Download - LT_sectoroverview
Methodological Centre for Vocational Education and Training
Study of the Construction Sector Research report on skill needs
Vilnius, 2008
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STUDY OF THE CONSTRUCTION SECTOR Experts: Violeta Averjanovien÷, Juozas Baranauskas, Giedr÷ Beleckien÷, Vincentas Dienys, Linas Juknevičius, Bronislava Kaminskien÷, Rūta Karvelyt÷, Valentinas Kavaliauskas, Neringa Miniotien÷, Rimvydas Motiekaitis, Vitalija Motiekaitien÷, Candy Murphy, Loreta Račelien÷, Vita Povilonyt÷, Albertas Šlekys, Lina Vaitkut÷. We are sincerely grateful to sports sector organisations and everyone who helped us in this activity. We hope that the information presented will be helpful while planning employees training and performing other tasks.
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SUMMARY
The construction sector is defined in compliance with the International NACE classification. It is made of six
subsectors: Architectural and engineering activities and related technical consultancy (activity 74.20), Site
preparation (activity 45.11 and 45.12), Building of complete constructions or parts thereof (activity 45.21,
45.22, 45.23, 45.24 and 45.25), Building installation (activity 45.31, 45.32, 45.33 and 45.34), Building
completion (activity 45.41, 45.42, 45.43, 45.44 and 45.45), Renting of construction or demolition equipment
with operator (activity 45.50).
International trends of the construction sector development
Construction sector is one of the most important sectors in the European Union. It generates about 10% of
GDP and positively influences the growth of employment in other related economic activities. The sector is
characterised by cyclic work, rather low efficiency in comparison with other industries and prevailing number
of micro enterprises. The majority of the employees are men. Construction is also characterised by a great
number of migrant workers and the extent of subcontracting. Work on construction sites is one of the most
dangerous. More accidents constantly occur on construction sites than in any other European economic
sector. Earnings are normally high as compared with those paid in other sectors which require a similar level
of skills. Low level of valued added in respect of a man in the construction sector predetermines financial
pressure on construction enterprises, especially small and medium-sized. Therefore, this sector is very
sensitive to the price of raw material.
The level of professional skills required for this sector differs a lot subject to the type of work: for working in
the professional area or construction management area a person is normally required to have the bachelor‘s
degree in construction sciences, construction management or engineering, qualification in construction
sciences, business and management and an appropriate professional experience in the construction sector.
One is also required to have competence related with contracts, plans and specifications, methods of
construction, materials and legal requirements. Skilled workers are usually trained crafts as apprentices from
two to four years.
Construction is closely related with the transportation and manufacturing sectors, especially with the
production of enginery and chemicals as well as timber processing. Also, a great impact on the construction
sector is made by the development of the tourism sector. The projection is that the further growth of the
tourism sector will further positively influence the construction sector throughout Europe.
The increasing environmental concern is an insufficiently-developed area in the construction sector, although
certain attempts have been made by large international enterprises – encouraging of salvage, installing of
new technologies and construction of energy-saving buildings. Though, due to a weakly-developed training
of workers, the environmental awareness of simple workers is still very poor.
The prospects of the construction sector are in fact favourable, especially in the run of a few coming years.
The recent years witnessed not a few changes determined by the technological progress and a further
growth is forecasted, especially in the countries with the speedy growth of economy and the large number of
population. Greater possibilities will be enjoyed by the construction enterprises which may act in the entire
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Europe and outside Europe and use state-of-the-art technologies. In the Eastern Europe the civil
construction subsector surpassed other subsectors and it is expected to grow by more than 10% per year.
Since 2002, the subsectors of construction of dwelling houses and non-dwelling houses have fastly grown
and they are expected to continue growing at the same rate.
Nevertheless, the sector encounters challenges as well, including the growing trend of sub-contracting,
increasing requirements for traditional teaching methods and inability to adapt properly to the changing
needs of skills. This in turn diminishes the attractiveness of the sector as a job. These changes are far more
speedy in the Western than in the Eastern Europe. In fact, the construction sector in the Western Europe
increasingly depends on the especially mobile workers from the Eastern Europe
Trends of the construction sector development in Lithuania
Enterprises. The construction sector encompasses about 5 thousand enterprises, of which 39% specialise in
the field of the construction of buildings and their parts. The sector mostly includes small and minor
enterprises – the number of employees does not exceed 49 workers. Since 2002 till 2006, the number of
enterprises in the construction sector rose more than twofold. The biggest concentration of the construction
enterprises is represented by Vilnius and Kaunas Counties. Such a situation was mostly determined by the
uneven distribution of investments in the territory of Lithuania. On the other hand, the construction
enterprises are rather mobile and tenders in the cities are often won by enterprises based in other places,
mostly due to the cheaper labour force they offer.
Employees. The construction sector employs approximately 107 thousand workers, of whom the major part
is employed in the subsector of the construction of buildings and their parts (about 68% of the total number
of workers employed in the construction sector). Over five years (2002-2006) the number of employees in
the construction sector gradually rose. The majority of workers are men (about 93,5%). The number of
people who work part-time of all the employees of the construction sector amounts to 3%. Among the job
groups, the most numerous group is that of skilled workers. The majority of employees in the architecture
subsector consists of specialists and technicians. The employees structure by age reflects that the number
of people aged 55 and older amounts to approximately 10,3% of the total number of employees. In 2007,
permissions for working in the construction sector were issued to 998 citizens of other countries which is
about 4 times more as compared to 2005. The majority of them consisted of skilled workers and craftsmen
(about 77% of all the permission-holders).
The basic traits of the development. The construction sector is one of the most fastly developing Lithuanian
industries over the recent five years. This is mostly influenced by the national economic growth, favourable
crediting conditions, possibilities provided by the EU structural funds, increased demand of dwelling,
commercial and industrial buildings, increasing choice of new building materials and technologies. Economic
activity in the construction sector depends on the seasons. Recently, the impact of seasons on the
construction works diminished because of the new materials and technologies. The construction sector
development prompts the growth of the production of building materials as well as the demand for sales,
transportation and storage services. Building materials manufactured in Lithuania are popular enough in the
markets of such EU countries as Sweden, Norway, Germany and other. Panel houses, windows, etc are very
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marketable in other countries. These products are purchased together with assembling services which
makes favourable preconditions for the development of Lithuanian construction services in the EU market.
Performance indicators. In 2005, 99% and as few as 1% of the construction works were performed in the
Lithuanian territory and abroad respectively. Foreign trade balance in the construction sector is negative and
deficit increased by approximately 1,7 time over the last four years. Although this industry is characterised by
the constantly increasing turnover and value added, it, however, stands behind the majority of other activities
in respect of productivity (value added per one actually worked hour). The average monthly gross earnings in
the construction sector are among the highest in the country. Nevertheless, great differences in earnings
exist (twofold) in different subsectors. The lowest average monthly gross earnings are paid for the
construction completion activities. The largest competition exists in the construction of buildings and their
parts as well as building completion activities. The quality of construction works is considered to be the main
competitive factor.
Technologies. The major part of the construction sector enterprises exploit state-of-the-art technologies.
Their installation should be continued in future as well. The most popular technologies used in the
construction sector are estimating system software. Installation, maintenance equipment, modern installation
and construction machinery and buildings and constructions development software are also popular. The
latter is used by the majority of architectural enterprises. The most popular technologies that are planned to
be used include modern construction and installation machines and planning, optimisation and management
software.
Development trends. Development trends of the construction sector are assessed rather positively. They are
associated with the demand for the construction of non-dwelling buildings (offices, logistics and commercial
premises); increase of efficiency; land reform; modern technologies; development of the construction
services related with the installation of Lithuanian products in the EU markets. On the other hand, certain
data of the recent years imply that the development of this activity will begin slow down in the coming years.
Presently, the new construction prevails by turnover indicators, though due to the outdated and energy-
inefficient dwelling houses dominating in Lithuania considerable future increase of the volume of
reconstruction works may be apparently observed. According to the EUROSTAT data, working conditions in
the construction sector are more attractive in the EU countries than those in Lithuania. This may exert
negative influence on both the search for new workers and retaining of workers in Lithuanian construction
enterprises.
The main factors which will have influence on the development of the construction sector in future are the
following:
• increasing environmental requirements; necessity of energy saving;
• changes in the immovable property market;
• growing assortment of new building materials and technologies;
• completion of the land reform;
• market internationalization;
• decreasing demand for workers (with regard to the number and qualification).
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Demand for employees. Turnover of employees in the construction sector is rather high and amounts to
35%. It is in part determined by hard operating conditions and dependency of works on the seasons. The
largest turnover is observed in the unskilled workers‘ group where almost all the workers change in the
course of the year. Turnover of workers totals 23% and 32% in the specialists‘ and technicians‘ group and in
the skilled workers‘ group respectively. The lowest turnover of workers is observed among the management
and administration specialists.
Since 2003 till 2006, the number of the unemployed registered in the Labour Exchange decreased. Supply of
the number of vacancies also slightly diminished. According to the preliminary findings, in 2007 the level of
tension (ratio of vacancies to the unemployed) in the construction sector accounted for 1,5 and was the
highest in the country. The shortage of workforce in certain job groups is especially relevant. For example,
the specialists‘ group mostly lacks occupational safety specialists and architects. There is also a lack for
engineers of static engineering systems and civil engineers. Within the skilled workers‘ group the shortage is
especially observed among roofers/whitesmiths and engine-drivers (cranes, hoists, excavators, pile drivers).
Over the coming five years, the number of workers in the construction sector will grow and this will affect all
the groups of vacancies, except for the unskilled workers. The number of unskilled workers should decline in
the future. The annual need for the new workers will total more than 10 thousand people. The highest
demand will be for skilled workers.
Alteration of skills. The construction sector workforce lacks the skills of dutifulness, responsibility, situation
management, inventiveness and inquisitiveness. Specialist, technicians and skilled workers are lacking in
practical skills. Knowledge on modern technologies and materials and skills how to work with them as well
as competences of project management and time planning are also relevant. The managers and
administration staff are lacking general skills most of all. Also, there is a shortage of such skills as work
organisation, decision-making, time planning and flexibility. The majority of the construction sector
enterprises arrange training for their employees. Usually, they arrange on-the-job training or training at state
and more rarely at private schools.
The construction sector is a rather inert industry, therefore, the majority of professions are classic (for
instance, masons, decorators) and eventually are almost not subject to change. However, the development
of the supply of new technologies and materials, increasing level of the automation of activities and growing
globalisation determine the need for new skills. In future, works organisation, technological design and
construction planning skills as well as competencies of robot management and work with automation
programmes and command of foreign languages will be especially relevant for the successful development
of the construction sector.
Supply of workers. In the construction sector the number of skilled workers is almost four times as bigger as
the number of specialists and technicians. Nevertheless, the 2006 findings about the admission to
training/educational institutions, show that the number of young people who study at vocational schools is
only 1,3 times as larger as the number of those who chose the higher education studies. As a result, the gap
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between the demand for and supply of workers may even more widen and cause serious problems for
business development.
According to the survey findings, so far both primary vocational training and higher education have satisfied
approximately 50% of the construction sector needs with regard to workers. On the other hand, in 2006 the
number of young people admitted to study under the architecture and construction field studies/education
programmes increased by 1,4 times as compared to 2003. Therefore, with the slowing of the sector
development and further improvement of operating conditions and efficiency the gap between the supply of
and demand for workers in the construction sector is expected to narrow over the coming five years.
Since the turnover of workers, especially in the unskilled workers‘ group, is rather intense, there is a fairly
large need for continuing training (about 11 thousand per year). This need is partly satisfied by arranging the
teaching for the unemployed. Though, according to the sociological survey findings, the major part of the
demand for workers is compensated by enterprises themselves who arrange on-the-job training or training in
educational establishments.
Recommendations:
• to narrow the gap between the supply and demand for workers by improving the planning of the
admission to training/studies programmes. One of the potential solutions is changing the requirements
for the admission to higher educational institutions, i.e. application of requirements of VET background
and work experience for certain study programmes, e.g. business and administration;
• to improve the supply of workers by taking advantage of the possibilities provided by apprenticeship as
a new vocational education and training organisation form legitimated in the Amendment of the Law on
Vocational Education and Training (2007);
• to improve the qualification of specialists by updating training/study programmes according to the
identified skill needs with a special focus on the new technologies and practical skills development and
by designing specific measures (including modernisation of practical training facilities) for the
improvement of study/ training quality and foreseeing resources for implementing these measures;
• to develop construction sector workers qualification improvement system by organising presentations of
new materials, practical seminars, study visits in other enterprises as well as abroad and running specific
training courses with a focus on exclusive, unusual situations, problems and challenges in construction
projects and their practical solutions;
• to strengthen cooperation between employers and training providers by applying such measures as joint
meetings, site visits, career days, curricula development, practical training, etc;
• to improve the information provision to construction sector enterprises and training suppliers by
developing targeted information about employees training and changes in the construction market. This
would enable the timely specification of the requirements for the curricula content and would expand the
opportunities for training of the construction sector workforce.
Study structure. The study is composed of 6 sections. The first section briefly introduces the objectives and
definitions of the study as well as methodology of the sociological survey. It also provides the structure of the
construction sector. The second section includes the overview of international trends of the development of
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the construction sector. The third and fourth sections are devoted to the analysis of the main indicators of the
sector activities and the evaluation of the demand for workers. The third section describes the indicators on
the basis of the collection of statistical data developed for the purpose of the study and accessible
information. The fourth section analyses the survey findings. The fifth section evaluates the supply of
workers and the sixth section provides recommendations. The latter are produced on the basis of the
analysis of all the information and meant for narrowing the gap between the demand for and supply of
workers in the construction sector.
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TABLE OF CONTENTS
1. RESEARCH METHODOLOGY .........................................................................................................................................................10
1.1. Introduction................................................................................................................................................................................10 1.2. Authors of the Study..................................................................................................................................................................10 1.3. Goal of the Study.......................................................................................................................................................................10 1.4. Methodology..............................................................................................................................................................................10 1.5. Description of the Sector ...........................................................................................................................................................10 1.6. Sociological Survey of the Construction Sector Enterprises .....................................................................................................11
2. INTERNATIONAL TRENDS IN CONSTRUCTION SECTOR............................................................................................................12
2.1. Introduction................................................................................................................................................................................12 2.2. Recent Trends in the Construction Sector ................................................................................................................................13 2.3. Recent Trends in Real Estate ...................................................................................................................................................15 2.4. Breakdown of Growth Across the Construction Sector .............................................................................................................16 2.5. Relationship Between Construction and Other Sectors ............................................................................................................16 2.6. Employment in Construction .....................................................................................................................................................17 2.7. Recent Developments in Construction ......................................................................................................................................21 2.8. Likely Future Developments......................................................................................................................................................23 2.9. Prospects for Employment in the European Construction Sector .............................................................................................31 2.10. Impact on Skills, Training and Education ................................................................................................................................32 2.11. Summary .................................................................................................................................................................................35
3. STATISTICAL CHARACTERISTICS OF THE CONSTRUCTION SECTOR.....................................................................................36
3.1. Introduction................................................................................................................................................................................36 3.2. Brief Description of the Construction Sector .............................................................................................................................36 3.3. Enterprises ................................................................................................................................................................................38 3.4. Sector Employment ...................................................................................................................................................................39 3.5. Performance indicators .............................................................................................................................................................41 3.6. Development Trends .................................................................................................................................................................43 3.7. Summary ...................................................................................................................................................................................44
4. CHARACTERISTICS OF CONSTRUCTION SECTOR BASED ON SURVEY FINDINGS ...............................................................47
4.1. Introduction................................................................................................................................................................................47 4.2. Performance Indicators .............................................................................................................................................................47 4.3. Employees.................................................................................................................................................................................49 4.4. Forecasts of Demand for Employees in the Future ...................................................................................................................51 4.5. Summary ...................................................................................................................................................................................53
5. SUPPLY OF EMPLOYEES ...............................................................................................................................................................55
5.1. Introduction................................................................................................................................................................................55 5.2. Education and Job Groups........................................................................................................................................................55 5.3. Supply of Employees by Areas of Education and Level of Education.......................................................................................57 5.4. Supply of Employees for the Construction Sector.....................................................................................................................58 5.4.1. Supply of skilled workers (including operators) for the construction sector............................................................................59 5.4.2. Supply of specialists and technicians for the construction sector ..........................................................................................60 5.5. Summary ...................................................................................................................................................................................61
6. RECOMMENDATIONS .....................................................................................................................................................................63
REFERENCES ......................................................................................................................................................................................65
ANNEX 1 ...............................................................................................................................................................................................66
ANNEX 2 ...............................................................................................................................................................................................70
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1. RESEARCH METHODOLOGY
1.1. Introduction
Since 2005, the Methodological Centre for Vocational Education and Training has been implementing the
project Development of the National System of Establishing Vocational Training Standards. The study is
aimed at developing the national system of establishing vocational training standards which would contribute
to increasing the correspondence between the needs of training and those of the activity world and to
improve the conditions for life-learning. One of the main objectives of the project is to analyse six economic
sectors in order to evaluate the development prospects of each individual sector and the impact made by the
sectors on the number of workers and needs of training. The project is of national importance and is financed
by the European social fund.
1.2. Authors of the Study
The study has been developed by the group of experts representing various Lithuanian institutions –
educational, scientific, statistics, business, etc. The group was also assisted by the Irish specialists having
the experience of implementing similar studies.
1.3. Goal of the Study
The main goal of the study is to analyse the trends of development of the construction sector in Lithuania
and other countries and, on the basis of that, determine the changes in the number of employees and
training needs for the upcoming five years as well as provide concrete recommendations to improve
conformity between the supply and demand of the labour force.
1.4. Methodology
The sectors are studied using a single methodology developed together with the Irish experts in 1999. The
study encompasses the following phases:
1. An overview of publicly available information in Lithuania and other countries about the sector and
related areas as well as the analysis of official statistics about the sector;
2. A survey of sector enterprises by means of interviews and postal questionnaire surveys;
3. Analysis of all information and identification of change factors in the sector;
4. Projection of employment in the sector;
5. Assessment of the sector training needs in the upcoming five years.
1.5. Definition of the Sector
The construction sector is defined according to the international NACE classification activities (Figure 1.1).
The definition has been specified together with the Lithuanian and EU experts. As a result, the possibility of
comparing the study results at international level has been ensured.
According to the definition, the construction sector is made of six subsectors: Architectural and engineering
activities and related technical consultancy (further - AR), Site preparation (further - SP), Building of
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complete constructions or parts thereof (further - BC), Building installation (further - BI), Building completion
(further - BC) and Renting of construction or demolition equipment with operator (further - RE).
Fig.1.1. Structure of the construction sector according to the international NACE classification activities
1.6. Sociological Survey of the Construction Sector Enterprises
Sample for the mail survey was has been drawn on the basis of the data from the Register of Legal Persons
and taking into consideration the prevailing type of economic activity (on the basis of the European
Communities Statistical classification of economic activities NACE) and the size of enterprise. A total of 1620
enterprises were selected. Respondents participating in the mail survey were asked to return the completed
questionnaires within a couple of weeks. Upon sending out the questionnaires, respondents were phoned for
reminding about the deadlines of returning the questionnaires. Thus, the sufficient rate of returning the filled
in questionnaires was guaranteed.
The interviews with respondents from the leader construction sector enterprises were conducted. A total of
10 construction sector enterprises took part in the interviews. The information received was used for the
evaluation of the training needs.
CONSTRUCTION SECTOR (CS)
Architectural and engineering activities and related technical
consultancy (AR)
Site preparation (SP)
Architectural and engineering activities and related technical consultancy (74.20)
Demolition and wrecking of buildings; earth moving (45.11)
Test drilling and boring (45.12)
Building of complete constructions or parts thereof
(BC)
Building installation (BI)
General construction of buildings and civil engineering works (45.21)
Erection of roof covering and frames (45.22)
Construction of motorways, roads, airfields and sport facilities (45.23)
Construction of water projects (45.24)
Other construction work involving special trades (45.25)
Installation of electrical wiring and fittings (45.31)
Insulation work activities (45.32)
Plumbing (45.33)
Other building installation (45.34)
Building completion (BC)
Renting of construction or demolition equipment with
operator (RE)
Renting of construction or demolition equipment with operator (45.50)
Plastering (45.41
Joinery installation (45.42
Floor and wall covering (45.43)
Painting and glazing (45.44)
Other building completion (45.45)
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2. INTERNATIONAL TRENDS IN THE CONSTRUCTION SECTOR
2.1. Introduction
The construction sector is one of the most important and biggest sectors in Europe. The purpose of this
section is to review international trends in the construction sector and in particular, the challenges facing the
sector.
