Report-Shortage of Skilled Labour in Construction Industry of Sri Lanka

download Report-Shortage of Skilled Labour in Construction Industry of Sri Lanka

of 39

  • date post

    09-Jan-2017
  • Category

    Documents

  • view

    694
  • download

    1

Embed Size (px)

Transcript of Report-Shortage of Skilled Labour in Construction Industry of Sri Lanka

  • i

    SHORTAGE OF SKILLED LABOUR IN

    CONSTRUCTION INDUSTRY OF SRI LANKA

    By

    Basnayake L.K. (E/10/0057)

    Premathilaka R.P.M.M. (E/10/264)

    Supervised by

    Dr. P.B.G. Dissanayake

    Project: E/10/072

    Department of Civil Engineering

    Faculty of Engineering

    University of Peradeniya

    Peradeniya, 20400

    Sri Lanka

    August, 2015

  • ii

    ABSTRACT

    The construction industry is heavily dependent on the adequate supply of skilled labour,

    and as a result the skilled labour shortage in the Sri Lanka has received considerable

    attention in recent years. Hence, the study on the shortage of skilled labour in

    the construction industry of Sri Lanka is an important and timely study for the industry.

    This study focuses on the reasons for the skilled labour shortage, the consequences of

    skilled labour shortage, mitigation methods to overcome the skills shortage and to find the

    extent of the skilled labour shortage in Sri Lanka. A questionnaire survey was conducted

    within the both private and public construction organizations to analyze the views of

    professionals as well as labourers. Professional level questionnaire survey was conducted

    among 150 number key persons with in the industry and labour feedback survey was

    conducted among 55 number labourers with various skills categories. Significance Index

    was applied for the ranking of reasons and adverse effects while the Importance Index was

    used to rank the counter measures. Spearmans Rank Correlation method was used to find

    the relationship between the responses of each category. Both the Microsoft Excel as well

    as the SPSS software were utilized accordingly for the processing of data analysis. Labour

    feedback survey was found seven critical issues for the skills shortage. Inadequate supply

    of skilled labour from training institutes was found as the major reason for shortage of

    skilled labour in construction industry while poor quality of works was identified as the

    major effect and arranging seminar/training through ICTAD/IESL was found as the most

    suitable mitigation measure to overcome the issue.

    Keywords: Construction Industry, Skilled Labour, Causes, Effects, Mitigation Measures

  • iii

    Acknowledgements

    We would like to pay our gratitude to Dr. P.B.G. Dissanayake, the supervisor of our

    project for his guidance. Also we would like to thank Dr. S.B. Wijekoon and Mrs. K.K.K.

    Sylva for their advises as members of our evaluation panel. Furthermore our sincere

    acknowledgement goes to Civil Engineering Department and Civil Engineering Society for

    the support given to us to make our reseach a success.

  • iv

    Contents

    Abstract

    Acknowledgement

    Table of Contents

    List of Figures

    List of tables

    List of Abbreviations

    1 Introduction

    2 Literature Review

    3 Materials and Methods

    4 Results and Discussion

    5 Conclusion and Recommendation

    References

    Appendix

  • v

    List of figures

    Fig 4.1 Distribution by Employment

    Fig 4.2 Distribution by Involvement

    Fig 4.3 Distribution by Category

    Fig 4.4 Distribution by ICTAD Grade

    Fig 4.5 Summary of the training analysis

    Fig 4.6 Summary of the training analysis

  • vi

    List of tables

    Table 4.1 Ranking of Casual Factors according to the view of involved parties

    Table 4.2 Ranking of Casual Factors according to the view of type of employment

    Table 4.3 Ranking of effects due to shortage according to the view of the type of

    involvement

    Table 4.4 Ranking of effects due to shortage according to the view of type of employment

    Table 4.5 Ranking of Mitigation Measures to overcome the shortage

    Table 4.6 Ranking of Mitigation Measures to overcome the shortage according to the view

    of type of employment

    Table 4.7 Summary of casual factors according to overall view

    Table 4.8 Summary of effects according to overall view

    Table 4.9 Summary of mitigation measures according to overall view

    Table 4.10 Spearman's Rank of Correlation among involved parties

    Table 4.11 Preliminary results of Questionnaire B

    Table 4.12 Grand Summary Table

  • vii

    List of abbreviation

    ICTAD Institute of Construction Training and Development

    IESL Institution of Engineers Sri Lanka

    QS Quantity Surveyor

    TO Technical Officer

  • 1

    CHAPTER ONE

    INTRODUCTION

    1.1 Sri Lankan Construction Industry

    Construction Industry is one of the most booming industries in the 21st century and remains

    so with the continuation of the development process especially in the developing countries.

