The UK faces a £20 billion skills crisis. Lost opportunities to close the gap between skills demand and capacity already cost the economy this much each year*. In construction alone, we need 10,000 additional workers by 2029 to meet demand in an industry where the average age is over 40** and retirement rates are climbing.

The challenge goes beyond replenishing an ageing workforce. The UK’s skills pipeline must also cater for emerging industries, ambitious infrastructure projects, and rapidly evolving technology. With NISTA’s Infrastructure Pipeline identifying 185 construction projects worth £168 billion over the next decade, the stakes couldn’t be higher.

As patron members of The 5% Club, we’re interested to understand how organisations can anticipate demand for skilled workers to prepare for investment and growth. Over the coming months, we’ll explore six critical questions that industry and employers must tackle to meet this challenge, sharing perspectives from companies on the front line of skills investment:

1. What does historic performance tell us about skills demand for upcoming projects in the UK? Understanding past patterns helps predict future needs, but rapid technological change means historical data only tells part of the story.
2. How can we anticipate the skills demand for emerging industries and technologies? From renewable energy to AI implementation, new sectors require new capabilities that traditional training hasn’t addressed.
3. How do we build the capacity in supply chains and organisations to deliver these investments? Individual company efforts aren’t enough – whole supply chains need coordinated skills development.
4. How do companies make the case for skills investments when budgets are under strain? With economic uncertainty, skills training often gets cut first, yet it’s precisely when organisations most need adaptable, skilled workers.
5. What are the leadership challenges of organisations that are critically reliant on skills development? Leaders must balance immediate delivery pressures with long-term capability building.
6. How do we embed skills capacity to serve future demand? Moving beyond reactive training to create sustainable systems that anticipate and respond to changing needs.

Research by The 5% Club in 2025 found that amongst 370 member companies surveyed: 65% expect their UK workforce to grow in the coming year, yet 62% consider economic and business confidence is deteriorating, with little evidence that emerging policy will significantly change that situation. Even organisations committed to ‘earn and learn’ opportunities struggle with long-term planning, raising serious questions about the UK’s ability to meet the skills challenge.

As Mark Cameron, CEO of the 5% Club, put it in the organisation’s 2024-2025 Impact Report: “This Impact Report is not just a record of achievements; it is a rallying call. The challenge ahead is immense, but the rewards – a skilled, inclusive and thriving society – are worth every effort.”

We want to hear from you. If your organisation is grappling with these questions, or if you can offer insights into how your company is tackling skills challenges, we’d be delighted to speak with you. We’re particularly interested to speak with organisations tackling the demand for skills in emerging industries or to deliver large investment projects.

* Learning & Work Institute, ** CITB

We’re committed to exploring practical solutions to the UK’s skills crisis. This series will combine research insights with real-world experience from organisations investing in their workforce.