What's Happening?
The Civil Engineering Contractors Association (CECA) has reported a significant slowdown in workload growth within the UK's civil engineering sector, marking the weakest level since the Covid-19 pandemic. According to CECA's latest Workload Trends Survey, only 7% of firms experienced workload growth in the second quarter of 2025, a drop from 10% in the first quarter and a substantial fall from 28% in the second quarter of 2024. The survey highlights a 'two-speed industry,' with energy and utilities sectors buoyed by public investment, while core infrastructure sectors such as motorways, local roads, rail, communications, and airports face stagnation. CECA has called for renewed government action ahead of the upcoming Autumn Budget to address inflation, supply chain disruptions, and skills shortages that threaten expansion.
Why It's Important?
The decline in civils workload growth is significant as it underscores challenges facing the UK's infrastructure development goals, including net zero ambitions, regional regeneration, and improved connectivity. The slowdown could impact small and medium-sized enterprises (SMEs) disproportionately, as they are more vulnerable to rising costs. CECA's call for government intervention highlights the need for sustained investment and policy certainty to stabilize the market. The situation poses risks to the broader economic landscape, potentially affecting employment and investment in infrastructure projects critical to the UK's long-term growth and sustainability.
What's Next?
CECA has welcomed the creation of the National Infrastructure and Service Transformation Authority (NISTA) and the government's 10-year infrastructure plan. However, the association emphasizes that these initiatives require funding certainty and progress on procurement reform in the next Budget. CECA urges the government to focus on delivery, particularly in stalled areas like local roads and rail, to provide industry confidence for investing in skills and training that align with real-world needs. The upcoming Autumn Budget will be a critical juncture for addressing these concerns and ensuring the stability and growth of the civil engineering sector.
Beyond the Headlines
The current situation in the civil engineering sector may have deeper implications for the UK's economic and environmental goals. The slowdown in infrastructure development could hinder progress towards achieving net zero targets and regional regeneration, affecting long-term sustainability. Additionally, the challenges faced by SMEs in the sector highlight broader issues of economic inequality and the need for targeted support to ensure equitable growth across different regions and industries.
