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Don’t be infuriated by inflation

Why the construction industry will keep calm and carry on – whatever the headlines say!

If you’ve been following our articles you’ll have spotted that SLS takes a calm and measured approach to whatever business, life and the Great British press throws at the construction industry. 

 

And there’s a good reason why we aren’t easily rattled.

 

Without wishing to sound arrogant, we don’t honestly think there’s much we haven’t seen before, worked through and come out the other side wiser and more resilient as a business. 

 

With that in mind, this month find out why it’s pointless getting infuriated by inflation. 

Economic fluctuations are nothing new

With over a decade trading as Skilled Labour Services, and even longer time served in the industry, there is one thing we can guarantee. 

 

Recessions, along with boom times are all part of the construction lifecycle. 

 

But whilst it’s easy to look adoringly back at how things used to be, it’s all relative. 

 

In July 2013 Skilled Labour Services’ average pay rate on our biggest contract at the time was £11.09 per hour. On another notable project, the average pay rate was £10.44 and across the company the average pay rate was £10.58.

 

Pay rates have been going up steadily over the 10 years from 2013 to summer 2023 and these days our pay rate is around 70% higher.

 

That keeps our workforce in line with market rates and ensures that folks working hard on site, come rain or shine, are paid well above the minimum wage. 

 

As a business, we keep our operations lean, making us resilient in tough times, focusing our resources on the areas that matter most: looking after our people and our clients. 

Why cutting pay rates would be bad for your projects

We know times are tough out there right now. Our contracts managers, Ricky and Dave, are used to being pressed for lower rates by our clients. 

 

Here’s why we stand firm on our pay rates and why it’s better for your construction project in the long run.  

 

Ever heard the saying buy cheap, buy twice? Or that choosing price over quality is a false economy? It couldn’t be more true than when you’re talking about the people working on your projects. 

 

Many of our workforce have been on our books for years and yes, you probably could get cheaper workers from other agencies but here’s what you’ll miss out on. 

 

  • Skilled Labour Services supply trained operatives who have been tried and tested. 
  • New operatives are supported by our contracts managers to make sure they’re up to scratch.
  • Our database of operatives includes their training records – no out of date tickets from us!
  • We supply modern, well maintained vans for teams to use – meaning they’re reliable and will show up on your site when you need them.
  • A quality workforce = fewer defects, fewer recalls and less of your management time.
  • A quality workforce = a more efficient and profitable project. 
  • You don’t have employment overheads: holidays, pension, sick pay just for starters.
  • Your workforce can be easily scaled up and down as necessary.

Local people for local jobs

As a leading supplier of civils and groundworkers on the south coast, we place local people in local jobs. 

 

Ignoring government incentives designed to encourage big businesses to support the SME business community, from a Corporate Social Responsibility perspective, placing local people in local jobs makes business sense.

 

Project Miles

Construction project KPIs increasingly include factors such as measuring the miles travelled for the delivery of projects. 

 

Impact on local communities

Building relationships with local communities is covered by the Considerate Contractor framework. Creating economic opportunity for local people in local communities is a key factor in building positive relationships.

 

BRE advice on setting sustainable KPIs

BRE Group gives some useful advice on setting impactful sustainability KPIs for construction. Measures include, working time, H&S, commercial vehicle movements, profitability, defects and staff sickness – all of which can be improved by employing locally. 

 

Boosting the local economy

Whilst stats vary depending on source, there is evidence that supporting local businesses in turn increases the proportion of money spent within the local economy, meaning large contractors can directly benefit the financial wellbeing in their project’s local areas by choosing to build a local supply chain. 

Find out more about our labour supply services

With a track record of supplying quality civils and groundworks operatives to clients across the industry along the south coast, Skilled Labour Services is the preferred choice for contractors in need of reliable labour. 

 

To find out more about working with us for your next construction project, get in touch with the team today.

About Author : Liz Clarke
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