Beneath the cranes and scaffolding lies an economic powerhouse: the UK construction sector, a £124.6 billion contributor to the nation's economy in 2022, is navigating a complex landscape of measured growth, pressing workforce challenges, and an urgent drive toward safety and sustainability.
Key Takeaways
- The UK construction sector contributed £124.6 billion to the economy in 2022, accounting for 6.0% of Gross Value Added (GVA).
- Construction output grew by 0.4% in volume terms in Q4 2022 compared to Q3 2022.
- New work output in construction increased by 1.2% in 2022 year-on-year.
- In Q2 2023, UK construction employed 2.19 million people, up 1.4% from the previous year.
- There were 238,000 construction vacancies in Q2 2023, a vacancy rate of 5.2%.
- 14.3% of construction workers were aged 50+ in 2022.
- 68,000 fatal or major injuries reported in construction over 2021/22.
- Fatalities in construction totalled 29 in 2022/23.
- Rate of self-reported work-related ill health in construction was 3,250 per 100,000 workers in 2021/22.
- Private sector housing starts: 159,000 dwellings in 2022.
- Completions of new homes: 214,000 in England 2022.
- Affordable housing starts: 38,000 units in 2022/23.
- Road infrastructure spending: £13.2 billion in 2022/23.
- Rail output value: £12.9 billion in 2022.
- Renewable energy construction starts: 5.2 GW capacity in 2022.
Despite strong 2022 economic output, the UK construction industry faces persistent labour shortages and safety challenges as it transitions towards net zero.
Economic Output and Growth
- The UK construction sector contributed £124.6 billion to the economy in 2022, accounting for 6.0% of Gross Value Added (GVA).
- Construction output grew by 0.4% in volume terms in Q4 2022 compared to Q3 2022.
- New work output in construction increased by 1.2% in 2022 year-on-year.
- Repair and maintenance output fell by 2.1% in 2022.
- Infrastructure new orders reached £21.4 billion in 2022.
- Private industrial new orders were valued at £4.7 billion in Q4 2022.
- Construction output per worker stood at £59,300 in 2021.
- The sector's GVA grew by 1.5% in real terms from 2021 to 2022.
- Total construction orders outstanding reached £42.3 billion in Q4 2022.
- Private housing starts increased by 5% to 142,000 units in 2022.
- Public housing starts totalled 32,000 units in 2022.
- Construction inflation rate was 5.6% in Q4 2022.
- Tender price inflation for new construction was 4.9% year-on-year in December 2022.
- The value of construction projects starting on site rose to £35 billion in 2022.
- UK construction market size was forecast to reach £170 billion by 2026.
- Construction investment as % of GDP was 5.9% in 2022.
- Exports from UK construction firms totalled £5.2 billion in 2021.
- Productivity in construction improved by 0.8% per hour worked in 2022.
- The sector added 15,000 jobs in net terms during 2022.
- Construction output forecast to grow 1.5% in 2023.
Economic Output and Growth Interpretation
Despite economic headwinds, British construction is proving to be a stubborn, if sometimes hesitant, juggernaut, choosing to build its future rather than merely maintain the past.
Health and Safety
- 68,000 fatal or major injuries reported in construction over 2021/22.
- Fatalities in construction totalled 29 in 2022/23.
- Rate of self-reported work-related ill health in construction was 3,250 per 100,000 workers in 2021/22.
- 61,000 non-fatal injuries reported under RIDDOR in 2022/23.
- Falls from height caused 29% of fatal injuries in construction in 2022/23.
- 44% of construction fatalities involved falls from height over the last 25 years.
- Musculoskeletal disorders affected 57,000 construction workers in 2021/22.
- Stress, depression, and anxiety prevalence was 1,800 per 100,000 in construction.
- 473 enforcement notices issued to construction firms by HSE in 2022/23.
- Improvement notices totalled 1,200 in construction sector in 2022/23.
- Asbestos-related diseases caused 5,000 deaths annually, many from construction exposure.
- 75% of construction workers exposed to hand-arm vibration risks.
- Silica dust exposure affects 500,000 construction workers yearly.
- 20% reduction in ill health cases targeted by 2022, missed by 10%.
- 2.3 million tonnes of construction waste produced annually, 50% of UK total.
- Noise-induced hearing loss claims from construction averaged 200 per year.
- 15% of construction SMEs had no health and safety policy in 2022.
- Construction fatality rate was 1.56 per 100,000 workers in 2022/23.
- Over-7-day absence rate from injuries was 2,780 per 100,000 in construction.
- 40% of workers report inadequate PPE provision.
- Dermatitis cases in construction: 1,100 in 2021/22.
- Respiratory conditions from dust: 2,400 cases per year.
- 85,000 workers at risk of occupational lung disease.
- Mental health support accessed by only 25% of at-risk workers.
- 2022/23 saw 45 prosecutions against construction firms by HSE.
- Total fines from HSE prosecutions: £12.5 million in construction.
Health and Safety Interpretation
The construction industry continues to treat falls, dust, and despair as business as usual, proving it’s better at building profits than safeguarding people.
Housing and Residential
- Private sector housing starts: 159,000 dwellings in 2022.
- Completions of new homes: 214,000 in England 2022.
- Affordable housing starts: 38,000 units in 2022/23.
- Social rent housing completions: 24,000 units in 2022.
- Shared ownership starts: 14,000 units in 2022/23.
- Housing repair and maintenance spend: £11.5 billion in 2022.
