How the Chamber’s new Construction & Trade Forum is helping businesses tackle skills shortages, regulation and growth challenges
As Herefordshire & Worcestershire Chamber of Commerce launches its newest sector forum, Business Direction explores why construction and trade businesses need a dedicated space to tackle skills shortages, navigate industry change and help shape the future of one of the region’s most important sectors…
The construction industry is facing a perfect storm of challenges.
Skills shortages, an ageing workforce, rising costs, changing regulations and growing sustainability demands are all creating pressure at a time when the sector is being asked to deliver more than ever before.
Against that backdrop, Herefordshire & Worcestershire Chamber of Commerce has launched its new Construction & Trade Forum, a dedicated sector network designed to bring together businesses, education providers and industry partners to discuss challenges, share expertise and identify practical solutions.
Sponsored by Worcestershire Local Skills Improvement Plan (LSIP), the forum welcomed almost 50 construction professionals, suppliers and education partners to its inaugural event in June, creating a new platform for one of the region’s most important sectors to share ideas, raise concerns and influence future support.
For Lauren Ashford, Local Skills Improvement Plan Manager at the Chamber, the timing could hardly be more important.
“The Construction & Trade Forum aligns perfectly with the priorities we’ve set for the LSIP,” she says. “We’ve got a number of different sector priorities, and one of them is construction because we’ve realised there is a massive skills shortage and it’s going to be a huge area of growth over the next few years.”
The launch comes as the Government pursues its ambition to build 1.5 million new homes during this Parliament, alongside major infrastructure investment, regeneration projects and the transition towards a lower-carbon economy.
Yet Lauren believes a fundamental question remains.
Do we have the workforce needed to deliver it?
“Housing England’s targets are becoming harder to meet because the skilled labour simply isn’t available. Employers are already competing for a shrinking workforce, and qualification reform—combined with funding cuts—has made it more difficult to upskill existing staff or bring new entrants through reliable, funded pathways.
“The result is a growing skills gap on every front, just as the industry is being asked to deliver more than ever.
“We need far greater employer engagement with the school system. It’s easy to say that not enough young people are choosing construction, but much of that stems from outdated perceptions of what the industry actually offers. If students believe construction leads to only one type of job, of course they’ll look elsewhere. In reality, the sector provides a wide range of technical, professional, and specialist career pathways – but young people won’t know that unless employers are visible in schools and actively showcasing the opportunities available.
An industry under pressure
The challenges facing construction extend far beyond recruitment.
Nationally, the sector is grappling with a severe labour shortage at the same time as a significant proportion of its workforce approaches retirement age. Many industry forecasts suggest hundreds of thousands of additional workers will be needed over the coming years if housing and infrastructure targets are to be met.
At the same time, construction remains one of the UK’s most insolvency-prone sectors. While material prices have stabilised since the sharp increases experienced during and after the pandemic, they remain significantly above pre-2020 levels. Rising overheads, squeezed margins and lengthy payment terms continue to place pressure on firms across the supply chain, particularly SMEs and subcontractors.
Those pressures are being felt across the wider trade sector too.
For Darryl Harbourne-Bessant, Managing Director of F.B & Sons, Lawns and Landscapes, simply keeping pace with rising operating costs has become one of the biggest challenges facing businesses.
“Fuel, insurance, materials, waste disposal, National Insurance and business rates increases and taxation have all gone up significantly over the last few years,” he says. “Many businesses are having to absorb some of these costs because customers are feeling the squeeze as well.”
The regulatory landscape is also becoming increasingly complex.
The Building Safety Act has introduced significant new compliance obligations following the Grenfell tragedy, while wider sustainability requirements and the push towards Net Zero are forcing businesses to adapt to new ways of working.
Meanwhile, the industry continues to wrestle with productivity challenges and the adoption of digital technologies, with many smaller firms lacking the resources needed to invest in new systems, software and training.
For Olivia Williams, Head of Events & Training at Herefordshire & Worcestershire Chamber of Commerce, these combined pressures highlight why construction and trade businesses need a dedicated forum of their own.
“Construction and trade businesses play a vital role in the local economy, but they also face a very particular set of challenges,” she says.
