We must make the case for – and prove – construction’s place as an enabler of growth

With UK GDP growth having slowed to a listless 0.1%, the government will be focusing an even keener eye on the growth-driving sectors set out in its Invest 2035 green paper for industrial strategy over the next decade. However, the strategy currently risks becoming another example of UK policymaking overlooking the role of construction as the engine through which wider industry and economic growth can be powered and delivered.

>> Also read: Labour should place construction at the heart of its growth agenda

From building state-of-the-art manufacturing and lab space for life sciences to delivering decarbonised energy grids and AI data centres that will power a technological revolution, the responsibility of enabling this growth falls to construction. This comes at a time when, faced with significant capacity and skills challenges, tight margins and a heightened risk of insolvency, our sector is on unsteady ground.

Addressing challenges around construction’s pipeline, capacity and capabilities – attracting more people and with a wider range of skills – will be paramount to ensuring that the sector is fit to deliver. We need the government and our sector to work together to achieve this.

Creating confidence in construction

As the sector’s biggest client, the government is uniquely placed to provide a clear pipeline of work which would put the sector on a more stable footing. Greater certainty around the industry’s order books would also help to create the confidence to drive much needed private investment into the sector.

But demand and investment must be joined up to prevent competing programmes from cannibalising capacity. To do this, we are recommending a new construction strategy board should be set up by the Industry Strategy Council, with representation from across government departments to provide the visibility over national strategy and local growth plans.

A dedicated taskforce could work to identify, attract and develop pipelines of talent, including forecasting requirements for the future, to avoid a continued game of catch-up

A consistent pipeline of work will also help us to navigate the major challenge we face around skills – highlighting the reliable, long-term careers on offer to bring in and, importantly, to retain talent from home and abroad.

Construction is not alone in facing a skills gap. However, the part we play in enabling wider economic growth, the specialist expertise required for many jobs across the built environment and the public perception of ours as a dirty and dangerous industry mean that targeted efforts to fill the gap are needed. Government should do its bit to support this.

Within our own response to the Invest 2035 green paper, we are calling for the government to establish a construction skills taskforce under Skills England. A dedicated taskforce could work to identify, attract and develop pipelines of talent, including forecasting requirements for the future, to avoid a continued game of catch-up.

This is not just about creating from new. Building on previous successes will be crucial too. The government should work with the National Infrastructure Systems and Transformation Authority (NISTA) to incorporate lessons from departmental programmes including defence and the world-leading covid vaccine taskforce into the construction strategy board.

Looking in the mirror

For our part, we have to work together as a sector to meet the government halfway. This means taking responsibility for improving construction performance and building the confidence that we can deliver, in order to unlock investment and create and maintain public support.

Productivity is a major piece of this puzzle and one in which we have seen progress over recent years. The presumption in favour of modern methods of construction (MMC) is supporting standardisation and increased efficiency across various sectors.

The prisons programme and the emerging New Hospitals Programme are both good examples of the benefits of offsite construction – and why it should continue to be prioritised through the industrial strategy.

Changing the narrative around construction as an industry which is inefficient and low-value and highlighting tech-driven and impactful outcomes will work to create a virtuous circle and inspire tech-minded talent to explore a career in our sector

However, to accelerate this progress we have to develop greater digital skills to modernise the sector and deliver the technological change we need to drive up efficiency and standards.

To an extent, we are standing in our own way here. We are not good enough at talking outside our own circles about the incredible work being delivered across the built environment, whether that is around the use of digital tools to reduce embodied carbon, regenerating communities or connecting people with their workplaces and schools.

Changing the narrative around construction as an industry which is inefficient and low-value and highlighting tech-driven and impactful outcomes will work to create a virtuous circle and inspire tech-minded talent to explore a career in our sector.

Building world-leading expertise

Major leaps forward are rare in construction. Yet the Invest 2035 industrial strategy – with a greater understanding of construction’s importance – could provide the chance to make huge strides in the industry’s performance and support the growth of sectors in which the UK could become a world leader.

There is also a significant opportunity to build and position our construction expertise as an exportable proposition for UK plc, showcasing what we can do to wider markets.

We must make the case for construction’s vital role in enabling economic growth across the country. That relies on us proving to the government, investors and prospective talent that, with clarity, visibility and close collaboration, our sector can step up to the plate and deliver.

Patricia Moore is UK managing director of Turner & Townsend