The Impact of the Recession on Construction Professionals · The Impact of the Recession on...
Transcript of The Impact of the Recession on Construction Professionals · The Impact of the Recession on...
Table of Contents1 INTRODUCTION 1 Surveymethod 1
2 MANAGEMENTSUMMARY 2
Businesschallengesandtherecession 2 Responsestotheeconomicdownturn 2 BusinessAdviceandSupport 3 Membershipofprofessionalbodies 3 Keepinguptodatewithindustrynews 3 Thenext12monthsandtheendoftherecession 3
3 THEPROFILEOFTHOSEINTERVIEWED (QUANTITATIVESURVEY) 4
Size 4 Sub-sector 4 Typeofwork 4 Theclientbase 5 Region 5
4 THEIMPACTOFTHEECONOMICRECESSIONAND EMPLOYERRESPONSES 6
Keycurrentbusinesschallenges 6 Mainimpactsoftherecession(spontaneous) 6 Responsestotherecession/downturn(prompted) 8 a)Staffnumbers,recruitmentandredundancies 9 b)Impactontraining 10 c)Impactonskillneeds 13
5 BUSINESSADVICEANDSUPPORT 14
6 MEMBERSHIPOFPROFESSIONALORINDUSTRYBODIES, ANDKEEPINGUPTODATEWITHINDUSTRYNEWS 15
Keepinguptodatewithindustrynews 167 THENEXT12MONTHSANDTHEENDOFTHERECESSION 17
Futureskillsneeds 18 Theendoftherecession 18
ANNEXA:QUANTITATIVEQUESTIONNAIRE 20
PreparedforConstructionIndustryCouncil(CIC)andConstructionSkillsByIFFResearch
1 Introduction
1.1 ConstructionSkillswasestablishedinSeptember2003,bringingtogethertheConstructionIndustryTrainingBoard(CITB),CITBNorthernIrelandandtheConstructionIndustryCouncil(CIC).
1.2 CICwassetupin1988andistherepresentativeforumfortheprofessionalbodies,researchorganisationsandspecialistbusinessassociationsintheconstructionindustry.Ithasacollectivemembershipof500,000individualprofessionalsand25,000firmsofconstructionconsultants.WithinConstructionSkillsCICrepresentstheviewsofthoseoperatinginprofessional,managerialandtechnicalpositionswithintheindustry.
1.3 Theaimofthecurrentresearchwastoprovideauthoritativeandcomprehensiveanalysison:
•Theimpactoftherecessionon: -thecurrentandexpectedfuturesizeandnature
oftheworkforceintheprofessionalservicessector;
-recruitmentofgraduates; -trainingactivity; -skillrequirements;•Themeasuresthatfirmsinthesectorhavetakenin
responsetotherecession
•Employerviewsontheavailabilityandqualityofbusinesssupportandadvice
•Theextentofanyemergingnewskillrequirements
Survey method
1.4 Theresearchinvolvedtwoelements:
•Aninitialqualitativephase,involving30teledepthswithfirmswithintheprofessionalservicessector.Discussionslastedaround45minutesonaverage,andtookplacefrom19thAugustto18thSeptember2009.
•Aquantitativesurveyof301professionalservicesfirmsemploying5ormorestaffacrosstheUK.Thistookplacefrom7th–19thOctober2009.Thequestionnaireusedisappended(AnnexA)–interviewstookonaveragearound15minutestocomplete.
1.5 AllinterviewswereconductedbyspecialistIFFbusiness-to-businessinterviewers,workingfromIFF’sofficesinLondon.
1.6 SampleforthesurveycamefromConstructionSkills’EmployerPanel,plusadditionalsamplepurchasedfromExperian’sBusinessDatabase.
1.7 Forthequantitativephase,quotasweresettoensureareasonablespreadacrosstheindustrybyregionandsize.
1.8 Surveydataisreportedunweighted.
A note on statistical reliability
1.9 It is worth noting that statistical reliability on asample size of 301 (in the worst case scenario from a reliability point of view of a survey result of 50%) is +/- 6% (i.e. we are 95% confident that the true result, if views had been obtained from all employers rather than a sample, lies within 6% of the survey finding). The statistical reliability is a lot lower where we report results among sub-groups of the sample (for example by region, size of employer or sub-sector, or where we look at results among those that have reduced staff numbers or taken particular action). In these cases results should be treated with some caution, and may best be regarded as indicative only.
2.1 Thisreportpresentsfindingsofresearchinvolving30in-depthinterviewswithemployersandaquantitativesurveyof301telephoneinterviewswithprofessionalservicesfirms,thelatterconductedinthefirsthalfofOctober2009.
Business challenges and the recession
2.2 Theeconomicrecessionwasclearlyverymuchinemployers’minds:whenaskedwhatthekeychallengeswerefacingtheircompany,55%spontaneouslymentionedtheneedtoincreaseworkload,18%mentionedspecificallydealingwiththerecession,and18%weresufferingcashflowdifficulties.Just1%mentionedastheirmainchallengehavingmoreworkthantheycouldhandle,andonly8%hadnokeybusinesschallenges.
2.3 For54%ofcompaniestheirfeeincomeinthelast12monthswaslowerthantheprevious12months.Thiscompareswith11%sayingithadincreased.Thoseinbuildingservicesengineeringappeartohavefaredbetterthanaverage(24%reportedincreasedfeeincome,thoughstillmanymore(41%)hadexperiencedadecrease).Responses to the economic downturn
2.4 Only7%offirmsreportedtakingnoparticularstepstomeetthechallengespresentedbytherecession.Themostcommonactionstakenhavebeen:
•Spendingmoretimebiddingforwork(72%ofallfirms)
•Cuttingbackontheplannedrecruitmentofgraduatesornewlyqualifiedstaff(46%,though8%haveincreasedthispresumablytoreplacemoreexpensive,experiencedstaff)
•Makingredundancies(46%)
•Cuttingbackontheplannedrecruitmentofsupportstaff(37%)
•Reducedworkinghours(27%)
•Cuttingbackontheuseoffreelanceoragencystaff(26%,though10%hadactuallyincreasedthis)
•Recruitingnewstaffwithdifferentspecialismstoenablethefirmtoworkinnewsectors(16%).
2.5 Redundancies:46%ofemployershadmaderedundanciesbecauseoftherecession.Thesehaveaffectedawiderangeofoccupationalgroups,mostoftenadministrativepositions(35%ofemployersmaking
redundancieshadmadesuchstaffredundant),followedbytechnicians(15%),architects(14%),projectmanagers(9%)andmechanical,civilandotherengineers(8%,6%and18%respectively).
2.6 The total number of staff employed:surveyresultssuggestthatthetotalnumberofstaffemployedacrosstheprofessionalservicessectorhasdecreasedby6%comparedwith12monthspriortotheinterview.
2.7 Planned recruitment of graduates and newlyqualified staff:46%offirmshadcutbackonplannedrecruitmentofgraduatesandnewlyqualifiedstaffbecauseoftherecession:theactualnumbertheyhadtakenon(anaverageofapproximately1.5perfirm)wasaroundasixthofthenumbertheyhadplanned.Anothermeasureoftheeffectoftherecessionisinthenumberofgraduatesandnewlyqualifiedstaffemployedbyfirms.Resultsindicatethatacrosstheprofessionalservicesindustrycoveredbythissurvey(whichexcludedmicrofirmswithfewerthan5staff)graduatesandnewlyqualifiedstaffcomprisejustover4%ofthetotalworkforce,halfthenumbertheyemployed12monthsago.
2.8 Over-supply of graduates:giventhefallinthelevelofrecruitmentofgraduatesandnewlyqualifiedstaffitisnotsurprisingthat67%ofprofessionalservicesfirmsfeltthatthesupplyofgraduatescurrentlyexceedsthedemand.Architectswerethedisciplinemostoftenmentionedbyemployersassufferingfromexcesssupply.
2.9 Training:theeconomicdownturnhashadanimpactonthetrainingundertakenbyprofessionalservicesfirms,thoughthisisperhapslessseverethanmighthavebeenanticipated.Whileoverathirdoffirms(35%)hadreducedtheirtrainingspendasaresponsetotherecession,forexamplebyincreasingtheamountofin-housetraining,theproportionthathadreducedtheirtrainingactivity(25%)wasonlyalittlehigherthantheproportionthathadincreasedtrainingasaresponsetotherecession(22%).Similarlyitcouldbeviewedquitepositivelythat‘only’16%ofprofessionalservicesfirmshavereducednextyear’strainingbudgetorplannedtrainingactivity.
2.10 Skills in the recession:20%offirmsfeltthattherecessionhashadanimpactontheskillsthattheyneedfromtheircurrentstafforpotentialrecruits.Themostcommonskillsbecomingmoreimportanttoemployersintherecessionarebusinessdevelopmentskills(16%),specialistjob-specificskills(16%),theabilitytomulti-skill(15%),engineering-relatedskills(13%),andup-gradingexistingskills(13%).
