COVID-19 created many challenges, including project delays and productivity problems. The unevenness of recovery has also led to pockets of labour shortages. The loss of migrant workers, many returning to their home countries, exacerbates the problem as many may not return.

With global supply chains disrupted and construction seen the world over as a motor to lift economies out of a pandemic-enforced slump, materials shortages are becoming a critical challenge, exacerbated by high demand for key resources such as timber, plastics and steel, from international sources.

Future outlook

Prospects for UK construction look positive with the promise of more normality as vaccinations are rolled out at pace. But plenty of potential squalls may blow progress off course, as the industry adjusts to trading outside the EU and a highly energised global construction market creates shortages and price rises in materials.

Progress of the environmental agenda

The UK is one of six nations to have put a zero-carbon target into law. It has recently committed to cutting emissions by 78 percent by 2035. The much-used political slogan, “build back better”, clearly suggests action and adds pressure to meet these targets.

The UK has made huge strides in decarbonising the energy supply system, with carbon emissions halved over the past decade. Construction remains key to delivering yet more wind, nuclear and solar power. It is also central to decarbonising housing and transport, the next two big emitting sectors. The UK arguably has the world’s oldest housing stock. The estimated investment needed to adequately retrofit this stock is put at more than £530bn (US$700bn) over the next 20 years.

Regional construction cost performance

Top three construction challenges