Response to Invest 2035: UK modern industrial strategy consultation
In response to the UK Government’s Invest 2035: modern industrial consultation, we’ve outlined a bold vision for the construction sector’s role in driving national prosperity. Our response highlights how crucial construction will be to deliver the infrastructure and innovation needed to achieve the UK’s industrial goals.
Currently, the UK is creating plans for a future shaped by innovation and sustainability. The construction industry emerges not just as a sector but a key enabler of growth-driving industries, such as advanced manufacturing, clean energy and life sciences.
Construction: a strategic enabler
Accounting for six percent of GDP, construction underpins the UK’s economic ambitions by delivering critical infrastructure for these industries. Projects such as Crossrail, which has generated £42bn in economic benefits from an £18.7bn investment, illustrate the sector’s transformative impact.
However, systemic challenges, including fragmentation, low profit margins and an uncertain pipeline, threaten the industry’s ability to meet the UK’s future needs. Tackling these issues is essential for building confidence and enabling growth.
Our recommendations
We’ve focused on six priority areas to align construction with the goals of the government’s Invest 2035 strategy:
- Coordinating strategy and governance
Establish a cross-government construction strategy board, supported by the National Infrastructure Systems and Transformation Authority (NISTA). The board will align industrial policy with construction investment and promote long-term stability. - Developing skills for the future
The sector faces a skills shortage, with a projected shortfall of 250,000 workers by 2028. We recommend a Skills Taskforce under Skills England to attract talent, with a focus on digital, green and emerging roles. - Unlocking private investment
Effective public-private partnerships are essential for large-scale infrastructure. Drawing on models like Thames Tideway, we propose frameworks that de-risk investment while ensuring value for money.
- Embracing digital and industrialisation
Technologies like Building Information Modelling (BIM) and offsite construction methods can boost productivity and sustainability. Mandating these approaches in public projects will set industry benchmarks and encourage innovation. - Driving sustainability
Construction must lead on decarbonisation to meet the UK’s climate goals. We propose consistent embodied carbon evaluation standards and stricter sustainability regulations for public projects, laying the groundwork for private sector adoption. - Aligning regional and national growth
Regional growth plans must integrate with national strategy to maximise construction capacity and prevent supply chain fragmentation, ensuring a coordinated approach across the UK.
Building a resilient and exportable industry
Our recommendations aim to establish construction as a foundation for economic growth and an exportable industry renowned for innovation and expertise. By addressing its challenges, construction can help deliver the infrastructure and capabilities needed to meet the UK’s long-term ambitions.
Read the report
