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Home / Business / Economy / Employment

Builders' training needs revamp

By Val Leveson
NZ Herald·
27 Sep, 2018 01:56 AM4 mins to read

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There are opportunities in construction for professionally based or trade-based careers. Photo / Getty Images

There are opportunities in construction for professionally based or trade-based careers. Photo / Getty Images

There is a gaping skills shortage in the building sector that needs to be addressed if this country is going to be able to meet its growing needs, says Warwick Quinn, chief executive of building and construction apprenticeships provider BCITO.

"Forecasts last year, before KiwiBuild was put on the agenda, show there were 50,000 or 60,000 workers needed in construction — that's in all areas, admin, trades, project managers, architects — the lot," he says.

"We felt at least half of those needed to be trade-qualified, so about 30,000 tradies were required.

"We knew we'd get about 2500 tradies qualified a year (it takes four years to get through). So we're well short of the 30,000 number. We're waiting to see what added expectation KiwiBuild introduces."

The problem arises because most apprenticeships require a firm having a job.

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"It's very market-focused — if a firm doesn't have work, they're not going to take on training," says Quinn. "Why train people when there are no jobs?

"It self regulates so the market should, therefore, be at some sort of equilibrium. The problem is that between 2008 and 2013 we had the global financial crisis. It was the largest recession construction has faced and the sector restructured itself for that period. Because of the low level of activity, staff were shed. There was no certainty and there was little work to develop trainees.

"During the time we were saying our biggest concern was lack of training," says Quinn.

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"Once the recovery started, employers, who had become used to a boom/bust market, needed to be confident that the recovery was sustainable, so there's a lag. It took between 12 and 18 months for them to start signing up new apprenticeships. This means we're now well behind the eight ball.

"So now we have this hole and we have a massive catch-up to do. Our build rate is not enough, we're struggling.

"We need a more flexible and adapted training regime that is more aligned to employer needs. The current regime is about 30 years old — construction is much more specialised now.

"For new builds, all the work is done by different specialist firms. Each of those companies needs to have skill qualifications that recognise that specialisation — that doesn't exist right now. To install windows now, you need to be a carpenter — but you're installing windows. What we're promoting is micro-credentials or specialised skill sets that reflect that specialisation.

"Under the apprenticeship programme, the teacher is the employer. BCITO does the assessment. Every other teacher in New Zealand is paid to teach. As an employer, you're not. When it's price sensitive, you need help for that initial 12 to 18 months."

He says in Britain there is an employer levy that goes into a pot — everyone who trains can access that pot.

"In New Zealand we have a building levy. We're saying why not redistribute this in a different way to supply support. The minister is looking at this."

But how attractive is construction to the average school-leaver or influencer (parent, teacher or career adviser)?

BCITO looked at 10 industries; construction ran seventh in popularity.

"When we asked 'how open are you to being in construction', most were closed," says Quinn.

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"We then asked 'what's your understanding of construction?' They think of builders, plumbers, carpenters, electricians, and some said architects... it's very rudimentary. For those who are closed to construction, we asked 'what are you looking for in your career?'

"They're looking at management, supervision, people space — professionally based rather than trade-based. They see their route as being through university."

Quinn says, "We know there are plenty of opportunities in construction to have those careers. It provides us with insight into market positioning.

"As a sector this image isn't unique to New Zealand. Overseas research found that combined industry marketing needed to be addressed. It's about having a united voice about what construction offers."

He says there's also an inter-generational prejudice against the trades. "There's the view of my grandfather went to university; my parents went to university, that's the way to get ahead.

"We're not against university, but don't discount what a vocational career can do for you. It's just as productive, and potential earnings are equal to a professional career. Just consider wider options."

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He says there's a further problem in that only 2.8 per cent of trainees are female.

"There is a focus on attracting women to the trades — all our marketing includes women. We have research on the go to understand women in trades. How do we attract them, address the prejudice of employers? This is really important."

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