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Mace Construct report reveals £1.3bn cost of workforce turnover
Nicky Roger Associate editor
Construction must stop seeing labour as “endlessly replaceable”. Image: Pojoslaw | Dreamstime.com
Mace Construct has pledged to become the UK’s most productive major contractor by 2030 after publishing research suggesting workforce turnover is costing the construction industry more than £1.3bn a year in lost productivity.
The contractor’s Build Smart, Build Better report, based on data from more than 200 projects, argues that high workforce churn is reducing productivity on major schemes by disrupting knowledge, coordination and continuity.
According to the analysis, projects employing around 500 workers can lose an estimated £2,266 in output per hour due to workforce turnover, rising to almost £20,000 per hour on projects with around 2,000 workers. Mace estimates the productivity gap between high- and low-churn projects across the UK’s infrastructure pipeline is worth around £1.3bn annually.
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Executive chair Mark Reynolds said the sector must move away from treating labour as “endlessly replaceable” if it is to deliver the government’s long-term infrastructure ambitions.
“When workers leave major sites and need to be replaced, projects lose knowledge, coordination and momentum,” he said. “All of us – clients, contractors and government – need to create the right conditions for firms to invest in permanent workforce capacity, direct employment and apprenticeships.”
The report argues that productivity is largely determined before work starts on site, with early design decisions, procurement strategies, supply chain integration and digital delivery having a greater influence than site-level interventions alone.
As part of its response, Mace Construct has committed to publishing independently audited productivity figures annually and improving its performance year-on-year, with the aim of becoming the UK's most productive contractor by 2030.
The report also calls for procurement reforms that reward collaborative delivery and workforce stability, greater use of modern methods of construction and offsite manufacturing, and increased investment in apprenticeships and direct employment.
