We share insights into the effects of Brexit to our industry, in Property Wire...
The effects of Brexit on the architecture and construction industry
As we enter the transition phase of Brexit, how different industries will be affected by its ratification is becoming clear. The construction and architecture industries are facing the worsening of a pre-existing problem—labour shortages. With a large portion of their skilled labour consisting of EU migrants, these sectors may have to reckon with a diminishing pool of workers who no longer see the UK as a promising place to relocate to.
In order to minimise the impact that this future shortage will have on the completion times and costs associated with construction projects in the UK, the government will need to implement short and long-term measures to ensure the sector is not crippled during and after the Brexit process.
Brexit threatens to leave construction industry short-handed
Roughly 28% of London construction workers migrate from European countries to work, bringing with them skills and experience to offset a deficit from the UK’s native workforce. This dynamic extends beyond just the construction industry to architecture firms and other vital parts of the design and development community which bring the country’s development projects from the ideas phase to completion.
In the lead up to Brexit’s finalisation, nine leading industry bodies have joined forces to call for action on skills shortages in 18 industry roles, including bricklayers, carpenters, chartered surveyors, civil engineers, construction and building trades supervisors, construction project managers and quality surveyors, to name a few. These findings have been published in a bid to encourage both the industry to work together to address the shortage but more vitally, for the government to add these professions to its Shortage Occupation list. At present construction is not considered a special case but these organisations are urging for recruitment and education to take precedence by upskilling the existing workforce or hiring new workers within the UK. They also strongly advocate prioritising these professions in future migration from the rest of the world. As we enter the post-Brexit transition period, workers from the EU who are currently supporting these industries will have their right to free movement abdicated and with it their right to work in the UK without a work visa.
If highly skilled sought-after workers are forced to return to Europe, the affect could be immense on the UK’s construction industry, which already struggles to keep up with demand.
Architecture practices stand to suffer
Creative industries are an essential part of the UK’s economic wealth and prosperity. Contributing approximately £92 billion annually and grows at a rate double that of the economy. Architecture makes up £5 billion of that total, with revenue brought in from international work—which includes the EU—totalling some £500 million a year.
At astudio, the skilled-worker shortage is a key issue for us when facing Brexit’s transition period. We are proud to have over 15 nationalities working on our team of 35, many of whom joined us through the EU’s right to free movement and employment. Since the referendum over three years ago, we have put serious thought into planning for a future where they may no longer be able to work with us at our London office. This not only provides logistical and workplace challenges but also limits the scope of our business from international opportunities and growth.
In order to account for these difficulties, we’ve taken measures to establish a studio in Portugal as well as a registered business in Asia. This offers us the ability to mitigate the potential issues Brexit poses by moving or growing our international operations beyond London.
New post Brexit immigration systems need to recognise the key role of overseas citizens in our industry
In the long-term, we need to find ways of encouraging the training of more skilled workers within the UK, providing incentives through government programs and regulations to boost a workforce which is in desperate need of new, younger members. But this takes time to implement, time which the construction industry does not have.
astudio strongly supports RIBA’s position in calling for a post-Brexit immigration system which continues to allow the architecture sector to have access to the best talent globally, while providing mutual recognition of architects’ professional qualifications with the EU, as well as other countries. We hope, with the development of the points system recently announced that it recognises the key role overseas citizens play in the development of our industry. astudio values the experience brought by those outside of the UK which broaden our outlook and help us shape our bold vision to change the industry.
As a key part of the construction and development process, architecture firms already struggle with the pressures that accompany contractual work, with tight deadlines and the constant ebbs and flows in revenue. The labour shortages threatened by Brexit’s transition period pose a serious risk to the industries continued operations, leaving a massive contributor to the UK’s economic health in a precarious position. If we don’t take steps in both the short and long-term to mitigate these problems, the effects may prove extremely costly.