Industry contributors say high quality apprenticeships deliver measurable business returns—boosting productivity, retention and capacity for SMEs across the supply chain.

Electrical Contractors’ Association (ECA), the Joint Industry Board (JIB) and independent training provider JTL are urging employers across construction, engineering and building services to treat apprenticeships as a strategic investment, not a cost, following publication of the Fabian Society’s new report Building Skills: Tackling the Built Environment Skills Crisis, to which all three organisations contributed. 

The report warns that skills shortages are escalating—with around 37,000 roles unfilled due to a lack of skilled workers—and argues that improving apprenticeship recruitment, completion and quality can deliver strong business return on investment (ROI) through higher productivity, better retention and reduced recruitment churn.

• Productivity and pipeline: A trained apprentice supports capacity and continuity, which helps firms plan work, improve quality and reduce rework.
   
• Retention and resilience: Apprenticeships build loyalty and reduce recruitment churn, protecting businesses against an ageing workforce.
   
• Safer, higher-quality outcomes: In safety-critical trades, investing in robust training and assessment reduces risk and strengthens competence.
   
• Competitive advantage: Developing home grown talent helps firms win work, meet customer requirements and avoid delays caused by skills gaps.

The report describes a sector facing rising demand and a shrinking workforce. It notes that skills shortage vacancies have increased fivefold since 2011, that 36 per cent of construction workers are aged over 50, and that around 700,000 workers are due to retire by the early 2040s. The report estimates that an additional 48,000 construction workers, of which 12,000 electricians and electrical fitters will   be needed annually up to 2029 and calls for a renewed focus on training investment, particularly through apprenticeships, to close the gap.

Backing apprenticeships: making the ROI stack up for SMEs

For the small and medium-sized businesses  that make up the majority of the electrical and plumbing sector, the biggest barrier is rarely willingness, it is the day to day economics. The cost of apprentice wages, supervision time. and the short term impact on output while learners are off-the-tools. The report calls for policies that share risk and reward, so that investing in apprentices reliably translates into competent workers and improved business performance; supporting high quality training routes, incentivising employers to take on apprentices, and using procurement to recognise firms that commit to skills, quality and direct employment.

Andrew Eldred, Managing Director of ECA, said:

“Despite the urgent need for more electrical apprentices, the current funding model fails to incentivise small business, who make up over 99% of the electrotechnical sector. While the Government in England covers 95% of training costs, it does not cover apprentice wages or compensate employers for the time and production invested while supporting apprentices. With apprentice wages doubling over the past six years, this acts as a major disincentive for small firms. As a result, many experienced electricians who could train the next generation hesitate to take on apprentices, further restricting workforce growth.

“In a safety critical industry, training a workforce to agreed competent standards is vital. Interest in starting an electrical career is high, but progression into the electrical workforce is low. To stem this tide, government and industry must collaborate closely to develop training routes aligned to workforce needs.”

Andy Reakes, Acting CEO at the JIB, said:

“The JIB welcomes the Government’s commitment to developing clean energy infrastructure and delivering new homes. Achieving these ambitions will require decisive action to ensure the UK has a sufficiently skilled workforce, certified to rigorous, industry-led competence standards.

“Backing SMEs to recruit and train the next generation of apprentices, and using procurement to reward employers who invest in skills, quality and direct employment, will help tackle today’s skills shortage. Direct employment and fair work, under a sectoral collective agreement, provide the essential framework for the stability and growth the sector needs.

“The JIB, as well as providing ECS as the long-established platform for verifying skills, qualifications and ongoing competence, will continue to support those structures which reward employers doing the right thing, promote and support apprenticeship intake, and lobby against short courses and unnecessary training courses which undermine competence standards.”

Chris Claydon, Chief Executive Officer of JTL, said:

“This report highlights the scale and urgency of the skills crisis facing construction and the built environment, and it is essential that we recognise where the pressures are most acute. In safety critical trades such as electrical and plumbing, workforce shortages are deepening, driven by an ageing workforce, falling apprenticeship numbers and high barriers to completion.

“For employers in our sector, the vast majority of whom are small and medium sized businesses, the challenge is not a lack of willingness to train, but the cost, time and capacity required to deliver fully competent outcomes. Industry-backed apprenticeships, rigorous end point assessment and regulatory requirements are essential for public safety, but they must be properly supported.

“If the government is serious about delivering new homes, retrofitting our building stock and meeting its clean energy ambitions, it must back high quality trade skills with targeted support for SMEs, a renewed focus on completion and competence, and a skills system that reflects the realities of engineering and building services.”

The report argues that fixing the skills crisis requires a long-term settlement that improves the employer business case, especially for SMEs. so that investment in apprentices reliably translates into competent workers, stronger productivity, improved quality and long term workforce stability. It also sets out a package of actions for government to make that happen.

What the report calls on Government to do

• Make it easier for employers, especially SMEs, to recruit and train apprentices by reducing the up front cost and risk of taking people on.
   
• Prioritise quality and completion so that apprenticeship investment reliably results in fully competent tradespeople (including through robust assessment and clear progression routes).
   
• Use public procurement to reward good employers—recognising firms that invest in skills, quality and direct employment, rather than creating incentives for a race to the bottom.
   
• Work with industry bodies to align training with real workforce demand, so the system produces the right skills in the right places.
   
• Set a long-term plan to increase employer training investment, reversing the report’s finding of declining per employee investment and supporting capacity across the built environment supply chain.