The construction sector is widely regarded as the world’s largest industrial employer, with an estimated 111
million employees, accounting for approximately 28% of all industrial employment. The total annual output
worldwide is approximately 10% of global GNP, of which 30% is generated in Europe. This is greater than
the 22% created in the United States and 21% in Japan.1
Construction plays an important role in economic growth in Europe and stimulates demand in many other
areas of the economy. The construction industry in the EU is said to create up to 20% of employment in
related sectors.2 However, although this industry is a major employer, construction accounted for about 8.6%
of total value-added generated in the whole non-financial business economy, thus indicating a relatively high
level of labour intensity with a low productivity level (Figure 2.1).3
Fig. 2.1. Value-added and number of persons employed in construction, EU-25, 2002
Source: Eurostat, 2005
This section defines the construction sector and highlights recent developments in the sector throughout
Europe. It then goes on to assess the relationship between construction and other sectors and also analyses
1 Ibid. 2 Ibid. 3 Tolkki, 2005
0
2
4
6
8
10
12
14
16
18
20
EU-
25
BE CZ DK DE EE ES FR IE IT CY LV LT LU HU MT NL AT PL PT SI SK FI SE UK BG RO
Value added
Number of employees
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the different sub-sectors. It then outlines the current employment situation of construction in Europe before
assessing both recent developments in the sector and likely future developments. The factors likely to
influence growth are then analysed, along with the likely future employment situation and the impact of these
on skills, training and education in the sector.
2.2. Recent Trends in the Construction Sector
As indicated earlier, the construction sector is one of the most important in the EU, generating 10% of global
GDP and creating a positive effect on employment growth in other sectors. Production in the construction
sector in Europe has been volatile n recent years. However overall the trend in the EU 25 has been positive
between 2000 and 2005 with a more or less static picture emerging in Euro area.
Fig. 2.2. Quarterly production indices for total construction, seasonally adjusted (Base Year: 2000)Ketvirčio bendrosios
97
98
99
100
101
102
103
104
105
106
Q4-00
Q2-01
Q4-01
Q2-02
Q4-02
Q2-03
Q4-03
Q2-04
Q4-04
Q2-05
Q4-05
EU-25
Euro Area
Source: Amil ir Dolvet, 2006
Fig. 2.3. Index of production for construction, seasonally adjusted data, growth rates compared with the previous month
Source: Eurostat, 2006a
-4
-3
-2
-1
0
1
2
3
2005-12 2006-1 2006-2 2006-3
EU-25
Euro zone
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Eurostat’s index of production for construction shows that the growth rate for the sector has fluctuated in
recent months, with marked growth in December 2005 and February 2006 matched by similar reductions in
January and March of this year (see Figure 2.3) 4. This highlights the cyclical nature of the sector, affected by
factors as diverse as the weather and the timing of the awarding of contracts.
The index of employment has also fluctuated in recent months, although a pattern of consistent growth has
emerged over the last two years, particularly in the EU-25 (see Figure 2.4).
Fig. 2.4. Index of employment, construction, seasonally adjusted data, growth rates compared with the previous quarter
-1
-0.5
0
0.5
1
1.5
01-04 02-04 03-04 04-04 01-05 02-05 03-05 04-05 01-06
EU-25
Euro
Source: Eurostat, 2006a
According to the European Construction Institute,5 underperformance in the European construction industry
is costing the taxpayer up to €80 billion a year.6 The Institute believes that European markets are being
threatened by the innovative, globally competitive construction industries in the US, Australia and Singapore
and engineering construction is slowing in Europe as the process industries move to areas with cheaper
labour.
The profile of the construction sector differs across countries in Europe. In general, new construction in
Western Europe has been in decline in recent years, with renovation and modernisation playing a major role.
While Germany’s economy has not been performing well in recent years, and construction output has been
in decline, it has continued to retain its position as the largest construction market, retaining four of the
largest global construction companies. Construction, particularly, new construction, has also been in decline
in the Nordic countries. Only in Ireland has the construction sector performed well in Western Europe over
recent years, with employment in the industry reaching a quarter of a million (13% of total employment) in
2005, and this has been attributed to Ireland’s continuing prosperity, by driving demand in the services
4 Eurostat, 2006a
5 Euroconstruct is a network of 19 specialised European research institutes and consulting organisations based in
Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Hungary, Ireland, Italy, Netherlands,
Norway, Poland, Portugal, Slovakia, Spain, Sweden, Switzerland and the United Kingdom. 6 European Construction Institute, 2005
15
sector.7 In Eastern and Central Europe, construction markets are smaller than in the West, although it is here
that much of the growth of the sector has taken place, highlighting the growth potential in the region.
Separate output figures are not available for architectural and engineering activities and related technical
consultancy. Eurostat figures however give a breakdown of this sector by type of activity. This shows that
activity is spread across a wide range of activities within the sector and the proportion of total activity
accounted for by each activity varies significantly across countries. Countries with a growing construction
sector such as Ireland and Spain have a relatively high percentage in architectural services for buildings -
13% of the total in Spain and 20% in Ireland. Countries with lower growing construction sectors such as the
UK have a relatively high percentage of activity in engineering design services.8 These trends may also
reflect the extent to which these activities are outsourced from construction in individual countries. What is
clear is that the development of this sector is closely linked to the development of construction activity. By
analysing trends in the construction sector we can get a good understanding of the likely future demand for
architectural, engineering and related consultancy services.
2.3. Recent Trends in Real Estate
Real estate has been performing well across Europe, with high growth rates in Eastern Europe in particular.
The UK has recorded a 12.9% increase in value growth over the period 2001-2005, while Germany’s
performance was less than 3%, highlighting the strong variations across Europe in real estate.
Table 2.1. European Direct Real Estate Performance (2001-2005)
Annual Returns (%) 5 Year Average
2001 2002 2003 2004 2005 Total Income Value
United Kingdom 6,8 9,6 10,9 18,3 19,1 12,9 6,5 6,0
Ireland 8,1 2,3 12,7 11,5 24,3 11,8 5,4 6,3
Portugal 13,1 13,8 10,0 10,6 10,0 11,5 7,2 4,1
Spain 9,1 8,2 8,3 11,5 17,2 10,9 6,0 4,6
Denmark 11,4 9,4 7,3 6,3 18,0 10,5 6,0 4,3
France 9,7 8,6 8,1 10,1 15,2 10,3 6,2 3,8
Norway 10,8 7,0 7,6 10,4 15,2 10,2 7,6 2,4
Italy 12,4 9,3 11,0 8,9 9,0 10,1 6,0 3,4
Netherlands 11,4 8,8 7,1 7,7 10,2 9,0 6,0 2,9
Finland 7,1 5,7 5,9 5,6 8,5 6,6 7,0 -0,6
Sweden 4,6 2,4 0,9 5,8 12,7 5,3 5,7 -0,5
Germany 5,6 4,1 3,2 1,3 0,5 2,9 4,9 -2,1
Western Europe 7,4 7,3 7,4 10,4 11,3 8,8 n.d. n.d.
Source: RREEF, 2006
7 FAS, 2005 8 Eurostat Architectural and Engineering Activities and related Technical Consultancy, Statistics in Focus 11/2004
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2.4. Breakdown of Growth Across the Construction Sector
As can be seen in Table 2.2 below, the performance of each of construction’s five sub-sectors affects the
sector’s overall performance in different ways. In 2002, more than half of all construction employment was in
buildings and civil engineering. This sub-sector provided jobs for 6.5 million people. It was also the largest in
terms of value-added, accounting for 58% of the total generated by the sector.
Table 2.2. Total persons employed and EU value-added in the construction sector in the EU-25, 2002
Employment
(000)
Total Value-added
(EUR mn)
Site Preparation 359 12,749
Buildings, civil engineering 6 545 227,147
Building installation 2 892 90,840
Building completion 2 210 58,155
Renting of equipment 65 30,68
Construction 12 070 391,958
Source: Eurostat, 2005
Employment figures are not available for AR subsector. However some figures are available on architectural
and engineering occupations. This indicates that such occupations account for around 10% of total
construction related occupations.9
The performance of certain construction activities particularly civil engineering is strongly affected by state
spending, as the state is often the most important client for the sector, with responsibility for infrastructural
projects such as roads, bridges, sewerage systems, power and telecommunications networks. State-led
construction is not as heavily influenced by the strength of the overall economy at any given time. This is
because state investment in construction can be used to stimulate the economy, in times of recession and
slow growth, and to lay the foundation for future growth. Other forms of construction, including house
building in particular, closely reflect prevailing economic conditions. Expenditure on these projects comes
mainly from the private sector, and hence, building projects are more likely to be launched when the
economy is doing or expected to do well and when the cost of borrowing for mortgages is relatively low.10
Conversely a decline in output in the construction sector is normally the first sign of an economic slowdown.
2.5. Relationship Between Construction and Other Sectors
Construction, transport and manufacturing sectors
Construction has strong relationships with the transport and manufacturing sectors, particularly the
manufacturing of machinery, chemicals and wood. While recent figures show that the transport sector has
9 Expert Group on Skill Needs, 2003, Dublin 10
Amil and Dolvet, 2006
17
been performing well, with an average growth rate of 3% for 200611, the relationship between construction
and other manufacturing sectors has not been as positive over the last number of years as was previously
the case. Compared to other manufacturing sectors, construction’s productivity is low and the sector is still
very labour-intensive. The low level of value added per person in construction puts financial pressure on
construction companies, particularly on small and medium enterprises. The sector is therefore highly
sensitive to the price of its raw materials. Concerns have been rising in recent years that the competitiveness
of SME’s in Europe’s construction industry may be threatened by the availability of cheaper materials
manufactured in Asia. This can benefit larger enterprises that can buy in bulk, and may push small and
medium enterprises out of the market. Recent figures show that high oil prices are causing average input
prices to rise across all regions in late 2005, apart from China, further highlighting this potential difficulty.12
Construction and tourism
Forecasts indicate that future growth in tourism will continue to have a positive effect on construction
throughout Europe.
The growth of hotels and other tourist services will continue to provide new business opportunities, in terms
of both expansion and renovation, for the construction sector. The World Travel and Tourism Council
forecasts that travel and tourism activity is expected to grow globally by 4.2% per annum in real terms
between 2007 and 2016. Employment in the industry is likely to grow by 1.8% by 2016.13
2.6. Employment in Construction
In 2002, the European construction sector employed 12.7 million workers, or 7.9% of the total EU-15
workforce (see Table 2.3), of which, 91% were men.
Table 2.3. Proportion of Construction Workers (NACE F) of the Total Workforce in 2002
%
EU-15 7,9
Belgium 6,6
Denmark 6,6
Germany 7,6
Greece 7,6
Spain 11,9
France 6,6
Ireland 10,6
Italy 7,9
Luxembourg 9,1
Netherlands 6,5
Austria 8,9
Portugal 12,7
Finland 6,3
Sweden 5,5
11 Ibid. 12 JP Morgan, 2005 13
World Travel and Tourism Council, 2006
18
UK 7,4
Source: Tolkki, 2005
This table shows that countries experiencing high levels of growth following EU membership such as Spain,
Portugal and Ireland have a relatively high dependence on construction employment. This growth is unlikely
to be sustainable as such economies settle into lower long-term growth patterns.
Skilled and highly qualified workers, who make up the bulk of workers, are able to command substantially
higher salaries than unskilled workers.14 Construction, like many other sectors, has a strong hierarchical
structure, with skilled and highly qualified workers, who make up the bulk of workers, able to command
substantially higher salaries than the unskilled workers.15 To illustrate this point Table 2.4 below shows the
breakdown of employment in construction in Ireland.
Table 2.4. Employment Levels in Skills Groups 2002-2010 (000's)
2002 % of total
Architects, Architectural Technicians 4 700 3
Engineers, Engineering Technicians 7 800 5
Surveyors 3 600 2
Planners 550 1
Project Managers, Contractors 18 000 12
Plumbers, Electricians 32 600 22
Carpenters, Plasterers, Painters, Bricklayers 61 400 41
Crane Drivers, Plant Operators, Fitters, Road Workers 11 700 8
Floorers, Roofers, Tilers, Scaffolders 8 100 5
Total 148 450 100
Source: Expert Group on Skills Needs, 2006
Occupational structure of construction
As mentioned above, construction has a strongly hierarchical structure. At the top of the hierarchy is a chain
of managers, including owners or managing directors followed by senior managers and project/contract
managers. Construction companies also usually employ or hire a range of professionals, including architects,
architectural technicians, engineers and engineering technicians, quantity surveyors and building surveyors,
accountants and planners.
On the ground are the skilled workers, trades people: electricians, plumbers, carpenters, plasterers,
bricklayers and painters, and unskilled workers, non-craft construction skills-floorers, roofers, scaffolders and
glaziers, as well as a range of other workers, covering many emerging skills related to environmental
protection, waste disposal, material technology and safety issues are also employed at various levels within
the sector.
14 US Department of Labor, 2006a 15
Ibid.
19
The level of training required in the construction sector varies significantly by occupation, with those in the
professions or construction management usually required to have a bachelor’s degree in construction
science, construction management, or engineering, qualifications in building science, business and
management, as well as related work experience within the construction industry. They also need to have an
understanding of contracts, plans, and specifications, and to be knowledgeable about construction methods,
materials, and regulations. Skilled workers traditionally did two- to four-year long apprenticeships, which are
often regulated by national qualifications regulations bodies. Many unskilled workers enter the occupation
with few skills or qualifications but develop their skills through on-the-job training through their employer.16
Skills gaps17
A skills needs survey carried out among employers in 2002 in North East England reported a number of key
skills gaps Seven out of every ten companies surveyed said they encountered difficulties in recruiting skilled
staff in the previous three months (compared to 79% for Great Britain overall). Participating employers found
it hardest to recruit those in wood trades (26%) and bricklayers (19%). This often created problems for
construction companies, with 43% of participating employers reporting problems with new employees who,
though trained and qualified for certain occupations, lacked the variety of skills required for the role. However
most employers (91%) were satisfied that their employees could cope with current requirements, including
dealing with new technology, new construction methods, and/or new materials.18 This highlights the
importance of a combination of on and off-the-job training for construction workers, as well as the need for
on-going training to keep up with new materials and new technologies within the sector.
Remuneration
Salaries tend to be high compared with jobs requiring similar skills levels in other sectors. The median
annual salary for construction labourers in the United States in 2004 was $25,168, while construction
managers’ median wage was $69,870. However, this is offset by the intermittent work available, due to the
limited duration of construction projects and the cyclical nature of the sector. As a result, more and more
skilled workers are working on a self-employed basis, operating either independently or through what are
termed ‘labour only subcontractors’ or ‘employment agencies’. There are advantages both for the contractors
and the contractees in this system, including cost savings for employers, who can hire short-term labour and
can delegate at least part of the responsibility for supervision to the sub-contractor, while many craftsmen
appreciate the opportunity of working independently. However, there are a number of disadvantages,
including the possible breakdown in teamwork and of the traditional systems of training through
apprenticeship.19 This system also makes it very difficult to regulate the sector in terms of standards, heath
and safety and revenue collection.
Typical working conditions
Many workers in construction do physically demanding work, including carrying heavy objects, working at
great heights, and working outdoors in all weather conditions. Some jobs expose workers to harmful
16
US Department of Labor, ibid; 2006b 17 Qualification does not correspond requirements of job place or there is a lack of qualified staff 18 European Foundation for the Improvement of Living and Working Conditions, 2005a 19
CICA, op. cit.
20
materials or chemicals, fumes and dangerous machinery. Skilled workers also work in difficult conditions. For
example, construction managers may be “on call”, often 24 hours a day, to deal with delays, the effects of
bad weather, or emergencies at the site. Most work more than a standard 40-hour week because
construction may proceed around-the-clock. They may have to work this type of schedule for days, even
weeks, to meet special project deadlines, especially if there are delays.20
Indeed, construction is one of the most hazardous of all occupations, continually accounting for the highest
proportion of accidents at work than any other sector in Europe.21. More construction workers are killed,
injured or suffer ill-health than in any other industry. Every year, more than 1,000 workers are killed
worldwide; over 800,000 workers are injured, many seriously. Nearly 600,000 workers work on sites where
asbestos fibres are present. Nearly half of all workers report some sort of muscular problem (backs, necks
and shoulders), and noise-induced hearing difficulties are prevalent. In 2000, 31% of all accidents at work
occurred in construction, the highest rate of all sectors (see Figure 2.5). Construction also accounted for the
highest proportion of absence due to health problems caused by work (60%).
Fig. 2.5. Distribution of causes of days lost due to illness, EU-15, 2000
0% 20% 40% 60% 80% 100%
% of days of absence
Wholesale and retail tradeTransport and
Real estate activities etc.
Public administration and
Other services
Manufacturing and miningHotels and restaurants
Health and social w ork
Financial intermediation
Electricity, gas and w aterEducation
Construction
Agriculture and fishing
All w orkers
Accident at w ork
Health problems caused by w ork
Other health problems
Source: Eurostat, 2004
Migrant workers
Construction is staffed by high levels of migrant workers, particularly in Western European countries where it
is proving increasingly difficult to recruit skilled and unskilled workers from the domestic market. The entry of
the ten accession countries into the EU has enabled many workers from Eastern Europe to migrate in search
of work. Many construction companies throughout Europe have actively recruited workers from Eastern
Europe. Ireland is just one country that has benefited from such workers, particularly since 2004, with
20 US Department of Labor, 2006a; 2006b 21
Eurostat, 2004
21
251,032 registered to work within all sectors in Ireland (see Table 2.5) 22. Of these an estimated 10% are
working in the construction sector23.
Table 2.5. Personal Public Service (PPS) Numbers issued to citizens of new EU states since May 2004 in Ireland
Poland 147 659
Lithuania 40 237
Slovakia 20 312
Latvia 20 301
Czech Republic 10 302
Hungary 7 162
Estonia 4 477
Malta 324
Slovenia 192
Cyprus 65
Total 251 032
Source: Department of Social and Family Affairs, Ireland
Large numbers of non-national workers, particularly in the Western European countries, have resulted in the
presence of illegal workers, who are sometimes mistreated. One of the benefits of the entry of the accession
states into the EU is the potential to reduce the numbers of illegal workers, and thus reduce the exploitation
to which such workers can be exposed. However, many of the features that characterise the sector,
described above, such as the high levels of self-employment and subcontracting make it difficult to regulate
the presence of illegal workers.
High levels of migrant workers may also effect the development of the sector as a whole. Firstly, wages may
be kept artificially low, adequate training may not be provided thus holding back the sector from developing
to its maximum capacity in the longer term.24 Efforts to ensure that the cost of training is fairly spread across
employers internationally are therefore necessary.
2.7. Recent Developments in Construction
Changing characteristics of the sector
The sector is characterized by a high number of micro businesses (SME’s account for approximately 97% of
all businesses), as many of the projects are small in scale. The sector is becoming increasingly fragmented,
with separate organisations taking responsibility for different phases of construction - design, site works and
operation – and many suppliers, subcontractors and specialists involved in both design and on site. This
provides much scope for confusion of responsibilities and ambiguity in communications, which prejudices
ultimate customer satisfaction. Research and development is also limited throughout the sector, particularly
in the small and medium-sized enterprises. Investment in R&D among the reporting EU countries was found
to account for between 0.01% and 0.22% of the total production value in the sector in 2001.25
22
These data do not take account of migrant workers no longer working in Ireland. 23
Expert Group on Future Skills Needs / Forfás launch Report
“Skills Needs in the Irish Economy: The Role of Migration” , 2005 24 European Foundation for the Improvement of Living and Working Conditions, 2005b 25
OECD Structural Analysis in European Foundation for the Improvement of Living and Working Conditions, 2005b
22
This fragmentation, the temporary nature of the relationships formed on individual projects, and the
prevalence of very small firms in the sector, all serve to inhibit the sector’s learning processes, both the
ability to carry forward experience from one project to another or between projects and the opportunities for
the kind of collective learning necessary to achieve process and product innovations.
As a result, formal training structures have been under pressure in many companies, leading to a shortage of
qualified staff.
These trends have also had a negative effect on the image of the sector and have made it increasingly
difficult to recruit workers, particularly bricklayers, carpenters, joiners and some specialist trades such as wall
and floor tillers, as well as qualified professional staff in many of the larger companies, leading to the
recruitment of workers from outside of the domestic market.
