Re-flow: State of the Construction Industry Report 2024

by Adrian Tatum

The construction industry is undergoing significant changes, driven by technological advancements, evolving regulations, and a strong focus on sustainability. More negatively, recruitment shortages and mental health issues are ongoing concerns, and a lack of clarity and funding is stifling more positive opportunities.

Our comprehensive State of the Construction Industry Report 2024 delves into these trends, offering insights and actionable information for construction companies.

The report compiles data from trusted sources like the Office for National Statistics, the CPA, and industry experts, providing valuable information to help you navigate the evolving landscape of the industry.

Key Highlights

Sustainability and Net Zero Goals

The construction industry is aligning with the Net Zero 2050 target, with all new buildings and 20% of existing structures aiming to be zero-carbon by 2030.

There is a growing emphasis on adopting a robust benchmarking approach to effectively implement solutions for emission reduction, as highlighted by industry leaders.

Technological Advancements

The increased adoption of construction technology, such as AI-enhanced robotic welding, 3D printing, and inspection drones, is offering new opportunities for efficiency savings.

Connected construction sites are becoming more common, utilising networks of devices, sensors, and software to enhance communication and efficiency in real-time.

Health and Safety Regulations

The Buildings Safety Act introduces a comprehensive regulatory framework, including the BSR’s new building safety regime and a “gateway” system to assess risks at different stages of construction.

The act ensures far-reaching protections for qualifying leaseholders from the costs associated with remediating historical building safety defects.

Mental Health and Wellbeing

The high suicide rates among male construction workers underline the urgent need for better mental health support within the industry.

Companies have a duty to create environments where workers feel comfortable discussing mental health issues and are supported in managing work pressures.

Workforce Dynamics and Diversity

Female representation in the workforce has reached a new high of 15.8%, up from a pre-pandemic figure of 12.6%, though challenges remain in increasing that percentage even further.

The industry is facing a shortage of skilled labour due to factors such as Brexit and an ageing workforce, necessitating increased investment in recruitment, training, and retention.

Economic Impact and Opportunities

The construction sector stands to benefit from funds allocated through key pieces of legislation, which could spur growth and offset some challenges posed by labour shortages and rising material costs.

Manufacturers are making green investments, with calls for extended business rate relief to support these initiatives and reflect the business investment payback period.