Skills shortages faced by the buoyant construction sector in the Highlands and Islands have been highlighted in a new report.

Seventy eight per cent of employers who took part in the study, commissioned by Highlands and Islands Enterprise (HIE), The Highland Council and Communities Scotland, said they are currently experiencing recruitment difficulties. Of those, 17 per cent said the difficulties were "significant."

Skills shortages were identified in the main trades involved in the construction industry and in management positions.

The report also forecasts that demand for skilled workers in the area will continue to climb over the next five years, with additional spending of at least £1.6 billion on building, repair and maintenance creating a minimum of 943 full-time equivalent jobs and safeguarding 1,716.

A series of recommendations in the report are now being taken forward as a matter of priority by the bodies involved and other partner organisations. The recommendations were:

• To devise a construction and building services strategy for the Highlands and Islands addressing the issues
• Public sector bodies to continue to encourage all employers, particularly small ones, to participate in workforce training
• Public sector to review tendering and contracting procedures to encourage smaller businesses to bid for contracts
• All bodies and employers to continue working in partnership to address the issues

Alex Paterson, HIE's director of developing skills, said: "This report confirms the buoyant construction sector in the Highlands and Islands, both currently and into the future.  While there has been a growth in construction skills training in the region in recent years, the development of a construction and building services strategy for the region will provide a useful vehicle for addressing the future challenges."

David Nicol, Communities Scotland area director for the Highlands and Islands, said: "This study highlights the challenges facing both construction and public sector agencies in their joint bid to provide new and improved services.

"Funding for affordable housing across the Highlands and Islands this year stands at a record £38 million. This study highlights what needs to be done to get the best return.

"Communities Scotland is already working with partners to ensure this problem is addressed head on. For example, alongside construction at Portree's Home Farm development in Skye, where 169 affordable homes will be built over ten years, on-site training and apprenticeships are being made available to local people."

The construction sector accounts for seven per cent of total employment in the Highlands and Islands, compared with five per cent in Scotland and four per cent in the UK. Seventy five per cent of businesses in the sector in the Highlands and Islands have an annual turnover of less that £250,000.

Link to study