The construction industry is in the grip of a ’perfect storm’ of skills shortages, price increases and supply issues.

The problems in the industry have been highlighted by Manx National Heritage which says it can’t afford to carry out work on national treasures such as the Laxey Wheel.

The organisation is calling for a solution to be found.

The head of properties at MNH, Steve Blackford, said: ’The overheating construction market and combined challenges with supplies has triggered widespread price increases, which MNH are unable to sustain from existing budgets.

’The sharp rise in costs and shortage of labour means current major projects, which are priced months in advance, are at risk of delay or deferred completion.’

The chairman of Construction Isle of Man, Brain Butler, says Covid and Brexit have had an impact, while at the same time there are not enough apprentices across the industry and migrant workers are leaving for more lucrative work off the island.

Factory closures during Covid, as well as a shortage of hauliers because of Brexit, have seen timber prices increase by 100% over the past 12 months.

Mr Butler said: ’First, we have a lot of homeowners with more cash in their pocket than they would have, spending money on their houses.

’But the major issue is a skills shortage. Workers from the UK and Ireland are going back to where they can make more money and there’s a problem with training.

’It’s being called the perfect storm. I hate using that phrase but this is what it is. It will lead to a lot of schemes being delayed and going over budget.’

Manx National Heritage schemes that are under threat include essential repair work to get the Laxey Wheel turning again, as well as general maintenance on other historic sites.

New projects including the new TT gallery at the Manx Museum can’t get off the ground.

MNH’s Steve Blackford said: ’We are struggling to secure suitable contractors to undertake some of these projects or even to price for the work with such volatility in the cost and supply of materials and labour.’

He said the heritage charity is facing significantly higher bills for renovation projects and development works as quantity surveyors and builders grapple with soaring labour costs, shortages and associated price rises of essential materials.

Manx National Heritage is about to advertise a number of construction and engineering projects for competitive tender but is worried about the response from the industry.

Many firms are opting for privately negotiated contracts rather than government competitive tendering as rates for labour and materials are so high, and a fixed price process carries additional risk.

Mr Butler said: ’Unfortunately, there is no short term solution. We are in discussion with UCM in terms of increasing the number of apprentices and we are asking, are there people out there who can re-skill?’