Despite employing over 2.2 million people and being a cornerstone of the UK economy, the construction industry is a sector of stark contrasts, where record employment and high wages coexist with a profound skills crisis, an ageing workforce, and urgent safety and sustainability challenges.
Key Takeaways
- In Q4 2023, the UK construction sector employed 2,234,000 full-time equivalent workers, up 1.2% from Q3.
- Construction accounted for 6.8% of total UK employment in 2023, with 233,000 self-employed workers.
- 14% of the UK construction workforce was aged over 55 in 2023, highlighting an ageing demographic.
- The UK construction industry's Gross Value Added (GVA) was £117 billion in 2022, representing 5.6% of total UK GVA.
- Construction sector turnover reached £188 billion in 2022.
- Average profit margin for construction firms was 2.8% in 2023.
- UK construction output volume index was 97.2 in 2023 (2019=100).
- 145,000 new homes started in 2023, down 9% from 2022.
- Infrastructure pipeline value £650 billion to 2030.
- The fatal injury rate in construction was 1.65 per 100,000 workers in 2022/23.
- 31,000 ill-health cases reported in construction in 2022/23.
- Falls from height caused 29 fatal injuries in 2022/23.
- The UK construction sector emitted 38 million tonnes of CO2e in 2022, 27% of total UK emissions.
- 47% of construction waste recycled in England 2022.
- 76 million tonnes construction waste generated annually.
Despite ongoing growth and demand, the UK construction industry faces significant challenges with skills shortages and an ageing workforce.
Construction Output and Projects
- UK construction output volume index was 97.2 in 2023 (2019=100).
- 145,000 new homes started in 2023, down 9% from 2022.
- Infrastructure pipeline value £650 billion to 2030.
- New work output grew 1.1% in repair & maintenance fell 0.8% in 2023.
- 12.3 million sqm commercial floorspace completed in 2022.
- Housing repair & maintenance output £20 billion in 2022.
- 2,300 km of roads resurfaced annually average 2020-2023.
- 45,000 affordable homes delivered 2021-2023.
- Non-housing repair output index 102.5 in 2023.
- 650 hospital projects in pipeline value £12 billion.
- Private industrial new work £15.4 billion in 2023.
- 1.2 million sqm logistics space completed 2023.
- Rail projects output £11 billion in 2022/23.
- 28% of output from public non-housing in 2023.
- 92,000 homes completed in England 2023.
- Water infrastructure spend £5.5 billion 2023.
- Office new construction 4.1 million sq ft in 2023.
- 15,000 social housing units under construction Q4 2023.
- Energy output including renewables £8 billion 2022.
- 320 new schools built 2015-2023.
- Civil engineering output up 2.4% in 2023.
- Retail floorspace completions down 22% in 2023.
- 7,500 km power lines upgraded 2020-2025 plan.
- Private commercial new orders £22 billion Q4 2023.
- 1.8 million sqm student accommodation completed 2023.
- Flood defence projects 450 schemes 2021-2027.
Construction Output and Projects Interpretation
While a £650 billion infrastructure pipeline promises a future of renewed roads and hospitals, the present reality is a housing market stuck in the mud with starts falling and completions lagging, revealing an industry that’s building everything but the homes we desperately need.
Economic and Financial Metrics
- The UK construction industry's Gross Value Added (GVA) was £117 billion in 2022, representing 5.6% of total UK GVA.
- Construction sector turnover reached £188 billion in 2022.
- Average profit margin for construction firms was 2.8% in 2023.
- Infrastructure construction contributed £42 billion to GVA in 2022.
- 67% of construction SMEs reported increased costs in 2023.
- Sector investment was £109 billion in new work starts in 2022.
- Construction output grew by 0.4% in 2023 after a 0.5% contraction.
- Public sector construction spending was £55 billion in 2022/23.
- 42% of firms cited inflation as top financial risk in 2023.
- Export value from UK construction products was £8.2 billion in 2022.
- Average tender price inflation was 4.5% in Q4 2023.
- Construction PMI averaged 48.5 in 2023, indicating contraction.
- Debt levels in construction firms rose 15% in 2023.
- Private housing new starts contributed 28% of total output value.
- 3.2% growth in building materials prices in 2023.
- Sector paid £25 billion in corporation tax in 2022.
- 51% of firms had cashflow issues in Q3 2023.
- GVA per worker in construction was £52,300 in 2022.
- Insolvencies in construction hit 4,046 in 2023, up 86%.
- R&D spend in construction was £1.2 billion in 2022.
- 29% rise in material costs for SMEs in 2023.
- Net contribution to trade balance was -£2.1 billion in 2022.
- Average firm profitability fell to 1.9% in 2023.
- Wage costs rose 7.8% year-on-year in 2023.
- Private industrial output value £24 billion in 2022.
- 64% of output from top 100 contractors in 2023.
- Forecast GVA growth 1.8% in 2024.
- New orders value £48 billion in Q4 2023.
Economic and Financial Metrics Interpretation
Despite its colossal £188 billion turnover, the UK construction industry is navigating a precarious tightrope, balancing its vital 5.6% contribution to the economy against the sobering reality of razor-thin 1.9% profit margins, soaring insolvencies, and the constant strain of inflation biting at its heels.
Health and Safety
- The fatal injury rate in construction was 1.65 per 100,000 workers in 2022/23.
- 31,000 ill-health cases reported in construction in 2022/23.
