Theconstruction industry is one of the major industry sectors in theeconomy of the United Kingdom, contributing about 6% of UKgross value added (GVA) in 2019.[1] In 2018, it was the sixth biggestconstruction sector in the world by GVA.[2]
Before theCOVID-19 pandemic, the value of construction new work peaked at £119,087 million in 2019, dropping to £99,651 million in 2020.[3] Of this total, newhousing comprised £37,755 million of new work, infrastructure £22,517 million, and private commercial building £24,614 million.[3]
Public sector work (housing, infrastructure, other) accounted for 26% by value of new work in 2020.[3] A survey undertaken in 2016 found that 72% or public sector organisations who responded usedframework agreements to appoint construction contractors and service providers (such asarchitects andengineers).[4]
The construction sector employed around 2.1 million workers (1.4 million employed in just over 342,000VAT/PAYE-registered businesses, plus 727,000self-employed) in Great Britain in 2020,[3] with a high proportion of small businesses:[1] just over one millionsmall/medium-sized businesses (SMEs), mainly self-employed individuals, worked in the sector in 2019, comprising about 18% of all UK businesses.[1] Tier 1 suppliers in 2013 estimated that 50% by value of their government construction work and supply was delivered by SMEsub-contractors and suppliers.[5] Over a third of construction businesses in 2020 were located in London and south east England.[3] Women comprised 12.5% of the UK construction workforce in 2019.[6]
%2c_geograph_6947416_by_Chris.jpg)
Productivity in construction remains below the UK average and has changed little in the past 50 years.[7] As a result, the UK government has repeatedly tried to improve the sector's efficiency, publishing (among others) theLatham Report in 1994, theEgan Report in 1998 and theFarmer Review in 2016; in 2013 it launched theConstruction 2025 industrial strategy,[8] which has since been updated through the 2018 industrial strategy, the 2019Construction Sector Deal, the 2020Construction Playbook, and the 2021Transforming Infrastructure Performance: Roadmap to 2030.
As of 2022[update], the largest construction project in the UK is construction of theHigh Speed 2 rail line between London and the West Midlands. Prior to completion of construction,Crossrail was Europe's biggest construction project.[9][10]
The industry was pushed into a period of turmoil following theBrexit vote in June 2016. Fears of post-BrexitEU labour shortages were cited as a key reason for the uncertainty.[11][12][13] Further disruption followed during the COVID-19 pandemic from 2020 onwards, and there were inflationary pressures as a consequence of rising fuel prices following the2022 Russian invasion of Ukraine.
In 2023, the construction industry accounted for 11% of UK company insolvencies as businesses were affected by rising inflation and interest rates.[14]
Construction accounted for 39 of the 142 work fatalities reported in 2021-22,[15] with half of deaths over a five-year period attributed tofalls from height.[16] Construction's fatal injury rate (1.62 per 100,000 workers) is around four times higher than the all industry rate.[16] Around 1.8% of construction workers reported musculoskeletal disorders - a higher rate than for workers across all industries (1.1%).[16]
This article incorporates text published under the BritishOpen Government Licence: Cabinet Office,Making Government business more accessible to SMEs: Two Years On, page 6, published on 8 August 2013, accessed on 25 September 2024| Companies | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| Currency, governance, regulation | |||||||||
| History |
| ||||||||
| Nations, regions, cities |
| ||||||||
| People and labour | |||||||||
| Sectors |
| ||||||||
| Trade and business organisations | |||||||||
| Types | |
|---|---|
| History | |
| Professions | |
| Trades workers (List) | |
| Organizations |
|
| By country | |
| Regulation | |
| Architecture | |
| Engineering | |
| Methods | |
| Other topics |
|
