Global Leader Urges Action to Bridge Construction Skill Gap

Safwan Sobhan, Founder and Chairman of Safwan Bashundhara Global (SBG), has highlighted the urgent need to address the global construction skill gap. Speaking with Digital Journal, Sobhan emphasized that without significant investment in the construction sector, the world’s infrastructure development will be severely hindered. He pointed out that the European Union (EU) is projected to lose approximately one million workers annually, leading to a potential shortfall of around 44 million workers by 2050.

The construction industry is pivotal for economic growth and infrastructure development. However, it faces substantial challenges, particularly in light of the growing demand for skilled workers. Sobhan expressed concern about the implications of this skill gap on the industry’s recovery and future growth. He stated, “The construction sector is a driving force of economic growth worldwide, encompassing various key fields, including architecture, civil engineering, construction management, and commercial building. However, the world is facing a major crisis: a shortage of skilled workers.”

The demographic shifts contributing to this issue are troubling. Sobhan elaborated, “With an aging workforce, the EU is projected to lose around one million workers each year, creating a shortfall of approximately 44 million workers by 2050. This widening gap in experience and capability poses serious challenges for maintaining productivity, meeting project deadlines, and sustaining economic growth.”

As Sobhan noted, countries like Germany, Austria, and Switzerland are struggling to fill construction vacancies, with Austria experiencing the highest vacancy rate at 5.8%. This year, the EU’s construction sector is forecasted to see zero growth, which underscores the deepening labor crisis. While some companies leverage digital tools and automation to mitigate worker shortages, Sobhan insists that innovation alone isn’t sufficient. A strategic investment in training the next generation of skilled workers is essential for sustainable growth and modern infrastructure development.

The challenges extend beyond Europe. Sobhan observed that global housing shortages are exacerbating the situation, prompting governments to intensify efforts to increase the supply of new homes. Yet, these initiatives often fall short due to a lack of skilled labor and structural challenges, including rising interest rates and construction costs. For instance, Germany currently faces a severe housing crisis, requiring 800,000 new homes urgently. Meanwhile, Switzerland has seen its housing vacancy rate drop to 1%, indicating that almost all available homes are occupied.

Looking ahead, Sobhan warned that by 2030, an estimated three billion people—roughly 40% of the global population—will lack access to adequate housing. This scenario translates to a demand for 96,000 new affordable housing units daily. Furthermore, approximately 100 million people around the world are homeless, and one in four individuals reside in unsafe conditions that compromise their health and safety.

The ramifications of a persistent global construction skill gap could be severe, affecting all levels of society. According to Sobhan, it could not only impede construction output but also jeopardize national housing targets and major public projects. “Worldwide, it threatens to derail the progress needed to meet green transition goals,” he stated. “Without the right workforce, we simply cannot build the sustainable infrastructure required for a low-carbon future.”

Sobhan also underscored the environmental implications of this crisis. He noted that the construction sector plays a critical role in reducing global emissions and achieving net-zero targets. However, the shortage of workers trained in green building practices and energy-efficient design hampers these efforts. “We urgently need to equip the workforce with the technical skills required to deliver low-carbon infrastructure, sustainable housing, and renewable developments,” he urged.

To combat these issues, Sobhan advocates for a government-led initiative focusing on investment in vocational education, modern apprenticeships, and digital skills to prepare the construction workforce for the future. He highlighted the importance of diversity and inclusion as a means of bridging the construction skill gap. Currently, the industry remains one of the least diverse, with women representing only 0.9% of housebuilders and 4% of skilled trades in the UK. Expanding inclusion is crucial for both societal progress and economic growth.

In conclusion, Safwan Sobhan’s insights underscore the pressing need for immediate action to address the global construction skill gap. Without a concerted effort to invest in training and diversity, the construction industry risks stagnation, which could have far-reaching consequences for economies and communities worldwide.