Recent forecasts have pointed to a construction recession, but how does the industry look from a company that is involved day to day?

The deceleration in new project starts is apparent, but at the same time, the drive to recruit will continue for the rest of the year. A recent poll of 1,043 managers by the CMI (Chartered Management Institute) highlighted that nearly 90% of those surveyed were actively recruiting during July.

Let’s share how we see the current construction recruitment industry marketplace.

Jack Bond, Director, points to the cyclical behaviour of the recruitment industry. “Autumn and winter have always been less busy. By this I mean summer has been hectic and then a quietening down period. This always happens, but from our side, there are many permanent jobs, just not the volume of the past few months.”

“Sometimes we can be tough on ourselves with the continual drive as recruiters. It means a change of focus, in terms of what needs to be targeted and reacquainting the relationships we have with those around us (candidates and clients). On the industry side, there is opportunity. Within the Hampshire region, the market is not monopolised and we have seen smaller firms growing in reputation over the past few years. This should be encouraged.”

Russell Drinkwater, Director, highlights the ease to be blinkered by what is happening on a societal and economic level. “The slowdown is not as prevalent as some suggest, it is productive to the end of the year. However, I have two concerns. The first is there are respected regional firms that have not won a contract in 2022. How will that look in three to six months? Only time will tell, but that is something to keep an eye on.”

“My second concern is the high inflation on material costs. From speaking to construction directors there are estimating teams who are extremely busy and working on more tenders than ever. The majority of clients want fixed prices. This can become a problem when projects are won, but no one knows the price in a year’s time. The price today and the start price can be very different.”

According to the Department for Business and Energy, building materials during August 2022 were 24.1% higher than one year ago.

Jason Drinkwater, Director, highlights the importance of change, “What the current climate suggests is that as consultants we modify our work strategy. For instance, within the recruitment construction space, it’s now about being seen and banking on the trust and rapport that has been built over the years. As businesses, we can look at the economic statistics all day long, but life goes on, it’s a case of everyone rolling their sleeves up and doing the work. Summer was extremely busy when the work came to you and a case of picking up the phone. Now it’s about adapting within in the industries we represent. We keep moving.”

Where we stand at the latter part of the year, the recruitment construction industry shows activity where the demand for staff is very much evident. 

A slowdown might not be as evident as some expected. However, there is an awareness of the wider economic conditions and shifts are happening us all, whether we like it or not.