Construction site (London, UK). Image by Tim Sandle.

Safwan Sobhan, Founder and Chairman of Safwan Bashundhara Global (SBG), has told Digital Journal about the importance of closing the global construction skill gap. Sobhan says that without sufficient investment in the construction industry, the world’s infrastructure cannot reach its full potential.

As an example, the EU is projected to lose around one million workers each year, creating a shortfall of approximately 44 million workers by 2050.  Across the EU, zero growth is forecast for the construction sector this year.

The construction industry plays a key role in driving economic growth and infrastructure development. However, the industry faces significant challenges, as there is an urgent demand for more skilled workers globally, posing a significant risk to its recovery and future development. 

Sobhan is concerned with the consequences this skill gap could see in the coming years, and what the world’s governments can do to set the course right. 

As he explains: “The construction sector is a driving force of economic growth worldwide, encompassing various key fields, including architecture, civil engineering, construction management and commercial building. However, the world is facing a major crisis: a shortage of skilled workers. Industries such as construction, healthcare, and transportation are struggling the most to find trained employees.”

The shortage is linked to demographics, as Sobhan notes: “With an aging workforce, the EU is projected to lose around one million workers each year, creating a shortfall of approximately 44 million workers by 2050. This widening gap in experience and capability poses serious challenges for maintaining productivity, meeting project deadlines, and sustaining economic growth. Without immediate investment in training and skills development, there’s reason to fear that the sector could face long-term stagnation and a loss of global competitiveness.”

Structural challenges and contruction costs

These issues cascade through the biggest countries: “Germany, Austria and Switzerland are all struggling to fulfil construction vacancies, with Austria having the highest vacancy rate (5.8%). Across the EU, zero growth is forecast for the construction sector this year, reflecting the deepening labour crisis. Companies that embrace digital tools, offsite construction, and automation are better positioned to cope with shortages, but innovation alone isn’t enough. We must invest strategically in training the next generation of skilled workers to ensure the sector can grow sustainably, deliver modern infrastructure, and remain competitive on a global scale.”

The issues are not only confined to Europe, as Sobhan finds: “Around the world, housing shortages continue to intensify, prompting governments to increase efforts to increase the supply of new homes. However, these initiatives frequently fall short of targets due to limited skilled workers available and structural challenges such as rising interest rates and construction costs. Currently, Germany is experiencing a severe housing crisis, where 800,000 new homes are needed urgently. Additionally, for the fifth consecutive year, the Swiss housing vacancy rate has fallen. Now it sits at 1% – that’s 99% of homes in Switzerland being occupied.”

In terms of future predictions, Sobhan finds: “By 2030, it’s estimated that three billion people, roughly 40% of the world’s population, won’t have access to adequate housing. This represents a demand for 96,000 new affordable and accessible housing units every day. Additionally, an estimated 100 million people worldwide are homeless and one in four people live in harmful conditions affecting their health and safety.”

And the overall consequences spell problems for the building sector: “The consequences of a prolonged global construction skill gap will be visible across every level of society. It will not only slow construction output but also jeopardise the delivery of national housing targets and major public projects. Worldwide, it threatens to derail the progress needed to meet green transition goals. Without the right workforce, we simply cannot build the sustainable infrastructure required for a low-carbon future.”

Digital skills needed to future-proof the construction workforce

There are also matters of sustainability, which Sobhan draws out: “The environmental dimension of this crisis cannot be ignored. Construction plays a central role in reducing global emissions and meeting net-zero targets, but the shortage of workers trained in green building, energy-efficient design, and retrofitting will hold us back until it’s addressed. We urgently need to equip the workforce with the technical skills required to deliver low-carbon infrastructure, sustainable housing, and renewable developments.”

In terms of actions to take, Sobhan recommends a state led process: “Governments must act now by investing in vocational education, modern apprenticeships, and digital skills to future-proof the construction workforce. Diversity and inclusion is a great way to close the construction skill gap, enabling expansion of the workforce. Currently, construction remains one of the least diverse industries, limiting its talent pool, for instance women represent just 0.9% of housebuilders and 4% of skilled trades in the UK. Expanding inclusion is an imperative, both for our society and our economies.”

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