Increasing focus on environmental protection
The increasing interest in environmental protection is an area which has not been fully explored by the
construction sector, although some attempts have been made by larger, international companies to
encourage the use of recycling, new technologies and constructing energy-efficient buildings. However, the
lack of training of workers has meant there is little awareness on the ground of the potential changes that
could be made to protect the environment further.26
Recent advances in construction
Construction has been exposed to numerous technological advances in recent years, such as in building
design and materials.
This has allowed an increasing range of tasks to be done off-site, such as prefabrication, or the use of glass
rather than traditional building blocks. Technology is also changing building practices and creating new skills.
This is leading in some cases to reduced demand for some traditional skills. For example, computer added
design (CAD) has reduced the demand for draught people. In addition, the growth of E-business has
facilitated the globalisation of the construction sector and the Internet allows contractors to seek and award
tenders from all over the world. In particular it is now possible to subcontract specialist tasks to experts in
other countries.27 This has had a dramatic effect on the way consultancy services are delivered by architects,
engineers and other technicians. Information technology coupled with the increasing sophistication of
customer demands and expectations has opened up new opportunities for designers working in and with the
construction sector. The creative use of IT can allow innovative consultancy companies to develop new
international business across the world. Figure 7.2 illustrates some of the key factors influencing the nature
of employment in the construction sector.
26 CICA, op. cit. 27
European Network of Building Research Institutes, 2005
Fig. 2.6. Key factors influencing construction
2.8. Likely Future Developments
It is clear that construction is an important sector of the European economy, through the provision of jobs
within the sector, as well as in other related sectors, and also through its role in developing the physical
infrastructure of Europe. However a number of key factors will determine the extent to which the sector
prospers over the next few years. Each of these factors is examined below, starting with future growth
prospects.
Economic Growth
Future growth is likely to be positive, with growth of over 5% expected in Eastern Europe, while growth is
also expected throughout the rest of Europe (see Figure 2.7).
Construction
sector
High number of
migrant workers
Low level of
qualification
High accident rate
Lack of R&D
High level of
subcontracting
Environmental
issues
24
Fig. 2.7. European GDP Growth, 2006-2007 (% per annum)
0
1
2
3
4
5
6
UK and Nordics Core Eurozone Central Europe Eastern Europe
2006
2007
Source: RREEF, 2006
Prospects for the construction sector
Added to overall economic growth prospects, new household formation and increasing prosperity should
ensure that prospects for the construction sector will remain positive over the next number of years,
particularly in Central and Eastern European markets, although growth in the UK and Nordic markets is not
expected to be as strong28. The nationality of the construction companies that will benefit from such trends
will largely depend on which country’s construction sector, and particularly its largest employers, are most
competitive and efficient. In the long-term this will be influenced by individual employers’ attitudes to training
and development of staff, by the extent to which they embrace innovation in terms of new materials and
technologies, as well as by the efficiency with which they can carry out their work.
As can be seen from Figure 2.8 below, construction output developed at a slower rate than GDP-growth over
the last few years. However this year, 2006, is set to be a remarkable year for the rate of construction output.
This rate of growth is set to slow in 2007 and 2008, when the economy will again grow at a faster rate than
the construction industry, and construction growth will be just marginally above that of 200529.
28 RREEF, 2006 29
Euroconstruct, 2006
25
Fig. 2.8. Construction output and GDP growth, Euroconstruct area 2002-2008
Source: Euroconstruct, 2006
While construction in Eastern Europe represents a small proportion of the overall European market segment,
it has grown considerably in recent years (see Table 2.6). Many signals indicate that this trend is likely to
continue over the next number of years, which may also improve overall European figures. In Eastern
Europe, civil engineering has outperformed other sub-sectors, and is expected to increase by more than ten
per cent annually. The residential and non-residential building sectors have also performed strongly since
2002, and are also expected to continue to do well.
Likely developments in different market segments
Table 2.6 shows that repair and maintenance, new non-residential and civil engineering are expected to
grow fastest in Western Europe with a slight decline expected in new residential output in 2007 and 2008. In
contrast new residential output is expected to grow significantly in Eastern Europe and in all segments of the
construction market.
Table 2.6. Annual change in market segments, Western and Eastern Europe (% by volume)
Western Europe 2002 2003 2004 2005 2006 2007 2008
New residential -1,4 2,6 5,4 3,8 3,5 -0,1 -0,6
Residential Repair & Maintenance -0,3 1,5 2,3 0,7 1,8 1,9 2,1
New non-residential -1,0 -3,6 1,0 -0,6 2,0 2,0 2,5
Non-residential Repair & Maintenance 0,9 0,3 -0,4 1,1 1,4 1,6 1,6
Civil Engineering 2,1 1,8 0,6 1,1 2,8 2,4 2,3
Total Construction 0,0 0,7 2,1 1,3 1,4 1,5 1,5
Eastern Europe 2002 2003 2004 2005 2006 2007 2008
New residential 0,3 4,9 10,4 0,9 4,6 6,8 10,3
Residential Repair & Maintenance 6,5 4,5 8,0 6,4 4,6 5,7 6,2
New non-residential 3,5 -1,2 5,4 5,4 5,4 2,9 4,2
Non-residential Repair & Maintenance -17,1 -0,2 3,9 3,1 3,4 2,3 3,6
1.1
0.0
1.0 0.7
2.3 2.2
1.6 1.5
2.2
2.6
2.2
1.7
2.3
1.8
0.0
0.5
1.0
1.5
2.0
2.5
3.0
2002 2003 2004 2005 2006 2007 2008
GDB growth Construction output growth
26
Civil Engineering 3,9 4,1 7,1 11,4 11,3 11,6 11,9
Total Construction 0,8 2,0 6,9 6,3 7,0 6,7 8,1
Source: Euroconstruct, 2006
Technology and the environment
In many developed countries, construction accounts for up to half of all the raw materials taken out of the
earth’s crust by weight. It also produces a considerable waste stream, although a significant and growing
proportion of this is recycled. In Europe, the built environment accounts for about 40% of energy use rising to
as much as 50% in some countries if construction activities (including materials production and transport) are
taken into account30.
Technology is already being developed to increase energy efficiency in the construction sector, although few
new developments are in common use.31 Significant possibilities also exist to reduce emissions from
buildings through increased energy-efficiency measures, and in the longer term through the exploitation of
renewable energy resources. The focus on repair and maintenance of the built environment is growing, as it
eliminates other less environmentally friendly choices, such as demolition and rebuilding. Repair and
maintenance in Europe now represents about one third of all construction activities and in some countries is
estimated to have reached 50% and is still growing. Recycling is also becoming increasingly important within
the sector, as companies and countries strive to meet the Kyoto Protocol. These developments in turn will
lead to increasing opportunities in construction related consultancy services.
Demographic Change
The population of Europe is ageing, and it is expected that the number of persons aged 80 and over will
nearly triple, rising from 18 million in 2004 to about 50 million in 2051.
32 The ageing of the population means
that the needs of consumers of the housing sector will change with a greater focus on the renewal of existing
buildings (e.g. accessible bathrooms and bedrooms at ground level). This development will create new
market opportunities, but will require additional skills among workers in all phases of the construction
process in relation to building management systems, networks and electronics.
Population and household growth
As outlined earlier, the population of many countries in Europe has been increasing and estimates indicate it
is likely to continue to grow in a number of countries. These countries are likely to experience continued
growth in construction activity.(see Table 2.7). This will have a positive effect on demand for housing, as has
been the case in Ireland in the last number of years, where the population has risen substantially in recent
years. Even where populations are not growing, trends towards smaller households will create additional
demand for housing.
30 CICA, op. cit. 31 European Foundation for the Improvement of Living and Working Conditions, 2005b 32
Lanzieri, 2006
27
Table 2.7. Projected total population for selected years (’000)
2004 2010 2030 2050 Change (%)
EU-15 382 674 390 652 398 737 384 356 0,4
EU-25 456 815 484 054 469 365 449 831 -1,5
Luxembourg 452 477 567 643 42,3
Ireland 4 028 4 323 5 066 5 478 36,0
Malta 400 423 479 508 27,0
Sweden 8 976 9 187 9 911 10 202 13,7
France 59 901 61 486 65 118 65 704 9,7
UK 59 652 60 924 64 388 64 330 7,8
Netherlands 16 258 16 672 17 589 17 406 7,1
Belgium 10 396 10 554 10 984 10 906 4,9
Austria 8 114 8 256 8 520 8 216 1,3
Spain 42 345 44 603 45 379 42 834 1,2
Denmark 5 398 5 465 5 577 5 430 0,6
Finland 5 220 5 294 5 443 5 217 -0,1
Greece 11 041 11 269 11 316 10 632 -3,7
Portugal 10 475 10 686 10 660 10 009 -4,4
Slovenia 1 996 2 015 2 006 1 901 -4,8
Italy 57 888 58 631 57 071 52 709 -8,9
Germany 82 532 82 824 81 146 74 642 -9,6
Poland 38 191 37 830 36 542 33 665 -11,9
Hungary 10 117 9 982 9 484 8 915 -11,9
Slovakia 5 380 5 347 5 186 4 738 -11,9
Czech Rep. 10 211 10 122 9 693 8 894 -12,9
Lithuania 3 446 3 345 3 092 2 881 -16,4
Estonia 1 351 1 341 1 202 1 126 -16,7
Latvia 2 319 2 240 2 022 1 873 -19,2
Source: Eurostat, 2006b
Migration
The entry of the accession states into the EU in 2004 has also begun to change its demographic profile, as
large numbers of younger workers from the accession countries have started to migrate to Western
European countries for work. The consequences of this free movement of labour within the EU-25 are still
not clear and vary between countries and sub-sectors. As many staff shortages are now being filled in
Western European countries, it is likely to be seen as a positive development, although incoming labour has
been said to put a downward pressure on wage levels33. However, the ‘skills drain’ on Eastern European
countries also needs to be considered.34
33 European Foundation for the Improvement of Living and Working Conditions, 2005b 34
Ibid.
28
Research and Development
As indicated earlier, research and development does not currently play an important role in construction in
Europe. Several of the top ten international companies in 2003 were Japanese companies with high levels of
R&D investment, showing its importance for boosting profit, as well as benefiting the sector overall.35
Research and development on the needs of clients, on how best to evaluate progress, on developments in
new technology and on environmentally sustainable buildings are all vital to the long-term growth of the
sector and research into such areas needs to be supported for the sector to thrive. The challenge is how
SME’s can take part in this activity.
Improving Europe’s building stock and urban areas
As a result of societal and demographic changes, new demands on the built environment are occurring.
Changing age distributions and lifestyles, greater disposable income, changing family and social structures,
new technologies and greater awareness of health and safety issues all pose challenges to the construction
sector. New requirements can be accommodated relatively easily in new buildings and townships. More than
50% of Europe’s built environment was constructed between 1945 and the 1970s and is in need of
modification and refurbishment.
Public-Private Partnerships – opportunities for growth
Public private partnerships (PPPs) are a relatively new way of financing big construction projects. Such
projects concern typically large infrastructural projects. The construction of hospitals, prisons, educational
institutions, etc, have also been financed through such partnerships36. PPPs present a real opportunity for
value-for-money for taxpayers and service-users, innovative projects and a contribution to socio-economic
growth. However, due to the nature of such partnerships, they are usually only open to larger construction
companies. Very large scale projects are now being tendered for across Europe. As stated above,
companies that can work efficiently and cost effectively across a number of European countries will
increasingly be used for such projects as a means for governments to control costs and to ensure the
completion of such projects on time and within budget. The ability of the public and private sectors to co-
operate will also influence the ability of the sector to grow.
Real Estate performance outlook
On the whole, the prospects for the real estate sector in Europe are positive. However, as most of the
markets in Western Europe are relatively mature, there is less scope for “emergent market” strategies there
than in Central and Eastern Europe.37 At the same time, the recent interest rates rises by the ECB have put
pressure on the real estate sector in recent months, and this is likely to effect the sector’s medium-term
development. Eurozone growth is likely to slow to 1.6% in 2007, with only Eastern Europe expected to
continue to grow at a higher rate.38 It is also possible that higher interest rates may force home-owners to
sell, putting pressure on the sector.
35
Ibid. 36 Ibid. 37 JP Morgan, op. cit. 38
RREEF, op. cit.
29
Factors that will influence growth are:
• search for an improved quality of life;
• further internationalisation of markets;
• inexorable march of the information revolution;
• growth of ethical investment;
• changing nature of work in society;
• relative competitiveness of European cities;
• importance of connectivity in property location;
• emerging popularity of mixed-use development;
• imperative of energy conservation;
• call for safety and security in building layout and design;
• incorporation of the “fun factor” in property products;
• greater flexibility and adaptability across the sector; and
• challenge of access and affordability in housing markets39.
The internet in particular will continue to change the way estate agents work and agents that embrace these
changes are likely to grow at the expense of those that don’t.
Global Competition
Many commentators have highlighted the relatively low productivity level of the European construction
sector, which has been attributed, at least in part, to Europe’s failure to export construction goods and
services. Trade of construction services (primarily civil engineering services) between the EU15 and the rest
of the world is positive, but relatively small and is a product of mainly large, multinational companies only40.
In 2001, EU exports of construction services to the rest of the world accounted for 3.2% of the total export of
services, while imports accounted for 2.1%.
It is possible that greater co-operation between small and medium enterprises could help them to export their
services to other global markets. However, as noted by the European Construction Institute, companies
based in Europe can only hope to compete in a global market if they can assure potential buyers that their
service or product is of a higher quality than local providers41.
Technological changes
The technological changes taking place in the sector also mean new that new forms of training for
employees are also required. While many of the larger companies often have well-structured training
programmes, small and medium enterprises may face a very high financial burden in providing training for
staff.
39 European Real Estate Scenarios: Nirvana or Nemesis? King Sturge, 2005 40 European Network of Building Research Institutes, op. cit.; CICA, op. cit.; European Foundation for the
Improvement of Living and Working Conditions, 2005b 41
European Construction Institute, op. cit.
30
SWOT analysis of the sector
Table 2.8 summarises the strengths, weaknesses, opportunities and threats facing the European
construction sector.
Table 2.8. SWOT Analysis of the Construction Sector
Strengths
• Tradition of jobs creation in construction and other sectors;
• Increased focus on R&D among the large construction companies;
• Growing specialisation in many firms has created highly knowledgeable and competent companies within specific construction fields and an international remit
• Strong tradition of training in traditional trades
Weaknesses
• Low productivity; • Weak industry image among customers and
potential new workers; • Little focus to date on the protection of the
environment and related skills; • Problems with health and safety in terms of
accidents and physical strain on employees; • Problems with undeclared work; • Little further education and training among small
construction companies; • Low level of R&D investment among SME
construction companies. • Increasing fragmentation of the sector
Opportunities
• Growth markets in new Member States, China, India and others;
• Demographic changes leading to new markets developing;
• Environmentally sustainable development, including waste management;
• Off-site construction (pre-assembly); • Improvements in technology; • New market segments in PPP
activities.
Threats
• Many European markets with stagnating growth; • Increasingly globalised engineering sector where
Japanese and US construction companies will enter certain European construction sectors;
• Increasing dependence on an internationally mobile, skilled, more diverse, workforce;
• Inter-European price-based competition represents a threat to employment in some EU15 countries.
Source: Adapted from European Foundation for the Improvement of Living and Working Conditions, 2005b
This SWOT analysis shows how the construction sector within Europe must adapt if it is to prosper in the
long-term. Central to this is the attractiveness of the sector to employees and subcontractors. These issues
are already affecting the construction sector in Western Europe which is creating significant opportunities for
eastern European workers to find employment in the construction sector across Europe. However the
construction sector within the Eastern European countries must also show an ability to adapt to these trends
if it also is to be able to attract labour and to successfully compete with internationally established
construction companies from all parts of the world.
Implications of likely future developments on employment and training
Perhaps the biggest challenge facing construction is to raise the image and profile of the sector. This is
especially important if quality new recruits are to be attracted into construction. Significantly, this involves
improving health and safety and enhancing training schemes in the sector. The better management of the
construction process, and improved supply chain management in particular, remain important topics.
31
2.9. Prospects for Employment in the European Construction Sector
Prospects for employment in the construction sector across Europe are expected to be mixed over the next
number of years. Overall growth is expected to slow down post 2008.
However due to high staff turnover, on-going staff shortages and the increasing ability of construction
workers to move to areas where construction activity is strong, there are likely to continue to be positive
opportunities for construction employment within Europe42. However, rising interest rates will pose a
significant threat to the development of the construction sector. In addition, a large proportion of companies
throughout Europe are reporting skills gaps in certain trades and professions, which may threaten
employment growth prospects and the ability of the sector to compete internationally. Changes need to take
place in a number of areas to help the sector to maximise its growth potential.
Across Europe, the construction sector faces recruitment problems, which has led to the recruitment of
workers from abroad. Vacancies commonly reported tend to be for bricklayers, wood workers and quantity
surveyors43. While Western European countries are sourcing labour from the new accession states, the latter
are also being forced to recruit foreign workers; for example, small construction companies in Poland have
recruited skilled workers from the Ukraine and Belarus.44 While there have been benefits arising from the
migration of workers from the accession states, including the US$7 billion sent home by Poles since 2004,
this phenomenon has also created a number of threats to the growth of the sector. Firstly, it is possible that
the pool of skilled construction workers available from Eastern European countries may dry up as the
economies in these countries improve (in part funded by the ‘remittances’ sent home by emigrants in recent
years), and domestic employment opportunities begin to improve. Thus, it is vital that Western European
countries plan alternative recruitment strategies in advance, including the employment of non-typical
workers.
Another difficulty arising from the employment of migrant workers, as indicated earlier, is the potential for
abuse of such workers, which can damage both the wage structure and the reputation of the sector45. The
high level of self-employed workers is also causing problems across the sector, particularly in relation to
maintaining traditional training practices and ensuring a comprehensive response to new skill needs. If this
problem is not addressed, it is possible that difficulties in recruiting skilled workers may increase. The social
partners, particularly trade unions, must recognise their role in this regard.
Demographic change will increasingly mean that employers will need to explore the possibility of recruiting
higher numbers of women and older men. Already employers are actively campaigning to recruit female
workers46. As technology and machinery in the sector is becoming more advanced, some of the barriers that
prevented these groups from entering the sector in the past will be diminished.
42
Standard and Poor, 2006 43
European Foundation for the Improvement of Living and Working Conditions, 2005a; Sexton, Hughes & Finn, 2006. 44 European Policy Centre, 2006 45 European Foundation for the Improvement of Living and Working Conditions, 2005b 46
European Foundation for the Improvement of Living and Working Conditions, 2005a
32
2.10. Impact on Skills, Training and Education
The construction sector plays an important role in Europe, through the creation of jobs and the development
of the physical infrastructure. However, the sector faces many employment-related problems, as has been
illustrated in this paper. If the sector is to maximise its growth potential, it must improve its image by
changing the methods used to recruit and train workers. This includes both the need for a review of the
training structures currently in place and of the content of courses to reflect changes taking place within the
sector.
Current training provision
There is evidence to suggest that there is a shortage of third level courses available throughout Europe for
professions in the construction sector, particularly in architecture, while other professions, such as
engineers, quantity surveyors and town planners are in danger of being oversupplied, and so monitoring is
required to ensure difficulties do not arise.47 The traditional apprenticeship training methods for craft trades is
under increasing pressure resulting in shortages of these skills and this issue needs to be urgently
addressed if the required skills are to be available when required.
Implications of likely future developments on employment and training
It can be argued that, as the services offered by the construction sector are essential to the well-being of the
economy, as has been demonstrated above, construction in Europe will continue to grow in spite of the
difficulties evident in the sector. Indeed, there is much to be said for this argument: evidence shows that
customers are more likely to hire local companies who have easy access to building materials and can
manage the job closely. However, to accept this argument would be short sighted. Construction across
Europe faces increased global competition from construction companies who can relocate managerial staff
and hire local workers, and also as a result of a greater degree of market internationalisation for construction
materials. As such, growth in the sector will only occur if companies can source highly-skilled workers in
each profession.
Accessing qualified staff
The sector has traditionally been staffed by young men. However, as the population of Europe is ageing, as
sustainable development is not seen to be a central priority for the sector and as the reputation of the sector
remains poor, fewer young men may choose the construction sector as a career. Added to this, increasing
segmentation, the growth of subcontracting for specific projects, and increasing internationalisation of the
sector and of its employees, means that traditional training arrangements are in danger of breaking down. It
is thus possible that sourcing an adequate supply of qualified staff will become an increasing cause for
concern across Europe. Already many western European countries are running marketing campaigns to
attract international workers and are increasingly dependent on such workers to survive. At a European
level, the social partners are also starting to address the issue in the form of developing a ‘tutoring system’
between older, experienced workers and younger workers entering the sector. This system offers training in
traditional skills and a mentor to younger workers to encourage them to remain in the sector48.
