IN Brief:
- More than half of Gleeds survey respondents reported moderate or severe project impacts from skills shortages.
- Forty per cent identified mechanical and electrical trades as the greatest labour-related delivery constraint.
- Sixty-five per cent are checking material or labour prices more regularly amid cost uncertainty.
Almost nine in ten construction professionals responding to the latest Gleeds UK market survey say labour shortages are affecting project delivery, with mechanical and electrical trades emerging as a particularly difficult part of the workforce to secure. The consultancy’s third-quarter 2026 report describes a sector facing uneven workloads, constrained recruitment and volatile input prices despite continuing demand for specialist site capability.
More than half of respondents said skilled worker shortages had a moderate or severe effect on their projects, with a further 34% reporting minor disruption. These percentages describe the experience of the surveyed professionals, not a measured share of every UK building project. They also sit alongside weaker aggregate demand: contractors can have fewer opportunities to tender yet still struggle to recruit the electricians, mechanical installers and commissioning specialists needed for schemes already under way.
Mechanical and electrical labour was identified by 40% of respondents as the trade shortage with the greatest effect on delivery and productivity. The category covers work needed to install and commission building systems, from distribution and controls to heating, ventilation, life safety and other services. Bricklayers, carpenters and groundworkers also featured as sources of difficulty, although the survey places M&E capability ahead of those trades.
Complex building programmes are particularly exposed to gaps in mechanical and electrical labour. Structural works can progress before all the services packages are ready, but plant rooms, risers, distribution routes and connection points must eventually be coordinated within the available space. Without installers or commissioning teams, ceilings and partitions may remain open, inspections can slip, and handover testing may be delayed. A shortage concentrated in one trade can therefore affect several otherwise prepared parts of a programme.
Gleeds also reports that contractors are approaching tenders with greater caution. In the survey, 51% had noticed a reduced appetite for risk from contractors during the previous quarter, while around a third described tender pricing behaviour as cautious. Some subcontractors were accepting lower margins to retain work, whereas others were submitting figures above cost forecasts when fuel, energy or material exposure was substantial. Those differing responses complicate the comparison of apparently similar bids.
The market report also records an 18.1% year-on-year fall in new orders, while 65% of respondents said they were checking material or labour costs more frequently, against 60% in the preceding quarter. Almost eight in ten had seen commodity or project pricing affected by the conflict in Iran. Weaker demand and higher costs can coexist because project-specific labour, energy, material and contractual risks do not necessarily follow the same trend. Contractors submitting bids months before work begins must decide how much of that exposure they can absorb.
A shortage of skilled operatives is also different from a simple shortage of people on a site. Many specialist activities require certifications, trade competence and experience with particular systems before they can be carried out safely. Additional labour cannot readily substitute for workers qualified to terminate electrical connections, commission critical building services or perform regulated testing. On projects with sequential inspections and approvals, finding the correct capability at the required time is as important as the overall headcount.
Longer-term workforce forecasts also point to a different pressure from the current vacancy count. In a consultation on industry training board reform, the government cited a possible requirement for approximately 240,000 additional UK construction workers by 2030, while noting that vacancies in early 2026 were below the corresponding level in 2025. Vacancies measure immediate recruitment activity; the forecast concerns the workers required if planned building and infrastructure programmes proceed. Employers deciding whether to train new entrants must therefore balance uncertain short-term orders against longer-term skills needs.
Gleeds’ survey also shows how firms are adjusting processes while trying to protect delivery. Twenty-two per cent of respondents said they were using artificial intelligence widely across the construction lifecycle, while about a third were trialling it. Report preparation, administration and tender writing were among the uses identified. These applications may reduce time spent on documentation, but they do not remove the requirement for experienced tradespeople to install, inspect and commission physical works.
Planning reforms were viewed positively by 38% of respondents, who believed changes to the National Planning Policy Framework could help unlock developments. Consent, however, does not secure the operatives needed to build them. Contractors must still assemble competent delivery teams, coordinate specialist subcontract packages, and agree realistic allowances for cost and programme risk. Schemes reaching procurement may consequently face bottlenecks even after their planning and financing positions improve.
