Re-building the industry from the inside out
The construction, engineering and transportation sectors are having a torrid time at the moment. The lack of liquidity created by the credit crunch has meant that a significant amount of projects have been put on hold.
Exceptionally weak house sales figures have brought activity in the embattled construction sector to a new low. As the availability of packaged finance in the market slows projects, we are now seeing the effect filter down into business units. The press is full of news on how the credit crunch is having an increasing impact on the industry. Current market tightening is starting to have implications for the future of the sector’s key staff.
Earnings are now in line with, if not better than the IT, telecos and oil & gas sectors.
To combat this, employers are focused on creating a compelling career path for their key staff, operating schemes to identify and push talented individuals within their business units. Senior leaders track key people they want in their teams in three years time, and build an understanding of what they need to do to keep them. Some employers have identified that they need to retain niche skill-sets, because the complexities of planning, funding and project specific issues are not skills that can be learnt over night.
Transportation and engineering employers have told us that candidates with niche skill sets and demonstrable experience in major projects are in demand. Earnings are now in line with, if not better than the IT, telecommunications and oil & gas sectors.
Staff working on publicly funded projects will be less impacted by the credit crunch. Funding streams are agreed well in advance, and projects are frequently of significant impact to the local community. Many projects that have been in the pipeline are coming to fruition, which ensures a range of exciting initiatives throughout the UK are continuing, irrespective of credit issues. As we head inexorably towards the 2012 Olympics, the related construction projects will be a welcome shot in the arm for the industry. Despite the current negativity in the sector, many accountants are still attracted to the sector, seeking out niche projects with the commercial elements they desire.
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