Average costs for engaging tradespeople have risen by nearly 20% since the first lockdown a year ago, according to Hudson Contract.
Hudson Contract is a payroll firm that manages the wages of more than 30,000 construction workers and supplies more than 2,500 construction companies. Its pay data covers a spectrum of 17 different trades split across 10 regions in England and Wales.
The company is warning that supply chain pressures are tightening as the bounce-back economy fuels demand for skilled labour and building materials.
Its latest analysis of payroll data shows average weekly earnings of 拢878 during April, an increase of 19.6% compared to April 2020. The picture varies regionally, from a 29% increase in the southwest to less than 5% in London. (See table below.)
Ian Anfield, managing director of Hudson Contract, said: 鈥淭he housing market is in a state of frenzy with mortgage lending rising to record levels, homeowners are spending cash piles built up during lockdowns on renovation and remodelling work and the government is proceeding with mega-projects and shovel-ready schemes to 鈥榖uild back better鈥�.
鈥淭he UK economy is roaring so the challenge now is for the construction industry to keep pace whilst dealing with spikes in demand for skilled labour and materials.
鈥淐lients are now telling us the materials crisis is outstripping the skills shortage as the main threat to their growth prospects and the main cause of inflation in construction costs.鈥�
| Region | April 2021 average | Month-on-month % change | Year-on-year % change |
|---|---|---|---|
| North East | 拢734 | -6.90% | 27.00% |
| North West | 拢862 | -4.30% | 22.40% |
| Yorkshire and the Humber | 拢817 | -4.90% | 26.90% |
| East Midlands | 拢938 | -3.10% | 16.10% |
| West Midlands | 拢889 | -4.10% | 19.50% |
| Wales | 拢863 | 3.60% | 22.40% |
| East of England | 拢952 | -6.30% | 17.20% |
| London | 拢847 | -6.70% | 4.70% |
| South East | 拢917 | -5.50% | 18.60% |
Month-on-month earnings slipped by 4.6% because of the Easter bank holidays giving a distorted picture.
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