Reaction to the findings of the recent report from the Society of Chartered Surveyors Ireland (SCSI) , Employment Opportunities and Skills Requirements in Construction and Property Surveying 2014-2018, has been one of shock and concern.
The report found that while construction activity has increased and output is set to go up by 30 per cent in the next four years, there is a shortage of skills to capitalise on demand due to a fall in third level surveying graduates .
“Over 400 construction and property firms took part in the survey that informs the report – providing a unique snapshot of an industry in recovery, and an accurate picture of employer needs,” explains Pauline Daly, European director at commercial property agent JLL and president of the SCSI. “Many pertinent facts are revealed, including the growing skills gap, which is now beyond doubt.”
There is currently a wealth of opportunities emerging for surveyors in the private sector on commercial and residential projects. While there has been a slight uplift in activity in the new homes sector here, there is more demand for surveyors in the commercial property sector on new office projects, new pharmaceutical buildings and data centres and on infrastructure projects .
However Mark McGreevy, commercial director Ireland at construction company John Sisk & Son, says the drop in third-level graduates,“is nothing short of staggering, particularly in terms of quantity surveying professionals,” he says.
“When you marry up their data with how we see the industry growing again in the next three years, the extent of the skills shortage gives us great cause for concern and as a business it’s one of the top five challenges we face.
“Following the dramatic drop in workload in 2008 and substantial redundancies that followed, many skilled professionals were forced to emigrate in order to secure employment or alternatively attempt to retrain and divert into other sectors.
“This led many school leavers to choose college courses in the sciences, computing and other popular areas.
“A knock-on effect of the limited number of school leavers taking up quantity surveying or property courses has meant CAO points requirements has fallen considerably. Thus the quality of our surveying graduates is not at the level needed.”
There are also concerns around the impact a significant skills deficit could have on wages. “A skills shortage will lead to wage inflation over and above normal levels of inflation and it can be difficult for companies to effectively manage and plan for this,” explains Lisney’s managing director James Nugent.
“Linked to this are capacity issues but I would hope a lot of those who went abroad will start coming home and that may ease some pressure.
“We at Lisney anticipated a shortage of graduates and made the decision to recruit early and in advance of any pick-up in the economy. So over the last 18 months we have taken on about 35 new people – not all of them graduates.”
In the next few years, companies in property and construction will have to keep a watchful eye over things to make sure they can scale business in line with growth.
‘Growth sporadic’
“The majority of companies that have survived have done so because they have managed their resources very carefully,” explains Paul Mitchell,
director of architecture and building services provider Aecom.
“Growth is likely to be somewhat sporadic and somewhat uneven across sectors and geography, which will give rise to a set of new challenges not experienced for a number of years.
“In certain cases, the demand may not be met as well as it should be.
“There is already a shortage of property consultants and a deficit of quantity surveyors isn’t far behind. Companies should be hiring all graduate populations now and encouraging the diaspora to return.”
Tighter regulations put in place after the property market bubble burst has meant standards have become much higher in the sectors.
The SCSI welcomes the new regulations, and the establishment of the Property Services Regulatory Authority (PSRA), which issues licences to property practitioners.
But stricter entry criteria make recruitment of new talent more difficult. “In order to qualify for a licence, it is necessary to have a third-level property qualification,” says JLL’s Pauline Daly.
“This is a welcome development which will help ensure higher standards of professionalism in the industry.
“It does, however, mean that because of the low numbers entering property courses in recent years, the number of graduates eligible to apply for a licence has been reduced and employers are now struggling to find property graduates who qualify for a licence to fill the growing vacancies.
“As a result, employers are competing to recruit from an ever-diminishing pool of graduates. On the flip-side, of course, this is excellent news for current property students and new graduates as they are being snapped up,” says Daly.
So what needs to be done to reverse the trend and get young people interested once more in property and construction?
‘Employment opportunities’
“The solutions needed include a concerted effort from the industry, professional bodies such as the SCSI and backed up with
Government support to get a new positive message out to schools and parents,” says Sisk’s Mark McGreevy.
“That message is that the industry is back in business and provides a growing number of exciting employment opportunities with attractive career progression for years to come locally and internationally.
“The colleges also need to review the existing structure of their courses to make them more attractive.
“For example, we would strongly advocate for the introduction of more part-time type courses where school-leavers can combine their studies with ongoing work experience in the industry.
“This is a win-win for both the student and the industry, the former gaining potential employment and for the industry it helps address the shortage.”