    In Sri Lanka, the construction industry plays a major role in economic and physical

    development. Further it is the fourth highest sector in Sri Lankan economy after services,

    manufacturing and agriculture (IMacs Research & Analytics , 2011). The end of the

    islands ethnic war in 2009 has revived the economic activity and resulted in an

    infrastructure building boom (IMacs Research & Analytics , 2011).

    According to the Annual Survey of Construction Industries, the total estimated value of

    work done by all types of construction activities in Sri Lanka was Rs.78, 320 million in

    2010. The highest contribution to this value has been made by the building construction

    sector which accounted for 48.0 % of the total value of work done. The major share of the

    value of work done on building construction sector (which amounted Rs. 37,623 million)

    has come from the private and public sector. Highway construction was the second highest

    contributor to the value of works done, amounting to 32.6% of the total value in 2010

    (Survey of construction industries, 2011).Aided by robust construction and manufacturing

    activities, the industry sector recorded a growth rate of 9.9 percent, raising its share of

    GDP to 31.1percent with in the year 2013 (Central Bank of Sri Lanka Annual Report,

    2013).

    However, there are challenges to overcome with the construction industry of Sri Lanka.

    The industry concerns include high raw-material costs, lack of availability of funds,

    shortage of skilled workers and frequent changes in regulations, particularly in

    development control and approval processes (IMacs Research & Analytics , 2011).

    As of 2009, the direct employment in the construction industry was 562,000 persons. This

    included four categories of employees: professional, technical, crafts, and machine

    operators. Almost 97 percent of total persons employed were males with 75 percent falling

  • 2

    in the 25-45 age-group. 52 per cent were with experience of less than five years (IMacs

    Research & Analytics, 2011).

    There is an excess demand in the job categories of craft and related trade workers,

    elementary occupations, and plant and machinery operators and assemblers (Karunathilake,

    2006). Hence, it is clear that there is a huge shortage with the skills related to the

    construction industry of Sri Lanka.

    1.2 Objectives of the Study

    The specific objectives of the study are as follows;

    To investigate extent of the skill labour shortage in Sri Lanka.

    To investigate causes for the shortage of skilled labour in construction industry of Sri

    Lanka.

    To find out the consequent effects due to the shortage of skilled labour.

    To propose suitable mitigation methods to overcome the shortage of skilled labour.

    1.2 Scope of the Study

    Sri Lankan construction industry can be categorized under building construction, highway

    construction, bridge construction, water supply & drainage, irrigation & land drainage,

    dredging & reclamation and other constructions (Survey of construction industries, 2011).

    However the scope of this study is limited only for the building construction, highway

    construction works and water supply and drainage works, considering availability of time

    for the study. Data were collected from both government and private sector organizations

    including client, contractor and consultant, three parties.

    1.3 Significance of the Study

    A standard civil engineering construction project is expected to meet the requirements of

    cost, time and quality of the client, which are to a significant extend rely on performance of

    involved workforce. The workforce performance mainly depends on their acquired training

    or skills. Though the many past researchers identified the shortage of skilled labour as a

    key factor which adversely affects the construction industry in both locally as well as

  • 3

    internationally, there are only few studies done to analyze this situation to come up with

    effective mitigation measures. Besides many researches have been done on building

    construction industry, gender factor, social factors and labour feedback had not been

    investigated. Thus, this research is an attempt to cover the short comings of the past studies

    and to support the Sri Lankan economy. Therefore, the study on shortage of skilled

    labour in construction industry of Sri Lanka is a very timely and unavoidable research

    topic to the present context of Sri Lanka.

  • 4

    CHAPTER TWO

    LITERATURE REVIEW

    2.1 Nayanthara De Silva,