Key findings
Uncertainty impacting delivery, but opportunities exist
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1
Uncertainty is still disrupting delivery
Projects are progressing, but pipelines remain fragile. UK organisations reported that, on average, 26% of their projects were delayed last year, 21% were cancelled and 25% were scaled back due to uncertainty. Building resilience into plans is now more important than ever.
2
There is still opportunity to progress projects
Construction output is expected to grow over the next three years. Those able to move now can take advantage of stable material prices and contractor availability. But this window may close as activity increases.
3
Confidence and flexibility are critical
In today’s market, progress depends on strong data and adaptive thinking. Engage with supply chains early. Explore flexible procurement routes. Combine innovation with evidence.
4
Energy, infrastructure and regulations are causing delays
Grid access, energy costs and evolving rules around net zero and biodiversity are adding complexity. These factors are now common causes of project delays.
5
AI and data centres are reshaping demand
AI investment is driving a rise in data centre development. These projects offer opportunity but come with challenges. Energy planning and site strategy are now essential.
Economic indicators
Construction in flux: Staying sharp, moving forward
GDP
Source: ONS – quarter to quarter change
+0.1%
in 2025 Q3
+0.3%
in 2025 Q2
Inflation (CPI)
Source: ONS – 12-month rate at end of quarter
+3.6%
in 2025 Q3
+3.4%
in 2025 Q2
Materials and Commodities
Source: BCIS materials cost index - quarter to quarter change
+0.3%
in 2025 Q2
+0.8%
in 2025 Q1
Labour costs
Source: BCIS labour cost index – 12-month rate at end of quarter
+6.4%
in 2025 Q3
+7.3%
in 2025 Q2
Government borrowing
Source: ONS – Estimate of UK public sector net debt as % of GDP
95.3%
of GDP in 2025 Q3
96.4%
of GDP in 2025 Q2