- Net additional dwellings in UK: 232,000 in 2022.
- London saw 25,000 new housing completions in 2022.
- Vacant dwellings in England: 676,000 at 1% of stock.
- Second homes: 266,000 in England, up 11% since 2016.
- Housing output value: £46.8 billion in 2022.
- 42% of new homes built by top 10 housebuilders in 2022.
- Permissioned housing starts: 240,000 dwellings in 2022.
- Flats accounted for 37% of new completions in 2022.
- Houses (detached/semi) 63% of completions in England 2022.
- Retrofit projects: 10,000 homes insulated under ECO4 in Q1 2023.
- Average new home size: 88 sqm in England 2022.
- 1.2 million homes in fuel poverty in 2022.
- Housing planning approvals: 310,000 units in 2022.
- Brownfield land used for 76% of new homes in England.
Housing and Residential Interpretation
While we're technically building more houses than we're starting, with over a quarter of a million new homes appearing, the stubborn persistence of over 676,000 vacant properties and a booming second-home market suggests the construction industry might be running a relay race where someone keeps moving the finish line.
Infrastructure and Sustainability
- Road infrastructure spending: £13.2 billion in 2022/23.
- Rail output value: £12.9 billion in 2022.
- Renewable energy construction starts: 5.2 GW capacity in 2022.
- 47% of construction output from infrastructure in 2022.
- HS2 project cost forecast: £72-98 billion by 2029-2033.
- Offshore wind capacity under construction: 7.7 GW in 2023.
- Water and sewerage infrastructure spend: £4.5 billion in AMP7.
- 92% of construction firms recycling at least 80% of waste.
- Carbon emissions from construction: 40 million tonnes CO2e in 2021.
- 15% of new non-domestic buildings BREEAM 'Excellent' or better.
- Sizewell C nuclear project approved with 3.2 GW capacity.
- 2.4 million tonnes of Portland cement produced in 2022, low-carbon alternatives rising.
- 65% of firms using BIM in projects over £5m in 2022.
- Modular construction share: 7% of new projects in 2022.
- Net Zero Carbon Buildings Commitment signed by 550 firms.
- 25% reduction in embodied carbon targeted by 2030.
- EV charging points installed: 40,000 public points in 2023.
- Flood defence projects: 150 schemes completed 2021-2027.
- Digital twin adoption: 20% of major infrastructure projects.
- Timber use in construction up 15% since 2015.
- 80% of firms reporting supply chain sustainability pressures.
- Lower Thames Crossing consultation on 14.5km tunnel.
Infrastructure and Sustainability Interpretation
Amidst its sprawling, carbon-intensive legacy, UK construction is belatedly but earnestly trying to pave its way to a greener future, pouring billions into roads, rails, and renewables while nervously eyeing its own colossal emissions and the daunting price tag of progress.
Workforce and Employment
- In Q2 2023, UK construction employed 2.19 million people, up 1.4% from the previous year.
- There were 238,000 construction vacancies in Q2 2023, a vacancy rate of 5.2%.
- 14.3% of construction workers were aged 50+ in 2022.
- Apprenticeships in construction totalled 38,000 starts in 2021/22.
- 89,000 workers entered the industry in 2022.
- 48,000 workers left the industry in 2022.
- Female workforce in construction was 15% in 2022.
- BAME representation in construction stood at 12% in 2022.
- 225,000 additional workers needed by 2027 due to growth and replacement.
- Site managers account for 7% of the workforce, with 12,000 needed by 2027.
- Steelworkers demand to rise by 11% to 25,000 by 2027.
- Average weekly earnings in construction were £709 in Q2 2023, 12% above economy-wide average.
- 26% of firms reported skill shortages as a barrier in 2023.
- 45,000 construction apprentices expected in 2023/24.
- Self-employment in construction was 43% of the workforce in 2022.
- 18-24 year olds make up 10% of the construction workforce.
- Civil engineers shortage of 2,500 by 2027.
- Training levy raised £180 million for CITB in 2022/23.
- 75,000 workers upskilled through CITB grants in 2022.
- Labour turnover rate in construction was 12% in 2022.
- There were 1.2 million full-time equivalent construction workers in 2022.
Workforce and Employment Interpretation
The industry is nervously chewing its pencil, balancing a record 2.19 million employed, a dizzying 238,000 vacancies, and a sobering brain drain, while trying to sketch out the next 225,000 workers it desperately needs.
Sources & References
- Reference 1ONSons.gov.ukVisit source
- Reference 2CITBcitb.co.ukVisit source
- Reference 3GOVgov.ukVisit source
- Reference 4BCISbcis.co.ukVisit source
- Reference 5GLENIGANglenigan.comVisit source
- Reference 6EXPLORE-EDUCATION-STATISTICSexplore-education-statistics.service.gov.ukVisit source
- Reference 7CBIcbi.org.ukVisit source
- Reference 8HSEhse.gov.ukVisit source
- Reference 9OFWATofwat.gov.ukVisit source
- Reference 10BREEAMbreeam.comVisit source
- Reference 11STATISTAstatista.comVisit source
- Reference 12NBSnbs.co.ukVisit source
- Reference 13MMCALLIANCEmmcalliance.org.ukVisit source
- Reference 14WHOLELIFECARBONwholelifecarbon.orgVisit source
- Reference 15FORESTRESEARCHforestresearch.gov.ukVisit source
- Reference 16CICcic.org.ukVisit source