{"id":23681,"date":"2024-08-06T08:54:00","date_gmt":"2024-08-06T08:54:00","guid":{"rendered":"https:\/\/www.simplybusiness.co.uk\/?post_type=knowledge&p=23681"},"modified":"2025-05-22T13:05:43","modified_gmt":"2025-05-22T13:05:43","slug":"what-will-the-trades-skills-shortage-look-like-in-2030","status":"publish","type":"knowledge","link":"https:\/\/www.simplybusiness.co.uk\/knowledge\/trades\/what-will-the-trades-skills-shortage-look-like-in-2030\/","title":{"rendered":"What could the trades skills shortage look like in 2030?"},"content":{"rendered":"\n

A recent study by Simply Business has revealed a worrying 35 per cent decline in new tradespeople choosing self-employment.<\/p>\n\n\n\n

The data, which looked at insurance quotes requested in 2023 compared to 2019, reveals a stark future for the construction industry unless significant changes are made. <\/p>\n\n\n\n

The research aligns with a recent report from Kingfisher, owners of B&Q and Screwfix, which predicts a shortfall of 250,000 tradespeople by 2030. <\/p>\n\n\n\n

Which trades could be most affected by the skills shortage?<\/h2>\n\n\n\n

When comparing 2023 to 2019, our data revealed the most significant decreases were in:<\/p>\n\n\n\n

    \n
  1. Dry lining \u2013 57 per cent<\/li>\n\n\n\n
  2. Joiners \u2013 53 per cent <\/li>\n\n\n\n
  3. Builders \u2013 51 per cent<\/li>\n\n\n\n
  4. Glaziers \u2013 49 per cent<\/li>\n\n\n\n
  5. Tilers – floor and wall \u2013 48 per cent<\/li>\n\n\n\n
  6. Bricklayers \u2013 45 per cent<\/li>\n\n\n\n
  7. Labourers \u2013 44 per cent<\/li>\n\n\n\n
  8. Plasterers \u2013 44 per cent<\/li>\n\n\n\n
  9. Painter and decorators \u2013 39 per cent<\/li>\n<\/ol>\n\n\n\n

    A productivity slowdown despite steady demand<\/h2>\n\n\n\n

    In 2024, we’ve already seen a productivity slowdown of 1.4 per cent<\/a> in the first part of the year, in part due to a lack of skilled workers. <\/p>\n\n\n\n

    But the slowdown in productivity isn\u2019t linked to a lack of demand for work \u2013 in fact, the construction industry is predicted to generate \u00a3404bn of revenue <\/a>this year. Which suggests there aren\u2019t enough workers to meet demands. <\/p>\n\n\n\n

    This has led to an average wait time<\/a> of five weeks for a tradesperson \u2013 and as high as nine weeks for roofers.<\/p>\n\n\n\n

    What\u2019s causing the skills shortage?<\/strong><\/h3>\n\n
    \n<\/div>\n\n\n\n

    Our industry predictions<\/a> for the year told a similar story \u2013 there aren’t enough young people entering the industry to replace an ageing workforce. <\/p>\n\n\n\n

    In the report issued by Kingfisher, 1,000 young people aged 16 to 25 were asked about their work ambitions and whether they\u2019d consider a career as a tradesperson.<\/p>\n\n\n\n

    Almost half (49 per cent) said they wouldn’t consider a career in the trades and only 13 per cent said they were encouraged at school to consider a career as a tradesperson.<\/p>\n\n\n\n

    Another reason the industry is feeling the effect so severely when compared to other industries is due to the lack of diversity in the workforce. Women make up only two per cent of the UK\u2019s nearly a million customers tradespeople.<\/p>\n\n\n\n

    What\u2019s the impact of the skills shortage?<\/strong><\/h3>\n\n\n\n

    It\u2019s estimated the skills shortage will mean the UK misses out on \u00a312 billion a year in GDP opportunities, according to Kingfisher\u2019s report. Not having enough workers to complete projects like large housing estates or redeveloping high streets might make certain areas of the economy stagnate.<\/p>\n\n\n\n

    Bea Montoya, UK COO at Simply Business, shared similar concerns: \u201cSmall business owners are the backbone of the UK economy, and few embody this more than the nation\u2019s tradespeople. They\u2019re quite simply vital for our local communities, and together with other small businesses across the UK, collectively contribute trillions of pounds to the economy.\u201d<\/p>\n\n\n\n

    The report found one in five tradespeople have had to turn down or postpone work because they don\u2019t have the staff to complete the job.<\/p>\n\n\n\n

    The broader economic strain on businesses as a result of the cost of living crisis is also making it difficult for these businesses to grow. Data from our SME Insights Report<\/a> revealed that 23 per cent of business owners are putting off hiring new employees because of rising costs. <\/p>\n\n\n\n

    As a result, even if a business wants or needs to hire a new employee, many might not want to risk it because of the increased operational costs they\u2019re facing.<\/p>\n\n\n\n

    What\u2019s being done to solve it?<\/strong><\/h3>\n\n\n\n

    Since the change in government at the general election<\/a>, Labour have shared their plans for solving the skills shortage, while also hoping to rejuvenate construction. <\/p>\n\n\n\n

    To try and make it easier for young people and small businesses to make the most of apprenticeships, they\u2019re looking to replace the current Apprenticeship Levy with a Growth and Skills Levy. The government say this will allow for more flexibility in how small businesses train their workforce, and attract more young people to the industry. <\/p>\n\n\n\n

    The government has also announced their strategy for new constructions projects, with plans to: <\/p>\n\n\n\n