Skills shortages are having either a moderate or severe effect on project delivery, according to over 50% of those surveyed. 

But a further 34% reported more minor effects on programmes.

Mechanical and electrical (M&E) trades are proving to be especially challenging to recruit. 

Over one third of those surveyed identified a lack of M&E workers as the trade having the biggest effect on project delivery and productivity, ahead of bricklayers, carpenters and groundworkers.

Commenting on the report, Andy Ellis, managing director at Gleeds UK, said: “The economic backdrop remains fairly volatile as a result of continuing global unrest and relatively high inflation and interest rates, issues which consistently come top of our list of concerns for the construction sector. 

“A lack of investor confidence was third, while low consumer confidence was also noted by more than half of those quizzed as contributing to an overall decline in construction activity this quarter.”

Ellis added: “Meanwhile, the ongoing conflict in Iran continues to cause problems for those operating in the built environment, with almost 80% of the people we surveyed reporting seeing its effects across commodities and pricing on projects.”

Ellis also said 51% of respondents claimed to have seen a decreased “appetite for risk from contractors over the previous quarter and a third describ[ed] tender pricing behaviour as ‘cautious’.”

But the report also found that roughly a third of construction professionals are hopeful that And Burnham’s government will be generally good for the sector in the long term.

What’s more, 38% felt National Planning Policy Framework alterations will unlock developments.