2 Management Summary
2 1
Business Advice and Support
2.11 30%offirmshadsoughtadvice,guidanceandsupportsincethestartoftherecession.Themostcommonorganisationsconsultedwereaccountants(7%ofallfirms),professionalinstitutions(7%),Businesslink(7%),andindependentconsultants(6%).Overall1%ofprofessionalservicefirmshadsoughtadviceorsupportfromeithertheCICorConstructionSkills.
2.12 Reassuringly,thevastmajorityhavebeenabletofindtheadviceandsupportthattheywanted–just7%offirmsindicatedthatthereweretypesofbusinessadviceandsupportthattheyfoundhardtoaccess,thoughthisrisesto13%amongfirmswith5-9staff.Whereemployershadstruggledtofindsupportoradvicethiswasmostoftenforfinancialsupport(3%ofallprofessionalservicesfirms),followedbyIT,training,businessdevelopment,andmarketing(eachmentionedby1%ofemployers).
2.13 Overallthreequartersofprofessionalservicesfirmsratetheavailabilityandqualityofbusinessadviceandguidanceforcompaniesintheprofessionalservicessectoraseithersatisfactory(30%),good(36%)orverygood(8%),comparedagainst7%thatrateitaspoor.Membership of professional bodies
2.14 81%ofprofessionalservicesfirmsweremembersofaprofessionalorindustrybody.13%offirmssaidtherecessionhasledthemtore-considercompanyoremployeemembershipoftheseorganisations.Thisvariedrelativelylittlebysizeoffirm,indicatingtheextenttowhichtherecessioniscausingfirmsofallsizestothinkcloselyabouttheiroperatingcosts.
Keeping up to date with industry news
2.15 Avarietyofmeansareusedtokeepuptodatewithindustrynews,mostcommonly:
•Industrypressandmagazines(mentionedby33%)
•Websites(15%)
•Newsletters/emails(14%)
•Wordofmouthandinformalmeans(13%)
•Meetings,seminars,conferences(8%)
The next 12 months and the end of the recession
2.16 32%ofemployersfeltthattheirfeeincomewouldincreaseoverthenext12months,comparedwith17%expectingthistofall.Thelargestproportionexpectedittoremainataboutthesamelevel(44%),thoughnotsurprisinglysomedidnotfeelconfidenttoanswer(8%).Onbalancethereforethefindingsarereasonablypositive
withapproximatelytwiceasmanyexpectinggrowthasexpectingreducedfeeincome.
2.17 Intotal,25%offirmsfeltitwaslikelythattheywouldhavetomakeredundanciesinthenext12months,including3%thathavealreadyplannedtheredundancies.Itismoderatelyencouragingthatmorethinkitquitelikely(17%)thanverylikely(5%)suggestingthatformanythedecisionwilldependontheirperformanceinthecomingmonths.
2.18 40%ofemployersfeelthattheworstoftherecessionisover(interviewstookplaceinearlyOctober2009).Anumberofactionswerequiteoftenfelttobeneededtospeeduptherecoveryinthesector,includingbanksstartingtolendagain(mentionedby19%ofallfirmsspontaneously),morefundingandinvestment(12%),andthenresponsesfocusedonincreasedgovernmentsupportincludingmoregovernmentspendinginthepublicsector(11%)oronnewprojects(8%),bringinggovernmentprojectsforward(7%)andincreasedgovernmentspendingoninfrastructure(6%).
3.1 Inthissectionwebrieflydiscusstheprofileofthe301employersinterviewedaspartofthequantitativesurvey.Thisisbackgroundinformationtoshowboththenumberofinterviewsonwhichresultsamongsub-groupspresentedlaterinthereportarebased,andthatthesam-pleisbroadlyrepresentativeoftheprofessionalservicessector.
Size
3.2 AcriterionforinclusioninthestudywasthatthefirmsemployedatleastfivestaffacrosstheUK.Withthisnoteinmind,aslightmajorityoftheemployersinter-viewedoperatedfromasinglesite(60%)andemployedbetween5and24staffacrosstheUK(55%).Aroundoneinfiveofthecompaniesinterviewedemployed100ormorestaffUK-wide.Predictablysinglesiteorganisationstendedtoemployfarfewerstaff:77%employedfewerthan25staffacrosstheUK.
Sample profile: size and whether single site organisation or not
Number of interviews
Proportion
NumberofstaffemployedUKwide
5-9 75 25%
10-24 90 30%
25-49 48 16%
50-99 24 8%
100+ 64 21%
Whethersinglesiteornot
Singlesiteorganisation 180 60%
Multisite 121 40%
3.3 Mostmulti-siteorganisationshad2-4sitesintotal(60%).
Sub-sector
3.4 Professionalservicesfirmswerespreadacrossarangeofactivities,mostcommonlyarchitecturalactivities(15%),buildingservicesengineering(15%),civilandstructuralengineering(15%)andengineeringrelatedconsultancy(13%).Havingbeenreadthelistofpotentialareasofactivity12%describedthemselvesasbeingmulti-disciplinary.Thesameproportionfelttheyfelloutsidethecategorieslisted.Exampleactivitiesforthisgroupincluded:ecologicalservicesandtechnical/geo-environmentalservices.
Sample profile: sector of activity
Number of interviews
Proportion
Architecture 46 15%
Buildingservicesengineering
46 15%
Civilandstructuralengineering
45 15%
Engineeringrelatedconsultancy
39 13%
Multi-disciplinary 37 12%
Quantity,landorbuildingsurveying
28 9%
Projectmanagement 15 5%
Landscapedesign 6 2%
Town/urbanplanning 4 1%
Otherprofessionalservicesrelatingtotheconstructionindustry
35 12%
3.5 Architectspracticestendedtobesmallerthanaverage:halfemployed5-9staffacrosstheUK.Thelargestfirmsinterviewed(thosewith50ormorestaff)weremorelikelythanaveragetobeoperatingincivilandstructuralengineering(25%)ortoseethemselvesasmulti-disciplinary(22%).
Type of work
3.6 Employerstendtoworkacrossarangeofsectors,especiallyindustrialandcommercial(thesewerethemainareaofactivityfor45%offirms).
Sample profile: Type of work undertake (prompted)
Type of work undertake
Main type of work
Base:All(301) % %
Industrial 71% 21%
Commercial(e.g.retailoroffices)
70% 24%
Public(non-residentiale.g.healthandeducation)
62% 17%
Privatehousing 47% 14%
Publichousing 43% 9%
Infrastructure 41% 14%
Other 4% 2%
3 The profile of those interviewed (quantitative survey)
4 3
The client base
3.7 65%ofprofessionalservicesfirmsworkmainlyforprivateclients.Theremaindersplitevenlybetweenthosewhoworkmainlyforcommercialclients(10%),thegovernmentorpublicsector(11%)orasasub-consultantforconstructionorconsultancyfirms(13%).
3.8 Thesmallestfirms(with5-9staffacrosstheUK)weremorelikelythanaveragetoworkmainlyforprivateclients(72%)andrarelyhadthegovernmentorpublicsectorastheirmainclient.Predictablythelargestfirms(with50ormorestaffacrosstheUK)werefarmorelikelythanaveragetohavethegovernmentorthepublicsectorastheirmainclient(18%),butstillthemajorityworkedmainlyforprivateclients(59%).
Region
3.9 TheinterviewingsoughttoachieveabroadspreadbyregionandcountrytoensurethatallpartsoftheUKwerecovered(ratherthanbestrictlyrepresentativeindistributinginterviewstoregioninexactproportiontotheregion’sshareoftheoverallUKprofessionalservicessector).Asshownonthefollowingtable,basesizesaretoolowtopresentresultswithinthisreportreliablybyindividualregion/country.
Sample profile: region / country
Number of interviews
Proportion
SouthEast 35 12%
London 35 12%
East 30 10%
SouthWest 30 10%
NorthEast 26 9%
EastMidlands 27 9%
NorthWest 25 8%
Yorkshire&Humberside 25 8%
Scotland 22 7%
NorthernIreland 17 6%
WestMidlands 16 5%
Wales 13 4%
4.1 Inthischapterweexplorethemainimpactsoftherecession,andthestepsthatemployershavetakeninresponse.Wefirstexamineresultsonanumberofspontaneousquestionscoveringkeybusinesschallenges,themainimpacttherecessionhashad,andtheresponsestotherecessiontakenbyemployers.Wethenlookatresultstothestepstakenbyemployersonapromptedbasiswhereweaskedemployersiftheyhadmadeanumberofspecificresponses,suchasreducingstaffnumbers.
Key current business challenges
4.2 Theeconomicrecessionwasclearlyverymuchattheforefrontofemployers’mindswheninterviewedforthestudyinOctober2009.Whenaskedwhatthekeychallengeswerefacingtheircompany,overhalfmentionedtheneedtoincreaseworkload(55%,risingto88%amongthe17respondentsbasedinNorthernIreland),18%mentionedspecificallydealingwiththerecession,andthesameproportionweresufferingcashflowdifficulties.Just1%mentionedtheirmainchallengeashavingmoreworkthantheycanhandle,andonly8%hadnokeybusinesschallengeswheninterviewedearlytomidOctober2009.Theresultsarepresentedinthefollowingtable.Forsimplicityonlyresponsesgivenbyatleast5%ofrespondentsareshown.
