What's Happening?
The Civil Engineering Contractors Association (CECA) has reported that workload growth in the UK's civil engineering sector has dropped to its lowest level since the Covid-19 pandemic. Only 7% of firms experienced growth in the second quarter of 2025, a decrease from 10% in the first quarter and significantly lower than the 28% reported in the same period last year. The sector is experiencing a 'two-speed industry' with energy and utilities buoyed by public investment, while core infrastructure sectors remain stalled.
Why It's Important?
The slowdown in civil engineering workload growth is a concerning indicator for the UK's infrastructure ambitions, including net zero targets and regional regeneration. The disparity between sectors highlights the need for targeted investment and policy certainty to stabilize the market. Rising costs, supply chain disruptions, and skills shortages pose risks to expansion, potentially affecting the UK's ability to meet infrastructure goals. The situation calls for government intervention to ensure sustained investment and support for SMEs disproportionately affected by these challenges.
What's Next?
CECA is urging the government to focus on delivery and provide funding certainty in the upcoming Autumn Budget. The creation of the National Infrastructure and Service Transformation Authority (NISTA) and the government's 10-year infrastructure plan are positive steps, but they require backing with concrete actions. The industry needs confidence to invest in skills and training that match real-world needs, particularly in stalled areas like local roads and rail.
