Europe’s labour shortage: Builders’ merchants hold part of the answer

Imagine stacks of insulation panels sitting in stock for a project that is delayed because no electrician can be found. A contractor cancelling his order for heat pumps because there are no installers available to fit them. Or a delivery of roof tiles standing in the yard for weeks, waiting for bricklayers who are tied up elsewhere.

These are far from exceptions. Across Europe, builders’ merchants are feeling the knock-on effects of a labour shortage that is slowing projects, disrupting demand, and creating volatility in the building materials market. Governments are calling for more housing and accelerated retrofitting to meet energy transition targets. Yet without enough skilled workers, those targets remain on paper, and orders remain stuck in the pipeline.

For merchants, this is not a distant, abstract problem. It is a direct business risk: no workforce means fewer projects, and fewer projects mean weaker demand. But it is also an opportunity. Builders’ merchants that position themselves as solution providers rather than box movers can gain market share, and Euro-Mat — the European network of merchants — is putting itself at the heart of that transition.

Vacancy rates across Europe dipped slightly in early 2025, but the construction sector remains a hotspot. The shortage is structural: demographics are pushing more workers into retirement than new entrants can replace, while the energy transition is driving demand for new technical skills.

Migration and automation are part of the mix, but neither provides a silver bullet. Guest workers can only partially compensate, and their qualifications, language, and certification often require long lead times. Robots are making headway in prefabrication plants, but construction sites remain highly variable and complex, with automation uptake still marginal.

The upshot is clear: people remain central, and investment in training, guidance, and retention is the only sustainable route.

Labour shortages manifest differently across Europe:

Across Europe, construction firms are not waiting for governments to solve the labour shortage. Instead, they are developing their own training and recruitment programmes, often in collaboration with vocational institutes. In the Netherlands, Heijmans has launched a scheme with a regional training centre to help asylum seekers with residence permits build a career in construction. The curriculum combines technical instruction with Dutch language, cultural orientation and soft skills, supporting both professional integration and social inclusion.

In Italy, Webuild and other major contractors such as FS Group and Fincantieri have set up in-house academies. These schools accelerate learning curves for project-specific skills, ensuring that new entrants can contribute more quickly on site. In the UK, manufacturers like Vaillant are investing in accelerated retraining for HVAC specialists, creating much-needed technicians for the energy transition, though the supply still falls short of demand. Meanwhile in Spain, Fundación Laboral de la Construcción is spearheading practical training and high-profile campaigns designed to attract young people and women into the sector.

These examples underline a clear message: construction companies that take ownership of training can secure a more reliable talent pipeline and adapt faster to the demands of the energy transition.

The persistent shortage of skilled workers has direct consequences for builders’ merchants. Project lead times continue to stretch, as highlighted by a 2024 survey in the UK where 43% of SME contractors reported delays caused by staff shortages. That reality trickles down the supply chain: orders arrive later than expected, call-offs are less predictable, and suppliers face sudden periods of intense pressure. For merchants, this means navigating a more volatile market. Demand shifts back and forth between categories — with retrofit kits and energy-related systems in higher demand, while traditional structural materials slow down during downturns.

Customers increasingly turn to merchants for advice on complex systems such as heat pumps, EV charging infrastructure and airtight installation, transforming the merchant’s role into that of a technical partner. At the same time, the sales process itself is lengthening, because orders can only be placed once the right installers are available. Logistics also become more challenging, as overbooked contractors require smaller, just-in-time deliveries to fit their packed schedules. Yet within these challenges lie opportunities: merchants who can step up with training events, ready-to-install renovation packages and digital tools that help compensate for limited manpower stand to win lasting customer loyalty.

Builders’ merchants, while not responsible for training entire workforces, can play an indirect but powerful role in tackling labour shortages. They are uniquely positioned at the junction between suppliers and contractors, giving them leverage to support initiatives that make construction a more attractive and accessible career. This can mean encouraging apprenticeships and master–apprentice models linked to real projects, or helping to bring women, migrants with technical skills and lateral entrants into the sector by easing access to training and certification.

At the same time, merchants can add value directly through the services they provide. By offering technical advice on complex products such as heat pumps or insulation systems, assembling ready-to-install renovation packages, or adapting logistics with small-load deliveries, they can help overstretched contractors work more efficiently. Crucially, merchants can also partner with manufacturers and training bodies to host courses and events, ensuring that knowledge about new technologies reaches the installers who need it most.

In this way, merchants do more than move boxes. They strengthen the workforce pipeline, support contractors under pressure, and secure their own long-term growth by positioning themselves as indispensable solution providers.

The core of the solution remains: inspiring, training and retaining more people — from school to lateral entry, from the workplace to certification. Euro-Mat, the European network of builders’ merchants, emphasises this with practical, future-oriented solutions for all links in the chain:

Masterclass “The Future of the Building Site”: developed with Delft University of Technology, this programme prepares professionals for tomorrow’s building methods — from BIM and prefabrication to AI, robotics, and circular construction. It shows merchants not only what is coming, but also how to align product portfolios with emerging technologies.

Euro-Mat dashboard: developed with leading technical institutes, this tool delivers real-time market intelligence to merchants and suppliers, enabling strategic, data-driven decisions across Europe.

Knowledge committees: dedicated groups on business development and timber sustainability provide a structured platform for merchants to exchange best practices and respond collectively to market shifts.

Practical innovation: from small-load concrete delivery models that reduce waste to bio-based material initiatives such as Bouwcenter’s Bouwgroen, Euro-Mat members are turning challenges into competitive advantages.

Networking & study trips: by visiting peers such as Leyland in London or Bouwcenter in the Netherlands, members learn how location strategy, sustainability, and product innovation can be integrated into everyday practice.

Digital magazine: Euro-Mat’s digital magazine aims to inform and inspire by sharing industry insights, highlighting innovative solutions, and showcasing successful initiatives across the European building supply sector.

Euro-Mat does not just report on the labour shortage — it helps members to turn it into a driver of innovation.