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Findings of a workforce report published today have highlighted the challenges facing the North East to ensure it has the skilled workers needed to meet future demand in the engineering construction industry (ECI).

The ECI plays a crucial role in the UK meeting its net zero ambitions, spanning sectors that focus on the construction, maintenance and decommissioning of heavy industry, including oil and gas, nuclear, power generation, renewables, chemicals, food and drink, pharmaceuticals and water treatment.

The Engineering Construction Industry Training Board’s (ECITB) Regional Workforce Census report offers a comprehensive overview of the ECI workforce in the North East, having gathered data on 6,000 workers in the region.

It reveals that 77% of employers in the North East are experiencing challenges in hiring workers, compared to 71% in the wider industry.

Pipefitters, welders, electricians, instrumentation technicians, designers and engineers in piping, and surveyors are among the roles that are proving most difficult to recruit.

The main reason given by employers is issues around the size of the talent pool available, while a lack of qualifications and challenges in meeting new entrants’ expectations are also cited.

The ECITB report also highlights an upcoming wave of possible retirements, with the share of workers in the region over 60 sitting at 16.5%, compared to 13.9% in the wider industry.

ECITB Chief Executive Andrew Hockey said: “The Census is vital in helping industry understand labour market dynamics, anticipate workforce challenges and develop strategies to address skill gaps across Great Britain, such as in the North East.

“Only through bringing in new talent, training and upskilling existing workers can industry benefit from the skilled workforce it needs both for now and the future.

“The ECITB will continue to support employers in the North East to invest in their talent pipeline – helping industry to grow the number of apprenticeships and graduate opportunities, developing alternative entry pathways and funding quality training to upskill and reskill the workforce.”

Other key findings on the North East from the Census

• The ECI workforce in the North East is spread across multiple sectors, without one or two sectors heavily dominating, unlike in many other regions.
• Most of the workforce is concentrated around Middlesbrough and Newcastle.
• The oil and gas sector employs the largest share of the workforce (28.1%), followed by chemicals (17.9%), which has a strong presence in the area compared to the rest of the country.
• The Renewables sector makes up 13.1% of the ECI workforce in the region. Within renewables, biofuels account for 26% of the workforce, followed by onshore wind (21%) and biomass (20%).
• The region has a higher proportion of craft roles (19.4%) compared to the wider ECI (13.5%), with scaffolders, pipefitters, mechanical fitters, electricians and welders being well represented.
• Sectors such as oil and gas, carbon capture and storage, petrochemicals and conventional power generation are seen as representing significant business opportunities in the next three years.
• Employers estimate a potential 18% increase in headcount by 2027, ranking the region the fourth most optimistic among all regions in Great Britain.

Helping predict future trends

The ECITB conducts a census every three years, with in-scope employers providing information on workforce numbers by occupation, sector and location, as well as demographics data on age, gender, ethnicity and nationality.

Employers primarily involved in engineering construction are considered ‘in-scope’ of the ECITB’s remit, with those exceeding a certain size legally required to contribute to an industrial training levy.

In summer 2024, employers were asked to fill out an online survey which included questions on expected workforce growth, business opportunities by sector and hiring challenges.

Andrew added: “Thanks to a record response rate, up from 54% of the workforce covered in 2021 to 78.8%, the ECITB will now be able to provide more precise, up-to-date data to industry and make predictions on future workforce trends and labour demands in the North East.

“The Census data will help inform training interventions and ensure accurate representation of industry in our discussions with governments and other partners.”

External URL: https://www.ecitb.org.uk/research/census/