Main business challenges (spontaneous)
Base:all(301) %
Needtoincreaseworkload/getmoreworkin
55
Dealingwiththeeconomicdownturn/recession
18
Cashflow/gettingpaid 18
Findingsuitablyskilled/qualifiedstaff 7
Needtoincreaseprofitability 6
Noparticularchallenges 8
Main impacts of the recession (spontaneous)
4.3 Resultsonthemainimpactoftherecessionareverysimilartothosejustpresentedonthemainbusinesschallengesbeingfaced,clearevidencethattherecessionisdominatingthebusinessenvironment.Overall54%saythemainimpacthasbeenlessworkandlowdemand,17%haveorareexperiencingcashflowdifficulties,and10%reportthemainimpactasbeingeitherpostponedorcancelledprojects,orhavingtomakestaffredundant.Impactsmentionedbyatleast5%ofthesampleare
listedonthefollowingtable.Asanote,thiswasaskedasaspontaneousquestion-theproportionindicatingoncepromptedthattheyhavehadtolayoffstafforreducetrainingbecauseoftherecessionishigherthanshowninthefollowingtable.Thisisdiscussedlaterinthechapter(section4.14).
Main impact of the economic downturn on the business (spontaneous)
Base:all(301) %
Lesswork/lowdemand 54
Cashflowdifficulties 17
Projectsdelayedorcancelled 10
Maderedundancies/reducedstaffnumbers
10
Lossofturnover/profits 6
Increasedcompetition 5
None/noparticularchallenges 16
Otherimpactsmentionedincludedsalarycuts,cuttingbackontrainingandinstigatingarecruitmentfreeze(eachwerementionedby1%)
4.4 Thedownturnhasimpactedallsizesandsub-sectorsofcompanieswithinprofessionalservices,thoughthesmallestfirmswith5to9staffweremorelikelythanaveragetosaytheimpacthasbeenlowdemand(64%vs.51%ofthosewith50ormorestaff),whilethosewith25ormorestaffweresignificantlymorelikelytodescribethemainimpactasreducingstaffnumbers(15%vs.5%amongthosewith5to24staff).Thosewhosemainclientisthegovernmentorpublicsectorweretwiceaslikelyasotheremployerstoreportprojectsbeingdelayedorcancelled(18%vs.9%).4.5 Commentsfromthequalitativestageofthefieldworkregardingthemainimpactsoftheeconomicdownturnwhichillustratethesethemesincludedthefollowing;
“Basicallykeepingtheworkflowinginandkeepingclientshappy.Noneofthemseemtowanttomoveforward.Someofthebigjobslikeshoppingcentreshavenotmovednowfor3or4months.Itisonhold.”
“Alsogettingthemoneythat’sowedisachallenge.Theclientistakinglongertopay,ortheyaresayingthattheycan’tpay,theydon’thaveit...Wehavetriedtobemoreaccommodatingandhelpthemalongassome
4 The impact of the economic recession and employer responses
6 5
arestillfindingittricky,buttheywillcomethroughintheendandwewillgetthemoneyintheend.”
“I’vehadtoputthestaffonfourdaysaweekatthemomentbecauseofreducedwork,andreducedfees.Atthemomentwedon’tseeanychinkoflight.”
“Thebiggestproblemwehaveisthebanksandtheirlackoffundingonprojectswhichhasjustkindofkilledhalfofourprofits.We’vegotawholetrackofschemesthatarewaitingtogo,buttheclientscan’tgetfundingfrombanks.”
4.6 Againindicativeoftheextenttowhichprofessionalservicesemployersarebeingaffectedbythedownturn,thevastmajority(82%)hadtakensomestepstomeetthechallengesithaspresentedthemwith.Resultsareshownonthefollowingtable,whichlistsresponsesmentionedbyatleast5%ofemployers.Itshouldbenotedthatthiswasaspontaneousquestion,andtheproportionthathavetakenthesestepswhenaskedasapromptedquestionishigher(seesection4.14).
4.7 Themainresponsestotherecessionhavebeencuttingcostsand/ormakingredundancies(eachmentionedbyaroundaquarter),withsomespecificallymentioningreducingworkinghoursorencouragingunpaidleave(7%).Othershaveputmoreeffortintosalesandmarketing,forexamplebylookingforworkinsectorstheydonottraditionallyworkin(19%)orbyincreasingtheiradvertisingormarketingspend(15%).Commentsfromthequalitativeresearchincluded;
“Inanutshellwe’vehadtodiversifyfromourcorebusiness.Althoughwe’vestillgotexistingclientswhichweareobligedtocompleteworksfor.They’vedriedup.They’relookingattheircoffers.Sowe’vegottokeepourselvesafloatandwe’vebranchedoutintoothermarkets.”
Main steps taken to meet the challenges presented by the economic downturn (spontaneous)
Base:all(301) %
Cutcosts/overheads 27
Maderedundancies 23
Soughtworkinalternative/differentsectors
19
Increasedadvertising/marketing 15
Reducedworkinghours/encouragedstafftoworkparttimeortakeunpaidleave
7
Spentmoretimelookingforwork 6
Increasedefficiency/productivity 5
Increasedtheamountoftraininggiven 5
None/noparticularstepstaken 18
Otherstepstakenincludedreducingtheirfeesorrates(3%),cuttingbackonplannedrecruitment(2%)andreducingtraining(2%).
4.8 Londonemployersandthosewith50ormorestaffemployedacrosstheUKwereparticularlylikelytomentionmakingredundancies(40%and33%respectively).
4.9 Whenaskedspecificallywhethertheirfeeincomehadincreased,decreasedorstayedthesamecomparedwiththeprevious12months,justoverhalfindicatedthishadfallen(54%)comparedwith11%thathadseenfeeincomeincrease.Resultsaresummarisedonthefollowingchart,whichshowstheproportionreportinganincreaseordecrease.Forsimplicity,thosesayingfeeincomehadremainedlargelyunchanged(28%)orwereeitherunsureorrefused(7%)havenotbeenshown.LowbasesizesforWalesandNorthernIrelandshouldbenoted.4.10 Afallinfeeincomehasparticularlyaffectedsmalleremployers,andappearstohaveparticularlyaffectedthoseinNorthernIrelandandWales,thoughlowbasesizesmeanresultsshouldbetreatedwithcaution.Bysub-sector,buildingservicesengineeringappearstohavefaredbetterthanaverage:24%reportincreasedfeeincomeinthelast12monthscomparedwiththeprevious12months,thoughitwasmorecommonforthemtoreportthatincomehaddecreased(41%).
4.11 Thosesayingfeeincomehaddecreasedandwhowereabletogiveafigurefortheextenttowhichithadfalleninthelast12monthscomparedwiththeprevious12months(abaseof138respondents)typicallycitedfallsof10-19%(26%),20-29%(27%)or30-39%(17%).Onaveragethedecreaseinfeeincomewas26%.
4.12 Aswehaveseenfewerreportedanincreaseinfeeincome(11%-abaseof34respondents).Onaveragetheserespondentsreportedanincreaseof25%.
4.13 Thefollowingexamplefromthequalitativeresearchillustratestheimpactoftherecessiononfeeincome;
“Feesarereducedby30%duetocompetitionandlowvolumeandvalueofnewwork.Iftheywantustodoittheywilltellustoreducethefee.Lastweektherewasonewherethequotewas£6k,theysaidifyoucandoitfor£2,500thenyou’vegotit.Weaccepteditbecauseatleastitissomethingcomingin.Wehavetoacceptwhattheclientsays.Theproblemistherearefreelancerswhodonothavetheoverheadswhocanaffordtogoinatalowerprice.”
Responses to the recession / downturn (prompted)
4.14 Followingspontaneousquestions,employerswereaskedpromptedquestionsabouttheirresponsestotheeconomicdownturn.Onceprompted,only7%offirmsreportedtakingnoparticularstepstomeetthechallengespresentedbytherecession.Themostcommonresponsewasspendingmoretimebiddingforworkorwritingproposals(72%).Followingthis,nearlyhalfprofessionalservicesfirmshadcutbackontheplannedrecruitmentofgraduatesornewlyqualifiedstaff(46%)orhadmaderedundancies(46%).Asonementionedatthequalitativephase“Ithinkthatitisinappropriateatthemomenttotakeonnewgraduateswhenpotentiallytheremaybeanotherroundofredundancies.”
4.15 Nearlytwo-fifthsofemployershadcutbackontheplannedrecruitmentofsupportstaff,whilstaroundaquarterhadreducedworkinghoursorcutbackontheuseoffreelanceoragencystaff.
4.16 10%offirmshadincreasedtheiruseoffreelanceoragencystaffand8%hadincreasedtheirplannedrecruitmentofgraduatesornewlyqualifiedstaff.
