UK construction, housing, and facilities management (FM) businesses are grappling with a perfect storm of supply chain pressures. Brexit-related trade frictions have introduced new hurdles – from extra paperwork and compliance costs on materials to stricter immigration rules that ended free movement of EU workers. In fact, post-Brexit Britain has seen an estimated net loss of 330,000 workers (around 1% of the workforce) as EU migration declined. Construction felt this loss acutely, with one survey noting 37% of London’s construction workers were EU nationals pre-Brexit.Many of those workers have since left, contributing to a record high in vacancies – shortages of skilled tradespeople (from bricklayers to electricians) surged from 29% of firms reporting shortfalls in early 2021 to 55% by the end of 2021.
An ageing workforce amplifies the strain, too: over a third of construction workers are now over 50, and younger replacements aren’t keeping up with retirements.
In FM and building maintenance, the story is similar – three-quarters of UK FM firms report difficulty finding candidates for critical roles like building operations and maintenance. Simply put, the industry is running out of people just when demand is picking up.
The sourcing of materials and components is another pressure point testing UK supply chains. Global disruptions – COVID-19 lockdowns, geopolitical crises, and surges in demand – have caused chronic shortages and soaring costs for construction materials. At one point, the cost of shipping a single 40-foot container from Asia to Europe jumped almost six-fold in 2020–2021. Core building inputs became eye-wateringly expensive: timber prices more than doubled, and cement prices climbed ~30% amid the turmoil.
These shocks have delayed projects and squeezed profit margins, slowing the pace of new home construction and exacerbating Britain’s housing crisis by pushing house-building behind schedule. The UK’s heavy reliance on imports makes it especially vulnerable – about 52% of all construction materials by value are imported from the EU. That means any hiccup in European supply or new customs friction post-Brexit hits UK projects immediately. Even regional conflicts have ripple effects: for example, while only 1.2% of UK construction imports came directly from Russia/Ukraine, those included critical items like steel rebar, and the war drove broader shortages and inflation across Europe.
Add in rising energy costs and an unpredictable global climate, and it’s clear our supply chains are under unprecedented strain. The UK government’s ambitious target to build 1.5 million homes by 2029 only adds to the urgency – industry leaders warn these goals are unattainable unless we solve the labour and supply shortfalls dragging us down.
Faced with this uphill battle, construction, housing, and FM businesses must adapt or risk project delays, ballooning costs, and stunted growth. The good news? There are actionable strategies that can turn this supply chain crisis into an opportunity to build resilience for the future.
Strategies to Build Resilience in Your Supply Chain
To survive and thrive amidst labour shortages and supply disruptions, UK businesses need to proactively reinforce their supply chains. Here are key strategies to consider:
- Embrace Hybrid Workforce Models: Flexibility in workforce planning is crucial. Combining a stable core of full-time employees with a scalable pool of contractors and temporary specialists can help meet project demand spikes and skills gaps. By developing a hybrid workforce – blending direct employees with vetted agency or contingent workers – companies can quickly mobilise talent when large projects kick off or backfill roles when shortages bite. This approach spreads risk and ensures you’re not left stranded if in-house staff are unavailable. Many construction and FM firms are partnering with specialist workforce providers to tap into wider talent networks on short notice. The result is a more agile labour supply, ready to ramp up or down as your pipeline demands. Crucially, this flexibility can also improve cost control, avoiding the wage inflation that comes when everyone is competing for the same limited tradespeople. In an industry where a project might stall for want of a single qualified electrician or plumber, a hybrid workforce model is like an insurance policy for delivery.
- Invest in Predictive Demand Planning: In uncertain times, hope is not a strategy – data-driven forecasting is. Advanced demand planning tools (often powered by AI and predictive analytics) can help businesses anticipate needs months in advance. By analysing trends – from seasonal fluctuations in FM service calls to long-range housing market projections – you can forecast labour and material requirements and secure them ahead of time. For example, construction firms are increasingly using software to map out the lead times for critical materials and to simulate “what-if” scenarios (like a supplier delay or a sudden surge in orders). This kind of scenario planning flags potential bottlenecks early so you can adjust course proactively. During the pandemic, companies that adopted predictive analytics and real-time tracking were better able to reroute shipments and find alternate suppliers, avoiding costly downtime. Robust planning doesn’t eliminate surprises, but it drastically improves your reaction speed. It also enables just-in-time vs. just-in-case balancing – holding strategic stock of items that are prone to shortage, while optimizing inventory levels overall. In short, smarter planning today means fewer crises tomorrow.
