Challenges And Opportunities Facing The Construction Industry Today

Construction challenges

Yes, the UK construction industry faces challenges over the next 12 months and beyond, as it continues to fight back against the impacts of the COVID-19 pandemic, rising interest rates, and other rising costs. However, the industry also has some big opportunities to benefit from the government’s infrastructure plans, green initiatives and innovation as well as the increasing demand for private housing and improved infrastructure.

Economic Recovery

The construction industry in the UK is expected to shrink by 0.7% in real terms in 2024. But that’s an improvement following a 1.2% contraction in 2023. The main reason for the decline is rising interest rates and a blip of confidence in the residential sector. However, we are beginning to see signs of light at the end of that tunnel. Inflation is being reigned in and most experts predict that interest rates have now peaked.

The industry is expected to return to growth sooner rather than later, as the economy recovers from the threat of recession and consumer confidence improves. The government’s fiscal stimulus measures, such as the £100 billion National Infrastructure Strategy and the £4 billion Levelling Up Fund, will also support the construction industry’s recovery.

Green Transition

The UK construction industry has an opportunity to contribute to the global efforts to tackle climate change and achieve net zero emissions by 2050.

To achieve these goals, the government has announced various green initiatives. These include the £9.2 billion Green Homes Grant Scheme, the £1 billion Public Sector Decarbonisation Scheme, and the £5 billion Project Speed Programme.

We need to adapt to new regulations and standards and set minimum energy performance requirements for new buildings from 2025. As a sector, will also need to invest in innovation and digitalisation, offsite manufacturing, and smart technologies, to improve efficiency and quality.

Recruitment Opportunities

The industry still faces the significant challenge of recruiting and retaining a skilled and diverse workforce. It is predicted that an extra 225,000 construction workers will be needed by 2027 (45,000 workers per year), with the major sectors in demand being private housing, infrastructure, and repair and maintenance.

Construction will also need to address the shortages of both skilled and unskilled labour, which are likely to be exacerbated by Brexit and an ageing construction workforce. We need to attract more young people, women and ethnic minorities into construction careers.

To help meet this challenge, the Construction Division here at Planet Recruitment strives to attract a diverse range of recruits for the industry and will work alongside our construction partners to deliver the candidates they may struggle to source themselves.

Embrace The Challenge

Yes, we are facing some challenges, but our sector has massive opportunities ahead. By recruiting and retaining a skilled and diverse workforce, who are ready and able to work with new technologies and standards to improve efficiency and quality, the industry’s resilience and adaptability will be key to future growth.

Kris Blaszko Construction Recruitment


Got a question?
Let’s talk