69%
76%
50%
57%
61%
24%
6%
7%
19%
16%
7%
11%
Decreased Increased
All (301)
Base: all
Fee income in the last 12 months compared with the previous 12 months
41%
47%
54%
5-9 staff (75)
10-24 staff (90)
25-49 staff (48)
50+ staff (88)
Wales (13)
Building services engineering (46)
Northern Ireland (17)
8%
8%
10%
16%
26%
27%
37%
46%
46%
72%
None / no particular steps taken
Increased planned recruitment of graduates or newly qualified staff
Increased use of freelance or agency staff
Recruited different specialisms
Cut back on use of freelance or agency staff or consultants
Reduced working hours
Cut back on planned recruitment of support staff
Made staff redundant
Cut back on planned recruitment of graduates or newly qualified staff
Spend more time bidding for work / writing proposals
Base: All respondents (301)
Responses to the economic downturn (prompted)
8 7
4.17 Thereappeartobesomedifferencesbysizeofcompany,subsectorandregioninhowcompanieshaverespondedtotheeconomicdownturn:
•Largerfirmswithover50staffweresignificantlymorelikelythanthosewith5-9stafftohavemadestaffredundant(67%vs.32%),tohavecutbackonplannedrecruitmentofsupportstaff(44%vs.25%),tohavecutbackonuseoffreelanceoragencystaff(36%vs.20%5-9staff)ortohaverecruitednewspecialismstoenablethefirmtoworkinnewsectors(17%vs.7%).
•Bycountry/region,employersinNorthernIrelandwerethemostlikelytohavespentmoretimebiddingforwork(94%inNorthernIrelandcomparedwith72%UK-wide).FirmsintheSouthEastweretheleasttohavetakenanystepsinresponsetothedownturn(17%comparedto7%acrossallfirms).
•Buildingservicesengineeringfirmswerethemostlikelytohavemadenospecificresponsetotheeconomicdownturn(17%comparedtoaverageof7%acrossallfirms),confirmingthatthisappearstobethesub-sectorleastaffectedbythedownturn.Civilandstructuralengineeringfirmswereconsistentlymorelikelythan
averagetohavetakeneachofthesteps:64%hadcutbackonrecruitingnewgraduates,58%hadreducedtheuseofsupportstaff,56%hadmaderedundancies,42%hadcutbackontheuseoffreelancestaffand40%hadreducedworkinghours.
a) Staff numbers, recruitment and redundancies
4.18 Resultssuggestthatthetotalnumberofstaffemployedacrosstheprofessionalservicessectorhasdecreased6%overthepast12months.Thefallismostmarkedforthesmallestfirmscurrentlyemploying5to9staffacrosstheUK(21%).
4.19 46%ofthecompaniesinterviewedhadrespondedtotheeconomicdownturnbyreducingstaffnumbers.Theseredundancieshaveaffectedawiderangeofoccupationalgroups,asshowninthefollowingchart,whichlistsoccupationsmentionedbyatleast4%oftheseemployers.Employersthathadreducedstaffnumbersweremostlikelytohavemaderedundanciesinadministrativepositions,followedbytechnicians,architects,projectmanagersandmechanical,civilandotherengineers.
4.20 16%ofprofessionalservicesfirmshadrespondedbyrecruitingstaffwithdifferentspecialismstoenablethefirmtoworkinnewsectors.Amongthese47respondents,awiderangeofoccupationshadbeentakenon,mostcommonlyengineers(29%),environmentalandrenewableenergyspecialists(11%),architects,technicians,andHR,legalandbusinessprofessionals(each6%).Otheroccupationsmentionedbyjustoneortwoemployersincludedtownplanners,healthandsafetyspecialists,projectmanagers,CADdraftsmenandConstructionDesignManagement(CDM)co-ordinators.4.21 Lookingspecificallyatgraduatesandnewlyqualifiedstaff,thenumberofsuchemployeestakenonbyfirmshasdroppedconsiderablyasaresultoftherecession,and46%ofcompanieshadcutbackontheplannedrecruitmentofgraduatesornewlyqualifiedstaff.Amongthe138firmsinterviewedthathadtakenthisstep,theactualnumbertheyhadtakenon(anaverageofapproximately1.5perfirm)representedjust17%ofthenumbertheyhadplannedtotakeon(anaverageofjustover9perfirm).
4.22 Thesefiguresrefertotherecruitmentofgraduatesandnewlyqualifiedstaff.Anothermeasureoftheeffectoftherecessioninthisareaisinthenumberofgraduatesandnewlyqualifiedstaffcurrentlyemployedbyfirms.Resultsindicatethatacrosstheprofessionalservicesindustrycoveredbythissurvey(whichexcludedmicrofirmswithfewerthan5staff)graduatesandnewlyqualifiedstaffmakeupjustover4%ofthetotalworkforce,halfthenumber(49%)theyemployed12monthsago.
4.23 Giventhefallinthelevelofrecruitmentofgraduatesandnewlyqualifiedstaffitisnotsurprisingthatasmanyas67%ofprofessionalservicesfirmsfeltthatthesupplyofgraduatescurrentlyexceedsthedemand.Architecturalfirmswerethemostlikelytoagreethatthiswasthecase(85%),andarchitectsweretheoccupationmostoftenmentionedwherethesupplyofgraduateswasfelttoexceeddemand.Resultsaresummarisedinthefollowingtable,basedfirstonthosethinkingsupplyexceedsdemand,andthenonallemployers.
Main disciplines where supply of graduates exceeds demand
Base: Thosethinkingsupplyexceeddemand(202)
All(301)
% %
Architects 21 14
Civilengineers 14 10
Acrosstheboard 11 7
QuantitySurveyors 10 7
StructuralEngineers 8 6
MechanicalEngineers
7 5
ElectricalEngineers 7 5
Engineers(unspecified)
7 5
Environmentaloccupations
6 4
BuildingSurveyors 4 3
Don’tknow 7 15
4.24 Thesefindingswerebackedupfromthequalitativeanalysis.
“The supply of graduates is currently exceeding demand. I would say probably architecture first, then engineering, project management, and quantity surveying.”
4.25 Thequalitativephasealsoindicatedthatanumberofemployersfelttheover-supplyofgraduateswasmostlyduetoHigherEducationbeingdrivenbythenumberofapplicationstoparticulardisciplines,ratherthanbytheneedforgraduatesofsuchsubjects.
“It’s a business, it’s bums on seats gets them money. If they can take on 60 graduates they will, I don’t think the end concern is whether there are jobs available. They would still take 60 even if they knew there were only 20 jobs available, because they get the money... They could drop the numbers and make it a lot harder. They could take on fewer but specialise more on them, so you would be getting quality rather than quantity at the end.”
b) Impact on training
4.26 Theeconomicdownturnhashadanimpactonthetrainingundertakenbyprofessionalservicesfirms,thoughthisisperhapslessseverethanmighthavebeenanticipated.While35%offirmshadreducedtheirtrainingspendforexamplebyincreasingtheamountofin-housetraining,theproportionthathadreducedtheamountoftrainingthattheyundertake(25%)wasonlyalittlehigherthantheproportionthathadincreasedtheamountoftrainingasaresponsetotherecession(22%).Similarlyitcouldbeviewedquitepositivelythat‘only’16%ofprofessionalservicesfirmshavereducednextyear’strainingbudgetorplannedtrainingactivity.
4%
4%
4%
5%
6%
6%
8%
8%
9%
14%
15%
18%
35%
Production staff
HR, legal and business professionals
Architectural technologists
Building Surveyors
I.T. staff
Civil Engineers
Quantity Surveyors
Mechanical Engineers
Project managers
Architects
Technicians
Other Engineers
Administrative staff
46% of employers hadreduced staff numbersbecause of the recession.The chart shows the mainoccupations where theseemployers had reducedstaff numbers
Base: All those who have reduced staff numbers in response to the recession (139)
Responses to the economic downturn: Occupations where employers have reduced staff numbers
10 9
4.27 Amongthe25%offirmsthathadreducedtheamountoftrainingthattheyundertakebecauseoftherecession,themostcommonareasthathadbeencutbackwerejobspecifictraining(21%),managementtraining(16%),IT/computertraining(13%),external
courses/seminars/conferences(12%),and(perhapsofsomeconcern)healthandsafetytraining(11%-equivalentto3%ofallemployerssurveyed).
4.28 Largerfirmswithmorethan50staffwereparticularlylikelytohavecutbackontheirmanagementtraining(35%).Thesmallestfirms(with5-9staff)werethemostlikelytohavereducedtheirjob-specifictraining(42%).
4.29 Thefollowingcommentsfromthequalitativestageoftheresearchsummarisetheimpactoftherecessionontrainingundertakenbyaprojectmanagementfirmwith25-49staffmembers;
“Wenolongergoonseminars,wecutthatbudgetdown.WesentpeopleonMicrosofttrainingsessions,andalsohealthandsafetyorequalopportunitiestraining.Itwasadayoutoftheofficebutwehavecutthisforallstaff.Wekeepvideosfortrainingandifsomeonewhoworksherehasdonesomethinginterestingthentheywouldtelltheotherpeople.Wearetryingtokeepittothatsortofthingasitischeaper.Wehavecutthebudgetby50%.Somehealthandsafetylegislationthingswehavetogoto,butthemoreperipheralthingsthatmightnotaddvaluetothebusinessarebeingcut.Thisisforallstaff.”
