Skills shortages in the global construction industry threaten projects worldwide, restrict growth and drive up costs, according to KPMG International's Global Construction Survey released yesterday.

Eighty four percent of respondents to the survey believed their sector was not doing enough to tackle the current chronic widening skills gap.

Meanwhile 55 percent of respondents said the problem is critical, and yet conversely 66 percent think their own company is on track with its recruitment processes.

Earlier this week, The Royal Gazette revealed that the rising cost of construction was having a "significant" impact on Bermuda's building industry, with the Construction Association of Bermuda's president Alex DeCouto saying that most notably the price of steel, copper and PVC had increased, allied to shipping costs climbing at the same time, culminating in higher costs across the board for builders and those in the construction sector.

Richard Whittington, global head of KPMG's building and construction practice and partner in the UK firm, said: "I find it surprising that the industry believes that individually they are doing enough, but that the whole industry is deficient.

"Surely it is now time for some collective action. One of the first issues being that construction companies should develop a fresh approach to recruiting in order to attract the best graduates in a very challenging, global environment."

Mr. Whittington reckons that the construction industry must take steps to combat the image problem it recognises it has, if it is to compete for the best graduates.

"The war for talent should start way before the graduate recruitment rounds," he said.

"Construction ought to learn the lessons of other industries and start building a positive and attractive image while potential employees are still at school and not wait until they are graduating."

KPMG's survey concluded that the worldwide skills shortage and image problem for the sector are combined with the challenges created by failing risk management, escalating costs, tough new environmental standards, and the global issue of sustainability.

However the picture may not be completely gloomy as KPMG's survey identified sustainability as an area of potential growth for the industry.

"Sustainability presents an incredible opportunity for forward thinking contractors to seize the chance to develop a 'green' reputation which could give them a genuine competitive advantage and move them into the position of employer of choice for their industry," Mr. Whittington added.