In today’s construction news, read about how the functioning of economies and the confident growth of communities depend on built assets. There is a growing lack of trust in the construction industry’s capacity to complete major projects. On the other hand, due to increasing risks and uncertainties regarding potential tax increases in the upcoming budget, the Construction Products Association’s (CPA) Autumn Forecasts indicate that growth estimates for UK construction production have been significantly reduced. Previously, it was predicted that total construction output would expand by 1.9% in 2025 and 3.7% in 2026, but now it is only expected to grow by 1.1% in 2025 and 2.8% in 2026.
The Importance of Confidence When Constructing
Original Source: Certainty under pressure: Why confidence in construction matters more than ever
Currie & Brown discovered that confidence, teamwork, and connection can help the construction industry deliver in challenging conditions.
Built assets are vital to economies and community confidence. Facilities like data centres, delivery hubs, industries, electricity networks, schools, and hospitals keep society running. They help us care for others, educate the next generation, stay connected, and live. They boost growth and promote resilience.
Trust in the construction sector to deliver major projects is eroding. Economic developments, supply chain issues, currency fluctuations, and manpower shortages increase unpredictability. The impact extends far beyond the construction site.
A stressed sector
Currie & Brown surveyed over 1,000 senior individuals responsible for building and infrastructure projects worldwide to investigate. The findings were remarkable.
Over the past year, uncertainty cost decision-makers 13.7% of their building pipeline. Based on average pipeline valuations of $12.9bn, each company would lose $2.1bn. Global building predictions for 2025 show a loss of over $2.5tn.
Local effects are evident. Clients tell us this every day, and our data confirms it.. UK respondents indicated one in five initiatives were terminated last year. Reduced by another quarter. Another 26% are late. These data demonstrate project delays due to disruption.
A new reality
The construction industry has always been uncertain, but today’s hazards are more acute and tougher to control.
Material prices fluctuate, and labour shortages arise. The Construction Industry Training Board estimates that the UK will need roughly 240,000 new workers by 2029 to meet demand.
Planning rules are also changing, sometimes inconsistently. Additionally, climatic disruption and global political instability are making project planning and delivery difficult.
We’ve seen shocks spread fast. The 2021 Suez Canal blockade interrupted world trade for weeks. Construction expenses worldwide rose after the Ukraine war due to rising energy prices. These instances demonstrate how easily things can unravel and how building typically suffers.
Weak structures exert pressure.
Beyond outside events, other factors disrupt. Longstanding sector difficulties make adaptation tougher.
Uncertain responsibilities, poor coordination, and insufficient design worsen matters, according to our research. They cause delays, cost overruns, and projects failing to recover from early failures.
Assessing confidence
We hear about these difficulties daily, but the Construction Certainty Index helps us grasp their scope and consistency. Based on our global research, the index measures senior leaders’ confidence in delivering construction and infrastructure projects.
Scores for time and budget, risk, and technology adoption range from 0 to 100, with higher scores indicating greater delivery confidence and lesser risk.
Most notable was the constancy of outcomes. Scores grouped across sectors and geographies. India and China led the ranking at 61. France scored 49. The UK was in the centre, at 55.
This illustrates that issues aren’t country- or sector-specific. They’re prevalent. We share challenges, but not everyone struggles the same way.
What top performers do differently
Some companies manage risk better. They excel at managing risk rather than avoiding it.
We found no fewer issues for our most confident companies. Most worked in fast-paced, unpredictable workplaces. But their obvious attitude made the difference. Building delivery assurance was their goal, not hoping for it.
They planned early, tested programmes often, and established goals. Their goals united delivery teams and stakeholders. They reported progress and predicted problems using data. They made contracts and procurement flexible.
This forward-thinking attitude offered them an edge.
Our research identifies four resilience-building areas:
Thinking riskily, not just assuming stability
Technology—using tools for the right reasons
Data—quality and context, not volume
People—developing skills, leadership, and partnerships early
Private firms cannot address this issue alone. Policy and regulation are also important. Government and regulators matter too.