“Wehavecutbackonexternalcoursesdefinitely.We’vetriedtodothingsin-houseandtransferknowledgearoundthebusiness;haveseminarsconductedbyourexistingstaffratherthanusingexternaltrainers.”
4.30 16%offirmshadreducedtheirplannedtrainingactivityfornextyear.ThemostcommonareasthesecompaniesplannedtocutbackonwereIT/computertrainingandexternaltrainingcoursessuchasseminarsandconferences(each17%),followedbyengineering-relatedormanagementtraining(each10%).Themainresponsesmentionedbythe48respondentsthathavemadecutstonextyear’strainingbudgetareshownonthefollowingchart.
16%
22%
25%
35%
Reduced next years training budget or planned training
Increased the amount of training
Reduced the amount of training
Reduced training spend such as increased in-house training
Base: All respondents (301)
Responses to economic downturn - Impact on training (prompted)
5%
5%
7%
8%
8%
11%
12%
13%
16%
21%
Soft skills training
Continuing professional development
All training / nothing specific
Non - essential training
Engineering related training
Health and Safety training
External training courses / seminars / conferences
IT / computer training
Management training
Job specific training
Base: All those who have reduced amount of training (76)
Responses to economic downturn – Areas where reduced training activity
25% of employers hadreduced training activitybecause of the recession. The chart shows the main areas where these employers had cut back on training
8%
10%
10%
10%
17%
17%
Continuing professional development
All training / nothing specific
Management training
Engineering related training
External training courses / seminars / conferences
IT / computer training
Base: All those who have reduced next yearʼs planned training (48)
Responses to economic downturnMain areas where next yearʼs planned training has been cut
16% of employers hadreduced next yearʼsplanned training becauseof the recession. Thechart shows the areaswhere cut backs toplanned training havebeen made
12 11
c) impact on skill needs
4.31 20%offirmsfeltthattherecessionhashadanimpactontheskillsthattheyneedfromtheircurrentstafforpotentialrecruits.Thisdifferedlittlebysizeoffirm,butchangingskillneedsweremoreoftenreportedbymulti-disciplinarycompanies(35%)andprojectmanagementfirms(40%,thoughonarelativelylowbaseof15respondents).
4.32 Theskillsbecomingmoreimportanttoemployersintherecessionaremostoftenbusinessdevelopmentskills(16%),specialistjob-specificskills(16%),theabilitytomulti-skill(15%),engineering-relatedskills(13%),andup-gradingexistingskills(13%).
4.33 Theskillsofincreasingimportancedifferedsomewhatbysizeoffirm,andamongthoseidentifyingchangingskillneedsasaresultoftherecession:
•Firmswith5-9staffwereparticularlylikelytomentiontheneedforimprovedspecialistjob-specificskills(29%),
5.1 Anumberofsurveyquestionscoveredtheavailabilityandqualityofbusinessadviceandsupport.Overall30%offirmshadsoughtadvice,guidanceandsupportsincethestartoftherecession.Thiswashigheramongfirmswithbetween10and49staff(34%)-incomparison25%ofthosewith5to10staffand23%ofthosewith100ormorestaffhadsoughtadviceandguidance.
5%
5%
8%
8%
8%
13%
13%
15%
16%
16%
Soft skills
Architectural skills
Management
Technical skills
IT / computer training
Up-grading skills
Engineering
Ability to multi-skill
Specialist skills
Business development skills
Base: All those who had impact of recession on skills needed or wanted (61)
Skills of increasing importance due to economic downturn (spontaneous)
1%
1%
1%
1%
2%
3%
6%
7%
7%
7%
65%
ConstructionSkills
Construction Industry Council
Regional Development Agencies
Invest NI
Chamber of commerce
Banks
Independent consultants
Business link
Industry bodies / professional institutions
Accountants
None
Base: All respondents (301)
Organisations sought for advice, guidance or support to assist with business performance (spontaneous)
9%
5%
13%
7%
80%
58%
76%
72%
74%
Poor Satisfactory - Very good
All (301)
Base: all
Rating of availability and quality of business advice and guidance
5-9 staff (75)
10-24 staff (90)
5-49 staff (14)
50+ staff (88)
•Thosewith10-24staffplaceparticularemphasisonbetterbusinessdevelopment,salesandmarketingskills(30%)
•Thosewith50ormorestaffweremorelikelythanaveragetoneedimprovedbusinessdevelopment(24%),multi-skilling(24%)andmanagementskills(19%).
5 Business Advice and Support5.2 Themostcommonorganisationsfromwhichadvicehadbeensoughtsincethestartoftherecessionwereaccountants(7%ofallfirms),professionalinstitutions(7%),Businesslink(7%),andindependentconsultants(6%).Overall1%ofprofessionalservicefirmshadsoughtadviceorsupportfromeithertheCICorConstructionSkills.
5.3 Reassuringly,thevastmajorityofprofessionalserviceshavebeenabletofindtheadviceandsupportthattheywanted.Just7%offirmsindicatedthatthereweretypesofbusinessadviceandsupportthattheywantedbuthavefoundhardtoaccess,thoughthisrisesto13%amongthesmallestfirmswith5-9staff.
5.4 Ofthesmallnumberofrespondents(22)thathadstruggledtofindsupportoradvicethemostcommonareawasinfinancialsupport(3%ofallprofessionalservicesfirms).OtherareasmentionedwheresuitableadviceorsupportwashardtofindwereforIT,training,businessdevelopment,andmarketing(eachmentionedby1%).5.5 Threequartersoffirmsratedtheavailabilityandqualityofbusinessadviceandguidanceforcompaniesintheprofessionalservicessectoraseithersatisfactory(30%),good(36%)orverygood(8%).Thiscompareswith7%ratingitaspoor.Quitealargeproportionwasunsure(20%)–forsimplicitythesehavenotbeenshownonthefollowingchart.
5.6 Therewassomevariationbysizeoffirm,withthelargestcompaniesmoresatisfiedthanthesmallestfirms.13%offirmswith5-9staffthoughtthebusinesssupportavailablefortheindustryispoor-noneofthecompanieswith50ormorestafffeltthistobethecase.
5.7 Firmsratingtheavailabilityandqualityofbusinessadviceandguidanceaspoor(20respondents,alowbasesocautionisneeded)mostoftenwantedimprovementsinregardtoadviceonfinancialhelp(8respondents),adviceandsupporttobemorespecificandtailored(5respondents)andimprovedavailabilityofadviceaboutbusinessissuessuchasmarketing(4respondents).
14 13
6.1 81%ofprofessionalservicesfirmsweremembersofaprofessionalorindustrybody(16%saidtheywerenotmembers,and3%wereunsure).Themaininstitutesandbodiesmentionedarelistedinthefollowingchart.
6.2 Predictablymembershipofcertainprofessionalbodieswasmorecommonamongstspecificsub-sectors:83%ofarchitecturalpracticesweremembersoftheRoyalInstituteofBritishArchitects(RIBA),68%ofquantity/landsurveyingfirmsweremembersoftheRoyalInstituteofCharteredSurveyors,and22%ofcivilandstructuralengineeringfirmsweremembersofeachoftheInstitutionofCivilEngineersandtheInstitutionofStructuralEngineers.
6.3 Overall13%offirmssaidtherecessionhasledthemtore-considercompanymembershipofprofessionalorindustrybodiesorsupportingemployeestobemembersoftheseorganisations.Thisvariedrelativelylittlebysizeoffirm,indicatingtheextenttowhichtherecessioniscausingfirmsofallsizestothinkcloselyabouttheiroperatingcosts.
6.4 Whenfirmswereaskedtospecifywhichorganisationsifanytheyfeltitwascrucialfortheirbusinessorfortheirstafftobemembersof,theorderoftheorganisationslistedcloselymatchesthosetheyaremembersof(presentedonthepreviouschart),andtheproportionmentioningeachwasafewpercentagepointslowerthanthemembership.HencethemostcommonlymentionedorganisationswhichfirmsbelievetheyneedtobemembersofareRIBA(mentionedby11%),RICS(9%),InstitutionofCivilEngineers(6%)andtheInstitutionofStructuralEngineers(5%),ConstructionLine(4%)andtheCharteredInstitutionofBuildingServicesEngineers(4%).
6.5 Overall21%offirmssaidtherewerenoinstitutesorprofessionalbodiesitwascrucialtobeamemberof,andinaddition8%wereunsure.Thegeneralconclusionisthatmostemployersthataremembersofprofessionalbodiesandinstitutesfeelitiscrucialthattheyremainmembers.
6.6 Avarietyofreasonsweregivenastowhymembershipisdeemedsoimportant,butmostemployersconcentrateonthefactthatitprovidescredibility(30%ofthosethinkingmembershipcrucial),thefactthatitiscompulsory(20%),itdemonstratingcompetence(15%)oritprovidesinformationandkeepsthemintouchwithwhatishappeningintheindustry(12%).
