A shortage of people with the leadership skills needed to run complex water projects is emerging as one of the biggest workforce challenges facing the sector, according to new research.
‘Snapshot Survey of the Culture Shift in the UK Contract Workforce’, by recruitment consultancy Carrington West, is based on responses from 482 hiring managers and specialist contractors across the built environment.
It found that 63% of water-sector hiring managers say leadership and people-management skills are now the hardest contractor capability to find.
The findings suggest the shortage is already affecting project delivery. Almost two-thirds (63%) of hiring managers say projects and organisational objectives are only being delivered with significant challenges, while more than two-thirds (68%) expect demand for contractors to increase over the next 12 months.
Portsmouth-based Carrington West, which manages 1,200 specialist contractors weekly across the water, rail, highways, infrastructure and property sectors, found that 90% of water employers struggle to recruit specialist contractors.
Middle-management roles are proving particularly difficult to fill, with 63% of hiring managers identifying them as the hardest level to recruit.
The research also points to a growing succession challenge as more than four in 10 hiring managers (42%) say early-career and mid-level professionals are not yet ready to step into senior or management roles, raising concerns about whether enough future leaders are being developed to support the sector’s long-term investment plans.
While technical expertise remains essential, employers are increasingly looking for contractors who can lead teams, manage stakeholders and keep complex programmes moving. As competition for experienced leaders grows, many organisations face a limited pool of candidates with both the technical and leadership skills required.
The survey also found that pay remains the biggest factor influencing contractor decisions in the water sector. Nine in 10 contractors (90%) say pay is a key consideration when looking for new contract roles, while more than a third (36%) would leave a contract early if offered a higher rate elsewhere.
Although hybrid and remote working remain important, they are less significant than in other built environment sectors, reflecting the site-based nature of many water projects.
James Fernandes, at Carrington West, said: “Water companies aren’t just looking for technical specialists anymore. They need people who can lead teams, make decisions, manage stakeholders and keep major projects moving.
“The challenge is that those people are becoming much harder to find. Organisations are competing for the same experienced leaders while also telling us there aren’t enough people coming through behind them.
“That creates a real risk for future project delivery. Recruitment will always play a role, but businesses that invest in developing leaders, succession planning and clear career progression will be in a much stronger position to deliver the investment the sector needs over the coming years.”
Key findings from the survey:
63% identify leadership as the biggest contractor skills gap.
68% expect demand for contractors to increase.
63% say projects are being delivered only with significant challenges.
90% say specialist contractors are difficult to find.
63% identify middle-management positions as the hardest to recruit.
42% say early-career and mid-level professionals are not yet ready for senior roles.
90% of contractors cite pay as a key factor when considering opportunities.
36% would leave a contract early for higher pay elsewhere.
The snapshot survey included responses from 325 specialist contractors and 157 hiring managers across the UK.