“We wanted to create a forum that gives the sector its own voice – somewhere businesses can make new connections, hear from experts, share what they are experiencing on the ground and help shape the support they need.
“The launch event showed there is a real appetite for that kind of practical, focused conversation.”
The new forum has been built around four key objectives: inspiring businesses through industry connections, raising the profile of the sector, sharing knowledge and best practice, and supporting skills and workforce development.
It will now run quarterly, alternating between Herefordshire and Worcestershire.
Why construction has become an LSIP priority
The involvement of Worcestershire LSIP reflects the growing importance of construction within local workforce planning.
Introduced by Government, Local Skills Improvement Plans are designed to place employers at the heart of the skills system, ensuring colleges, training providers and policymakers better understand the needs of local economies.
Within Worcestershire, the programme is delivered by Herefordshire & Worcestershire Chamber of Commerce. For Lauren, construction has emerged as one of the clearest priorities identified through conversations with employers.
“The Construction & Trade Forum aligns perfectly with the priorities we’ve set for the LSIP,” she says. “Construction is one of our key sectors because of the scale of the workforce challenge and the growth opportunities that are coming.”
The challenge of attracting the next generation
One of the biggest concerns raised through the LSIP programme is the difficulty young people face when trying to enter the sector.
Employers frequently report that they want recruits with some site experience. Yet gaining that experience can be difficult because of insurance requirements, age restrictions, safeguarding considerations and the practical realities of working on active construction sites.
The result is a familiar catch-22.
“It tends to be done through word of mouth, who you know, family members,” Lauren says.
“That’s how you tend to get your foot in the door, as opposed to going through a normal recruitment process.”
She believes more employers need to engage directly with schools and colleges to help young people understand what a modern construction career actually looks like.
“What we do need is for more employers to engage with the school system,” she says.
“It’s all well and good saying not enough people are going into construction, but that’s possibly because the perception of construction isn’t accurate.
“If they believe they’re all going to end up doing one sort of job, that might put them off.
“But actually there are a multitude of different career pathways available. They won’t know that unless employers go into schools and talk about the opportunities available.”
That is particularly important because modern construction is far broader than many people realise.
Architecture, surveying, digital design, procurement, project management, sustainability, engineering and specialist technical roles all sit alongside traditional trades within the industry’s wider ecosystem.
For many employers, improving awareness of those opportunities is critical if the sector is to attract enough talent over the next decade.
Darryl sees similar issues within horticulture and landscaping.
“There seems to be very little interest from young people in horticulture and landscaping, despite it being a skilled and rewarding career,” he says. “Schools and careers services rarely talk about the industry, so many young people don’t even realise it exists as an option.”
Work readiness and the reality of site life
Employers attending the inaugural forum also raised concerns about work readiness and whether young people fully understand the realities of work, especially in the construction sector.
Early starts, outdoor working conditions and physically demanding environments can come as a surprise to those entering the industry for the first time.
Lauren says employers and colleges are increasingly having honest conversations with students about what working life on site actually involves.
“It’s vital that new starters understand what site work really involves,” she says. “A 7am start means long days, early travel, and working outdoors in all weather. Many young people simply aren’t prepared for those realities, so helping them become genuinely work‑ready is essential for retention and long‑term development.”
The discussion also touched on whether current training programmes sufficiently reflect workplace realities.
One employer questioned whether students preparing for construction careers should experience working patterns that more closely mirror those found on site.
Such conversations illustrate the value of bringing employers and educators together in the same room.
Apprenticeships under pressure
Apprenticeships remain one of the most important routes into construction careers.
Yet employers at the forum highlighted several obstacles that can make taking on apprentices increasingly difficult.
Cost is a major factor.
With apprenticeship wages and minimum wage rates moving closer together, some businesses question whether they can justify the investment required to train someone from scratch when experienced workers remain in short supply.
“Many employers are telling us that taking on an apprentice is no longer cost‑effective,” Lauren says. “When they can hire someone who already has the experience, it’s hard to justify the additional time, resource, and investment required to train someone from scratch.
“With incentives reduced and funding pressures increasing, the business case for apprenticeships simply isn’t as strong as it once was.”
It is a challenge familiar to many employers.
Darryl says his business has always invested in apprentices, but believes smaller firms need more practical support if they are to continue doing so.
