Chapter 1 Introduction

1.1 Overview of the UK Construction Industry
For the last few years it is believed that the construction sector is an important sector supporting UK's economy and includes a wide range of products, services and technologies. Even these factors have varied in terms of the economic value they generate, the difference in the special use of factors and the value derived from it (McGraw Hill Construction, 2013). Therefore, it can be said that the UK's manufacturing sector is made up of a variety of industries.

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 Figure 1: Structure of the UK Construction Area

From the above structure of the UK's manufacturing industry, it can be identified that 2,030,000 jobs have been generated within the UK contract work, 234,000 pounds £ 63 billion GVA, services 580,000 jobs 30,000 businesses £ 14 billion GVA and 310,000 jobs 3,000,000 jobs 18,000 pounds £ 13 billion GVA

It has been observed all over the world that due to the financial and financial crisis during the 2008 period, everyone has been hit hard and the majority of developed economies are facing a decline. Despite all these scenarios, the UK manufacturing sector has been at the top of the industry and has been the largest in Europe in terms of employment, enterprise numbers and gross value-added (ONS Labor Force Survey, 2012). At the same time, it can be said that the UK's construction industry has received a large number of private-owned enterprises and it looks more fragmented when comparing it with Germany's major rivals like France.
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 1.2 Background of studies
After going through the potential period of the UK manufacturing industry, it has been observed that this is a favorable area for domestic employment in the UK. But it has been found that since the period of 1998, the UK manufacturing industry is going through the biggest skill crisis. In this connection, it has been stated by the construction firm that the lack of skill has threatened to delay the majority of the building projects. EV Research has shown that the production of the industry has decreased by 4.3% in the past month and has surprised the economists of the city, who were hoping to increase the sector by 1%. The breakdown of the industry indicates that for every construction type, the first decline has been seen in the period of December 2010 (Afolabi.et.al, 2016). Owen Goodhead, Managing Director of Randstad CPE Recruitment Firm, showed that such a problem can be expanded rather than withdrawing the UK building if the right person is on the right jobs. Even it has been said that there is a need to maintain training, skills and flexibility within construction jobs to increase demand. In addition, Mark Robinson, Chief Executive Officer of Scrapte Group, says that lack of skills within construction is still a problem within the UK and requires a lot of work (McGraw Hill Construction, 2013). Under this study, research is going to study factors that are responsible for the lack of domestic skills within the UK manufacturing industry.

 1.3 Rationale of study
To identify the shortage of domestic skills to work under the research industry, the identification of the gap between the UK manufacturing industry has been done. In this regard, it has been found that in the UK there is a lack of domestic skills to work in the UK's manufacturing industry. Therefore, it is important for researchers to find out the factors that are the cause of such an issue. The reason for this is that the construction industry in the UK is considered to be one of the largest areas and it has been contributing to the gross domestic product of the economy. Thus, going through this research in a suitable way will help the researcher to study the effect of building on the UK economy, understanding the factors responsible for the lack of domestic skills within the UK manufacturing industry. In addition, this study will explore the impact determined by immigration on the UK's manufacturing industry. Finally, it will identify the challenges and opportunities that the UK manufacturing industry is going through within the market.

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1.4 Purpose and purpose of study
1.4.1 Objective of study
This research is to assess the lack of key domestic skills and its impact on the UK manufacturing industry.

 1.4.2 Objectives of study
Study the effect of building on the economy of the UK
Understand the factors responsible for the lack of domestic skills within the UK manufacturing industry
To find out the impact dictated by immigration on the UK's construction industry
To identify the challenges and opportunities that the UK manufacturing industry is running
1.5 Search Questions
Which factors are responsible for the lack of domestic skills within the UK manufacturing industry?

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