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Government Backs Productivity Boost for Construction Industry

In its bid to boost productivity, the UK government has chosen construction as one of its highlighted industries.

Construction has been granted one of the most recent rounds of sector deals, this one worth up to £250m. The deal was announced at the same time that Business Secretary Greg Clark revealed the government’s Industrial Strategy plans. 

The construction sector was one of 11 industrial areas remaining in the competition for deals. Construction productivity is expected to improve as a result. 

The other sectors that benefited from such deals are automotive, artificial intelligence, and life sciences. 

Mr Clark said that the industrial strategy sets out how the government will maintain and support these and similar strengths and use them to the country’s advantage. 

But, as he pointed out, any important strategy should address the deficiencies that prevent the country from achieving its potential and maximising its strengths.  

“This Industrial Strategy does that,” he said.  


Benefit the wider economy

Mr Clark said that the UK’s productivity performance has not been good enough, and its earning power has been held back as a result. The Industrial Strategy intentionally strengthens the five cornerstones of productivity: ideas, people, places, infrastructure, and business environment. 

Addressing the deal, the government confirmed that through the Construction Leadership Council, it had agreed to a Sector deal with the construction sector to enhance construction productivity for the benefit of the wider economy. 

Construction is one of the UK economy’s biggest sectors:

  • Construction sector employs 3.1 million workers
  • Approximately 9% of the nation’s total workforce are in construction
  • Construction contributes a value of £138 billion to the UK economy

The deal will give construction productivity a substantial boost, through greater investment in skills and innovation, creating new jobs that pay well, and maximising its export potential.

It will also reduce the impact on the environment, improve the efficiency and lower the whole life cost of new buildings and projects to help construct the homes, schools, hospitals and important transport schemes the country needs. 

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