- Localise and Diversify Sourcing: “Don’t put all your eggs in one basket” has never been truer. Overreliance on a single region or supplier is a vulnerability, so resilience means sourcing closer to home and widening your supplier base. UK businesses are now seeking local or regional suppliers for key materials – even if it sometimes costs a bit more – to reduce exposure to global shipping chaos and import red tape. In construction, this might mean partnering with British steel fabricators or timber growers, or using alternative materials when imports are scarce. Some builders have started using reclaimed or recycled materials through new platforms that connect companies with surplus stock, a creative way to alleviate virgin material shortages. By near-shoring supply chains, you gain more control and shorten the supply line – a huge advantage when international logistics go awry. At the same time, diversify your options: maintain a roster of multiple suppliers (ideally from different regions) for critical inputs so you can pivot if one source shuts down. This strategy paid off for firms during the Brexit transition – those who had secondary suppliers outside the EU or domestically were able to keep projects running while others faced long delays. The initial effort to qualify new suppliers and adjust contracts can seem high, but it builds a robust chain that can weather shocks. And in sectors like FM, having local backup vendors (for everything from cleaning supplies to replacement parts) means faster response times and less downtime for your clients when the usual supply lines are disrupted.
- Leverage Technology and Automation: Finally, technology adoption is a game-changer for supply chain resilience. Modern digital tools can provide end-to-end visibility that was unthinkable a decade ago. For instance, IoT sensors and RFID tracking can monitor materials in transit – if a delivery of HVAC components is delayed en route, you’ll know immediately and can activate a contingency plan. Cloud-based supply chain management platforms (“control towers”) let you see your whole network at a glance and manage orders, inventory, and logistics with real-time data. Embracing tech isn’t just about reacting faster; it also drives efficiency. Studies show that adopting digital tools in construction can cut rework by up to 30% and boost productivity by 20% – a huge win when skilled hands are in short supply. Automation can help carry the load too. Many companies are turning to prefab and off-site construction methods (which shift labour to controlled factory settings) or even experimenting with robotics for repetitive tasks like bricklaying or site inspections. These innovations mean the human workers you do have can focus on higher-skilled activities, and projects can progress even when manpower is tight. Technology also extends to communication: robust project management and workforce scheduling software can ensure everyone – from on-site crews to suppliers – stays coordinated, reducing delays from miscommunication. The bottom line: digital transformation isn’t a buzzword, it’s a practical toolkit for making your supply chain smarter, faster, and more resilient against the unknown.
Putting People First in the Supply Chain
Amid all the talk of technology and strategy, one truth remains: people are the backbone of the supply chain. Building resilience isn’t just about systems and sourcing – it’s also about empowering the human workforce that drives these industries. A future-proof supply chain puts people at the center through upskilling, supportive practices, and data-informed workforce planning:
- Upskill and Reskill Your Team: Given the skills shortage, investing in your existing employees is non-negotiable. When you train staff in new skills, you not only fill immediate gaps but also increase retention by showing employees a career path. Many UK firms are expanding apprenticeship and training programmes to grow talent from within. It’s needed – the construction industry, for example, saw only about 33,600 apprentices in training in 2022/23, far below the ~50,000 new trainees needed each year just to maintain activity levels. Closing this gap means ramping up efforts to reskill workers from declining industries, bring in apprentices, and cross-train your current staff so they can step into hard-to-fill roles. Upskilling isn’t limited to trades skills either; it includes digital skills for the modern supply chain (like data analysis or BIM software in construction). Companies that cultivate a learning culture will be far better positioned to adapt when new technology or processes come along. And as a bonus, a well-trained workforce is more productive and engaged, directly impacting your bottom line.
