THE private housing sector is driving a construction industry revival, although skills shortages threaten the pace of recovery throughout the Midlands, according to the latest RICS Construction Market Survey for Q1 2014.

The speed at which confidence is returning to the market in the Midlands is revealed by the fastest rate of growth in workloads since the Construction Market survey began in 1994 (net balance 45 per cent), with improvement being driven by the private sector and, in particular, the commercial housing sector over the next year.

The "feel good" factor is being tempered, however, by a further increase in reported skills shortages across many trades across the region. Furthermore, the Midlands picture shows 43 per cent of respondents believe there are insufficient numbers of quantity surveyors currently available to meet rising supply demands for those skilled workers.

Despite that, the continuing recovery in output in the sector will see further job gains with respondents in the Midlands forecasting an 11 per cent growth in the employment footprint compared to last year, an additional 62,000 new employees being recruited into the construction industry nationally.

Adrian Aston, director at Wakemans, RICS Midlands construction spokesman, said: “There is much more confidence in the private sector although activity is still restricted to certain sectors.

"The hotel sector is still strong but food retail is slowing, with more operators choosing to refurbish smaller convenience stores rather than build new larger outlets. Developers should also be aware that the upturn also brings rising construction costs alongside skills shortages as the industry gears up for the increased levels of activity.”

Alan Muse, RICS director of built environment, said: “Clearly, what we are seeing as the recovery takes shape is the impact of skills shortages in parts of the country where companies failed to invest in attracting new talent or in the training of existing employees at the height of the economic downturn.

"Now that the industry is experiencing an upturn in workload that is broadening out across the whole of the UK, it must ensure it has the capability to capitalise on these opportunities.”