The UK Building Safety Act added requirements for high-risk projects. Changes were necessary for safety. However, many 12-week assessments are now taking longer.
The challenge is highlighted. New rules that are unclear or poorly supported can increase uncertainty. We need a more coordinated strategy with better planning pipelines, clearer norms, and more backing for new construction technologies.
A more predictable structure that helps initiatives succeed should be the goal, not confusion.
Why construction confidence matters now
The construction industry is changing. The decisions made now will affect economies in the future.
Progress requires delivery confidence. If enterprises can’t obtain facilities on time, growth stops. Infrastructure neglect hurts communities. If energy and climate targets slide, delay costs will rise.
Some are watching. Investors, regulators, and the public want well-planned, well-run, and clearly delivered projects. So how we deliver is as important as what we offer.
This situation makes certainty one of the most valuable qualities.
Insight to action
The construction industry faces challenges and opportunities. Risks are undoubtedly present. With the right mindset, tools, and leadership, we can manage them effectively.
Planning, capability, and trusted alliances can improve industrial results. Stronger, safer, more sustainable builds, not just faster. Delays cost a lot. But getting this properly pays off even more.
Pre-budget Uncertainty Affects UK Construction Output Projections
Original Source: Pre-budget uncertainty impacts forecasts for UK construction output
UK construction output growth projections have been reduced ‘substantially down’ in the Construction Products Association (CPA) Autumn Forecasts due to increased uncertainties and uncertainty about budget tax increases.
In 2025 and 2026, total construction output is expected to expand 1.1% and 2.8%, down from 1.9% and 3.7%, respectively.
The CPA said construction supply chain firms indicate decreased activity since spring, particularly in private dwellings, infrastructure roads, and commercial new build offices.
The association’s current projections allow for pre-budget uncertainties, but like all economic forecasters, it won’t be able to account for tax increases and expenditure cuts until November 26.
Private housing output is expected to expand 2% in 2025 and 4% in 2026, down from 4% and 7% previously.
The CPA reported that many private housing repair, maintenance, and improvement (rm&i) households had saved rather than spent despite real wage growth. Homeowners must feel confident enough to invest in house additions and upgrades to maintain a recovery. Some government-subsidised energy-efficiency retrofits, such as heat pumps and solar photovoltaics, and fire safety remediation work remain relatively strong in small niches in the sector, but private housing R&I output is expected to remain flat in 2025 and rise by 2% in 2026.
Infrastructure output should climb 1.9% in 2025 and 4.4% in 2026. However, sector fortunes vary greatly. Water, sewerage, and energy generation and distribution are expected to fuel development next year as record investment plans kick in. However, road spending is anticipated to fall in the coming years.
The boost in construction activity forecast at the start of the year has not materialised as uncertainty continues to hold back house purchases, home improvement spending, and private sector investment decisions, said Rebecca Larkin, CPA, director of construction research. The risks and uncertainties around planned tax rises in the Autumn Budget in November have grown, which is likely to delay expenditure and investment and reduce demand in the main building sectors.
We are already experiencing pre-budget uncertainty, but the impact of budget tax rises will peak in 2026. We expect public sector construction, infrastructure, and housing development to boost construction production by 2.8% next year. The size of the government’s tax hikes and buThe size of the government’s tax hikes and budget cuts, along with the distribution of their impact, will determine whether the industry grows or shrinks in 2026.
Summary of today’s construction news
In summary, progress requires confidence in delivery. Business growth pauses if they are unable to obtain the facilities they require in a timely manner. Communities suffer when infrastructure is not adequately maintained. Missing energy and climate targets will significantly increase the cost of waiting. There are also onlookers. Investors, regulators, and the general public all expect clearly delivered, well-planned, and well-run projects. Therefore, the manner in which we provide is equally as important as the content we deliver.
On the other hand, it is anticipated that infrastructure output will increase by 1.9% in 2025 and 4.4% in 2026. However, the sector’s fortunes vary greatly from one another. As activity picks up under record investment plans, water and sewerage, energy generation, and distribution are predicted to become major development drivers in the upcoming year. Conversely, we anticipate a decrease in road investment in the upcoming years.