- Retain and Support Your Talent: In a tight labour market, holding onto your experienced people is critical. Businesses must double-down on making themselves employers of choice. This means prioritising worker well-being, safety, and job satisfaction. Practical steps include offering flexible work arrangements where possible (even in construction and FM, creative scheduling or remote project management roles can provide flexibility that helps, for example, working parents), ensuring competitive pay and benefits, and fostering a positive, inclusive workplace culture. Retention also involves listening to your staff – understanding their pain points and career aspirations. By addressing issues like burnout and providing clear advancement opportunities, firms can reduce turnover in key roles. This is especially important as many older workers have been opting for early retirement or leaving due to health concerns post-pandemic. Keeping veteran employees engaged through adjusted duties or part-time roles can help transfer knowledge to the next generation. Ultimately, loyal, motivated employees are a bulwark against supply chain instability – when you take care of your people, they are more likely to go the extra mile to take care of your projects.
- Champion Ethical and Inclusive Practices: A future-proof supply chain is also an ethical one. Embracing high standards for labour practices isn’t just morally right – it directly affects your ability to attract and retain talent. Companies known for treating workers fairly (zero tolerance for exploitation, paying living wages, providing safe working conditions) build stronger reputations and face fewer disruptions from strikes or audits. Moreover, inclusivity opens up new talent pools. It’s no secret that certain sectors have traditionally underutilised groups: for instance, only about 15% of the construction workforce are women, and similarly low representation exists for ethnic minorities. By actively reaching out to underrepresented communities – supporting women in trades, promoting diversity in hiring and leadership – businesses can alleviate labour shortages and foster innovation through varied perspectives. Some firms are even tapping non-traditional sources of talent, such as rehabilitative programmes that train ex-offenders in FM skills, which not only fills vacancies but also creates positive social impact. The message is clear: when you build a culture that values people over profit, you ultimately drive more sustainable profit by having a reliable, engaged workforce. Ethical, inclusive supply chains are resilient supply chains.
- Use Data to Drive Workforce Decisions: Just as we use data to forecast inventory, we should use it to forecast our workforce needs. Workforce analytics can provide powerful insights: What skills are we short on? When are key employees likely to retire? What is our attrition rate in critical roles? By tracking and analyzing this data, businesses can act in advance. For example, one UK housebuilder examined the demographics of its trades and discovered 65% of its bricklayers were over 45 (with nearly half over 55) – a clear warning that a wave of retirements is coming. Armed with that insight, the company can ramp up recruiting young bricklayers or invest in mechanised bricklaying to prepare. Similarly, data on employee turnover or absence can highlight problem areas – maybe a particular site has high churn, signaling a need for management changes or incentives. Embracing HR tech tools to monitor skills matrices, performance, and engagement means you can pinpoint gaps before they become crises. Data-driven planning also extends to talent acquisition: businesses are now using labour market data to identify where potential hires may come from and adjusting their recruitment strategies accordingly. In one innovative FM initiative, training programs for prisoners were designed based on real market shortages, so participants learned trades that employers desperately need. This kind of alignment between workforce development and actual market demand is the epitome of a resilient strategy. In sum, treat your people strategy with the same rigor as your supply chain strategy – backed by data, continually monitored – and you’ll build an organization that can weather any labour market storm.
Building a Resilient Future: Take Action Now
In today’s unpredictable environment, resilience is the new competitive advantage. UK construction, housing, and FM businesses that act now to strengthen their supply chains – both the material pipelines and the human elements – will be the ones to thrive in the long run. The challenges are daunting, yes, but they also present an opportunity to innovate and differentiate. By adopting the strategies above, you can transform supply chain management from a headache into a strategic asset. It’s about moving from reactive fire-fighting to proactive building of a supply chain that bends without breaking.
Now is the time to future-proof your supply chain. Every improvement – whether it’s securing a new local supplier, implementing a training program, or deploying a real-time tracking tool – is a step toward stability and success. Don’t wait for the next crisis to hit. Take the initiative to review your supply chain’s weak links and fortify them, because the cost of inaction could be measured in lost contracts, blown budgets, or stalled developments.
Ready to put these ideas into action? Retinue Solutions is here to help make it happen. As a leader in workforce and supply chain solutions, we understand the unique challenges facing the UK construction, FM, and housing sectors, and we have the expertise to guide you through this transformation. Your business can be one of the success stories that not only survives disruption but leaps ahead of the competition because of a stronger, smarter supply chain. Get in touch with our team today.