“We have always believed in training people and currently employ apprentices, but the costs and administration involved are becoming increasingly difficult for smaller businesses to justify,” he says.
“Something as simple as financial assistance to help businesses retain apprentices for the first two or three years of their employment would encourage many more companies to invest in training. It would give young people the opportunity to develop valuable skills, gain long-term employment and build a career, while also helping address the skills shortages facing our industry.”
Giving smaller businesses a stronger voice
One of the most important roles of the forum will be ensuring smaller businesses are properly represented.
While major contractors and developers often dominate industry conversations, much of the sector is made up of sole traders, microbusinesses and family-run firms.
For those businesses, finding time to engage with policymakers, training providers and industry organisations can be difficult.
Lauren believes the forum can help address that gap.
“Many of our members are micro‑businesses and smaller organisations, and it’s essential that their voices are fully represented,” she says. “It’s useful to hear from large contractors, but smaller firms want practical guidance on how to reach that level – how to grow sustainably, navigate the VAT threshold, and overcome the everyday barriers they face.
“Our role is to listen to them and ensure the forum reflects their needs, not just those of the biggest players.
Feedback from the first event reflected that view, with attendees expressing a desire to hear more directly from smaller business owners at future forums.
That peer-to-peer learning is expected to become an important part of the series as it develops.
More than a skills conversation
Although workforce development sits at the heart of the forum, it is not solely about skills.
Future events are expected to tackle a broad range of issues affecting construction and trade businesses, from legislation and procurement to sustainability, supply chains and business growth.
Lauren says organisations such as CITB are expected to contribute updates on topics including the Building Safety Act and changing industry requirements.
“Legislation has shifted significantly, and building safely and legally has become increasingly complex for employers,” she says. “For some, the regulatory burden is enough to deter them from bidding for work altogether. There are ongoing challenges around sustainable construction, compliance with new standards, and knowing where to access the right training and support. Ensuring our forum tackles these issues head‑on is essential for helping businesses navigate this landscape with confidence.”
Darryl believes regulation itself illustrates the balancing act many businesses now face.
“Our industry suffers from both too little regulation and too much regulation at the same time,” he says. “In some areas there is very little to stop unqualified operators trading and undercutting legitimate businesses, while in other areas there is increasing paperwork and bureaucracy that takes time away from actually running a business.”
The Chamber hopes that practical focus will help the forum become a valuable source of information and support for businesses navigating an increasingly complex operating environment.
Turning conversations into action
The launch event featured presentations from Lauren Ashford of Worcestershire LSIP, Mark Martin, Director of One Creative Environments Limited, and Roger Cox, Procurement Manager at McPhillips (Wellington) Ltd.
Alongside networking opportunities, discussions focused on workforce development, collaboration and the future needs of the sector.
As part of its wider work, LSIP is now establishing a Construction Skills Pipeline Working Group, bringing together employers, training providers and partners to identify practical actions that can strengthen the local workforce.
“What we want is employers and training providers sitting in a room discussing the biggest issues within construction and then hashing out tangible ways to tackle them,” Lauren says.
“Not in a huge onerous way, but in ways that are manageable and will have an impact.
“It might simply be an employer saying they’ll have one conversation with a local high school during the year. If five employers do that, that’s five schools hearing about careers in construction.
“We’re looking for those baby steps that can make a difference.”
Building for the future
Despite the challenges, Darryl remains optimistic about the industry’s future.
“Demand for quality landscaping, biodiversity improvements, sustainable drainage and outdoor spaces that support wellbeing continues to grow,” he says. “If we can encourage more young people into the industry and create a fairer environment for businesses, I think the sector has a bright future.”
That sense of cautious optimism was reflected throughout the inaugural forum. While businesses acknowledged the significant pressures facing the sector, there was also a clear willingness to work together to develop practical solutions and ensure the region has the skilled workforce needed for future growth.
Ultimately, Lauren hopes the forum will become more than a networking event.
She wants it to evolve into a connected community where businesses feel supported, listened to and represented.
“I would like them to feel like a connected network where they have support from each other and support from the Chamber,” she says.
“Success looks like regular feedback, ideas and suggestions so that we are being responsive to what they need.”
She is equally clear that businesses should not be afraid to challenge the Chamber.
