The construction industry stands at the threshold of significant transformation in 2025. Glenigan forecasts an 8% growth in new project starts this year, primarily fuelled by public sector and infrastructure investments, with an additional 10% growth anticipated in 2026. These projections exclude megaprojects over £100m, focusing on everyday activities that drive sectoral momentum.
Key trends, including advancements in technology, the adoption of sustainable practices, regulatory changes, and workforce dynamics, are set to redefine the industry. Here’s an in-depth look at the forces shaping the future of construction in 2025.
Technological Innovations: Building the Future
Technology continues to drive progress in construction, with digital tools now integral to operations. Building Information Modelling (BIM), a longstanding asset, ensures seamless collaboration between architects, engineers, and contractors, reducing errors and minimising costly rework.
Emerging technologies, however, are setting the stage for even greater transformation. Drones streamline site surveys and safety inspections, offering precision and efficiency, while robotics take on hazardous and repetitive tasks, enhancing both productivity and worker safety. Meanwhile, 3D printing is revolutionising prefabrication, reducing material waste and accelerating project timelines.
Despite requiring significant upfront investments, these innovations offer long-term benefits by cutting costs, shortening project durations, and improving overall outcomes. Companies embracing these technologies are well-positioned to stay competitive in an evolving market.
Sustainability takes centre stage
Sustainability is no longer optional – it’s now a cornerstone of construction strategy. Rising material costs, driven by global supply chain pressures and increased demand for eco-friendly options, are pushing the industry toward greener practices.
Developers are adopting sustainable materials, such as recycled building boards and renewable timber, alongside modern construction techniques like modular and hybrid methods. These approaches reduce waste, improve efficiency, and future-proof projects against environmental challenges.
The shift toward sustainability aligns with the UK’s broader transition from repair and maintenance-focused spending to prioritising new builds. A recent PWC report highlights how higher borrowing costs are influencing industry priorities, making sustainable solutions pivotal to meeting evolving market demands.
Navigating Regulatory Changes
Stricter regulations are reshaping the construction landscape, emphasising safety, energy efficiency, and sustainability. The Building Safety Act, introduced following the Grenfell Tower tragedy, underscores the importance of fire safety and structural integrity. Meanwhile, enhanced energy efficiency standards are encouraging the design of greener buildings, although these initiatives may initially raise project costs.
Urban developers face additional hurdles with evolving planning permissions and zoning regulations. Staying ahead of these regulatory requirements will be critical for delivering projects on time and maintaining competitiveness in a shifting market.
Addressing Labour Shortages
Labour shortages remain a persistent challenge in 2025. Contributing factors include an aging workforce, reduced EU worker availability post-Brexit, and insufficient vocational training in traditional trades. Rising wages and new opportunities, however, present a chance to revitalise the sector’s workforce.
Investments in apprenticeships, upskilling programs, and digital training tools are equipping the next generation with essential skills. By addressing workforce shortages proactively, the industry can build a resilient and skilled labour pool, paving the way for sustained growth and efficiency.
A future defined by innovation and resilience
The UK construction industry is poised for growth, driven by public sector investments, technological advances, and sustainable practices. Navigating regulatory complexities and workforce challenges will require innovative solutions and strategic investments. By embracing these changes, the sector is set to achieve lasting success, transforming the built environment for a greener and more efficient future.