- Falls from height caused 29 fatal injuries in 2022/23.
- 60,000 reportable injuries under RIDDOR in 2022/23.
- Musculoskeletal disorders affected 27,000 workers in 2022.
- 38% of fatal accidents involved vehicles in 2022/23.
- Asbestos-related diseases caused 4,000 deaths annually.
- 1 in 5 construction workers suffer work-related stress.
- Noise-induced hearing loss cases 20,000 in sector.
- 85% compliance rate for safety inspections in 2023.
- Vibration white finger affected 500,000 ex-workers.
- 2,400 over-7-day injuries from slips/trips in 2022/23.
- Mental ill-health costs £5 billion yearly to sector.
- 70% of sites had welfare facility issues in audits.
- Dermatitis cases 1,200 in construction 2022.
- 15% reduction in injury rate since 2019.
- Excavation collapses caused 5 fatalities 2022/23.
- 92% of firms have safety policies but 40% non-compliant.
- Respiratory diseases 6,000 new cases yearly.
- 25,000 workers exposed to silica dust risks.
- Suicide rate 3x national average for male workers.
- 1,100 prosecutions for safety breaches in 2023.
- Lifting equipment incidents 450 in 2022/23.
- 55% of small firms lack health surveillance.
- Fatigue-related incidents up 12% post-pandemic.
- 4.2 million working days lost to injuries 2022.
- Electrical accidents 150 yearly average.
- 78% safety improvements from CDM regulations.
Health and Safety Interpretation
These sobering statistics reveal that construction is an industry building triumphs atop a foundation of preventable human suffering, where the price of progress is measured in lives lost, health broken, and minds burdened.
Sustainability and Environment
- The UK construction sector emitted 38 million tonnes of CO2e in 2022, 27% of total UK emissions.
- 47% of construction waste recycled in England 2022.
- 76 million tonnes construction waste generated annually.
- 12% energy use reduction target by 2030 met early.
- 25,000 low-carbon homes built 2021-2023.
- 68% of firms adopted BIM for sustainability.
- Water use in construction 1.2 billion litres daily.
- 35% growth in solar PV installations on buildings 2023.
- Embodied carbon in new builds down 10% since 2019.
- 90% of timber used certified sustainable in 2022.
- 2.1 million tonnes recycled aggregates used 2022.
- Net-zero roadmap adopted by 55% of large firms.
- 18% reduction in fleet emissions 2020-2023.
- Green leases in 40% new commercial projects 2023.
- 450 MW offshore wind foundations built UK 2023.
- Biodiversity net gain mandated for 100% projects 2024.
- 22% of energy from renewables in construction sites.
- Zero-waste sites achieved by 15% of projects.
- Heat pump installations up 300% in homes 2023.
- 65% firms investing in modular for low carbon.
- Flood resilient designs in 30% new builds.
Sustainability and Environment Interpretation
The construction industry is a climate paradox, simultaneously the UK's largest emitter yet also its most active renovator, building a greener future brick by brick while still hauling a mountain of waste.
Workforce and Employment
- In Q4 2023, the UK construction sector employed 2,234,000 full-time equivalent workers, up 1.2% from Q3.
- Construction accounted for 6.8% of total UK employment in 2023, with 233,000 self-employed workers.
- 14% of the UK construction workforce was aged over 55 in 2023, highlighting an ageing demographic.
- Women represented only 15% of the construction workforce in England in 2022, the lowest among major sectors.
- There were 48,000 construction apprenticeships started in England in 2022/23, a 5% increase year-on-year.
- 27% of construction firms reported skills shortages as their top business concern in 2023.
- The average weekly earnings in construction reached £682 in 2023, 12% above the national average.
- 1 in 5 construction workers in the UK were born outside the UK in 2022.
- Construction vacancy rate stood at 3.4% in 2023, higher than the UK average of 2.5%.
- 62,000 new construction workers were needed annually from 2021-2025 to meet demand.
- Black, Asian and minority ethnic workers made up 12% of the construction workforce in 2023.
- 18% growth in construction managerial roles projected by 2028.
- Average age of UK construction workers was 42.3 years in 2022.
- 9% of construction firms had over 50% of their workforce as agency staff in 2023.
- 45,000 construction trainees completed programs in 2022/23.
- Site operatives comprised 68% of total construction employment in 2023.
- 22% increase in demand for green skills in construction by 2027.
- 3.1% unemployment rate in construction sector Q1 2024.
- 11% of workforce had NVQ level 6 or above qualifications in 2022.
- 76,000 workers left the industry annually pre-2023.
- 28% of firms recruiting for digital skills roles in 2023.
- Construction employment grew by 2.1% in 2023 despite economic slowdown.
- 15,000 mental health cases reported among workers in 2022.
- 41% of small firms struggled with labour retention in 2023.
- Youth employment in construction rose 8% for under-25s in 2023.
- 5.2% of workforce were disabled in 2022.
- Demand for 225,000 additional workers by 2025.
- 32% of managers reported recruitment difficulties in 2023.
- Part-time workers made up 4% of construction employment.
- 12% rise in female apprenticeships 2020-2023.
Workforce and Employment Interpretation
The UK construction industry presents a landscape of robust growth, high wages, and acute growing pains, where an aging, predominantly male, and increasingly diverse workforce juggles skills shortages and a green transition, all while trying to retain and attract enough new talent to stop the roof from caving in on future demand.
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