The Thermal Insulation Contractors Association (TICA) is urging public authorities to place apprenticeships at the centre of new public procurement regulations – ensuring that major construction projects drive long-term skills development rather than prioritising cost-cutting measures.
Under the new Procurement Regulations, which take effect on 24 February, public authorities must publish at least three key performance indicators (KPIs) for contracts exceeding £5 million. TICA is urging decision-makers to make apprenticeship investment a key metric, ensuring that companies awarded public contracts actively contribute to addressing the construction industry’s growing skills gap.
Chris Ridge, TICA’s technical director, said: “We saw a huge groundswell of support for apprenticeships during National Apprenticeship Week, and rightly so. The challenge now is turning that support into real action. If we are serious about tackling the skills crisis, apprenticeship investment must be factored into the procurement process as a KPI. Clients must join the dots and ensure that apprenticeships are encouraged throughout the contracting supply chain.”
The specialist construction trades are facing a “demographic time bomb,” with a rapidly ageing workforce and insufficient numbers of new entrants. At the same time, the number of young people not in education, employment, or training (NEET) has reached an all-time high, with Office for National Statistics figures showing 13.2% of 16-24-year-olds fell into this category in the third quarter of 2024.
“The construction sector has both the demand for skilled workers and a supply of young people who need opportunities,” he added. “But too often, young people are pushed into transient site labour roles instead of being given an opportunity to develop in recognised trades, including thermal insulation. A skilled trade apprenticeship provides pride in work and a clear career pathway, something that should be fundamental to any public project.”
Recent examples highlight the urgent need for change. Two high-profile projects, a £1 billion industrial development supported by the Welsh Government and a waste-to-energy facility creating 600 construction jobs, have awarded thermal insulation contracts to foreign companies using overseas labour. In both cases, not a single UK-based thermal insulation apprentice will gain experience on these sites.
Ridge said. “Companies that invest in training the next generation are often losing out to firms that prioritise short-term cost savings over long-term sustainability. That has to change. We need procurement policies that reward companies making a genuine commitment to skills development. Otherwise, we are simply continuing a race to the bottom.”
TICA members have led by example, directly funding the development of the trade body’s national apprentice training centre which is seeing increasing apprenticeship numbers year on year through initiatives such as “She Insulates Too” and the “One More Apprentice” campaign.
He added: “Apprenticeships are essential to the future of the construction sector. Public procurement must reflect that reality by setting meaningful KPIs that measure long-term social value, not just cost. Anything less fails both our industry and the next generation of skilled workers.”