47 Expert Group on Future Skills Needs, 2003 48
FIEC and EFBWW, 2003
33
Barriers to training
The training of skilled construction workers is considered to be expensive and time consuming; resulting in
many SMEs discontinuing the practice over the last number of years. A study carried out on employers in
Western Australia reveals some of the barriers to training faced by employers and employees49:
Employers:
• Concerns about the relevance, quality, consistency of training for their business needs
• Lack of input into training content
• Lack of flexibility into the delivery of training
• High costs
Employees:
• Standard required too high, particularly among those with literacy and numeracy problems
• High level of commitment required
The study also revealed that a lack of information about apprenticeship opportunities, a lack of desire to work
in the sector, a dislike of the work and a lack of a clear career path were among the reasons school-leavers
did not wish to enter the sector. Thus, it is clear that training courses for workers in the construction sector
need to be more in tune with the needs of employers and employees, with greater input from employers and
sharing of costs across the sector. Consideration also needs to be given to reducing minimum requirements
for entry to courses in certain situations, as well as support for numeracy and literacy education.
New training needs across the sector
Training for workers in the construction sector also needs to take account of the changes that have been
taking place in the sector over the last number of years.
Project and construction managers will in particular require additional training over the next few years, as
deadlines for completion of projects are shortening and as increases in the use of technology, working with
sub-contractors, compliance with environmental and safety standards become more important components
of their work. Construction management as a profession is only now being recognised in its own right in
many countries. For example, Ireland has only made such courses available in the last number of years.50
Over the last decade, many changes have taken place within the sector, as described earlier, including the
increasing use of new technology, new materials and machinery, the need to prioritise environmental
protection, increased specialisation of work and growing internationalisation of construction activity. Such
changes need to be reflected in both college-based and on-the-job training.
Within the services area as referred to above demand for architects, engineers and technical consultants will
be strongly influenced by changes in technology. Increasing use of CAD may lead to a reduction in demand
for fully qualified architects. However for those companies that do embrace such technology their will be
49 Minerals Council of Australia, 2006 50
Ibid.
34
growing opportunities on an international level. Demand for engineering consultancy will be strongly
influenced by the prospects for the construction activity in each country and particularly by the type of
demand in different market segments- strong non-residential growth, particularly in large public sector
contracts, will result in opportunities for such occupations.
There is also a need for training providers and employers and employees to recognise the personal skills
and related training needed for those working in the sector, including communication and teamwork skills. A
high level of cohesion between the needs of employers and the training provided by third-level institutes is
essential. In addition, college-based training needs to be flexible and accessible to reflect the fact that work
in the construction sector is dependent on many external factors including the weather, winning contracts
and the awarding of planning permission. The qualifications of workers from abroad also need to be
recognised by a national qualifications board, and the process of reporting back to an employer on an
individual’s qualifications should take place as quickly as possible.
The importance of safety training cannot be overemphasised. Increasingly governments will introduce
mandatory certification in health and safety training for each worker in the sector, and monitored such
developments closely. Added to this a good understanding of cultures and attitudes, of modes of learning,
and of incentives and rewards, will create a firm foundation upon which to promote good safety practices, to
support changing relationships and to ensure more satisfying working arrangements. Without such changes,
the sector may not succeed in attracting and maintaining the skills required for in an increasingly globally
competitive market.
Planning and financing of education and training
Financing training costs represents a further challenge for the sector. Whereas large companies can better
accommodate training costs, which constitutes a competitive advantage, smaller companies are finding it
difficult to finance education and training for their staff other than what is required by law. These financial
challenges have to be met in order to improve qualification levels across the sector in general. How these
costs should be shared between individual workers, companies, the sector and government will depend on
the national frameworks already in place, the existing organisation of national educational systems and of
approaches to lifelong learning, as well as the actual strength of the social partners in each country.
However, there is a need for governments across Europe to recognise the importance of a highly-skilled
construction industry and to consider providing financial incentives to small and medium employers to
encourage adequate training and related qualifications for their workers that is internationally recognised and
which is highly responsive to changing needs. The long time required to train skilled workers within the
construction sector means that a high level of planning, Involving close co-operation between the different
actors involved, is required to ensure that skill supply meets demand. Table 2.9 outlines skill needs in the
constructon sector.
Table 2.9. Overview of Skill Needs of Key Occupational Groups in the Construction Sector
Managers
• Managerial skills • Marketing skills • Planning skills • Project management skills
35
• Costing skills • Negotiation skills • Customer relations
Unskilled Workers • Numeracy, literacy • Health and safety • Rights and entitlements
Skilled Workers • Relevant craft and technical skills, especially in relation to carpenters/joiners, glaziers, roofers, tilers, floorers, scaffolders, electricians, plumbers
• Technical skills • Supervisory skills • Multi-skilling • Team-working skills • Customer skills • Health and safety • Regulation compliance • Customer relations
Professionals • IT skills • IT related design skills • Customer / Communication skills • Interior design • Landscaping skills • Architectural technicians • Quantity surveyors • Knowledge of regulations, health and safety • Costing skills • Customer skills • Relevant third level qualification • Refresher courses on technical and occupational changes
2.11. Summary
Although concern has been raised about the low productivity of the sector, the construction sector in Europe
has been performing reasonably well, and the outlook for the sector is generally positive, particularly in the
next couple of years. A number of changes have taken place in the sector in recent years, thanks to
advances in technology, and further opportunities exist in the future, particularly in countries with strong
economic and population growth. Increasing opportunities will be found for construction companies that can
operate across and outside of Europe. There will also be increased opportunities for specialisation of
activities and for companies that can take advantages of new technologies to be innovative in the design,
construction and redevelopment of the built environment.
However, the sector also faces a number of challenges, including an increasing tendency to subcontract,
increasing pressure on traditional training methods and a failure to adequately adapt to changing skill needs.
These in turn are reducing the attractiveness of the sector as a place to work. The speed of these changes is
much faster in Western than in Eastern Europe. Indeed the Western European construction sector is
increasingly dependent on highly mobile workers from Eastern Europe.
All of these trends signal the need to review and adapt existing training methods, to address new skill needs,
to ensure recognised high standards across Europe and to plan such developments in close co-operation
between the different actors involved.
36
3. STATISTICAL CHARACTERISTICS OF THE CONSTRUCTION SECTOR
3.1. Introduction
This section presents a brief description of the construction sector. It includes the main aspects related with
enterprises, employment and performance indicators of the construction sector. The analysis was made on
the basis of statistical data developed precisely for the study. The secondary data – studies, overviews and
other accessible information about the development of the construction sector and Lithuanian economy –
were also used.
3.2. Brief Description of the Construction Sector
The construction sector is characterised by a rapid development greatly influenced by the growth of the
national economy, favourable crediting conditions, possibilities provided by the EU structural funds,
increased demand for dwelling, commercial and industrial buildings and growing assortment of new building
materials and technologies.
Enterprises and especially private persons normally take advantage of the crediting services when making
investments to immovable property. Therefore, all over the world the crediting conditions exert a great
influence upon the development of the construction sector. The majority of Lithuanian economy observers
prelate the impressive growth of the construction sector in Lithuania over the recent years with the especially
favourable crediting conditions that have been getting more and more favourable due to the bank margin.
The latter has not even reached 1% sometimes and this means that the banks in Lithuania have been
receiving minimal profit for the crediting services. Therefore, it is not even worthwhile expecting for the
improvement in this segment in future. The increasing interest rate and wrecked hopes of having the single
European currency have been already making negative impact on the demand for immovable property.
One of the specific features of the construction sector is the dependency of works on the seasons. The basic
works have been normally done during the warm period of the year in Lithuania. Whereas internal works –
decoration, refurbishment - have been done in winter. However, due to the new materials and technologies
available on the market, the impact of the seasons on the construction works has diminished – dependency
of the economic activity on the seasons in the construction sector is smaller than that in the agricultural
sector but greater than that in the fields of industry and transport.
With the rapid growth of prices for the sale of dwelling houses over the recent years, the development of the
immovable property market has made a great influence on the growth of the construction volumes. This
fostered the growth of the turnover of building materials – cement, concrete, reinforced concrete, bricks,
windows and doors, heat insulation mineral materials. Simultaneously, volumes of sales, transportation and
warehousing services have been on the increase. Due to their peculiarities the majority of the construction
business services are delivered on the local market. In 2005, 99% of construction works were done on the
territory of Lithuania and only 1% of the construction works were done abroad. Foreign trade balance of the
construction sector is negative, the deficit has increased by almost 1,7 times over four years. Nevertheless
Lithuanian-made building materials are sufficiently popular on the markets of such EU countries as Sweden,
Denmark, Norway, Ireland, Germany. Panel houses (along with the erection services), Windows, doors and
37
heat insulation materials, etc are especially marketable. These products are purchased on the EU markets
and building and erecting services and warranties are relevant. This creates favourable conditions for
Lithuanian enterprises to engage in organised activities in other EU countries on the basis of commercial
contracts.
Value added created by the construction sector enterprises over four years has increased by almost 97%,
i.e. 24% per year on the average. The growth rate of the production within the given period were
approximately 1,6 times as greater as those of the entire economy. The rapid growth is also witnessed by
the continually increasing rate of GDP which in 2007 reached 20,5% and was 2,3 times as greater as the
analogous national indicator. Although the efficiency of the construction enterprises51 rose from 18,7 Litas in
2004 to 23,4 Litas in 2006, it still remains lower than the respective indicator of the entire economy (26,8
Litas). The price of workforce increased more rapid as compared to that in the entire economy and average
monthly gross receipts is among the highest in the country. The prospects of the development of the
construction sector are considered as rather positive. The demand for construction of non-dwelling houses
(offices, logistics and commercial premises) should considerably increase. Provided that the state improved
the conditions for subsidizing of flat renovation which presently are not favourable, a huge demand for
construction works related with renovation and reconstruction would emerge in Lithuania. On the other hand,
certain findings of the recent years imply that the development of this activity will slow down in the coming
years.
On the basis of the analysis of the accessible information the following basic impediments to the
development of the construction business were identified:
• slow land reform;
• legal framework (for example, ambiguous laws, frequent changing of laws, public procurements,
unconformity of the system of the regulation of construction with the modern technologies and
existing standards of cost estimating).
• emigration;
• low productivity, work organization and culture in comparison with the indicators of the other EU
countries;
• lack of qualified workers.
The main factors that will influence the development of the construction sector in the future are as following:
• increasing environmental requirements;
• energy saving necessity;
• changes in the immovable property market;
• increasing assortment of new building materials and technologies;
• completion of the land reform;
• market internationalisation;
• decreasing of the supply of workers (with respect to the number and qualification).
51
Value added per one actually worked hour.
38
3.3. Enterprises
Distribution of enterprises by the subsectors and the size. According to the 2006 statistical data, the
construction sector has 5035 enterprises of which 39% specialise in the field of buildings and their parts
construction. The sector mostly includes small enterprises (the number of workers does not exceed 9). The
number of such enterprises total 63% of all the construction sector enterprises. The structure of the
construction sector and the number of enterprises are provided in Table 3.1.
Table 3.1. Structure of the construction sector
Enterprises by the number of workers subsector activities according to NACE
up to 9
from 10 to 49
from 50 to 249
from 250
total
Architectural and engineering activities and related technical consultancy (AR)
Architectural and engineering activities and related technical consultancy (74.20)
1096 131 19 3 1249
Demolition and wrecking of buildings; earth moving
(45.11)
72 31 21 1 125 Site preparation (SP)
Test drilling and boring (45.12) 4 2 0 0 6
General construction of buildings and civil engineering works (45.21)
748 594 237 30 1609
Erection of roof covering and frames (45.22) 59 35 4 0 98
Construction of motorways, roads, airfields and sport facilities (45.23)
27 31 31 9 98
Construction of water projects (45.24) 9 4 4 0 17
Building of complete constructions or parts thereof (BC)
Other construction work involving special trades (45.25)
101 39 18 0 158
Installation of electrical wiring and fittings (45.31) 379 151 29 1 560
Insulation work activities (45.32) 10 10 4 0 24
Plumbing (45.33) 247 108 20 1 376
Building installation (BI)
Other building installation (45.34) 31 16 6 0 53
Plastering (45.41) 27 33 9 0 69
Joinery installation (45.42) 95 32 1 0 128
Floor and wall covering (45.43) 91 72 6 0 169
Painting and glazing (45.44) 34 24 4 0 62
Building completion (BC)
Other building completion (45.45) 117 63 9 0 189
Renting of construction or demolition equipment with operator (RE)
Renting of construction or demolition equipment with operator (45.50)
26 12 6 1 45
Total: 3173 1388 428 46 5035
Changes in the number of enterprises in the construction sector. From 2002 to 2006, the number of
enterprises in the construction sector more than doubled (Figure 3.1.). This trend is especially explicit in the
architecture and building completion subsectors where the number of enterprises within the given period
increased as much as by three times. The number of minor (up to 9 workers) and small (from 10 to 49
39
workers) enterprises in all the subsectors has increased over the last five years. The number of large
enterprises has actually remained unchanged.
Fig. 3.1. Changes in the number of construction enterprises
0
1000
2000
3000
4000
5000
6000
2002 2003 2004 2005 2006
AR SP BC
BI BC RE
Geographical distribution of enterprises in Lithuania. Vilnius and Kaunas counties are characterised by the
plenty of the construction sector enterprises (39% and 21% of all the enterprises respectively). In other
counties the distribution of the construction enterprises ranges from 1 to 12% (Figure 3.2). Such a situation is
to a large extent determined by the uneven distribution of investments in the territory of Lithuania. For
example, Vilnius county receives as much as 62% of foreign investments and this creates favourable
conditions for the development of the construction sector in this place. On the other hand, all the building
materials, machinery, equipment and workforce are transported to a specific construction site. Therefore, it
all the construction enterprises may be considered as mobile. Construction works tenders in towns are often
won by enterprises from other places, mostly because of the cheaper workforce.
Fig. 3. 2Geographical distribution of construction sector enterprises by counties, 2006.
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Alytus
Kauna
s
Klaip÷
da
Marijam
pol÷
Panev
÷žys
Šiaulia
i
Taurag
÷
Telšiai
Utena
Vilnius
AR SP BC
BI BC RE
3.4. Employment in the Sector
Distribution of workers by subsectors. According to the 2006 statistical findings, the construction sector
employs approximately 107 thousand workers. The number accounts for about 10% of the total number of
employees in the Lithuanian economy. The majority of the construction sector employees are men (93,5%,
according to the 2006 findings of the survey on the population employment). The assessment of the
40
distribution of employees by subsectors shows that the majority of them are employed in the BC field (about
68% of the total number of employees working in the construction sector). Over five years (2002-2006) the
number of employees has gradually increased in all the subsectors of the construction sector (Figure 3.3).
Fig. 3.3. Alteration of the number of the construction sector employee, 2002-2006.
0
20000
40000
60000
80000
100000
120000
2002 2003 2004 2005 2006
AR SP BC
BI BC RE
Demand and supply of workers52
(unemployed and vacancies). Since 2003, the number of the unemployed
registered in the Labour Exchange has gradually decreased. This trend is especially characteristic to the
construction sector as compared to other industries. According to the preliminary findings, in 2007 the
number of the unemployed should decline in all the activities of the construction sector, except for the rent of
construction or demolition equipment. The number of vacancies projected to rise in all the subsectors of the
construction sector (Figure 3.4.).
According to the preliminary findings, in 2007 the level of tension (ratio of vacancies to the unemployed) in
the construction sector accounted for 1,5 and was the highest in the country. Thus, the demand for workers
in the construction sector exceed the supply in a quantitative sense. The highest level of tension is
characteristic to the subsectors of site preparation, architecture and engineering, building installation and
rent of construction and demolition equipment.
Fig. 3.4. The number of unemployed and supply of vacancies in the construction sector
Unemplyed Vacancies
0
5000
10000
15000
20000
25000
2003
2004
2005
2006
(proj
ectio
n)
2007
(proj
ectio
n)20
0320
0420
05
2006
(proj
ectio
n)
2007
(proj
ectio
n)
RE
BC
BI
BC
SP
AR
52
The source – data developed by the Lithuanian Labour Exchange for the purpose of the study.
41
The level of tension in the construction sector by job groups is presented in Figure 3.5. It shows that the
problems of the shortage of the construction sector workers should include both persons who acquired
higher that secondary education and those who acquired lower than secondary education. The specialists‘
group is mostly lacking occupational safety specialists and architects. There is also lack of engineers of
engineering systems of buildings and civil engineers. Within the groups of skilled workers the shortage is
especially observed among roofers/whitesmiths and engine-drivers (cranes, hoists, excavators, pile drivers).
The demand for old crafts such as stove-making, straw-roofing, etc has been recently observed.
Fig. 3.5.Level of tension in the construction sector by job groups (2007 preliminary findings)
2,2 1,8 2,4 0,7Construction
Specialists and public servants Qualified workers and service workers
Equipment, machinery operators and assemblers Unqualified workers
Permissions (to foreigners) for working in Lithuania53
. The problem of the shortage of the construction sector
workers has been attempted to solve with the help of foreign workers. Permissions for working in the
construction sector were issued to 998 foreign citizens which is four times as much as in 2005. The
permissions were mostly issued to skilled workers and craftsmen (about 77% of the total number of workers
who were issued permissions). Despite the fact that current actual figures are rather small, the trend for
growth is obvious. With the shortage of workforce and rapid economic development, the influx of foreigners
issued permissions for working in Lithuania is expected to grow in the future.
3.5. Performance Indicators
Turnover. According to the official data, the turnover in the construction sector has been continually growing
over the recent five years (Figure 3.6). This trend is characteristic to all the subsectors. Faster growth of the
turnover is observed in RE and BC subsectors. Since 2002 till 2006, it has increased by 4,3 and 3,5 times
respectively. In other subsectors the growth of turnover within the given period was slower (from 1,6 to 2,6
times). It is noteworthy that though minor and small enterprises compose the major part in the construction
sector, their income are smaller than those of medium-sized and large enterprises. For example, in 2006 the
turnover of minor and small enterprises accounted for 29%, whereas that of the medium-sized and large
enterprises amounted to 71% of the total turnover in the construction sector. To date, according to the
turnover indicators the new construction is prevailant, though due to the outdated and energy-inefficient
dwelling houses dominating in Lithuania considerable future increase in the volume of reconstruction works
may be apparently observed.
53
Source – data developed by the Lithuanian Labour Exchange for the purpose of the study
Fig. 3.6. Changes in the turnover in the construction sector
0
1000000
2000000
3000000
4000000
5000000
6000000
7000000
8000000
9000000
10000000
2002 2003 2004 2005 2006
AR SP BC
BI BC RE
Productivity (turnover/number of workers). Figure 3.7 shows that productivity has increased in all the
subsectors of the construction sector since 2002 till 2006. This trend is especially explicit in large (250 and
more workers) enterprises, except for the architecture and building completion fields of activities where
higher degree of productivity was demonstrated by minor, small and medium-sized enterprises. It is also
obvious that the site preparation activity has the lowest degree of productivity as compared to other
subsectors of the construction sector (for example, the productivity of the SP sector in 2006 was half as
much as that in the BC sector). The latter information suggests that in the site preparation activities modern
technologies are exploited less intensively than in other construction sector industries. The fastest growth of
productivity within the given period was observed in the RE and BC subsectors. Over the last five years, it
increased by 3,5 and 2,3 times respectively, whereas in other subsectors the rate of growth ranged from 1,1
to 1,5 times.
Fig. 3.7. Changes in productivity (turnover/number of workers) in the construction sector.
0
10
20
30
40
50
60
70
80
90
100
2002 2003 2004 2005 2006
SP AR
BC BI
BC RE
As it has been already mentioned, the efficiency of the construction enterprises54 is lower than the respective
indicator of the entire economy. The latter is determined by modern technologies used by enterprises, proper
organisation or work and discipline. According to the Lithuanian experts, the efficiency of the construction
sector will be in essence determined in the nearest future by the increase of building assembling (application
54
Value added per one actually worked hour.
43
of tailor-made and finished constructions and elements), early planning of works and projects of construction
organisation and technologies.
