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 percent of firms experienced workload growth in the second quarter of 2025, a drop from 10 percent in the first quarter and a substantial decrease from 28 percent in the same period last year. The survey highlights a 'two-speed industry,' with sectors like energy and utilities benefiting from public investment, while core infrastructure sectors such as motorways, local roads, rail, communications, and airports face stagnation. CECA has urged the government to address inflation, supply chain disruptions, and skills shortages to prevent further decline.
Why It's Important?
The decline in workload growth within the civil engineering sector poses significant challenges for the UK's infrastructure ambitions, including net zero targets, regional regeneration, and improved connectivity. The slowdown could impact small and medium-sized enterprises (SMEs) disproportionately, as they are more vulnerable to rising costs. The situation underscores the need for sustained investment and policy certainty to stabilize the market. The government's response to these challenges will be crucial in ensuring the sector's ability to contribute to economic growth and development. 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 funding certainty and procurement reform to be effective.
What's Next?
CECA has called on the government to focus on delivering stalled projects, particularly in areas like local roads and rail, to boost industry confidence and encourage investment in skills and training. The upcoming Autumn Budget presents an opportunity for the government to provide funding certainty and address procurement reform, which could help stabilize the sector and support its growth. The industry will be closely monitoring government actions and policy decisions that could impact workload growth and overall sector health.
Beyond the Headlines
The current situation in the civil engineering sector highlights broader economic challenges, including inflation and supply chain disruptions, which could have long-term implications for the UK's infrastructure development. The government's ability to address these issues effectively will be critical in maintaining the sector's contribution to national economic goals. Additionally, the focus on energy and utilities as growth areas may lead to shifts in investment priorities, potentially affecting other infrastructure sectors.
