OHLA - comment

Sometimes good news brings its own challenges, but we see the reasons behind Spain’s construction labour shortage as a positive for OHLA. Increasingly governments are opting to accept sharing cost risks with construction contractors. OHLA's focus is turning more towards civil engineering projects but construction will remain important. In 2021 seven out of 10 builders turned down contracts in Spain due to staff shortages, and when we add higher raw material costs, this is a toxic brew for the government. The only way for governments in Europe to hit their growth targets (7% in Spain’s case) is by deploying EU aid. Delaying commencement whilst arguing about shifting risk to the construction companies will please the accountants but not the electorate. Construction labour shortages in the EU’s economic powerhouses like Germany and France (and ex-EU nations like the UK) mean this process is being replicated around the EU. On a 10-year view, it is worth noting that all these countries face ageing populations and the challenges of replacing and training new for old workers. State investment in skills training and immigration will become increasingly important for construction.

Worker shortage jeopardises Spain’s EU-funded recovery plan | Reuters