Keeping up to date with industry news
6.7 Avarietyofmeans(inadditiontomembershipofprofessionalbodiesorinstitutesasjustdiscussed)areusedtokeepuptodatewithindustrynews.Themainmediabywhichemployerskeepabreastofdevelopmentsare:
•Industrypressandmagazines(mentionedby33%)
•Websites(15%)
•Newsletters/emails(14%)
•Wordofmouthandinformalmeans(13%)
•Meetings,seminars,conferences(8%)
•Nationalandlocalpress(5%)
•Othermeans(20%)
17%replieddon’tknowimplyingtheymayfeeltheydorelativelylittletokeepuptodate.
6.8 Forindustrypressandmagazinesawiderangeofpublicationswerementionedincludingwiththefollowing(eachmentionedby4%-7%ofallrespondents):ArchitectsJournal,ConstructionNews,Building,BuildingDesign,andpublicationsproducedbytheInstitutionofCivilEngineersandtheInstitutionofStructuralEngineers.6.9 Overall15%ofrespondentsindicatedthattheyusedwebsitestokeepuptodatewithindustrynews,ofwhichthemostfrequentlymentionedwereRIBA’sandtheHealthandSafetyExecutive’s(eachthemainsourceofindustrynewsfor2%ofrespondents).AwiderangeofotherspecificwebsiteswasmentionedsuchasConstructionNews,RoyalInstituteofCharteredSurveyors(RICS),andArchitectsJournal.
6.10 Thepreferredmethodofkeepinguptodatewithindustrynewsvariedwithsizeoffirm.Significantlymorefirmswith25-49staffusednationalorlocalpress(13%comparedwith1%ofthesmallestfirms5-9staff,and
2%ofthosewith50ormorestaff),andweresignificantlylesslikelytousewebsites(4%).Thesmallestfirmswereunlikelytorelyonconferencesorseminarstokeepuptodatewithindustrynews(1%comparedwith8%acrossallfirms),andweremorelikelytousemagazinesorindustrypressastheirpreferredmedia(41%comparedwith33%acrossallfirms).
3%
3%
5%
5%
5%
8%
8%
9%
11%
14%
16%
CIPD
ISO Accreditation
Federation of small businesses
Chartered Institution of Building Services Engineers
Institution of Structural Engineers
Institution of Civil Engineers
Construction Line
Health and Safety Institutions
Royal Institutes of Chartered Surveyors
Royal Institutes of British Architects
None
Base: All respondents (301)
Professional bodies or institutes membership (spontaneous)
6 Membership of professional or industry bodies, and keeping up to date with industry news
16 15
7.1 Thisfinalchapterofthereportlooksathowfirmsintheprofessionalservicessectorexpecttheindustrytorecoverinthenext12months,andhowsoontheeventualupturnintheeconomymaytakeplace.
7.2 Asdiscussedearlierinthereport,54%offirmshaveseenafallintheirfeeincomeoverthelast12months.Employerswereaskedhowtheyexpectedtheirfeeincometochangeinthenext12months:32%felttheirfeeincomewouldincreasecomparedwith17%expectingthistofall.Thelargestproportionexpectedittoremainataboutthesamelevel(44%)–notsurprisinglysomedidnotfeelconfidenttoanswer(8%).Onbalancethereforethefindingsarereasonablypositivewithap-proximatelytwiceasmanyexpectinggrowthasexpectingreducedfeeincome.
7.3 Firmswith10-24staffwerethemostlikelytoex-pectanincrease(40%),whilstfirmswith25-49staffweretheleastlikelytoexpectanincreaseinfeeincome(19%)andthemostlikelytoexpectadecrease(19%).
7.4 EmployersinNorthernIrelandandWalesseemmorepessimisticthanaverage(thoughlowbasesizesshouldbenoted,17and13interviewsrespectively):inbothcountriesjustoverathirdexpectadecreaseinfeeincomeoverthenext12months.Fewprofessionalserv-icesfirmsbasedinNorthernIrelandexpectanyincreasesinfeeincome(6%).
7.5 Firmsfromdifferentsub-sectorsalsohadvaryingforecastsforthenext12monthswitharchitecturalfirmsmorelikelythanaveragetoexpectanincreaseinfeeincome(46%),andquantity/landsurveyingfirmsmorepessimisticthanaverage.
7.6 Predictablytherewasacorrelationbetweenperformanceoverthelast12monthsandexpectedperformanceforthecomingyear.Thosewhosefeeincomehadincreasedoverthelast12monthsweremorelikelythanaveragetoanticipateincreasesoverthenext12months(50%)),whilethosethathadseenfallsinfeeincomewerelessoptimisticaboutthecomingyear,thoughstillmoreexpectedincreasesintheirfeeincome(31%)thanexpectedittofall(23%).
7.7 Combiningresultsforpastandexpectedfeeincome:
•5%ofallfirmshadexperiencedincreasedfeeincomeinthelast12monthsandexpectedittoincreaseinthenext12months
•12%offirmshadexperiencedfallsinfeeincomeandexpectedthesetocontinue
•17%offirmsdescribedtheirfeeincomeasstaticinthelast12monthsandexpectedittostayataboutthesameleveloverthenext12months.
7.8 Overall25%ofprofessionalservicesfirmsfeltitwaslikelythattheywouldhavetomakeredundanciesinthenext12months,whichincludes3%thathavealreadyplannedtheredundancies.Itismoderatelyencouraging
Main skills expected to become more important in the next 2-3 years
Base: Those anticipating increased importance of some skills (104)
All (301)
% %
Specialist job-specific skills 35 12
Environment / sustainability 21 7
Management skills 13 4
IT skills 12 4
Sales / marketing / business acumen 12 4
Engineering-related 9 3
Legislation awareness 5 2
Health and safety 3 1
Other 11 4
Don’t know 2 1
7.11 Amongemployersanticipatingchangingskillneeds,environmentalandsustainabilityskillswerementionedbyafifth,andthesewereseenasparticularlyimportantforarchitectsandtechnicalstaff.Atthequalitativephaseoneemployerexplainedtheneedasfollows:
“More and more of our clients are sharing more awareness of environmental change, and we would comply with their demands. We have to be part of their supply chain so we have to comply with their specifications. We would train our men on site in environmental awareness.”
The end of the recession
7.12 40%ofemployersfeltthattheworstoftherecessionwasover(interviewstookplaceinearlyOctober2009).Firmswith25-49staff(29%),thosebasedinNorthernIreland(24%)andthoseoperatinginbuildingservicesengineering(33%)werelesslikelythanaveragetofeelthattheworstoftherecessionwasover.
7.13 Themajorityoffirmsinterviewedforthequalitativephasewereconfidentthattheywouldsurvivetherecession;
“We are fairly confident that we’ll survive the recession, because we have such a diverse client base. We were able to shelter ourselves from the worst that was happening.” Howeversomefirmsdidexpressconcern;
“I am not confident we will survive. We are funded by a board of directors at the group, and if we have not been making money since we started then they may well consider restructuring. The group has seen redundancies and as we have not made money - I am concerned they may shut us down.”
7.14 Thefollowingchartshowsresponsestothequestionofwhatemployerswouldliketoseedonetohelpthesectorcomeoutoftherecession.
36%
9%
38%
35%
12%
19%
18%
12%
17%
21%
46%
31%
6%
33%
19%
40%
29%
32%
Decreased Increased
All (301)
Base: all respondents (301)
Fee income changes expected in next 12 months
5-9 staff (75)
10-24 staff (90)
5-49 staff (48)
50-99 staff (88)
Wales (13)
Architecture (46)
Northern Ireland (17)
Quantity surveying (28)
7 The next 12 months and the end of the recession
1817
thatmorethinkitquitelikely(17%)thanverylikely(5%)suggestingthatformanyfirmsthedecisionwilldependontheirperformanceinthecomingmonths.Largercompanieswerethemostlikelytoanticipatetheneedtoreducestaffnumbers(30%ofthosewithover50staffwereexpectingtomakeredundanciesinthenext12months).
7.9 Resultssuggestthatredundanciesaremostlikelytoaffectadministrativestafffollowedbyarchitects,civilengineers,andotherengineers.
Future skills needs
7.10 35%ofprofessionalservicesfirmsfelt,independentoftherecession,thattherewerecertainskillstheyexpectedtobecomemoreimportantoverthenext2-3years.Thesearelistedonthefollowingtable.
7.15 Themostcommonresponsewasthatthebanksshouldstartlendingagain(mentionedby19%ofallfirms),whilstmorefundingandinvestmentwasmentionedby12%.Anumberofotherwaystohelpthesectorcomeoutoftherecessionfocusedaroundincreasedgovernmentsupportincluding;increasedgovernmentspendinginthepublicsector(11%),increasedgovernmentspendingonnewprojects(8%),governmentprojectsbroughtforward(7%)andincreasedgovernmentspendingoninfrastructure(6%).Clearlymanyprofessionalservicesfirmsfeelthereismorethegovernmentcoulddotohelpthesectoremergemorequicklyfromtherecession.