Earnings. Figure 3.8 presents data on the changes in the average monthly gross55 earnings in the
construction sector subsectors. Over the last five years, earnings have been on the increase in all the
subsectors. As it has been already mentioned, earnings in the construction sector are among the highest in
the national economy. On the other hand, the provided data reflect great differences of earnings (up to 2
times) by subsectors. The lowest average monthly gross earnings are paid for the building completion
activities. In 2006, it was 1,7 times as lesser as the analogous national indicator. The most attractive salaries
and wages are paid for AR and BC activities, where in 2006 the average monthly gross earnings exceeded
the national indicator.
Fig. 3.8. Changes in (average monthly gross) earnings by subsectors
0
200400
600800
10001200
14001600
18002000
2002 2003 2004 2005 2006
AR SP BC
BI BC RE
According to EUROSTAT findings, in 2002 the average number of paid hours per month in the construction
sector of the European Union countries totalled 174 (in 25 EU countries), and it amounted to 183 hours in
Lithuania. The average length of vacation amounted to 16 days and 26 days per year hold respectively by
Lithuanian and EU workers of the construction sector. Whereas the average monthly gross sales and wages
totalled 2190 and 302 euros respectively in the 15 EU countries and Lithuania which is approximately 7
times as lesser. The information provided demonstrates that operating conditions in the construction sector
of other countries are more attractive than those of Lithuania. This may have negative influence on both the
search for new employees and retaining employees in the Lithuanian construction enterprises.
Share of the Gross Domestic Product (further - GDP). According to the available findings, the value added
created in the construction sector in 2006 amounted to 8,8% of the total GDP. The greatest share of the
value added structure by subsectors is made by the BC activity. Value added created by the latter increased
by 1,2 times over the last five years. According to the preliminary findings, in 2006 it accounted for 5,17% of
the total GDP. Share of the total GDP created in other subsectors does not exceed 1%.
3.6. Development Trends
Data on the changes in the number of enterprises and employees, turnover, productivity, earnings and share
of the GDP in the construction subsectors in the past and future projections are presented in Table 3.2. For
55
Pretax earnings.
44
making projections, regressive and autoregressive models, general trends of the development of Lithuanian
economy and historical statistical findings were used. According to the results, the projections are rather
optimistic: The turnover, productivity and earnings of the construction enterprises of all the subsectors will be
further growing, however, the growth rate of is likely to slow down. One of the reasons is the insufficient
resources of workforce. Therefore, other sources should be searched in order to ensure the production
development, for example, productivity which is presently rather low should be increased.
Table 3.2. Changes in the construction sector in the past and future projections
2002 2006. Alteration (by times)
Projection 2011.
Alteration (by times)
2002. 2006 Alteration (by times
Projection 2011
Alteration (by times
AR SP
Number of enterprises 412 1249 ����(3,03) 1145 ����(0,92) 53 131 ����(2,47) 158 ����(1,21)
Number of employees 7198 8860 ����(1,23) 9172 ����(1,04) 2138 3125 ����(1,46) 3344 ����(1,07)
Turnover (thousand, Litas)
460555 752480 ����(1,63) 1046842 ����(1,39) 68176 145844 ����(2,14) 173722 ����(1,19)
Productivity (turnover/number of employees)
64 85 ����(1,33) 114 ����(1,34) 32 47 ����(1,47) 53 ����(1,13)
Average monthly gross earnings
1278 1758 ����(1,38) 2829 ����(1,61) 983 1475 ����(1,50) 1810 ����(1,23)
Share of the GDP (%) 0,35 0,40 ����(1,14) 0,42 ����(1,05) 0,19 0,22 ����(1,16) 0,20 ����(0,91)
BC BI
Number of enterprises 1182 1980 ����(1,68) 2138 ����(1,08) 517 1013 ����(1,96) 1058 ����(1,04)
Number of employees 48435 72619 ����(1,50) 104221 ����(1,44) 8587 12508 ����(1,46) 12880 ����(1,03)
Turnover (thousand, Litas)
1940488 6758020 ����(3,48) 12077435 ����(1,79) 679981 1105450 ����(1,63) 1208656 ����(1,09)
Productivity (turnover/number of employees
40 93 ����(2,33) 100 ����(1,08) 79 88 ����(1,11) 94 ����(1,07)
Average monthly gross earnings
998 1670 ����(1,67) 2689 ����(1,61) 834 1312 ����(1,57) 2112 ����(1,61)
Share of the GDP (%) 4,23 5,17 ����(1,22) 6,16 ����(1,19) 0,75 0,89 ����(1,19) 0,76 ����(0,85)
BC RE
Number of enterprises 244 617 ����(2,53) 1000 ����(1,62) 22 45 ����(2,05) 43 ����(0,96)
Number of employees 5143 8794 ����(1,71) 11929 ����(1,36) 1013 1258 ����(1,24) 1236 ����(0,98)
Turnover (thousand, Litas)
210426 546697 ����(2,60) 898699 ����(1,64) 19750 85861 ����(4,35) 87052 ����(1,01)
Productivity (turnover/number of employees)
41 62 ����(1,51) 70 ����(1,13) 19,5 68,3 ����(3,50) 70,4 ����(1,03)
Average monthly gross earnings
642 863 ����(1,34) 1371 ����(1,59) 718 1057 ����(1,47) 1707 ����(1,61)
Share of the GDP (%) 0,45 0,63 ����(1,40) 0,71 ����(1,13) 0,09 0,09 = 0,07 ����(0,78)
���� - increase; ���� - decrease; = the same
3.7. Summary
• The construction sector is one of the most fastly developing Lithuanian industries over the recent five
years. The growth of the construction sector stimulates the growth of the production of building
materials as well as the demand for the services of sales, transportation and warehousing. Building
45
materials manufactured in Lithuania are popular enough in the markets of such EU countries as
Sweden, Norway, Germany and other. Panel houses, windows, etc are very marketable in other
countries. These products are purchased together with assembling services which makes favourable
preconditions for the development of Lithuanian construction services in the EU market. One of the
specific features of the construction sector is the dependency of works on the seasons. However,
due to the new materials and technologies available on the market, the impact of the seasons on the
construction works has diminished.
• The construction sector has 5035 enterprises of which 39% specialise in the field of buildings and
their parts construction. The sector mostly includes small and minor enterprises (the number of
workers does not exceed 9). From 2002 to 2006, the number of enterprises in the construction
sector more than doubled. The biggest concentration of the construction enterprises is represented
by Vilnius and Kaunas Counties. Such a situation was mostly determined by the uneven distribution
of investments in the territory of Lithuania. On the other hand, the construction enterprises are rather
mobile and tenders in the cities are often won by enterprises based in other places, mostly due to
the cheaper labour force.
• The construction sector employs approximately 107 thousand workers, of whom the major part is
employed in the subsector of the construction of buildings and their parts (about 68% of the total
number of workers employed in the construction sector). Over five years (2002-2006) the number of
employees of the construction sector gradually rose. The majority of workers are men (about 93,5%).
• According to the preliminary findings, in 2007 the level of tension (ratio of vacancies to the
unemployed) in the construction sector accounted for 1,5 and was the highest in the country. Thus,
the demand for workers in the construction sector exceed the supply. The shortage of workforce in
certain groups of jobs is especially relevant. For example, the specialists‘ group mostly lacks
occupational safety specialists and architects. There is also a lack for engineers of static engineering
systems and civil engineers. Within the skilled workers‘ group the shortage is especially observed
among roofers/whitesmiths and engine-drivers (cranes, hoists, excavators, pile drivers).
• In 2007, permissions for working in the construction sector were issued to 998 citizens of other
countries which is about 4 times more as compared to 2005. The majority of them consisted of
skilled workers and craftsmen (about 77% of all the permission-holders).
• Foreign trade balance in the construction sector is negative and deficit increased by approximately
1,7 time over the last four years. Value added created by the construction sector enterprises over
four years has increased by almost 97%, i.e. 24% per year on the average. The growth rate of the
production within the given period were approximately 1,6 times as greater as those of the entire
economy. Over the last five years, the turnover in the construction sector has been increasingly
rising. The efficiency56 of the construction enterprises rose from 18,7 Litas in 2004 to 23,4 Litas in
2006, it still remains lower than the respective indicator of the entire economy (26,8 Litas). The
average monthly gross earnings in the construction sector is among the highest in the country.
Nevertheless, great differences in earnings exist (twofold) by subsectors. The lowest average
monthly gross earnings are paid for the building completion activities. In 2006, it was 1,7 times as
lesser as the analogous national indicator.
56
Value added per one actually worked hour.
46
• The prospects of the construction sector development are considered as sufficiently positive. They
are associated with the demand for the construction of non-dwelling buildings (offices, logistics and
commercial premises); increase of efficiency; land reform; modern technologies; development of the
construction services related with the installation of Lithuanian products in the EU markets. On the
other hand, certain data of the recent years imply that the development of this activity will begin slow
down in the coming years. According to the EUROSTAT data, working conditions in the construction
sector are more attractive in the EU countries than those in Lithuania. This may exert negative
influence on both the search of new workers and retaining workers in Lithuanian construction
enterprises.
• The main factors which will have influence on the development of the construction sector in the
future include the increasing environmental requirements, energy saving necessity, changes in the
immovable property market, growing assortment of new building materials and technologies,
completion of the land reform, market internationalization and decreasing demand for workers (with
regard to the number and qualification).
47
4. CHARACTERISTICS OF THE CONSTRUCTION SECTOR BASED ON SURVEY FINDINGS
4.1. Introduction
This section provides the description of the construction sector on the basis of the survey findings. It
comprises the analysis of the trends of activity of construction sector enterprises and the demand for
workers.
Sample for the mail survey was has been drawn on the basis of the data from the Register of Legal Persons
and taking into consideration the prevailing type of economic activity (on the basis of the European
Communities Statistical classification of economic activities NACE) and the size of enterprise. A total of 1620
enterprises were selected. Respondents participating in the mail survey were asked to return the completed
questionnaires within a couple of weeks. Upon sending out the questionnaires, respondents were phoned for
reminding about the deadlines of returning the questionnaires. In order to ensure the sufficient rate of
returning the filled in questionnaires, the assumption was made that the greatest influence on the
development of the sector will be made by the results of medium-sized and large enterprises. Data on the
distribution of the return rate by the subsectors and the size of enterprises are provided in table 4.1.
Table 4.1. Distribution of the return rate of the responses by respondents by the size of enterprise
Number of employees
Number of enterprises that
were sent questionnaires
Return rate %
Up to 9 671 8%
From 10 to 49 571 20%
From 50 to 249 332 39%
250 and more 46 42%
Total 1620 20%
Interviews with respondents from the leader construction sector enterprises were conducted. The total of 10
enterprises from the construction sector were interviewed.
4.2. Performance Indicators
Enterprise characterisation. According to the findings of the sociological survey, the majority of enterprises
are established in the largest Lithuanian cities (about 63%). The sector is prevailed by „independent
economic entities“. The major part of them is comprised of the Lithuanian capital enterprises (96%). About
12% of the construction sector enterprises have their branches, the majority of them have one branch. About
6% of the respondents intend to establish new branches.
The answers provided by the respondents show that the geographical distribution of enterprises correspond
with the statistical data, i.e. the largest concentration of such enterprises is represented by Vilnius and
Kaunas Counties.
48
According to the available data, the construction enterprises own rather big premises (including
warehouses), especially in the BC subsector. The results are provided in Figure 4.1.
Fig. 4.1. Total area of premises that are owned by the construction sector enterprises (including warehouses)
0%
5%
10%
15%
20%
25%
30%
up to 100 m2 from 100 to500 m2
from 500 to1000 m2
from 1000 to5000 m2
from 5000 to10000 m2
more than10000 m2
Competition. In identifying the number of competitors in the market, respondents‘ responses by subsectors
diverged: The majority of the BC and BC enterprises chose the answer “many“, whereas the SP and RE
respondents mostly chose the answer „on the average“. On the basis of the provided responses, it may be
stated that the largest competition is exists among the BC and BC enterprises. The level of competition in
the architecture and building installation subsectors is lower than that in the BC and BC activities,
nevertheless, it is higher than that in the SP and RE fields. In assessing the advantages over competitors,
the most usually specified answer was the quality of works. Also, respondents hold that the competition is
conditioned by such important factors as the price of works, terms, experience, management, competition
and material facilities.
Changes in the market of products/services. Over the last 2 years, about 43% of the respondents introduced
new products and services. Most often this is associated with information technologies (for example, orders
entry by Internet, designing), quality systems, windows and doors production, rent of machines, heating
equipment, building management and maintenance systems. The lowest rate of introducing the new
products and services was observed in the SP subsector.
Changes in turnover. The assessment of the changes in turnover actually coincides in all the subsectors – in
2004, 2005 and 2006 (as compared to the last year) the turnover increased in all the construction sector
activities. These data correspond with the official statistical data. The growth, though not that fast, is
expected to take place in 2007. The distribution of responses demonstrates that the percentage of
enterprises that should retain their turnover the same in 2007 as it was in 2006 is increasing. The said
tendency is most obviously expressed in the site preparation subsector.
Business obstacles. Shortage of workers and taxation system were mentioned by the construction sector
respondents as the most serious obstacles of business. The problem of corruption, fierce competition and
lack of workers‘ competencies is acute in the architecture subsector, site preparation subsector and other
construction sector subsectors respectively.
49
Use of modern technologies. Modern technologies are used by about 93% and are planned to be used by
53% of the respondents of the construction sector. The most popular technologies used in the construction
sector are estimating system software. Installation, maintenance equipment, modern installation and
construction machinery and buildings and constructions development software also prevail. The latter is
used by the majority of the architectural enterprises. The most popular technologies that are planned to be
used include modern construction and installation machines and planning, optimisation and management
software. The information about presently-used and to be used in the future modern technologies are
presented in Figure 4.2.
Fig. 4.2. Distribution of respondents‘ responses about the presently-used and planned to be used modern technologies
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Building and construction computer-aided design software(AutoCAD, ArchiCAD, Staad, etc)
Geodesic, survey and control devices
Estimating software SES 2004, Sistela and other
Installation, maintenance devices
Modern construction and installation machines, other aids
Planning, optimisation and management software - MicrodoftOffice Project 2003
Other
presently-used
planned to be used
4.3. Employees
Employees. On the basis of the statistical data developed precisely for the study, the construction sector
employs approximately 107 thousand employees. The survey findings actually correspond to this number.
The number of people who work part-time compared to all the employees of the construction sector amounts
to 3%. It is noteworthy that the percentage of employees working part-time in the architecture activities is
larger by a several times than that in other construction sector subsectors.
Distribution of employees by the job groups. According to the sociological survey findings, the skilled
workers‘ group is the most numerous in the construction sector. It is noteworthy that the architectural
activities have a bit different distribution of workers by job groups than that in other subsectors of the
construction sector. The majority of the AR subsector consists of specialists and technicians. Detailed
distribution of workers by job groups in the construction sector and architectural activity is depicted in Figure
4.3.
Fig. 4.3. Distribution of employees by job groups.
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
CS
AR
executives
administration
specialists and technicians
skilled workers
unskilled workers
other workers
50
SS AR
Executives 9% 15%
Administration 8% 12%
Specialists and technicians 15% 65%
Skilled workers 57% 5%
Unskilled workers 9% 2%
Other workers 1% 1%
Skills. According to the findings of the surveys conducted by the Lithuanian Labour Exchange, the needs for
professional skills in the construction sector have been changing. Skilled workers are expected to have the
skills of communication and working with modern technologies and materials. The job group of specialists
should have the competence of accounting, designing and information systems management. There is an
growing tendency in the construction sector that a small brigade of specialists and workers must carry out all
the construction works. Therefore, workers, along with their basic qualification, will have to acquire certain
additional knowledge and skills related with other activity fields. For example, according to the findings of the
survey of the construction survey, director of a small enterprise (up to 10 people) usually performs the
function of a manager and engineer and a specialists normally performs the function of an engineer,
manager, electrician, architect, mason and other.
According to the respondents of the construction sector sociological survey, the executive and administration
staff are most of all lacking in general skills. They also point out the shortage of such skill as organisation of
works, decision-making, time planning and flexibility. Specialists technicians and workers should first and
foremost have practical skills. Respondents emphasised that specialists and technicians are lacking
knowledge on the state-of-the-art technologies, project management software and result-orientation.
Workers are lacking in knowledge and competence of working with new technologies and materials as well
as time planning skills. According to the respondents, all the job groups may be characterised by the
shortage of dutifulness, responsibility, situation management, inventiveness and inquisitiveness.
According to the construction sector experts, the educational system during the academic activities
emphasises for the youth general theoretical knowledge and devotes too little time and attention to practical
knowledge, modern decisions concerning production and real construction situation analysis. Employers do
not consider young people with such educational background as solid specialists because they lack special
knowledge, experience and qualification. The interview results witness that the theoretical knowledge of
study programme are outdated, insufficient attention is paid to the quality of specialist training and poor
development of practical training and education. They suggest that planning of the admission to higher
educational institutions should be improved by decreasing the number of students at higher educational
institutions. The programmes should be more focused on new technologies and training of practical skills the
content of which should be more in line with the realia of the construction sector. The young people‘s
motivation to study well is also an important element for the process of improving education/studies.
In future, the growth of the use of automation tools and increase of the need for the brigades of really skilled
workers will be observed. The era of prefabrication is approaching where the duration of the whole building
will be as few as a couple of months rather than 1-2 years. Therefore, advance organisation of works,
51
technological designing and construction planning competencies will be especially relevant. With the fast
growth of the rate of computerisation and automation, competencies of robot management and work with
automation programmes will become increasingly relevant. Due to the growing globalisation, the command
of foreign languages will be an advantage (especially English) because the further communication among
the construction sector shareholders from different countries will take place on the Internet.
Staff training. 80% of the construction sector respondents organise training for their employees. Usually, they
arrange on-the-job training or training at state and more rarely at private schools. In 2006, about 51% of the
respondents earmarked funds for the training (usually up to 1% of the turnover). The basic problems related
with the training of construction sector workers are associated with the supply of training courses which does
not satisfy the demand as well as costs. The place and facilities for training was also often mentioned as a
problem because they do not meet the nowadays requirements.
Staff turnover. Staff turnover in the construction sector is rather great and amounts to approximately 35%.
Information provided in Table 4.2 shows that the greatest turnover in 2006 was observed in the unskilled
workers‘ group. One of the reasons is the dependency of construction works on the seasons. The turnover in
the specialists and technicians‘ group reaches 23% and that in the skilled workers‘ group accounts for 32%.
The lowest staff turnover is observed among the executives and administration staff. According to the
interview findings, the majority of the workers who resigned remain in the construction sector – they are
employed by other construction enterprises. Over the coming two years, about 71% of the construction
sector respondents are going to employ workers. The growth of the number of employees is expected in
actually all the job groups, except for unskilled workers.
Table 4.2. Turnover of the construction sector workers by the job groups
Job groups turnover CS
Executives 5%
Administration 9%
Specialists and technicians 23%
Skilled workers 32%
Unskilled workers 134%
Other workers 31%
4.4. Forecast of Demand for Employees in the Future
Forecasts on the demand for the production sector workers in the construction sector by the job groups have
been made on the basis of the evaluation of the sector development and staff turnover. It should be noticed
that according to the survey findings the growth of the number of workers is slower that that projected on the
basis of statistical data. This may be explained by the fact that sector surveys are usually participated by
more active and responsive to the market changes enterprises the answers of whom display future trends.
Whereas the basis of the statistical forecasts is composed of the data reflecting the past. In assessing the
demand for workers, two reasons of turnover were identified:
52
• some workers who resign leave the market for ever (for example, they retire on a pension). In order
to establish the number of such workers it was assumed that every tenth worker aged 55 years or
older resigns the office in such a way. According to the findings of the residents‘ employment survey,
in 2006 the number of such workers in the construction sector accounted for 10,3%. The implication
is that about 1% of workers within each job group leave the sector for ever.
• Other workers remain in the market. Thus, they have two possibilities – to be employed in any other
enterprise in the same sector or to be employed in any other economic sector. With a view to
establishing the number of the latter, two assumptions are made: (1) the share of workers who leave
the sector is directly proportional to the intensity of turnover; (2) where workers of certain
professional groups change their job yearly on the average, the probability that by changing their job
they will change the sector is 50%.
The forecasts made on the basis of the survey findings are presented in Table 4.3. Forecasts have not been
made by subsectors due to too little statistical information.
Table 4.3. Forecasts about the demand for workers for the coming five years.
