The rapid deterioration in Japan's labour force, which is in the same order of magnitude as that projected for the UK over the next decade or so, has led Japan to now urgently seek foreign worker support for its domestic construction capacity (catalysed by the Tokyo 2020 Olympics construction programme). A post Brexit UK will potentially struggle to replicate the model of migrant labour additionality which it has historically relied on, so it makes the case for action even more critical.
Prior to Brexit, some might have seen migrant labour as a solution to the shrinking workforce. Without entering the wider political debate, it is recognised that migrant labour has historically played a key role in providing capacity in UK construction, especially in London and the South East. However, increasing substitution of a reducing domestic workforce by migrant labour comes with substantial risks. For example, the US and many Middle Eastern countries now have a dangerously high reliance on migrant labour. Geo-political instability and shocks such as we seen with the EU Referendum result and which relate to trade and border security could have disproportionate impact on the construction industry if reliance was to grow significantly in the future. Furthermore, it is now uncertain how the UK's vote to leave the EU might affect the real availability of migrant labour moving forwards.
Building on the internationalist theme, the early signs from those overseas developers and contractors who have entered the UK market suggests that their model is also not going to assist long-term capacity building. Models adopted so far have relied on joint ventures to allow cross-fertilisation of knowledge at senior management and supervision level. This has not extended down to the supply chain labour force (although materials may well be sourced from the home country or region through leverage of existing purchasing agreements). These models may act as a stimulus for higher numbers of itinerant project-based foreign workers but that would again of course be dependent on immigration policy as it develops post-Brexit. A significant increase in the labour force from foreign corporate entrants is therefore not likely to be possible without an acceptance of much more radical 'out sourcing' with all the political and economic difficulties that brings.