According to the Chartered Institute of Building (CIOB), small and medium-sized enterprises (SMEs) struggle to compete with larger businesses when applying for work despite making up 99% of the Welsh construction industry.

CIOB says many SMEs feel forced to take the work even though they know it will involve taking a financial hit to ensure they have a pipeline of work to keep their business afloat.

The professional body for construction management and leadership revealed some of its Welsh members have even opted to compete for work across the border in England instead, where they say the tender process is far less bureaucratic.

A report called ‘The SME Construction Landscape in Wales | Risk Factor Analysis’ was handed to members of the Senedd last week.

It highlights the profound impact of construction businesses going bust, including projects delayed to the detriment of local communities.

The report highlights some skills SMEs currently lack in Wales, including employees with key IT capabilities in an increasingly digital world.

Other specific roles lacking across the sector include commercial managers, project managers, and quantity surveyors.

CIOB has long called on the Government to work closely with the construction sector to develop long-term policy thinking, giving SMEs more confidence in upskilling their staff and taking on more projects.

The professional body also revealed SMEs struggle to keep up with ever-changing regulations across the sector.

Other recommendations for members of the Senedd include more power devolution to local governments across the country, giving them more control over their funding and the freedom to plug holes in resource gaps.