Job groups Number of workers, 2006
Development for the coming 5 years
Yearly turnover
The sector is left within 5 years by
Demand for new workers in the coming 5 years*
Demand for new workers in the coming 1 years**
Executives 9017 1823 5% 496 2300 460
Administration 8412 2694 9% 572 3300 660
Specialists and technicians 15011 7169 23% 2649 9800 1900
Skilled workers 57844 9038 32% 17238 26300 5300
Unskilled workers 9011 -62 134% 40599 40500 8100
Other workers 1429 861 31% 404 1300 260
Total 100724 21523
*Rounded up figures (descending)
Table 4.4 presents annual forecasts about the need for training/studies for the period of five years which
have been calculated on the basis of the sector development and rate of changing employees. The rate has
been assessed taking into consideration the structure of the sector employees by age. The five-year-rate of
changing the construction sector workers totals 1% of the employed. The difference between the annual
demand for new workers and projected need of the training/studies for one year shows the annual need of
the continuing training (qualification improvement or retraining). The latter accounts for about 300 and almost
3 thousand worker per year within the specialists‘ and technicians‘ group and the skilled workers‘ group
respectively.
53
Table 4.4. Forecast about the demand for training/studies for the period of 5 years
Job groups Number of workers, 2006
Development for the coming 5 years
Changing rate for the period of 5 years
Need of training/studies for the period of 1 year
Executives 9017 1823 451 450
Administration 8412 2694 421 620
Specialists and technicians 15011 7169 751 1600
Skilled workers 57844 9038 2892 2400
Unskilled workers 9011 -62 451 80
Other workers 1429 861 72 190
Total 100724 21523
* Rounded up figures (descending)
4.5. Summary
• The construction sector is dominated by „independent economic entities“. The major part of them is
comprised of the Lithuanian capital enterprises. The majority of enterprises became operable
between 1990 and 1995. Later, the establishment of new enterprises slowed down.
• The most fierce competition is observed in the buildings an their parts completion and construction
completion activities. The quality of the construction works is considered to be the most important
factor of competitiveness.
• The market of products/services enlarged in 2006. Turnover grew in all the subsectors of the
construction sector, however, in 2007 the rate of its growth should decrease.
• The most important hindrances to business are as follows: shortage of workers and taxation system.
The problem of corruption, fierce competition and lack of workers‘ competencies is acute in the
architecture subsector, site preparation subsector and other construction sector subsectors
respectively.
• The majority of the construction sector enterprises use modern technologies. The installation of
modern technologies should take place in future as well. Estimating software is among the most
popular technologies used in the construction sector. Installation and maintenance gears, modern
construction and installation machines and buildings and constructions development software are
also popular. The latter is used by the majority of architectural enterprises. The most popular
technologies that are planned to be used include modern construction and installation machines and
planning, optimisation and management software.
• The construction sector employs approximately 107 thousand workers. The number of people who
work part-time of all the employees of the construction sector amounts to 3%. By the job groups, the
most numerous group is that of skilled workers. The majority of employees in the architecture
subsector is made of specialists and technicians.
• The construction sector workforce lacks dutifulness, responsibility, situation management,
inventiveness and inquisitiveness skills. Specialists, technicians and skilled workers are lacking in
practical skills. Knowledge on state-of-the-art technologies and materials and skills at working with
them as well as competencies of project management and time planning are also relevant. The
managers and administration staff are lacking most of all in general skills. Also, there is a shortage of
54
such skill as work organisation, decision-making, time planning and flexibility. The majority of the
construction sector enterprises arrange training for their employees. Usually, they arrange on-the-job
training or training at state and more rarely at private schools.
• Turnover of employees in the construction sector i.e. rather large and amounts to 35%. The largest
turnover is observed in the unskilled workers‘ group where almost all the workers change in the
course of the year. Turnover of workers totals 23% and 32% in the specialists‘ and technicians‘
group and in the skilled workers‘ group respectively. The lowest turnover of workers is observed
among the management and administration specialists. The majority of the sector enterprises intend
to employ new workers over the coming two years.
• Over the coming five years, the need of employees in the construction sector will grow. This will
affect all the job groups, except for unskilled workers. The number of unskilled workers should
slightly diminish. The annual need for the new workers will account for more than 10 thousand
people. The greatest demand will be for the workmen.
• The construction sector is a rather inert industry, therefore, the majority of professions are classic
(for instance, masons, decorators) and eventually are almost not subject to change. However, the
development of the supply of new technologies and materials, increasing level of the automation of
activities and growing globalisation determine the need for new skills. In future, works organisation,
technological design and construction planning skills as well as competencies of robot management
and work with automation programmes and command of foreign languages will be especially
relevant for successful development of the construction sector.
55
5. SUPPLY OF EMPLOYEES
5.1. Introduction
This section presents brief information about education and job groups as well as tendencies of the supply of
workers in the construction sector. The supply of workers is considered as an output of education, i.e. how
many workers are trained and what qualification are they acquiring. The main data comprise the criteria of
admission, graduation, education and/or qualification acquired. The analysis was carried out on the basis of
the statistical data developed for the purpose of the study, available information about education/training
programmes and the findings of surveys about placement of graduates of vocational schools.
5.2. Education and Job Groups
Educational achievements are best of all characterised by the competence57. In order to acquire a certain
qualification, it is necessary to have an appropriate basic education58. The levels of education in Lithuania
are determined by the structure of the educational system. The educational system enables a person to
acquire the primary, basic, secondary, post-secondary and higher education. In compliance with the Law on
Vocational Education and Training, of the Republic of Lithuania (new version)59, qualification is based on
competencies60 which is comprised of knowledge, skills and values. Qualification or individual competencies
are legalised by means of certain documents provided for by the Law on Vocational Education and Training
and the Law on Higher Education of the Republic of Lithuania61. Qualification is the result of formalisation of
formal education62 or otherwise acquired educational achievements. On the basis of their content,
training/study programmes are grouped by the educational fields („Lithuanian Education Qualification“).
Vocational education may be primary and continuing. Primary education enables to acquire the first
qualification and the continuing education allows to improve the qualification acquired or to acquire another
qualification. The study deals with one of the parts of the continuing vocational education – Education of the
Unemployed.
Presently, the primary vocational education is implemented within the framework of four-staged programmes:
I stage – persons without a basic education are admitted to studies based on the first stage
programmes. In order to acquire the basic education, one should study for 2 or 3 years. Upon
the completion of studies based on these programmes, a qualification certificate is issued.
II stage – persons who acquired basic education and wish to acquire a vocational qualification
only are admitted to the studies based on the second stage programmes. The length of
57 Qualification – ability and right to engage in a certain professional activity, as recognised according to a procedure
prescribed in law or in legislative acts of the Government or its authorised institution.. Law on Education of the
Republic of Lithuania. 58
Education level – competence, knowledge, skills, abilities and values, demonstrating a particular level of personal
development, attainment thereof is recognised according to a procedure prescribed by the Government or its authorised
institution.. Law on Education of the Republic of Lithuania. 59
New version of the law was adopted in 2007 and has been in force since 1 January 2008. 60
Competence – ability to perform a certain activity on the basis of the entirety of acquired knowledge, skills, abilities
and values. Law on Education of the Republic of Lithuania 61
Paragraph 3 Article 39 of the Law on Education of the Republic of Lithuania (the new version has been in force since
28 June 2003). 62
Formal education – education implemented according to programs confirmed in accordance with a procedure
prescribed by the Government or its authorised institution, the completion of which results in the attainment of a
primary, basic, secondary, post-secondary or higher education level and/or a qualification. Law on Education of the
Republic of Lithuania.
56
education is two years. Upon the completion of studies based on these programmes, a
vocational educational diploma is issued.
III stage - persons who acquired basic education and wish to acquire a vocational qualification
and general secondary education are admitted to the studies based on the third stage
programmes. The length of the programmes is three years. Upon the completion of these
programmes, vocational educational diploma is issued.
IV stage - persons who acquired secondary education are admitted to the studies based on
the fourth stage programmes. The length of the programmes is 1-2 years. Upon the
completion of these programmes, vocational educational diploma is issued.
Higher education university studies are oriented towards academic activities and non-university studies are
targeted to utilitarian activities.
In the case of working activity, the main variable is a job, i.e. a collection of functions for the performance of
which earnings are paid. For the performance of these functions, one should have a certain education and a
number of appropriate skills. Therefore, a job may be expressed through education and skills. In order to
group the jobs, ISCO63 or SOC
64 classifications are most often used. These two classifications are
intercompatible. On the basis of ISCO65, the „Lithuanian Classification of Professions“ is developed
(profession is related with the work actually carried out by a worker) with the help of which various statistical
data are collected.
This study analyses the supply of workers by comparing the data on education and jobs on the basis of the
bellow-provided Chart (Figure 5.1).
Fig. 5.1. Employee supply assessment scheme
63 International standard classification of occupations 64 International standard classification of occupations 65
International standard classification of occupations
Initial vocational education and training
Higher education (university and non-university)
Education and training of the unemployeed
1 2 3 4 stages
Plant and machine operators and assemblers
job groups
Education
Service workers and shop and market sales workers
Skilled agricultural and fishery workers
Craft and related trades workers
Professionals Technicians and asociate professionals
Clerks
57
5.3. Supply of Employees by Areas of Education and Level of Education
The analysis about the changes in the employment by job groups shows that from 2004 to 2006 the Group of
skilled agricultural and fishery workers decreased most considerably, whereas the Group of Legislators,
senior public officials and managers of enterprises, institutions, organisations, etc. increased. In 2006, the
share of specialists (including servants) in the employment structure accounted for a little bit less than 30%
and the share of workmen amounted to approximately 60%. (Table 5.1).
Table 5.1. Structure of the employment by the job groups
Change from 2004 to 2006
Job groups 2006 m.
19% ���� Legislators, senior officials and managers 9%
7% ���� Professionals 17%
5% ���� Technicians and asociate professionals 9%
4% ���� Clerks 4%
29,5%
13% ���� Service workers and shop and market sales workers 13%
-27% ���� Skilled agricultural and fishery workers 9%
12% ���� Craft and related trades workers 19%
9% ���� Plant and machine operators and assemblers 10%
50,8%
4% ���� Elementary occupations 11% 10.7%
-8% ���� Armed forces (hired workers) 0%
���� - increase; ���� - decrease
According to the available data, 19913 young people were admitted to the vocational education and training
programmes in 2006, i.e. by 3% less than in 2005. The demand for the higher education bachelor studies
increased a bit in 2006 - 47240 students were admitted, i.e. by 2% more than in 2005. Among those who
chose vocational education and training, the most popular was Business and administration and Engineering
and engineering professions education fields and among those who chose higher education the most
popular was Business and administration education field. The same tendencies were actually prevalent in
2005. Detailed data about the distribution of the admitted young people by education fields are presented in
Figure 5.2.
The distribution of the numbers of graduates coincides with the admission structure, the number of young
people who graduated Business and administration field training/study programmes is dominant and the
number of those who graduated vocational training programmes is more than twofold less as compared to
that of the number of graduates from higher education institutions. It is noteworthy that the number of
graduates from vocational training programmes in 2006 was less by 11 than that in 2005. The number of
higher education graduated grew over this period by about 12%.
The provided data show that though the employment of the workmen group in the market is twofold larger as
that of the specialists (including public servants), the data about the admission to train/study witnesses that
58
the number of young people in vocational education is twice as less than that of young people who chose
higher education studies. This has an impact on the proportions of graduates of vocational education and
higher education. Therefore, the gap between the supply of and demand for workers may widen even more
and give rise to serious problems related with business development.
Fig. 5.2. The distribution of the number of young people admitted to train/study in 2006 by educational fields
0% 10% 20% 30% 40% 50% 60%
personal skillsteacher training and pedagogics
arthumanitarian sciences
social and behaviour sciencesjournalism and information
business and administrationlaw
natural sciencesphysical sciences
mathematics and statisticscomputer sciences
engineering and engineering professionsproduction and processing
architekture and constructionagriculture, forestry, fishery
veterinaryhealth care
social servicespersonal services
transportation servicesenvironment
safety services
vocational higher
5.4. Supply of Employees for the Construction Sector
In implementing an training/study programme, workers are usually trained for a certain group of activities
rather than for a specific and well-defined job. Whereas activities of different economic sectors overlap. For
the performance of certain construction sector works the relevant competences may be also found in the
field of agriculture, geodesy, energetic and land management. Therefore, it is rather problematic to name
which programmes are intended for training of workers of the given sector because graduates of each
programme may normally be employed by enterprises which belong to several economic sectors. Thus, the
examination of the supply of workers was based on the review of all the programmes the graduates of which
could work in the construction sector. These programmes were grouped into two groups on the basis of the
information provided in the AIKOS system about the programmes:
• First group is comprised of the programmes focused on the acquisition of the competencies
relevant for the construction sector. In the context of the survey it was assumed that the majority of
graduates of these programmes are employed by the enterprises of the construction sector.
• Second group programmes are largely oriented to the acquisition of competencies relevant to other
sectors. The majority of graduates of these programmes should be employed in other sectors and
only a small part of them should be employed in the construction sector. For example, woodworkers
are trained to work in the timber industry but it is only obvious that he may apply his competencies in
the construction sector enterprises as well.
5.4.1. Supply of Skilled Workers (including operators) for the Construction Sector
Having selected the primary vocational education programmes relevant to the construction sector according
to the above-described method from all the vocational schools which provide such programmes, the
information was collected about the number of graduates and their employment rate in 2007. The survey
findings are presented in Table 5.2. Findings about the employment are general. The responses provided by
the vocational schools shows that 69% of graduates are employed after graduation. The remaining 31%
serve in the army, study, go to other countries, etc. Vocational schools did not have any detailed information
about what kind of economical sector enterprises employed the graduates.
Table 5.2. Primary vocational education and training programmes of the construction sector and the number of graduates *
2006 graduates Primary vocational education and training programme
Total Employed
Supply of workers for the construction sector
Decorator (constructor) 669 462
Joiners 7 5
Road constructor** 0 0
Mason and concrete layer 45 31
Building restorer 76 52
Building heat insulators** 0 0
Building engineering system installer 13 9
Plumbers 51 35
I group
Mason and plasterer of walls and stoves 26 18
612
Municipal economy worker 46 32
Melioration worker 19 13
Woodworker 395 273 II group
Construction business services supplier 237 163
481
*The specified programmes are briefly described in Annex 1. **Students were admitted to study under this programme in 2006.
The roofer training programme is also registered in the Register of Study and Education Programmes which
is not specified in Table 5.2 because in 2005 – 2006 training under this programme was not provided. One of
the reasons is the fact that this programme is not very popular among young people.
The construction sector workers are also trained under the labour market vocational training programmes
included into the Register of Study and Education Programmes. According to the available information, there
are 43 labour market vocational training programmes. Under these programmes the length of training ranges
from 1 to 30 weeks. Having graduated these programmes, persons acquire the skills of concrete laying,
masonry, plastering, painting, installation, construction machine operating (operators), etc. According to the
information provided by the Lithuanian Labour Market Training Authority, from 2003 to 2006 15870 persons
were trained for construction sector, i.e. 4,5 thousand of persons annually on the average. Besides, there are
quite a lot of non-formal training programmes for the acquisition of competencies relevant to the construction
sector. For example, the Register of Study and Education Programmes (http://www.ldrmt.lt/mod/nf_reg/)
60
includes several such programmes. Unfortunately, information about the graduates who graduated from
continuing vocational training programmes are not systematically collected and therefore the assessment of
quantitative supply has not been performed.
5.4.2. Supply of Specialists and Technicians for the Construction Sector
There is quite a great number of non-university and university study programmes of higher education for
training specialists of the construction (Table 5.3). According to the available data, in 2006 more than 2000
young people were admitted to study under the construction sector field programmes. In 2006, the
programmes specified in Table 5.3 were graduated by 1320 persons, of whom graduated from the first level
of the study. The possibility of evaluating the chances of employment are very limited because only a small
part of the higher education institutions study the further career of their students. According to their
information, about 70% of graduates are employed on the average. For the purpose of assessing the supply,
the number of graduates from the master‘s study programmes was not included as on the one hand the
majority of those studying for the master‘s degree are already employed and on the other hand only those
who have already acquired bachelor‘s degree are admitted to study for the master‘s degree and those who
have acquired bachelor‘s degree were included in making the assessment of the supply. The overall
assessment shows that the supply of specialists for the construction sector in 2006 totalled 718 persons.
Table 5.3. Higher education study programmes for the specialists of the construction sector*
Graduates, 2006 Primary vocational training programme
Total Employed
Supply of specialists and technicians for the construction sector
Construction 224 157
Building engineering systems 38 27
Hydrotechnics 19 13 Non-university studies
Road construction 51 36
233
Architecture 134 94
Energetics and transport construction 10 7
Hydrotechnics engineering 56 39
Road and railway engineering 31 22
Urban engineering 37 26
Urban and road engineering 35 25
Building engineering systems 15 11
Civil engineering 271 190
Construction products and technologies 38 27
Building materials and articles 8 6
Construction management 31 22
University bachelor studies
Building energetics 28 20
485
718
Architecture 56
Civil engineering 45
Geotechnics 9
Master‘s studies
Interior architecture 0
29 4
61
Town and country planning 8
Building architecture 11
Building engineering systems 11
Building constructions 23
Construction 42
Construction engineering 15
Building materials and articles 17
Construction management 57
* Brief description of the specified qualifications are provided in Annex 2
5.5. Summary
Forecasts about the demand for the construction sector employees by job groups has been based on the
assessment of the sector development and staff turnover (see Section 4.4). The survey is based on the
assumption that the demand for employees caused by the sector development and workers who leave the
labour market because of age and other reasons should be satisfied by the primary vocational training
system. The demand and supply of workers in the construction sector is provided in Table 5.4. The demand
and supply was calculated on the basis of the information provided in Tables 5.2, 5.3 and 4.4.
Table 5.4. Demand for employees and supply of primary vocational training and higher education in the construction sector by job groups where the shortage of employees is established
Job groups Demand for new employees for the period f 1 year
Need of the primary training*
Annual supply (according to the 2006 findings)
Evaluation of the balance of the demand and supply
Specialists and technicians
1900 1600 about 718 Negative
Skilled workers 5300 2400 about 612 Negative
* New employees who will have to change those leaving the labour market and compensate the needs of workers related with the development of the sector
According to the sociological survey findings (Table 4.3), in 2006 the number of skilled workers employed in
the construction sector was larger almost by four times that that of specialists and technicians. According to
the 2006 findings, however, the number of persons admitted to study under the construction sector
programmes and the number of graduates from these programmes show the opposite trends: 1) the number
of young people admitted to study under the higher education programmes is slightly smaller than that of the
young people admitted under the primary vocational training programmes (approximately 2064 and 2689
respectively), (2) the number of higher education institutions graduates is slightly larger than that of the
number of graduates from the primary vocational training programmes (Tables 5.2 and 5.3). Therefore, in
future the gap between the supply of and demand for workers may widen even more and cause serious
problems to the development of business.
According to the survey findings, both the primary vocational training and higher education so far have been
satisfying approximately 50% of the construction sector needs related with employees. On the other hand, in
2006 the number of persons admitted to study under the study/training programmes of architecture and
construction field was larger by 1,4 times than that of persons admitted to these programmes in 2003. Such
62
situation was largely determined by the increase of earnings in the construction sector. Therefore, it is likely
that with the decrease of the sector development and further improvement of operating conditions and
productivity, the gap between the supply of and demand for workers in the construction sector should
considerably diminish over the coming five years.
The continuing training is faced by the same demand – about 300 specialists and technicians and
approximately 3000 skilled workers must be trained within the period of one year. The construction sector
also encounters the great demand for unskilled workers – about 8000 per year. This demand is partly
satisfied by the training of the unemployed. However, according to the sociological survey findings (see
Section 4.2.), the major part of the demand for workers is compensated by enterprises themselves by
arranging on-the-job training and training in training institutions
63
6. RECOMMENDATIONS
Recommendations on the narrowing the gap between the supply of and demand for workers in the
construction sector
• Based on the analysis carried out, shortage of manpower, especially of skilled workers, poses a primal
significant threat on the successful development of economy. Skilled workers are usually trained in
vocational education and training institutions. On the other hand while employment in skilled workers job
group doubles employment in professionals (including clerks) jobs group in the real labour market,
enrolment data presents a reverse picture with number of youth choosing VET being twice lower than
those entering higher education. This has impact on share of graduates from VET and higher education.
Therefore discrepancy between supply and demand of employees is likely to increase in all sectors and
to cause severe problems for the development of business. Taking into account said above it is
recommended to change requirements for the admission to higher education institutions, i.e. to define
requirements of VET background and work experience for certain study programmes, e.g. business and
administration. This measure should help to regulate employees supply, facilitate planning of enrolment
to study/ training programmes and should improve quality of studies in general.
