After eight months of a new Labour government, I’ve been assessing how the change of political leadership and current global turmoil may impact the UK construction market.
We cannot control what happens on the wider stage, but we can try to be prepared for every eventuality. There are several key variables to keep front of mind when navigating these uncertain times.
“Once you become a certain size you become a target, so preparation is the best defence”
International tensions now shape supply chains and market stability. Following the return to office of Donald Trump, nothing is more certain than the fact that established norms no longer apply.
We need to be resilient and sure-footed. Plan for the worst case but hope for the best.
What happens abroad impacts us here, so we need to ensure we can adapt to regulatory challenges and are acting before legislative or fiscal changes happen – not knee-jerking after them.
Increasing use of technology is another key issue.
Interconnectivity is a given in most project-based situations – streamlining and improving performance but also leaving vulnerabilities.
Once you become a certain size you become a target, so preparation is the best defence.
Just as our industry adopted a culture of safety being everyone’s responsibility, we must now recognise that digital security is something that everyone in every organisation has a responsibility to understand and protect.
Any IT manager who wants an increase in budget for better protections deserves support.
While our sector still relies on manual labour to build, it is just as dependent on white-collar professionals to manage and control how, when, what and where things happen.
Efficiency is increasingly driven through greater and smarter use of technology, which is why the intelligent application of digital solutions is another primary consideration when planning ahead.
Workforce evolution
Finally, a workforce evolution is occurring all over the built environment. We have too many vacancies, too little diversity and too few new entrants, leading to an ageing skills base.
Understanding how we can utilise digital tools to mitigate the challenge this presents and upskill our teams to get them future-ready is vital, as is recognising the importance of retaining talent in an increasingly competitive market.
Each of these topics present an opportunity to do better.
They shape our thinking, management structure and global performance. You cannot know what you do not know, but you can make considered assessments of the changing face of the construction sector and prepare accordingly.
Uncertainty is the nemesis of the investor, and potential stakeholders need to feel confident that the UK property and construction sector is a good place to spend.
To adopt a retail metaphor – we need them to see the UK as more of a quality-driven Selfridges than a corner-cutting Shein.
There are some encouraging signs – Lendlease finding a home shows faith in the contractor landscape, the planned creation of 1.5 million homes up to 2030, and the relaxation of planning restrictions are all strong indicators that the UK is open for business.
We need to ensure we have the right equipment in our toolbox to harness and exploit any opportunities that come our way and defend ourselves against the inevitable challenges.