on supply and as a result, builders are increasing output and looking to recruit in all areas – as outlined in the CSN report.

“To build the homes the country needs we will need a bigger and suitably skilled workforce and we are working with the industry to put this in place.”

According to the data, infrastructure is set to have the second largest impact on growth behind home building, with average annual growth of 3.6%, followed by industrial at 3.0% and public housing at 2.2%.

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