• Amendment of the Law on Vocational Education and Training (2007) establishes apprenticeship as a
new vocational education and training organisation form when training is carried out at the workplace:
company, institution, organisation, farm or is executed by a free lance teacher‘s. Theoretical training may
be carried out in the VET institution or other school. With regard to the experience of other countries the
advantages of apprenticeship are related to lower training costs and work with modern technologies.
Therefore, the companies having used these opportunities would train the employees according to their
needs and at the same time would increase VET attractiveness. In the long term this would have a
positive influence on the workers supply.
• Change of skills in job places groups in the construction sector will be influenced by increase of
environmental requirements, need for energy saving and labour market internationalisation. Enterprises
wish to increase labour productivity by automation of work process and usage of new construction
materials and technologies. In future, works organisation, technological design and construction planning
skills as well as competencies of robot management and work with automation programmes and
command of foreign languages will be especially relevant for the successful development of the
construction sector. Construction enterprises regard the quality of works as the main advantage over
competitors. Therefore it is very likely that requirements for study/ training quality will rapidly increase.
Lack of practical skills is already emphasised for professionals, technicians and skilled workers.
Knowledge on modern technologies and materials as well as skills to work with them, competences of
project management and time planning are also relevant. The managers and administration staff are
lacking most of all in general skills. Also, there is a shortage of such skills as work organisation, decision-
making, time planning and flexibility. Therefore in order to ensure relevant qualification of workers it is
necessary to update study/ training programmes in accordance with identified skill needs with a special
focus on new technologies and practical skills development. It is also recommended to speed up process
of improving study/ training quality by designing specific measures (including modernisation of practical
training basis) and foreseeing resources for their implementation.
64
• Based on analysis carried out in construction sector, there is a large demand for continuing training
services whisch is caused by staff turnover and factors mentioned above. This demand is supplied by
on-the-ob-training or training in education institutions. The basic problems related with the training of
construction sector workers are associated with the supply of training courses which does not satisfy the
demand as well as costs, the place and facilities for training (they do not meet the nowadays
requirements). Therefore qualification of current employees should be improved by organising
presentations of new materials, practical seminars, study visits in other enterprises as well as abroad. In
addition, offer of qualification development courses should be updated by offering specific training
courses. These courses should focus on exclusive, unusual situations, problems and challenges in
construction projects and should provide practical solutions. As a consequence, employees qualification
would correspond requirements and they would have opportunities for continuous development.
• In the situation of huge lack of construction workers and insufficient training capacities to satisfy needs of
the sector both in quantity and quality terms, cooperation between employers and training providers
should be strengthened. Cooperation should be facilitated by applying such measures as joint meetings,
site visits, career days, curricula development, practical training and etc. Based on opinion of interview
respondents a connecting link might be Lithuanian Builders Association. Bilateral information flows
should be also improved, e.g. when preparing targeted information about training of employees and
changes in the construction market. This would help to detail requirements for curricula content and
expand possibilities for training of construction workers.
65
REFERENCES
1. Department of Statistics - ISSN 1648-5106 – Financial indicators of enterprises 2005 I-IV Vilnius
2006 2. Department of Economic Analysis of the Governemnt of the Republic of Lithuania – CERTIFICATE
Overview of the main economic sectors (statistics on non-financial enterprises)¹ 2005, http://www.lrv.lt
3. Department of Statistics - ISSN 1392-2874 –SOCIAL AND ECONOMIC DEVELOPMENT IN LITHUANIA 2005/5 Economic and Social Development in Lithuania, Vilnius 2006
4. Department of Statistics ISSN 1648-5157 – Darbo j÷ga, užimtumas, nedarbas / Labour Force, Employment and Unemployment 1999- 2004, Vilnius 2006
5. Daily “Verslo žinios“ special supplement “Top 1000 Largest Lithuanian Enterprises“ 2006 July 6. Department of Statistics - ISBN 9955-588-88-8 / UDK 331 2(4) Da 305 –Structure of Earnings in the
European Union countries 2002 / Structure of earnings in the European Union countries, Vilnius 2005
7. Eurostat News release 75/2006 – 9 June 2006. First quarter 2006 compared to fourth quarter 2005. Production in the construction sector down by 1,3% in the euro area. Down by 0,8% the EU25.
8. Department of Statistics - ISSN 9955-588-90-X, International Migration of Lithuanian citizens 2005 m., Vilnius 2006
9. Primary vocational training system in Lithuania Detailed thematic report developed by the Methodological Centre for Vocational Education and Training on the basis of the structure of the European Centre for the Development of Vocational training (Cedefop), 2005.
10. Vocational training system in Lithuania. General report developed by the Methodological Centre for Vocational Education and Training on the basis of the structure of the European Centre for the Development of Vocational training (Cedefop), 2005.
11. Quarterly panorama of European business statistics. Luxembourg: Office for official publications of Eurpean Communities, 2006
12. An assessment of skill needs in construction and related industries. Skills dialogue. Business strategies limited. 192 Vauxhall Bridge Road, London.
13. Dalius Viršilas. Statybos projektų valdymo ypatumai. 2006 m., http://verslas.banga.lt 14. E. K. Zavadskas, A. Kaklauskas, A. Banaitis. Development Startegy of the Construction Sector. 15. Eurostat, http://epp.eurostat.ec.europa.eu 16. Lithuanian construction market is aimed by Polish. BNS. 4 September 2006, http://www.delfi.lt 17. Jurgita Jakimavičiūt÷. Vocational schools – a platform to further studies, daily “Panev÷žio balsas“, 21
August 2006. 18. Law on the Amendment of the Law on Construction of the Republic of Lithuania, 8 November 2001.
No. IX-583, Vilnius 19. Law on Territorial Planning of the Republic of Lithuania, 1995 m. gruodžio 12 d. Nr. I-1120, Vilnius 20. Lithuanian Department of Statistics , http://www.std.lt 21. Lithuanian constructors left for Scandinavia. BNS. 4 September 2006, http://www.delfi.lt 22. Lithuanian Economic Development till 2015 Long-Term Startegy. Ministry of Economy of the
Republic of Lithuania. Lithuanian Science Academy. Vilnius, 2002. 23. Lina Navickait÷. Lithuanian emigrants are replaced by foreigners. “Kauno diena“, 17 August 2006. 24. MoneyCafe.com, 28 September 2006., http://www.moneycafe.com/library/libor.htm 25. Meeting on the issues of providing vocational training to construction workers. Lithuanian
Association of Constructors. 9 February 2006., Kaunas. http://www.statybininkai.lt 26. Vocational training will be more related with the labour market needs. 23 August 2006,
http://www.delfi.lt 27. Profit of the construction sector grew by 70%. “Jūsų tarpininkas“, 21 April 2006., http://www.delfi.lt 28. The demand for and use of skills in the modern economy. A briefing by professor Francis Green.
Futureskills Scotland. 29. Vigantas Danilavičius. Constructions are impeded by the deficit. “Klaip÷da“, 21 August 2006. 30. Internet references: http://epp.eurostat.ec.europa.eu/portal/, http://www.lrv.lt/, http://www.std.lt/,
http://www.statyba.lt/, http://www.arch.lt/, http://www.lsm.lt
ANNEX 1
SS sektoriaus darbininkų (operatorių) įgyjamų kompetencijų ir geb÷jimų aprašai pagal pirminio profesinio mokymo programas
Apdailininko (statybininko)
Dailid÷s
Kelių statytojo
Mūrininko betonuotojo
Kompetencijos ir
geb÷jimai
Saug
iai d
irbti.
Pa
rinkt
i sta
tybo
s m
edži
agas
. M
ontu
oti p
alyp
÷jim
o įra
ngą.
M
ūryt
i nes
ud÷t
inga
s ko
nstru
kcija
s.
Apdi
rbti
med
ieną
rank
inia
is įr
anki
ais.
Įre
ngti
beto
ninį
pag
rindą
. Sk
aity
ti da
rbo
br÷ž
iniu
s.
Apši
ltint
i pas
tatą
term
oizo
liaci
n÷m
is
plok
št÷m
is.
Tink
uoti
rank
iniu
ir m
echa
nizu
otu
būdu
. Kl
oti p
lyte
les
ant h
oriz
onta
lių ir
ver
tikal
ių
pavi
ršių
. D
ažyt
i ran
kini
u ir
mec
hani
zuot
u bū
du.
Kliju
oti a
pmuš
alus
. Tv
irtin
ti gi
pso
karto
no p
lokš
tes.
M
ontu
oti a
pdai
los
plok
štes
ir ti
esin
ius
elem
entu
s.
Pa
ruoš
ti m
edie
ną a
pdirb
imui
. M
atuo
ti žy
m÷t
i med
ieną
. At
likti
rank
inio
med
ieno
s ap
dirb
imo
oper
acija
s.
Dirb
ti ra
nkin
iais
ele
ktrin
iais
med
ieno
s ap
dirb
imo
įrank
iais
. D
irbti
mec
hani
zuot
o m
edie
nos
apdi
rbim
o st
akl÷
mis
ir įr
engi
mai
s.
Skai
tyti
darb
o br
÷žin
ius.
Įre
ngti
verti
kalia
s pa
talp
ų in
terje
ro d
alis
. Sk
aity
ti rę
stin
ių p
asta
tų s
taty
bos
br÷ž
iniu
s.
Stat
yti r
ęstin
ius
past
atus
. Ži
noti
past
atų
tipus
, kon
stru
kcin
es
sche
mas
ir p
agrin
dini
us e
lem
entu
s.
Stat
yti m
edin
ius
past
atus
. M
ūryt
i ir b
eton
uoti
past
ato
kons
trukc
ijas.
M
ontu
oti m
edin
es s
togo
kon
stru
kcija
s.
Apsk
aiči
uoti
med
žiag
as.
Apši
ltint
i pas
tatu
s.
Med
inių
gam
inių
mon
tavi
mas
. N
usta
tyti
defe
ktus
. Pa
rinkt
i gam
inių
rem
onto
med
žiag
as.
Paša
linti
defe
ktus
.
Sa
ugia
i dirb
ti.
Atlik
ti ke
lio ti
esim
o pa
ruoš
iam
uosi
us
darb
us.
Parin
kti k
elių
sta
tybo
s m
edži
agas
. At
likti
žem
÷s s
anka
sos
darb
us.
Įreng
ti ke
lio p
agrin
dus.
Kl
oti k
elio
dan
gas.
At
likti
kelio
ties
imo
baig
iam
uosi
us d
arbu
s.
Skai
tyti
darb
o br
÷žin
ius
ir na
udot
is k
elio
st
atin
ių s
taty
bos
doku
men
taci
ja.
Atlik
ti ai
kšte
l÷s
paru
ošia
muo
sius
dar
bus.
St
atyt
i, re
kons
truot
i ir r
emon
tuot
i kel
io
stat
iniu
s.
Mok
÷ti d
irbti
su k
elių
sta
tinių
rem
onto
m
ašin
omis
ir įr
engi
mai
s.
Priž
iūr÷
ti ke
lius
ir ke
lio s
tatin
ius
paga
l ke
liam
us re
ikal
avim
us.
Reg
uliu
oti t
rans
porto
sra
utų
jud÷
jimą.
Įv
ertin
ti ve
rslo
apl
inką
.
Sa
ugia
i dirb
ti.
Mon
tuot
i įva
iriam
e au
kšty
je d
arbo
įran
gą.
Tink
uoti
papr
asta
is s
kied
inia
is.
Apdi
rbti
med
ieną
rank
inia
is įr
anki
ais.
Sk
aity
ti da
rbo
br÷ž
iniu
s.
Apsk
aiči
uoti
atlik
tų d
arbų
api
mtį
ir m
edži
agų
sąna
udas
. M
ūryt
i kon
stru
kcija
s iš
pap
rast
ų ir
apda
ilos
plyt
ų.
Mūr
yti i
r bet
onuo
ti la
ukak
men
io
kons
trukc
ijas.
M
ūryt
i len
gvųj
ų ko
nstru
kcijų
sie
nas.
M
ūryt
i šal
tyje
. Ar
dyti
mūr
ą ra
nkin
iu ir
mec
hani
zuot
u bū
dais
. R
emon
tuot
i ir s
utvi
rtint
i mūr
ines
ko
nstru
kcija
s.
Atlik
ti pa
virš
ių h
idro
izol
iaci
nius
dar
bus.
Su
rinkt
i ir m
ontu
oti k
lojin
ius.
Ar
muo
ti ir
beto
nuot
i kon
stru
kcija
s.
Sand
÷liu
oti s
uren
kam
us b
eton
iniu
s ir
gelž
beto
nini
us g
amin
ius.
M
ontu
oti k
onst
rukc
ijas
mūr
iniu
ose
past
atuo
se.
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Bend
rieji
stat
ybos
dar
bai;
past
ato
apši
ltini
mas
ir ti
nkav
imas
; pas
tato
apd
aila
pl
ytel
÷mis
; pas
tato
pav
iršių
daž
ymas
ir
apm
ušal
ų kl
ijavi
mas
; apd
ailo
s pl
okšč
ių ir
tie
sini
ų el
emen
tų tv
irtin
imas
.
M
edie
nos
apdi
rbim
as ra
nkin
iu ir
m
echa
nizu
otu
būdu
; int
erje
ro ir
eks
terje
ro
įreng
imas
; ręs
tinių
pas
tatų
sta
tyba
; sk
ydin
ių ir
kar
kasi
nių
past
atų
stat
yba;
st
ogo
kons
trukc
ijų m
onta
vim
as; p
asta
tų
apši
ltini
mas
; med
ieno
s ga
min
ių
mon
tavi
mas
ir re
mon
tas.
Ke
lių ir
gat
vių
tiesi
mas
ir re
kons
travi
mas
; ke
lio s
tatin
ių s
taty
ba, r
ekon
stra
vim
as ir
re
mon
tas;
kel
ių ir
sta
tinių
prie
žiūr
a; v
ersl
o įm
on÷s
org
aniz
avim
as.
Be
ndrie
ji st
atyb
os d
arba
i; ko
nstru
kcijų
m
ūrijim
as; m
ūrin
ių k
onst
rukc
ijų re
mon
tas;
hi
droi
zolia
cijo
s įre
ngim
as; k
onst
rukc
ijų
beto
navi
mas
; bet
onin
ių ir
gel
žbet
onin
ių
kons
trukc
ijų m
onta
vim
as m
ūrin
iuos
e pa
stat
uose
.
67
Pastatų restauratoriaus
Pastatų šiltintojo
Pastatų inžinerin÷s įrangos
montuotojo
Santechniko
Kompetencijos ir
geb÷jimai
Saug
iai d
irbti.
Sk
aity
ti st
atyb
iniu
s br
÷žin
ius.
N
audo
tis in
form
acin
÷mis
tech
nolo
gijo
mis
. Ta
ikyt
i pas
tatų
rest
aura
vim
o ir
kons
erva
vim
o te
chno
logi
jas.
At
likti
mūr
o da
rbus
. Ti
nkuo
ti pa
stat
us.
Daž
yti p
asta
tų p
avirš
ius.
At
likti
pavi
ršių
dek
orav
imo
darb
us.
Atlik
ti pa
virš
ių a
pdai
lą a
pmuš
alai
s ir
pl÷v
el÷m
is.
Atlik
ti fa
sadų
apd
ailą
ply
tel÷
mis
. At
likti
dailid
÷s ir
sta
liaus
dar
bus.
Įre
ngti
med
ines
sto
gų, l
aipt
ų, g
rindų
ko
nstru
kcija
s.
Sand
÷liu
oti s
taty
bine
s m
edži
agas
. Įv
ertin
ti ve
rslo
apl
inką
Sa
ugia
i dirb
ti.
Nau
dotis
info
rmac
in÷m
is te
chno
logi
jom
is.
Mon
tuot
i dur
is ir
lang
us, p
ertv
aras
. Ši
ltint
i pas
tatu
s.
Šilti
nti š
laiti
nio
stog
o ko
nstru
kcija
s.
Surin
kti i
r šilt
inti
kark
asin
ius
nam
us.
Tvirt
inti
gips
o-ka
rtono
plo
kšte
s.
Išm
anyt
i api
e m
ūro
darb
us.
Šilti
nti p
ožem
inę
past
ato
dalį.
At
likti
suta
pdin
tų s
togų
ir g
elžb
eton
inių
pe
rden
gim
ų ko
nstru
kcijų
, šilt
inim
o da
rbus
. Iš
man
yti k
rovo
s, s
and÷
liavi
mo
ir tra
nspo
rtavi
mo
darb
us.
Įver
tinti
vers
lo a
plin
ką.
Pa
rinkt
i šild
ymo,
van
dent
ieki
o, n
uote
kų
bei o
ro k
ondi
cion
avim
o si
stem
ų va
mzd
žius
, vam
zdyn
ų ar
mat
ūrą
ir m
edži
agas
. At
likti
šaltk
alvi
škas
ope
raci
jas.
Pa
gam
inti
vam
zdin
es d
etal
es p
agal
br
÷žin
ius.
Su
geb÷
ti su
virin
ti va
mzd
žius
ele
ktra
ir
dujo
mis
. M
ok÷t
i aps
augo
ti va
mzd
ynus
nuo
ko
rozi
jos.
Su
jung
ti ke
tiniu
s, p
lieni
nius
, var
iniu
s ir
plas
tikin
ius
vam
zdži
us.
Sum
ontu
oti v
amzd
yną
ir ar
mat
ūrą.
Įre
ngti
šild
ymo
sist
emą
paga
l klie
nto
pore
ikiu
s.
Pasi
rinkt
i pas
tato
dal
ių k
irtim
o bū
dus.
Sk
aity
ti sa
ntec
hnin
ių s
iste
mų
sche
mas
ir
br÷ž
iniu
s.
Mon
tuot
i ir a
ptar
naut
i prie
šgai
srin
į va
nden
tiekį
. M
ontu
oti p
asta
tų v
idau
s va
nden
tieki
o ir
nuot
ekų
sist
emas
. Pa
gam
inti
v÷di
nim
o si
stem
os ti
pine
s de
tale
s.
Mon
tuot
i v÷d
inim
o ag
rega
tus
ir įre
ngin
ius.
Pa
rinkt
i ir s
umon
tuot
i kon
dici
onie
rius.
Pr
ofila
ktiš
kai a
ptar
naut
i van
dent
ieki
o,
šild
ymo,
nuo
tekų
ir o
ro k
ondi
cion
avim
o be
i v÷d
inim
o si
stem
as.
Paži
nti v
ersl
o ap
linką
, prit
aika
nt s
avo
prof
esin
es g
alim
ybes
. Pr
itaik
yti d
arbo
teis
÷s p
agrin
dus
savo
pr
ofes
in÷j
e ve
iklo
je.
Sa
ugia
i dirb
ti.
Gam
inti
vam
zdyn
ų de
tale
s, n
esud
÷tin
gas
met
alin
es k
onst
rukc
ijas
paga
l br÷
žini
us,
eski
zus
ir m
atav
imus
dar
bo v
ieto
je.
Mon
tuot
i pas
tato
van
dens
tiek
imo
sist
emas
, aps
kaito
s m
azgu
s, v
ande
ns
÷mim
o ar
mat
ūrą
ir pr
ieta
isus
. M
ontu
oti p
asta
to n
uote
kų š
alin
imo
tinkl
ą ir
jo v
÷din
imo
sist
emas
. Įre
ngti
prie
šgai
srin
į van
dent
iekį
. Įre
ngti
lieta
us v
ande
ns n
uota
kus.
M
ontu
oti m
ažo
(iki 1
00 k
w) g
alin
gum
o ka
tilin
es.
Mon
tuot
i šild
ymo
prie
tais
us ir
vie
tines
ši
ldym
o si
stem
as, j
as a
pšilt
inti
ir iš
band
yti.
Mon
tuot
i šilu
min
ių s
iurb
lių iš
orin
ius
ir vi
dini
us ž
iedu
s pa
talp
oms
šild
yti i
r ka
ršta
m v
ande
niui
ruoš
ti.
Mec
hani
škai
regu
liuot
i šild
ymo
ir va
nden
tieki
o si
stem
ų be
i prie
tais
ų pa
ram
etru
s.
Atlik
ti sa
ntec
hnin
ių s
iste
mų
apži
ūrą,
pl
ovim
ą ir
hidr
aulin
į ban
dym
ą.
Rem
ontu
oti s
ante
chni
nius
prie
tais
us ir
si
stem
as.
