Press Release

LACK OF INVESTMENT IN TRAINING “COSTING EVERY SMALL BUILDER AT LEAST £1,700”

9 March 2006

The industry’s failure to offer basic level training could be costing every small construction business at least £1,700 every year, according to a new analysis of incurred business costs and lost opportunities from ConstructionSkills.

The figures show that small construction businesses with between 1 and 49 employees could collectively be wasting £193million every year just through materials errors, skills shortages and on-site accidents – to say nothing of what they could be losing in terms of reputation damage and loss of future earnings.

As a sector, smaller construction companies are estimated to waste:
? £28million on skips to remove the 1.73 million tonnes of waste every year generated through miscalculation, over purchase and damage on site
? At least £122million through on-site accidents, in terms of the minimum value of days lost through injury and ill-health
? £43million on recruiting 11,000 people every year who are needed to fill job vacancies.

What’s more, with some 23% of construction clients stating they are unhappy with levels of service, there is a significant financial risk through loss of business.

Current and forthcoming regulation changes such as the increase in landfill tax and taxes on primary materials such as aggregates, as well as initiatives like the tighter regulation of waste management, will also mean these costs can only grow in the coming years.

Mike Bialyj, Field Director, CITB-ConstructionSkills said of the findings:
“No business can afford to throw away money, yet it’s clear that not investing in simple training for your staff means that many small businesses are losing money that should be boosting the profit margins. 
“Not only can having inadequately trained staff inhibit business growth, it can also cost companies money directly, through everything from materials wastage to unnecessary accidents. It’s time for construction businesses of all sizes to start taking a long-term approach to investing in their people, in order to reap the resulting business success.”

In order to address these issues and encourage smaller businesses to invest in training, ConstructionSkills has launched a new Training Campaign specifically aimed at this size of the market. The campaign will aim to raise awareness of the range of advice and support available for those businesses interested in investing in training, including free consultations with Company Development Advisers, training support grants, and help with everything from health and safety testing to CSCS cards.

Speaking at the launch of the Training Campaign today, ‘Handy’ Andy Kane, TV Star and carpentry contractor said:
“It’s easy to think that training doesn’t matter, and it’s all about getting work through the door, but this approach means lots of small builders are selling themselves short. Training your staff is as much about helping yourself as it is about helping the industry – and could save you a lot of money in the long run!”

The campaign aims to raise awareness of the benefits of training and to encourage companies, from craft to professional, to adopt a training culture. It also targets construction companies through intermediaries such as federations, accountants and business advisers, as well as commercial organisations such as banks, builder’s merchants and Health and Safety Test centres.

For further information, please contact ConstructionSkills on 01485 577 577 or visit www.citb-constructionskills.co.uk/traininglearning.

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