The construction industry is poised for a steady growth trajectory, with infrastructure projects set to lead the way. McBains consultancy forecasts a 1.8% increase in construction output for 2027, accelerating to 2.8% in 2028, before moderating to 2.3% in 2029 and 2.1% in 2030. This growth is crucial as the sector rebounds from recent disruptions.
What Happened
The UK construction market is entering a more stable period, according to McBains' latest forecasts. Infrastructure work is expected to grow by 14% from 2026 to 2031, positioning it as a key driver of industry growth. In contrast, residential and commercial sectors face a more selective recovery. Colin McCaffrey, director at McBains, highlights that competitive tendering is currently helping to control price growth, yet the industry still grapples with high energy costs, labor shortages, and material price pressures. Steel, in particular, poses a significant near-term cost risk due to rising prices, tighter import controls, and energy volatility.
What This Means for Your Business
For AECM professionals, the focus should be on infrastructure, defense, healthcare, and data centers, which are predicted to see substantial investment. The demand for retrofitting to improve energy performance is also on the rise, driven by sustainability objectives and asset value protection. Navigating these opportunities requires projects to be well-funded, meticulously planned, and supported by robust delivery strategies. Delays in procurement can directly impact financial outcomes due to inflation and supply chain risks. Ensuring design approvals and meeting procurement and delivery milestones are crucial.
What US Operators Should Watch
Decision-makers should closely monitor the evolving regulatory landscape, including the Carbon Border Adjustment Mechanism, which could impact material costs. Furthermore, keeping an eye on the competitive tendering environment will be essential as it affects pricing strategies. As infrastructure projects gain momentum, aligning with federal funding opportunities and compliance requirements will be pivotal to securing contracts and optimizing returns.
Source: Construction Enquirer
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