Invest 2035: the UK’s modern industrial strategy proposes a plan “to ease the investor journey and create long-term, inclusive, secure and sustainable growth”. The final industrial strategy will be published in spring 2025 alongside a spending review.
The strategy* concentrates on eight favoured industrial sectors, including clean energy, creative industries, defence, ‘advanced’ manufacturing and digital technologies. Construction – whether of the advanced sort or otherwise – is not on the list.
Somewhat inevitably, this has not gone down well within the construction industry.
Brian Berry, chief executive of the Federation of Master Builders, said: “It is deeply concerning that the chancellor and business secretary have published an industrial strategy for the new government but have not felt it necessary to include reference to the construction sector as an industry for growth, during a period where the UK is experiencing both a housing and skills crisis that are holding back and economic resurgence and threaten long-term market confidence. Given the focus on rebuilding Britain, it appears those that will be doing the physical work have been forgotten. While the government is focusing on inviting big innovative investment, it should not forget the fundamentals of what drives growth. The consultation is an opportunity to ensure that construction doesn't end up as a side show sub-sector in the plan. Construction needs to be front and centre in the government's drive for economic growth."
Berry concluded: “The government has made several promising announcements in recent weeks with proposals for significant planning reforms, an ambitious house building target of 1.5 million new homes, and the establishment of Skills England all welcome. However, there remain questions about the viability of these plans without serious investment to tackle the root causes. The new industrial strategy raises concerns around how integral to the overall UK economy ministers see our industry, which should sit alongside services and manufacturing as a key pillar of economic growth.”
Sean Keyes, chief executive of Liverpool civil engineering consultancy Sutcliffe, is also unimpressed.
“We cannot afford to overlook the very industry that builds the foundation of Britain’s future,” Keyes said. “As announced in the industrial strategy, the government’s focus on eight key growth sectors will undoubtedly provide stability and confidence to give investors a 10-year plan to choose Britain, showcasing how the UK can compete to win on a global stage. However, it is concerning that construction, a fundamental pillar of our economy and an essential driver of infrastructure development is missing from this list.
“Construction is the backbone that supports and enables growth across all sectors, from housing to the infrastructure these key industries rely upon. Without recognising the central role of construction, there is a real danger that the government’s strategy will fail to deliver on its full potential. The omission undermines not only the sector’s contribution to GDP but also its capacity to generate jobs, innovation, and the future-proofed infrastructure required for a thriving economy. We cannot afford to overlook the very industry that builds the foundation of Britain’s future”.
The people who make diggers and dumpers for the construction industry also feel snubbed that they are not specifically mentioned in the new industrial policy document.
“It's disappointing that the construction equipment sector hasn’t been more prominently recognised, given its natural fit within advanced manufacturing and clean energy,” said Viki Bell, operations director of the Construction Equipment Association.
“Our sector generates over £15bn in revenue, supports over 44,000 jobs, and invests heavily in R&D—£250m annually. We're playing a leading role in advancing clean energy within our sector with sustainable innovations such as battery storage and hydrogen fuel, which are essential to the transition to clean energy.”
* Invest 2035: the UK’s modern industrial strategy is available at gov.uk
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