Construction Disrupted Episode 86 - The £2 Trillion Question (07.10.25)
Project uncertainty has wiped £2tn from global construction activity this year, according to Currie & Brown report
Global Financial Losses in Construction:
Project uncertainty has led to a £2 trillion loss in global construction activity in 2025, equivalent to 13.7% of the surveyed companies' pipelines.
The financial losses per company averaged £1.6 billion, which could fund up to 40 schools or build up to 500 new airports.
Causes of Uncertainty:
Material price inflation, planning delays, and skills shortages are identified as key contributors to the uncertainty.
Systemic issues such as outdated procurement processes, misaligned objectives, and a culture of accepting billion-dollar projects without complete designs exacerbate risks.
Country Rankings for Project Confidence:
The UK scored 55 out of 100 for project delivery confidence, ranking higher than France (49) and Japan (51) but lower than the US (59) and China/India (61).
Recommendations for Improvement:
Cutting regulatory barriers to accelerate planning processes.
Enhancing pipeline visibility for public projects.
Increasing the use of repeatable designs.
Encouraging the adoption of AI in operations, which has been linked to higher project delivery confidence.
Call for Systemic Change:
Alan Manuel, CEO of Currie & Brown, emphasised the need to dismantle outdated systems and adopt new methods to address volatility and systemic issues in the construction industry.
Digital ID Scheme Could Transform Construction
Introduction of Digital ID System:
The UK government plans to implement a mandatory digital ID system for all citizens and legal residents to verify their right to work.
The system will function similarly to an NHS app or contactless bank card and aims to reduce illegal working and streamline hiring processes.
Potential Benefits:
Faster onboarding of workers and reduced administrative burdens for recruitment agencies and contractors.
Reduction in fraudulent documents and improved compliance across the construction industry.
Enhanced integration with existing systems like the Construction Skills Certification Scheme (CSCS) digital skills passport.
Challenges and Concerns:
Implementation details are critical, with concerns about alienating older workers who may not have smartphones.
Risk of adding complexity if the system does not integrate seamlessly with current industry processes.
Skepticism about the system’s ability to completely eliminate illegal working.
Industry Feedback:
Industry figures suggest the system could be a "game-changer" but emphasize the need for careful planning and integration.
Suggestions include linking the digital ID system with existing tools like CSCS cards to avoid redundancy and ensure ease of use.
Building the Future Conference 2025
Building Safety and Competency:
Building safety and competency were central themes, with discussions on delays at gateway 2 approvals and the need for regulatory improvements.
Andy Roe, chair of the Building Safety Regulator, emphasised the importance of the new building safety regime but acknowledged challenges in its implementation.
Calls for simpler and more accessible guidance for SMEs and a unified accreditation system for industry competency.
Product Safety and Traceability:
Discussions on aligning UK product safety regulations with EU standards while ensuring stricter safety measures.
Emphasis on the need for revolutionary changes in product safety and traceability, including stronger incentives for manufacturers and better education for specifiers.
Housing Delivery Challenges:
The government’s target of 1.5 million homes was discussed, with challenges such as environmental pressures, policy uncertainty, and labour shortages highlighted.
Housing associations face difficulties due to poor management arrangements by housebuilders and regulatory barriers.
Suggestions included treating housing as critical national infrastructure and improving collaboration between housebuilders and housing associations.
Skills Shortages and Workforce Development:
Concerns over the shortage of skilled workers, particularly in trades and professions like roofing, planning, and surveying.
Emphasis on attracting and retaining young professionals through inspiring work, clear career progression, and mental health support.
Regulatory and Retrofit Challenges:
Discussions on navigating regulatory uncertainty and retrofitting the UK’s housing stock amidst growing political opposition to net-zero targets.
Calls for prioritising fabric-first approaches to retrofitting and addressing the economic inefficiencies of alternative methods.
Future Funding and Data Centres:
Debate on the need for public finance initiatives to rebuild Britain’s infrastructure.
Exploration of the potential growth in data centre development despite challenges like high energy costs and planning barriers.
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.