Paru
ošti
past
ato
kons
trukc
iją, d
arbo
įra
nkiu
s ir
kom
plek
tuoj
amąs
ias
dalis
sa
ntec
hnin
÷ms
sist
emom
s m
ontu
oti b
ei
paša
linti
past
ato
kons
trukc
ijos
defe
ktus
, at
sira
dusi
us m
onta
vim
o m
etu.
At
likti
v÷di
nim
o si
stem
ų, d
ujot
ieki
o ir
išor
inių
tink
lų m
onta
vim
o da
rbus
, kur
iem
s at
likti
nere
ikia
spe
cial
aus
mok
ymo.
Ve
rstis
indi
vidu
aliu
san
tech
nini
ų pa
slau
gų
vers
lu.
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Past
atų
rest
aura
vim
as b
ei
kons
erva
vim
as; m
ūro
darb
ai; p
asta
tų
apda
ila; m
edin
ių k
onst
rukc
ijų m
onta
žas.
St
ogų
šilti
nim
as; s
ienų
šilt
inim
as;
kark
asin
ių n
amų
surin
kim
as; l
engv
ų st
atyb
inių
kon
stru
kcijų
mon
tavi
mas
.
Va
mzd
inių
det
alių
gam
yba
ir at
skirų
va
mzd
yno
dalių
mon
tavi
mo
darb
ai;
šild
ymo
sist
emos
mon
tavi
mas
; kar
što
ir ša
lto v
ande
ntie
kio
sist
emos
mon
tavi
mas
; nu
otek
ų si
stem
os m
onta
vim
as; v
÷din
imo
ir or
o ko
ndic
iona
vim
o si
stem
ų m
onta
vim
as; p
asta
tų in
žine
rinių
sis
tem
ų pr
ieži
ūra
ir re
mon
tas;
indi
vidu
alau
s ve
rslo
or
gani
zavi
mas
.
Va
mzd
inių
maz
gų g
amyb
a; p
asta
tų
vand
entv
arka
; pas
tatų
šild
ymas
; sa
ntec
hnin
ių s
iste
mų
eksp
loat
avim
as ir
re
mon
tas;
ben
drie
ji st
atyb
os d
arba
i.
68
Sienų ir krosnių mūrijimo bei tinkavimo
Kompetencijos ir geb÷jimai
Mūr
yti k
onst
rukc
ijas
iš p
lytų
, blo
kelių
ir la
uko
akm
enų.
At
likti
mūr
o ar
dym
o ir
rem
onto
dar
bus.
Įre
ngti
pam
atų
hidr
oizo
liaci
ją.
Mon
tuot
i nes
ud÷t
inga
s ge
lžbe
toni
nes
kons
trukc
ijas,
su
siju
sias
su
mūr
o da
rbai
s.
Mūr
yti n
esud
÷tin
gas
šild
ymo
kros
nis,
viry
kles
ir š
ildym
o si
enel
es.
Rem
ontu
oti š
ildym
o kr
osni
s, v
irykl
es ir
šild
ymo
sien
eles
. Ti
nkuo
ti pa
pras
tu ir
pag
erin
tu ti
nku
vida
us p
atal
pas,
fasa
dus
rank
inia
is įr
anki
ais.
Pa
rinkt
i sta
tybi
nes
med
žiag
as.
Mon
tuot
i pal
yp÷j
imo
įrang
ą.
Skai
tyti
darb
o br
÷žin
ius.
M
ok÷t
i sau
giai
dirb
ti.
Profesin÷ veikla, kuria gali
verstis pažym÷jimo savininkas
Sien
ų m
ūriji
mas
ir ti
nkav
imas
. Šild
ymo
kros
nių,
viry
klių
ir
šild
ymo
sien
elių
mūr
ijimas
; mūr
o, ti
nko
šild
ymo
kros
nių,
vi
rykl
ių re
mon
tas;
nes
ud÷t
ingų
gel
žbet
onių
kon
stru
kcijų
m
onta
vim
as.
69
Komunalinio ūkio darbininko
Melioracijos darbuotojo
Staliaus
Statybos verslo paslaugų teik÷jo
Kompetencijos ir
geb÷jimai
Saug
iai d
irbti.
G
eb÷t
i pas
irink
ti, p
aruo
šti i
r san
d÷liu
oti
stat
ybin
es m
edži
agas
ir ž
alia
vas.
Sk
aity
ti ne
sud÷
tingu
s br
÷žin
ius
ir sc
hem
as.
Atlik
ti be
ndro
sios
šal
tkal
vyst
÷s d
arbu
s.
Suvi
rinti,
par
inkt
i suv
irini
mo
para
met
rus
ir r÷
žim
us.
Rem
ontu
oti i
r priž
iūr÷
ti sa
nita
rines
, ši
ldym
o, v
ande
ntie
kio,
kan
aliz
acijo
s si
stem
as.
Suju
ngti
nesu
d÷tin
gas
deta
les
mec
hani
niu
būdu
. M
ontu
oti i
r priž
iūr÷
ti va
nden
s, š
ilum
os
apsk
aito
s pr
ieta
isus
. M
ūryt
i įva
irias
nes
ud÷t
inga
s ko
nstru
kcija
s ir
atlik
ti m
ūro
rem
onto
dar
bus.
R
emon
tuot
i, pr
ižiū
r÷ti
ir su
rinkt
i sta
liaus
ga
min
ius,
stik
linti
ir sa
ndar
inti.
M
ontu
oti,
rem
ontu
oti i
r priž
iūr÷
ti ne
sud÷
tingą
ele
ktro
s in
stal
iaci
ją.
Atlik
ti ne
sud÷
tingu
s tin
kavi
mo,
daž
ymo,
pl
ytel
ių k
lojim
o, m
ūro
darb
us.
Vairu
oti a
utom
obilį.
Įv
ertin
ti ve
rslo
apl
inką
. N
audo
tis in
form
acin
÷mis
tech
nolo
gijo
mis
.
Sa
ugia
i dirb
ti.
Atlik
ti ne
sud÷
tingu
s m
elio
raci
jos
ir re
mon
to d
arbu
s.
Dirb
ti įv
airiu
s m
echa
nizu
otus
žem
÷s ū
kio
ir m
elio
raci
jos
darb
us.
Atlik
ti m
ašin
ų re
mon
to d
arbu
s ša
ltkal
višk
ais
suvi
rinim
o ir
kalv
iška
is
įrank
iais
. N
audo
tis te
chni
n÷s
prie
žiūr
os ir
rem
onto
di
rbtu
vių
įreng
imai
s, a
tlikt
i maš
inų
prie
žiūr
os d
arbu
s.
Eksp
loat
uoti
mel
iora
cine
s m
ašin
as.
Vairu
oti a
utom
obilį.
Įv
ertin
ti ve
rslo
apl
inką
. N
audo
tis in
form
acin
÷mis
tech
nolo
gijo
mis
.
Sa
ugia
i dirb
ti.
Skai
tyti
darb
o br
÷žin
ius.
M
atuo
ti ir
žym
÷ti m
edie
ną.
Paru
ošti
med
ieną
apd
irbim
ui.
Atlik
ti ra
nkin
io m
edie
nos
apdi
rbim
o op
erac
ijas.
D
irbti
mec
hani
zuot
o m
edie
nos
apdi
rbim
o st
akl÷
mis
ir įr
engi
mai
s.
Apsk
aiči
uoti
med
žiag
as.
Gam
inti
med
ieno
s ga
min
ius
paga
l pa
teik
tus
br÷ž
iniu
s.
Atlik
ti m
edin
ių p
avirš
ių a
pdai
lą.
Mon
tuot
i med
iniu
s st
atyb
iniu
s ga
min
ius,
ba
ldus
. Įre
ngti
pata
lpų
inte
rjerą
. St
atyt
i med
iniu
s pa
stat
us.
Mon
tuot
i med
ines
sto
go k
onst
rukc
ijas.
Ap
šilti
nti p
asta
tus.
Pa
šalin
ti m
edie
nos
gam
inių
def
ektu
s.
Sa
ugia
i dirb
ti.
Įver
tinti
vers
lo a
plin
ką.
Pasi
rinkt
i pal
anki
ausi
as v
ersl
o or
gani
zavi
mo
form
as.
Pare
ngti
indi
vidu
alio
s st
atyb
os įm
on÷s
ve
rslo
pla
ną ir
ste
igim
o do
kum
entu
s.
Atlik
ti rin
kos
tyrim
us.
Form
uoti
įmon
÷s įv
aizd
į ir v
iziją
. Pa
rinkt
i, pa
ruoš
ti ir
sand
÷liu
oti s
taty
bine
s m
edži
agas
ir ž
alia
vas.
Ti
krin
ti m
edži
agų
ir ko
nstru
kcijų
kok
ybę.
At
likti
pagr
indi
nius
sta
tybo
s da
rbus
. O
rgan
izuo
ti st
atyb
os d
arbu
s ir
tvar
kyti
tech
ninę
dok
umen
taci
ją.
Priž
iūr÷
ti vy
kdom
us d
arbu
s.
Sprę
sti s
taty
bos
darb
ų te
chno
logi
jos,
pa
stat
ų pr
i÷m
imo,
mui
tų ir
lice
ncijų
kl
ausi
mus
. N
audo
tis in
form
acin
÷mis
tech
nolo
gijo
mis
. Be
ndra
uti i
r ben
drad
arbi
auti.
Profesin÷ veikla, kuria
gali verstis
pažym÷jimo
savininkas
Past
atų
inži
nerin
ių s
iste
mų
rem
onta
s ir
prie
žiūr
a; v
ande
ns, š
ilum
os a
pska
itos
prie
tais
ų, n
esud
÷tin
gos
elek
tros
inst
alia
cijo
s m
onta
vim
as ir
prie
žiūr
a;
past
atų
prie
žiūr
a.
M
elio
raci
jos
įreng
inių
eks
ploa
taci
ja ir
re
mon
tas;
mel
iora
cijo
s įre
ngin
ių
mon
tavi
mas
; kel
ių ir
hid
rote
chni
nių
stat
inių
sta
tyba
bei
prie
žiūr
a.
M
edie
nos
apdi
rbim
as ra
nkin
iu ir
m
echa
nizu
otu
būdu
; med
ieno
s ga
min
ių
gam
inim
as; m
edie
nos
gam
inių
m
onta
vim
as; m
edin
ių p
asta
tų s
taty
ba;
med
inių
gam
inių
ir p
asta
tų re
mon
tas.
Vy
kdom
ų st
atyb
os d
arbų
prie
žiūr
a;
stat
ybin
ių m
edži
agų
tieki
mo
orga
niza
vim
as, s
and÷
liavi
mas
; med
žiag
ų ko
kyb÷
s tik
rinim
as; d
arbo
j÷go
s be
i m
echa
nizm
ų po
reik
io a
pska
ičia
vim
as;
tech
nin÷
s do
kum
enta
cijo
s tv
arky
mas
.
ANNEX 2
SS sektoriaus specialistų ir technikų rengimo studijų programos
Programa Suteikiama kvalifikacija Kvalifikacijos aprašas
Neuniversitetinių studijų programos (trukm÷ 3-3,5 metai)
Statyba Studijų sritis: Architektūra ir statyba
inžinierius; statybos inžinerijos profesinis bakalauras, inžinierius
Absolventai gal÷s projektuoti pastatų statybinę dalį, apskaičiuoti statybines konstrukcijas, rengti sąmatinę dokumentaciją, vadovauti pastatų statybai ir remontui, pritaikyti statybines medžiagas, inžinerinę įrangą, valdyti statybos įmon÷s padalinį, apibendrinti ir analizuoti įmon÷s padalinio veiklos rezultatus.
Statinių inžinerin÷s sistemos Studijų sritis: Architektūra ir statyba
statybos inžinerijos profesinis bakalauras, inžinierius
Absolventai gal÷s analizuoti inžinerinių sistemų būklę, vadovauti eksploatavimo ir remonto darbams, parengti įmon÷s (padalinio) ūkin÷s veiklos planus, vertinti turimus materialinius ir finansinius išteklius.
Hidrotechnika Studijų sritis: Architektūra ir statyba
aplinkos inžinerijos profesinis bakalauras, inžinierius
Absolventai gal÷s dirbti hidrotechnikos ar kaimo statybos srities konsultavimo, projektavimo bei statybos įmon÷se (projekto bei statybos vykdytojo lygmuo); statybų administravimo ir kontrol÷s įstaigose.
Kelių tiesimas Studijų sritis: Architektūra ir statyba
inžinierius Absolventai organizuos ir vykdys kelių tiesimo darbus, taikys atskirų darbo procesų ir kelio statinių įrengimo technologijas, užtikrins geodezinį kelių tiesimo darbų aptarnavimą, kontroliuos kaip realizuojami standartų ir techninių sąlygų reikalavimai, keliami kelių statybin÷ms medžiagoms, sudarys kelio statybai reikalingą projektinę bei sąmatinę - finansinę dokumentaciją.
Universitetinių studijų programos (trukm÷: bakalauras - 4-5 metai; magistras – 2 metai)
Architektūra Studijų sritis: Architektūra ir statyba
architektūros bakalauras, architektas; architektūros magistras
Absolventai gali dirbti mokslo ir mokymo įstaigose, savarankiškai projektuoti architektūros pastatus ir urbanistikos kompleksus.
Energetikos ir transporto statyba Studijų sritis: Architektūra ir statyba
statybos inžinerijos bakalauras
Absolventai gali dirbti energetikos bei transporto statybos organizacijose bei firmose, šių statinių projektavimo įmon÷se, energetikos bei transporto statinių priežiūros bei eksploatavimo žinybose, Ūkio ir Susisiekimo ministerijų tarnybose, miestų savivaldyb÷se;
Hidrotechnikos inžinerija Studijų sritis: Architektūra ir statyba
aplinkos inžinerijos bakalauras
Absolventai gali dirbti melioracijos, statybin÷se įmon÷se, Hidroprojektuose, aplinkos apsaugos, vandens kelių, energetikos tarnybų žinybose
Kelių ir geležinkelių inžinerija Studijų sritis: Architektūra ir statyba
statybos inžinerijos bakalauras
Absolventai gali tiesti (statyti) ir prižiūr÷ti susisiekimo sistemų tiesinius ir statinius: automobilių kelius ir jiems reikalingus statinius, geležinkelius, aerodromų takus, uostų statinius, dirbti statybos (tiesybos) ir projektavimo organizacijose.
Miestų inžinerija Studijų sritis: Architektūra ir statyba
statybos inžinerijos bakalauras
Absolventai gali dirbti įvairiose miesto ūkio statybos įmon÷se, miesto ūkio infrastruktūros priežiūros įmon÷se, kurių veikla yra susisiekimo sistemos objektų statyba, projektavimas bei priežiūra arba teritorijų tvarkymas, apželdinimas.
Miestų ir kelių inžinerija Studijų sritis: Architektūra ir statyba
statybos inžinerijos bakalauras
Absolventai gali tiesti (statyti) ir prižiūr÷ti susisiekimo sistemų tiesinius ir statinius: miestų gatves, automobilių kelius ir jiems reikalingus statinius, geležinkelius, aerodromų takus, uostų statinius, dirbti statybos (tiesybos), projektavimo, miestų ir rajonų savivaldybių organizacijose.
Pastatų inžinerin÷s sistemos Studijų sritis: Architektūra ir statyba
statybos inžinerijos bakalauras; statybos inžinerijos magistras, inžinierius
Absolventai gali dirbti restrukturizuojamose, rekonstruojamose ir naujos statybos pramon÷s įmon÷se, miestų savivaldybių ūkin÷se struktūrose, gyvenamųjų namų ūkin÷s priežiūros sistemose, vykdyti statybos priežiūrą, dirbti projektin÷se organizacijose, d÷styti aukštosiose mokyklose;
Statybos inžinerija Studijų sritis: Architektūra ir statyba
statybos inžinerijos bakalauras; statybos inžinerijos magistras
Absolventai gali dirbti mokslo ir mokymo įstaigose, statybos ir statybos pramon÷s įmon÷se, projektavimo, mokslinio tyrimo ir statybos valstyb÷s kontrol÷s įstaigose.
Statybos konstrukcijos ir technologija Studijų sritis: Architektūra ir statyba
statybos inžinerijos bakalauras
Absolventai gali dirbti statybos organizacijose bei firmose, statybos projektavimo įmon÷se, statybos priežiūros institucijose, miestų bei rajonų savivaldyb÷se.
Statybos medžiagos ir dirbiniai Studijų sritis: Gamyba ir perdirbimas
statybos inžinerijos bakalauras ; statybos inžinerijos magistras
Absolventai gali dirbti statybinių medžiagų gamybos bendrov÷se ir įmon÷se, statybinių medžiagų projektavimo organizacijose, statybinių medžiagų ir dirbinių kokyb÷s kontrol÷s ir jų gamybos priežiūros institucijose, statybos organizacijose
Statybos valdymas statybos inžinerijos Absolventai gali dirbti statybos įmon÷se ir bendrov÷se, medžiagų ir gaminių prekybos
71
Programa Suteikiama kvalifikacija Kvalifikacijos aprašas
Studijų sritis: Architektūra ir statyba
bakalauras; statybos inžinerijos magistras
įmon÷se, savivaldyb÷se
Pastatų energetika Studijų sritis: Inžinerija ir inžinerin÷s profesijos
energetikos bakalauras Absolventai gali dirbti pagrindiniais specialistais šilumą gaminančiose, šilumą ar dujas tiekiančiose įmon÷se, patalpų šildymo, v÷dinimo, oro kondicionavimo ir v÷sinimo sistemas įrengiančiose, prižiūrinčiose, projektuojančiose įmon÷se, šias sistemas naudojančiose gamyklose ir visuomeniniuose pastatuose.
Civilin÷ inžinerija Studijų sritis: Architektūra ir statyba
statybos inžinerijos magistras
Galimos 3 specializacijos.
Absolventai su specializacija „Keliai“ gali tiesti (statyti) ir prižiūr÷ti (remontuoti) susisiekimo sistemų tiesinius (statinius) ir įrenginius; dirbti tiesybos (statybos), projektavimo organizacijose, privačiose firmose; dirbti d÷stytojais; dirbti tiriamąjį darbą mokslo institutuose; dirbti kontrol÷s ar tyrimo darbą atestuotose arba akredituotose kelių laboratorijose.
Absolventai su specializacija „Miestų transporto sistemos“ gali dirbti aukštosiose mokyklose, mokslo tyrimo institucijose, projektavimo organizacijose, kolegijose, konsultacin÷se įmon÷se, miesto infrastruktūros valdymo institucijose ir aptarnaujančiose įmon÷se, miestų ir rajonų savivaldyb÷se; Absolventai su specializacija „Miestų inžinerin÷s informacin÷s sistemos“ gali dirbti aukštosiose mokyklose, mokslo tyrimo institucijose, projektavimo organizacijose, kolegijose, konsultacin÷se įmon÷se racionalios bei efektyvios miesto pl÷tros srityje, teritorijų planavimo projektus rengiančiose įmon÷se, miestų bei rajonų savivaldyb÷s administracijose.
Geotechnika Studijų sritis: Architektūra ir statyba
statybos inžinerijos magistras
Absolventai galidirbti statybos organizacijose bei firmose, statybos projektavimo įmon÷se, pastatų priežiūros bei eksploatavimo institucijose.
Interjero architektūra Studijų sritis: Architektūra ir statyba
architektūros magistras, architektas
Absolventai gali dirbti individualų kūrybinį darbą, steigti architektūros biurus
Miestų ir krašto planavimas Studijų sritis: Verslas ir administravimas
viešojo administravimo magistras
Absolventai gali dirbti projektuotojo darbą, rengti bendruosius ir savivaldyb÷s lygmens detaliuosius teritorijų planavimo dokumentus, siekti būti šių projektų ir jų dalių vadovais
Pastatų architektūra Studijų sritis: Architektūra ir statyba
architektūros magistras, architektas
Absolventai gali dirbti individualų kūrybinį darbą, steigti architektūros biurus.
Statinių konstrukcijos Studijų sritis: Architektūra ir statyba
statybos inžinerijos magistras
Absolventai gali dirbti pastatų ir specialiųjų statinių statybos, projektavimo ir tyrimo organizacijose, miestų savivaldyb÷se, statybos priežiūros tarnybose.
Statyba Studijų sritis: Architektūra ir statyba
statybos inžinerijos magistras, inžinierius
Absolventai gali dirbti specialistais ir vadovais projektavimo, statybos ir statybos pramon÷s įmon÷se, statybos priežiūros bei valstybin÷s statybos kontrol÷s įstaigose, bankuose, draudimo įstaigose, aukštosiose mokyklose ir kt.