A lack of focus on strengthening the workforce could push UK construction firms out of business, according to an analysis by specialist rail and construction recruitment consultancy One Way Recruitment.

The research found that firms are recruiting on a short-term basis and are therefore forced to pay day rates that are well above the standard rate. One Way also pointed to a report from insolvency specialists, Begbies Traynor, which found that more than 40,000 construction companies were operating in a state of ‘significant’ financial distress at the end of June. One year ago, the number stood at 33,222.

“Far too many construction firms don’t have a plan in place for finding skills when they need them on a short-term basis and are forced into a situation where they have to pay excessively high day rates just to get the staff they need,” Paul Payne, managing director of One Way, said. “You can see why they do it, but by planning ahead, firms can source the best skills in the market, at a fairer price and avoid any unnecessary headaches.”

Payn added that concentrating on recruitment could help significantly lower costs.

“By building talent pipelines and communities you can avoid additional costs as you’ll have a pool of available talent to fall back on if required,” Payne said. “The skills shortages are only going to get worse once we leave the European Union, so it’s crucial that firms start planning before it’s too late.”