UK construction output reached 90 billion pounds. Material costs rose 7.6 percent year on year while 16 percent of firms cited higher materials as a key driver. The sector spans 1.4 million businesses and maintains a 5.1 percent vacancy rate.
Key Takeaways
- 16% of construction firms in Great Britain reported higher material costs as a key driver in 2024 (percentage share from the sectoral business survey)
- 39% of construction sector organisations report having a formal net-zero target (measured adoption of emissions targets)
- 55% recycling rate for construction and demolition waste in England in 2022 (recycling/ recovery measure)
- Construction materials and fuels were 7.6% higher than a year earlier in May 2024 (input cost inflation snapshot)
- 61% of UK construction sector emissions are attributed to materials and product supply chains (emissions breakdown share)
- £6.5 billion UK construction sector energy consumption in 2022 (operational energy use estimate)
- £90.0 billion UK construction output in 2023 (industry annual output scale figure)
- 1.4 million construction-related businesses in the UK in 2024 (business count scale for market fragmentation)
- 12.3% UK construction materials sold through retail online channels in 2023 (e-commerce channel adoption within materials segment)
- 5.1% construction industry vacancy rate in the UK in 2024 (labour market friction indicator)
- 9,000 construction company insolvencies in the UK in 2023 (count of insolvency events)
- 19% of projects used automated estimating tools in 2024 (estimation automation adoption)
- 46% of construction companies have at least one cloud-based system in active use in 2024 (cloud enterprise adoption)
- 41% of construction firms used cloud-based project collaboration tools in 2024 (survey-based adoption rate)
- 31% of construction firms used drones for site inspections in 2023 (survey-based adoption rate)
Rising costs, delays, and input shortages are pressuring UK construction output while firms increasingly adopt cloud and automation.
Related reading
01 · Category
Cost Analysis4 stats
01
Construction materials and fuels were 7.6% higher than a year earlier in May 2024 (input cost inflation snapshot)
02
61% of UK construction sector emissions are attributed to materials and product supply chains (emissions breakdown share)
03
£6.5 billion UK construction sector energy consumption in 2022 (operational energy use estimate)
04
6.1% of construction inputs were subject to shortages reported by firms in 2024 (share referencing shortages in inputs)
Interpretation
Cost Analysis Interpretation
Cost pressures in UK construction remain broad and persistent, with construction materials and fuels up 7.6% year over year in May 2024 while 6.1% of inputs faced shortages in 2024, underscoring how rising input prices and supply constraints are driving cost risk across the sector.
02 · Category
Market Size4 stats
01
£90.0 billion UK construction output in 2023 (industry annual output scale figure)
02
1.4 million construction-related businesses in the UK in 2024 (business count scale for market fragmentation)
03
12.3% UK construction materials sold through retail online channels in 2023 (e-commerce channel adoption within materials segment)
04
£12.7 billion value of UK construction contracts awarded in Q4 2023 (awarded contracts by quarter, measured value)
Interpretation
Market Size Interpretation
In the Market Size view, the UK construction sector produced £90.0 billion of output in 2023 and saw £12.7 billion worth of contracts awarded in Q4 2023, showing both a large overall market and strong quarterly deal flow despite the sector’s highly fragmented base of 1.4 million related businesses.
03 · Category
Industry Trends3 stats
01
16% of construction firms in Great Britain reported higher material costs as a key driver in 2024 (percentage share from the sectoral business survey)
02
39% of construction sector organisations report having a formal net-zero target (measured adoption of emissions targets)
03
55% recycling rate for construction and demolition waste in England in 2022 (recycling/ recovery measure)
Interpretation
Industry Trends Interpretation
In the UK construction industry, costs, sustainability, and waste management are all moving from intention to action, with 16% of firms citing higher material costs in 2024, 39% of organisations already having formal net zero targets, and a 55% recycling rate for construction and demolition waste in England in 2022.
More related reading
04 · Category
Technology & Digital3 stats
01
41% of construction firms used cloud-based project collaboration tools in 2024 (survey-based adoption rate)
02
31% of construction firms used drones for site inspections in 2023 (survey-based adoption rate)
03
58% of construction companies reported adopting data analytics for cost control in 2024 (survey-based adoption rate)
Interpretation
Technology & Digital Interpretation
In the UK Technology and Digital space, adoption is accelerating with 58% using data analytics for cost control in 2024, while cloud collaboration is at 41% and drone site inspections reach 31%, showing companies are increasingly turning digital tools into measurable performance gains.
05 · Category
Performance Metrics2 stats
01
5.1% construction industry vacancy rate in the UK in 2024 (labour market friction indicator)
02
9,000 construction company insolvencies in the UK in 2023 (count of insolvency events)
Interpretation
Performance Metrics Interpretation
With a 5.1% construction industry vacancy rate in 2024 alongside 9,000 company insolvencies in 2023, the performance metrics suggest a sector that is struggling to match labour demand while financial pressure is still driving failures.
06 · Category
Industry Overview4 stats
01
19% of projects used automated estimating tools in 2024 (estimation automation adoption)
02
46% of construction companies have at least one cloud-based system in active use in 2024 (cloud enterprise adoption)
03
1 in 5 (20%) of construction projects in the UK reported delays in 2023 due to planning/permissions issues (project delay cause prevalence)
04
£7.3 billion estimated additional cost impact from construction delays in the UK in 2023 (quantified delay cost estimate)
Interpretation
Industry Overview Interpretation
In the UK construction industry, technology and cloud adoption are rising with 46% of firms using at least one cloud-based system in 2024, but planning and permissions are still a major drag since 20% of projects faced delays in 2023, contributing to an estimated £7.3 billion in additional costs.
report visual · Comparison
UK Construction Industry: Adoption & Costs Snapshot
Key signals show where the industry is investing—in digital tools and analytics—alongside ongoing pressure from material costs and input shortages.
58% of construction companies reported adopting data analytics for cost control in 2024 (survey-based adoption rate)58%
41% of construction firms used cloud-based project collaboration tools in 2024 (survey-based adoption rate)41%
16% of construction firms in Great Britain reported higher material costs as a key driver in 2024 (percentage share from16%
6.1% of construction inputs were subject to shortages reported by firms in 2024 (share referencing shortages in inputs)6.1%
source-verifiedfsb.org.uk · ice.org.uk · fenwickpartners.com · ukconstructionweek.com2024
Reference
Cite This Report
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APA
Marcus Engström. (2026, February 13). Uk Construction Industry Statistics. Gitnux. https://gitnux.org/uk-construction-industry-statistics
MLA
Marcus Engström. "Uk Construction Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/uk-construction-industry-statistics.
Chicago
Marcus Engström. 2026. "Uk Construction Industry Statistics." Gitnux. https://gitnux.org/uk-construction-industry-statistics.
Sources & references
20 datasets cited across this report · attribution is report-level
+6 additional datasets cited (not shown individually)