Annex A: QUANTITATIVE QUESTIONNAIRE
PRIVATE&CONFIDENTIAL CICSurveyTelephone
j4769
QUOTASA)TAKEREGIONFROMSAMPLE:
NorthernIreland 1 WestMidlands 7
Scotland 2 EastMidlands 8
Wales 3 SouthWest 9
NorthWest 4 East 10
NorthEast 5 SouthEast 11
Yorkshire&Humberside 6 London 12
CHECKQUOTAS(min15ineach)
B)TAKESECTORTYPEFROMSAMPLE:
Professionalservices(74.2) 1
C)TAKESIZEFROMSAMPLE:
5-9 1 CHECKQUOTAS
10-24 2
25-49 3
50+ 4
D)TAKESECTORTYPEFROMSAMPLE:
Panellist 1
Newsample 2
REASSURANCESTOBEUSEDASREQUIRED:
•Pleasebereassuredthateverythingwillbestrictlyconfidential.NothingwillbereportedbacktotheConstructionIndustryCouncil(CIC)abouthowindividualcompaniesrespondtothesurvey(weareonlyreportingbackaggregatedstatistics).
•ContactatCIC:MarkWayon07785730466
•ContactatIFFResearch:BenDavies/MarkWinterbothamon02072503035.
•ResultswillhelpCICtoensurethattrainingprovisionmeetstheneedsoftheindustry.
3%
2%
2%
2%
3%
5%
5%
6%
7%
8%
11%
12%
19%
Nothing
Change in government
Better regulation of financial market
More governement help in private sector
Less red tape
Lower taxes
Increase customer confidence
Increased governement spending on infrastructure
Bring forward government backed projects
Increased government spending on new projects
Increased government spending in public sector
More funding and investment
Banks to start lending again
Base: All respondents (301)
Ways to help the sector come out of the recession (spontaneous)
2019
S1. ASKALL Can I speak to[IFPANELLIST:INSERTCONTACTNAME]
[IFNOTPANELLIST:the most senior person here who has responsibility for human resource and personnel issues or the person responsible for training and development? INTERVIEWERPROMPT:
Yes – transferred 1 CHECK S2
Yes – correct respondent speaking 2
Definite appointment 3 MAKE DEFINITE APPOINTMENT / SOFT CALL BACK
Soft appointment 4
Nobody in office able to answer the questions 5 ASK FOR NAME & CONTACT DETAILS FOR ALTERNATIVE RESPONDENT
Refusal 6 ASK S1A
Refusal – company policy 7
Not available in deadline 8
[IF NAMED CONTACT] No-one of that name works here / Person no longer works here
9 RE-ASK S1 ABOUT SENIOR PERSON
S2) IFAPANELLIST(OTHERSGOTOS3) Good morning / afternoon. My name is XXX calling from IFF Research in London. You may remem-
ber that in the past you helped us with an on-going study that we are conducting for [ALLEXCEPTNORTHERNIRELAND:ConstructionSkills/IFSAMPLE=NORTHERNIRELAND:CITB Northern Ireland / ConstructionSkills] looking at attitudes and views of employers like yourself on training, learning and qualifications. You mentioned then that you would be willing to take part in further research. We are now conducting research for ConstructionSkills and the Construction Industry Council (CIC) among Professional Services firms. It will just take 20-25 minutes. Is now a good time?
Yes 1 GOTOQ1
No-Definiteappointment 2 MAKEDEFINITEAPPOINTMENT/SOFTCALLBACKNo-Softappointment 3
Refusal–notinterested 4 THANKANDCLOSE
S3) IFNON-PANELLIST(PANELLISTSGOTOQ1) We are conducting a study for the Construction Industry Council (CIC) looking at the impact of the
recession, and skills and training. Results will help CIC to ensure that education and training provision meets the needs of the industry. It will just take 20-25 minutes.
Can I just check are you the best person or one of the most appropriate people in the company to talk to about issues such as training and qualifications?
Yes 1 ASKQ1
No 2 ASKFORNAMEANDCONTACTDETAILSOFTHISPERSON,THENRE-INTRODUCE
Don’tknow/dependsonthequestions 3 ASKQ1
SECTION A: ABOUT THE COMPANYASKALL1) First, how many people does your company employ across the UK? PROBEFORBESTESTIMATE
WRITEINEXACTNUMBERANDCODERANGE
1(respondentonly) 1 THANKANDCLOSE
2-4 2
5-9 3 CONTINUE
10-24 4
25-49 5
50-99 6
100+ 7
1a) How many did you employ across the UK 12 months ago?PROBEFORBESTESTIMATE
WRITEINEXACTNUMBERANDCODERANGE
1(respondentonly) 1
2-4 2
5-9 3
10-24 4
25-49 5
50-99 6
100+ 7
1b) Which one of the following best describes the primary activity undertaken by your business? READOUT.SINGLECODEONLY
Architecture 1 CONTINUE
Town/urbanplanning 2
Landscapedesign 3
Quantitysurveying 4
CivilandStructuralengineering 5
BuildingServicesEngineering 6
Engineering-relatedconsulting 7
ProjectManagement 8
Multi-disciplinary 9
Otherprofessionalservicesrelatingtotheconstructionindustry(SPECIFY)
0
Noneoftheabove x THANKANDCLOSE
IFMULTIDISCIPLINARY(CODE9ATQ1b)1c) What would you describe as your lead discipline?
22 21
IFMULTIDISCIPLINARY(CODE9ATQ1b)1d) And what are your secondary disciplines?
ASKALL2) Which of the following sectors do you work in?....READOUT.
IFMORETHANONEATq2)2a) Which of these is the main sector that you work in?(SHOWANSWERSFROMQ1e)
Q2 Q2A
Privatehousing 1 1
Publichousing 2 2
Infrastructure(i.e.roads,railways,bridges,harbours)
3 3
Commercial(i.e.retail,entertainment,offices) 4 4
Industrial(i.e.factories,warehouses) 5 5
Publicnon-residential(i.e.health,education) 6 6
Other(SPECIFY) 7 7
3) Do you work mainly for …READOUT(MULTICODEALLOWED)
Privateclients 1
Asasub-contractorforconstructionorconsultancyfirms 2
Commercialclients 3
Governmentorpublicsectorclients 4
Orforothertypesofclient(PLEASESPECIFY) 5
4) Is this…READOUT(CODEFIRSTMENTIONED)
theonlylocationofyourorganisation 1 ASK4b
theheadquartersofyourcompanyintheUK 2 ASK4a
abranch 3
[DONOTREADOUT]Other(PLEASESPECIFY) 4
IFMORETHANONEOFFICE/BRANCH4a) How many offices in total do you have across the UK?
EXACTNUMBER _____
IFDON’TKNOWPROMPTWITHRANGE
2-4 1
5-7 2
8-10 3
Morethan10 4
Don’tknow X
IFMORETHANONEOFFICE/BRANCH4b) In which regions of the UK do you operate in? PROMPTIFNECESSARY
SouthEast 1
London 2
East 3
SouthWest 4
EastMidlands 5
WestMidlands 6
YorkshireandHumberside 7
NorthEast 8
NorthWest 9
Scotland 10
Wales 11
NorthernIreland 12
AllofGreatBritain 13
AlloftheUK 14
Other(SPECIFY) 0
Don’tknow X
ASKALL5) What do you feel are the key business challenges facing your company at the moment?
PROBE: What are the other main challenges you face? (MULTICODEFINE)DONOTREADOUT
Needtoincreasesales/getmoreworkorbusinessin 1
Needtoincreaseprofitability 2
Dealingwiththedownturn/recessiongenerally 3
Havemoreworkthancanhandle 4
Findingsuitablyskilled/qualifiedstaff 5
Gettingfinancetoexpand 6
Cashflowdifficulties 7
Other(WRITEIN) 0
None/noparticularchallenges X
24 23
SECTION B: ECONOMIC DOWNTURN6) What has been the main impact, if any, of the economic downturn on your business?
(MULTICODEFINE)DONOTREADOUT
Lesswork/lowdemand 1
Increasedcompetition 3
Projectsbeingdelayed/cancelled 4
Cashflowdifficulties 5
Reducedtrainingactivity(includingtakinglessworkplacements) 6
Other(WRITEIN) 0
None/noparticularimpact X
7) What steps, if any, have you taken to specifically meet the challenges presented by the economic downturn? (MULTICODEFINE)DONOTREADOUT
Redundancies 1
Hadtocutcosts/overheads(i.e.closeoffices) 2
Cutbackonplannedrecruitmentofotherstaff 3
Reducedworkinghours,orencouragedstafftotakeunpaidleaveortoworkpart-time
4
Reducedtraining 5
Soughtworkinalternative/differentsectors 6
Other(WRITEIN) 0
None/noparticularstepstaken X
8) In the last 12 months has your fee income increased, decreased or stayed at about the same level as compared with the 12 months before that?
