This construction company is building skills to scale new heights

Amid growing pressures on the construction sector to reduce its environmental impact, LDC General Construction (LDC) saw an opportunity to transform its practices – and its future. Specialising in residential, commercial and industrial buildings, the Singapore-based company recognised that incorporating sustainability could lend it an edge when bidding for contracts with environmental, social and governance (ESG) requirements. In addition, practices such as recycling construction waste could help reduce project costs and emissions in the long run.

For LDC, a small- and medium-size enterprise (SME) with just 60 employees, the journey to upskill its workforce came with challenges. “LDC has historically focused on traditional construction methods and the lack of familiarity with sustainability principles created a steep learning curve for our workforce,” said Mr Ryan Ng, senior manager at LDC. “There was also the perception that ESG compliance was just added bureaucracy.”

However, LDC quickly realised it did not have to embark on the journey alone. By tapping into support from SkillsFuture Singapore (SSG) and industry partners, it was able to access a variety of grants and capability development programmes.

Mr Ng shared: “With external support, subsidised training and incremental implementation, we were able to close the skills gaps and integrate ESG practices into our operations.”

HELPING SMALL BUSINESSES GROW

Businesses are increasingly recognising the value of investing in their people. A recent survey of 796 companies by the Singapore Business Federation found that nine in 10 employers value staff training, and seven in 10 have invested in upskilling over the past year. But for many SMEs, upskilling remains a challenge.

According to Ms Xu Wenshan, SSG’s enterprise engagement director, common barriers to skills development for SMEs include limited knowledge on available training resources, financial constraints and time limitations. “With a tight labour market and rising costs, investing in training can seem daunting,” she said. “But it’s precisely these conditions that make upskilling crucial.”

To address these challenges, SkillsFuture offers targeted solutions. Businesses seeking guidance on skills development can turn to SkillsFuture Queen Bees for advisory services. Since 2020, SSG has partnered 36 Queen Bees to deliver curated capability development programmes, supporting more than 3,500 enterprises.

Companies can also leverage initiatives like the SkillsFuture Enterprise Credit or receive subsidies to cover up to 90 per cent of training costs. To tackle time constraints, SSG offers flexible learning options, including short courses, e-learning alternatives and workplace learning support.

PARTNERSHIP FOR PROGRESS

Through the SkillsFuture Queen Bee initiative, LDC was paired with DBS Bank, which helped the construction company identify critical skills gaps and develop a tailored sustainability road map. DBS experts also provided mentoring, which Mr Ng described as “particularly valuable” as it allowed LDC to receive real-time feedback and fine-tune its strategies. And by utilising SSG’s training subsidies, LDC saved S$10,000 in training costs.

“As new growth areas like sustainability and generative AI emerge, we are seeing a widening gap between the skills that businesses need and the capabilities available in the company,” said Mr Koh Kar Siong, group head of corporate and SME banking at DBS.

Initiatives like DBS’ ESG Ready Programme play a crucial role in bridging this gap, offering comprehensive support to help SMEs build capacity and capability in sustainability. This, in turn, strengthens the entire ecosystem by building a robust network of responsible businesses that can thrive together.

REAPING THE BENEFITS OF UPSKILLING

Although LDC’s upskilling efforts began only in 2021, the results are already evident. The company has experienced a 5 to 10 per cent revenue growth, driven by successful project bids, particularly from environmentally conscious clients.

By reducing energy consumption, minimising material waste and recycling, LDC has lowered operational costs by up to 8 per cent. Meanwhile, upskilling initiatives in sustainability, digital tools and project management have boosted workforce productivity by 10 to 15 per cent. With a deeper understanding of carbon emissions and reduction strategies, LDC has cut its carbon footprint by up to 12 per cent across its projects.

“Sustainability is not only compatible with profitability, it enhances it,” said Mr Koh. “For example, adopting energy-efficient technologies or streamlining supply chains can lower operational costs in the long run. Businesses that integrate sustainability are better positioned to attract customers, investors and partners who are increasingly prioritising environmental responsibility.”

Furthermore, SMEs possess an “inherent advantage” in upskilling their workforce due to their smaller size, said Mr Ng. “With fewer layers of management and teams where employees wear multiple hats, SMEs can be more agile, quickly launching training programmes and piloting new technologies,” he added. “By investing in workforce development and embracing sustainability, businesses can enhance their competitiveness, improve employee satisfaction and ensure long-term success.”

Discover how to accelerate your business with the right upskilling initiatives and support.