Construction Disrupted Episode 99 - 39bn reasons to learn from mistakes (21.01.26)

We start by exploring the industry’s high note as 2025 wraps up, which may go some way to explaining the £39 billion worth of projects driving growth in 2026. There is a word of caution, though, for the government’s ambitious Northern Powerhouse Rail plan, and we wrap it all up with how innovations like AI and robotics are reshaping the sector (again)! Let's go:

As 2025 comes to a close, the construction industry is poised for a significant shift, driven by the growing demand for data centres and other infrastructure projects. Analysts predict a "structural shift" in the sector, with data centres becoming a major focus due to the increasing reliance on digital technologies. This trend is expected to drive substantial growth and investment in the industry.

Looking ahead to 2026, Glenigan’s market analysis highlights the Top 100 construction projects set to generate £39 billion worth of work. Civil engineering projects will lead the charge, contributing £23.8 billion across 29 major initiatives. The largest project is the £10.2 billion Lower Thames Crossing in Kent, which includes tunnels and approaches. Other significant projects include the A5 Western Transport Corridor in Northern Ireland (£1.7 billion) and Network Rail’s £1 billion Project Reach for trackside fibre optic cable installation in London.

The office and commercial sector is also rebounding, with 23 projects valued at £6.3 billion, including the £750 million Bidder Street Data Centre in East London and a £700 million British Library extension. The housing sector is set to see 37 projects worth £6.9 billion, with private residential developments leading the way. The largest housing project is a £577 million scheme at Marsh Wall in London.

With projects spanning 10 different sectors, the construction industry is gearing up for a promising year in 2026, with better times ahead for all areas of the industry.

The UK government has announced a £45 billion commitment to the Northern Powerhouse Rail (NPR) project, aiming to transform connectivity across Northern England. The ambitious plan includes a new Birmingham–Manchester rail line and improved east-west links between cities such as Liverpool, Manchester, Leeds, and Newcastle. The project is expected to boost economic growth, create jobs, and improve transport infrastructure in the region.

However, industry leaders stress the importance of learning from the challenges faced during the HS2 project. Key lessons include the need for clear timelines, defined project purposes, and robust funding structures. The Institution of Civil Engineers (ICE) and other stakeholders emphasise the importance of early planning, clear leadership, and stable pipelines to ensure the success of NPR.

The project is set to begin with £1.1 billion allocated for planning, design, and development work during the current Spending Review period. Construction is expected to start in the 2030s, with the project being delivered in phases. Industry leaders are calling for detailed plans, committed budgets, and clear timelines to ensure the project’s success.

The NPR project is seen as a once-in-a-generation opportunity to address economic and social inequalities in the North, improve connectivity, and unlock the region’s vast economic potential. However, concerns remain about the timeline and the need for sustained commitment across political cycles to ensure the project’s completion.

The construction industry faced significant challenges in 2025, with market sentiment taking a hit and affordability remaining a major issue. However, 2026 offers a glimmer of hope, with falling inflation and policy reforms potentially paving the way for growth and renewal. Analysts believe that the industry must rethink its approach to address cost, value, and productivity challenges.

Digital technologies and AI are emerging as key solutions to these challenges. Innovations such as autonomous vehicles, robot "dogs," and robot-ready digital twins are transforming the construction landscape. For example, Mercedes and Nvidia’s Alpamayo AI tools are designed to handle unexpected events on construction sites, while Field AI adds site-specific risk awareness to robotic systems.

The UK’s market for Robots as a Service (RaaS) is expanding, with machines like the Hilti Jaibot facilitating precise drilling and installation tasks. Agentic AI is also gaining traction, offering the ability to automate multi-step activities and processes on projects. These technologies are expected to reduce costs, address skills shortages, and improve productivity.

Despite these advancements, the construction industry remains resistant to innovation due to the complexity of projects and the lack of standardisation. Experts argue that simplifying designs and processes is crucial to driving down costs and improving efficiency. By embracing digital technologies and rethinking traditional models, the construction industry can overcome its challenges and achieve sustainable growth in 2026.

Bios

Ryan Jones - SLG Agency

For almost 20 years, Ryan’s focus has been on helping brands in the construction and manufacturing sectors tell their story.

His career began in PR, working for global businesses across a variety of sectors, before opting to focus on construction and the built environment.

In his role as Managing Director, Ryan works to ensure that SLG Agency continues to be one of the construction industry's leading specialist strategic and creative agencies, having seen its work recognised by the likes of Campaign, Marketing Week and The Drum in recent years.

Ryan is regularly asked to speak at trade shows and events, and to contribute thought leadership pieces to trade media. He is also a member of several industry advisory boards, including Constructing Excellence and the Greater Manchester Chamber of Commerce.

His passion for the construction sector has seen him work with clients on CSR campaigns that tackle the sector’s public perception, culminating in him recently launching a not-for-profit called Deconstruction.

Peter Sumpton - buildDifferent

Peter is a construction–marketing strategist and co-host of Construction Disrupted. With two decades’ experience spanning manufacturers, contractors and agencies, he helps organisations swap scattergun activity for clear strategy, joined-up planning and measurable outcomes.

His approach is practical and plain-spoken: cut the noise, focus on what moves the numbers, and build repeatable systems that teams can actually use.

Having seen first-hand how unfocused tactics waste time and budget, Peter works with leaders to align commercial goals, customer insight and content so marketing supports delivery rather than distracting from it.

Peter's passion lies in diagnosing organisations' marketing functions' capabilities and existing market, assembling what’s required to create a functional strategy, fit for purpose and scalable.

Marketing should create value, not just cost, and Peter’s work is about making that the norm.