Increased 1
Decreased 2
Stayedataboutthesamelevel 3
Refused/don’tknow X
IFINCREASED/DECREASEDATQ88a) By approximately how much has fee income (IF Q8=1: increased / If Q8=2 fallen) in the last 12 months
compared with the 12 months before that?
_____________%
Don’tknow X
ASKALL9) And compared with the last 12 months, do you expect your fee income over the next 12 months to
increase significantly, increase, stay at about the same level, decrease or decrease significantly?
Increasesignificantly 1
Increase 2
Stayataboutthesamelevel 3
Decrease 4
Decreasesignificantly 5
Refused/don’tknow X
ASKALL10) As a response to the downturn have you...?READOUT.CODEALLMENTIONED
Yes No Don’tknow
a)Madestaffredundant 1 2 X
b)Reducedworkinghours,orencouragedstafftotakeunpaidleaveortoworkparttime
1 2 X
c)Increasedyouruseoffreelanceoragencystafforconsultants 1 2 X
IF“NO”ATC:d)Cutbackonyouruseoffreelanceoragencystafforconsultants
1 2 X
ASKALLe)Recruiteddifferentspecialismstoenablethefirmtoworkinsectorsnewto
thefirm
1 2 X
ASKALLf)Cutbackonplannedrecruitmentofgraduatesornewlyqualifiedstaff
1 2 X
IF“NO”ATFg):Increasedplannedrecruitmentofgraduatesornewlyqualifiedstaff
1 2 X
ASKALLh)Cutbackonplannedrecruitmentofsupportstaff
1 2 X
i)Spendmoretimebiddingforwork/writingproposals 1 2 X
IFMADESTAFFREDUNDANT(Q10A/1),OTHERSGOTOQ1211) You mentioned that you’ve made staff redundant as a result of the downturn.
In which occupations have you laid staff off? DONOTREADOUT.CODEALLMENTIONED
Architects 1
ArchitecturalTechnologists 2
BuildingServiceEngineers 3
CivilEngineers 4
Mechanicalengineers 5
OtherEngineers 6
TownPlanners 7
Technicians 8
BuildingSurveyors 9
QuantitySurveyors 10
LandscapeDesigners 11
ProjectManagers 12
Marketing 13
HR,legalandbusinessprofessionals 14
Administrativestaff 15
Others(SPECIFY) 16
2625
ASKALL12) How likely do you think it is that you will need to reduce the number of staff you employ in the next
12 months. Is it...READOUT
Definite–alreadyhavethisplanned 1 ASKNEXTQUESTION
Verylikely 2
Quitelikely 3 ASKNEXTASKALL
Notverylikely 4
Notatalllikely 5
(DONOTREADOUT)Don’tknow/depends 6
IFDEFINITE/VERYLIKELY13) In which occupations do you anticipate having to make staff redundant?
DONOTREADOUT.CODEALLMENTIONED
Architects 1
ArchitecturalTechnologists 2
BuildingServiceEngineers 3
CivilEngineers 4
Mechanicalengineers 5
OtherEngineers 6
TownPlanners 7
Technicians 8
BuildingSurveyors 9
QuantitySurveyors 10
LandscapeDesigners 11
ProjectManagers 12
Marketing 13
HR,legalandbusinessprofessionals 14
Administrativestaff 15
Others(SPECIFY) 16
IFRECRUITEDSTAFF(Q10E/1)13a) You mentioned that you’ve recruited different specialisms to enable the firm to work in sectors new to
the firm. In which occupations have you recruited staff? DONOTREADOUT.CODEALLMENTIONED
Architects 1
ArchitecturalTechnologists 2
BuildingServiceEngineers 3
CivilEngineers 4
Mechanicalengineers 5
OtherEngineers 6
TownPlanners 7
Technicians 8
BuildingSurveyors 9
QuantitySurveyors 10
LandscapeDesigners 11
ProjectManagers 12
Marketing 13
HR,legalandbusinessprofessionals 14
Administrativestaff 15
Others(SPECIFY) 16
IFREDUCEDPLANNEDRECRUITMENTOFGRADUATES(Q10f=1)14) You say you cut back on planned recruitment of graduates or newly qualified staff as a result of the
recession. How many would you have normally taken on?
Number ____
Don’tknow X
14a) And how many did you take on this year?
Number ____
Don’tknow X
ASKALL15) How many recent graduates or newly qualified staff does your company currently employ
across the UK?
Number ____
Don’tknow X
16) And how many recent graduates or newly qualified staff did you employ 12 months ago?
Number ____
Don’tknow X
17) Do you think that across the industry as a whole the supply of graduates currently exceeds demand?
Yes 1 ASKQ17a
No 2 ASKQ18
Don’tknow X
IFYES17a) In which disciplines or occupations do you feel this is the case? PROBE: Any others?
ASKALL18) Thinking about the impact of the recession on training, as a response to the downturn have you...?
READOUT.CODEALLMENTIONED
Yes No DK
a)Reducedtheamountoftrainingthatyouundertake 1 2 3
b)Madeotherchangestotrainingtotrytoreducespendsuchasbringingmoretrainingin-house
1 2 3
IFQ18a)=2c)Increasedtheamountoftrainingyouundertake
1 2 3
d)Reducednextyear’strainingbudgetornextyear’splannedtrainingactivity
1 2 3
28 27
IFQ18a=119) You say you have reduced the amount of training because of the recession. What training have you cut
back on? PROBE: What else?
IFQ18d=120) You say you have reduced next year’s planned training activity. What particular training will you be
cutting back on?
ASKALL21) Has the recession had an impact on the skills you need or want from existing staff or from
potential recruits?
Yes 1 ASKNEXTQUESTION
No 2 ASKNEXTASKALL
Don’tknow X
IFYES22) What skills are of increasing importance to you?
ASKALL23) And independent of the recession, are there any skills you expect to become more important over the
next 2-3 years?
Yes 1 ASKNEXTQUESTION
No 2 ASKNEXTASKALL
Don’tknow X
IFYES24) What skills do you expect to become of more importance in the next 2-3 years?
ENTEREACHSEPARATELY
FOREACHANSWERATPREVIOUSQUESTION25) Which are the main occupations you expect the increase need for<ANSWER>to affect?
Skill Occupation
i)
ii)
iii)
ASKALL26) Since the start of the recession has your company sought advice, guidance or support from external
organisations to assist with business performance?
Yes 1 ASKNEXTQUESTION
No 2 ASKNEXTASKALL
Don’tknow X
IFYES27) Which types of organisation have you sought this advice or guidance from? PROMPTIFNECESSARY
Accountants 1
Banks 2
Benevolentsociety 3
ChambersofCommerce 4
CIC(ConstructionIndustryCouncil) 5
ConstructionSkills 6
Industrybodies/professionalinstituitions 7
Other(SPECIFY) 0
Don’tknow X
28) Are there types of business advice or support that you have wanted but found hard to find or access?
Yes 1 ASKNEXTQUESTION
No 2 ASKNEXTASKALL
Don’tknow X
IFYES29) Which types of advice or support have you found hard to access? PROMPTIFNECESSARY
ASKALL30) Generally speaking, how would you rate the availability and quality of business advice and guidance for
companies in the professional services sector...READOUT?
Verygood 1 ASKNEXTASKALL
Good 2
Ok 3
Poor 4 ASKNEXTQUESTION
Verypoor 5
Don’tknow 6 ASKNEXTASKALL
IFPOOR31) On what sort of issues would you like to see support and guidance improved?
ASKALL32) Which professional bodies or institutes is your company a member of?
SPECIFY
None………V
30 29
33) Has the recession led you to re-consider company membership of professional or industry bodies, or supporting employees to be members of these organisations?
Yes 1
No 2
Don’tknow X
34) Which organisations, if any, do you feel it is crucial for your business or your staff to be members of?
SPECIFY: 1 ASKNEXTQUESTION
None 0 ASKNEXTASKALL
Don’tknow X
IFANYMENTIONED35) Why is this or are these organisations so important to your business?
ASKALL36) What are the main ways that you keep up to date with industry news? DONOTREADOUT
Industrypress/magazines(SPECIFYWHICH) 1
Wordofmouth/informalnetworks 2
Websites(SPECIFYWHICH) 3
National/localpress 4
Other(SPECIFY) 5
Don’tknow 6
37) Do you feel the worst of the recession is over?
Yes 1
No 2
Don’tknow X
38) What, if anything, would you like to see done to help the sector come out of the recession? What else?
Don’tknow..................X
39) Finally, would you be willing to be contacted for research studies in the future by ConstructionSkills or CIC, or research agencies working on their behalf.
Yes 1
No 2
That’s it, thank you for your time today. I just need to record your name, job title and telephone number.
ENTERNAME
ENTERJOBTITLE
THANK RESPONDENT AND CLOSE INTERVIEW
IdeclarethatthissurveyhasbeencarriedoutunderIFFinstructionsandwithintherulesoftheMRSCodeofConduct.
Interviewersignature: Date:
Finishtime: InterviewLength Mins
32 31