The Chartered Institute of Building (CIOB) has released a new report that addresses five key areas where improvements could help reduce capacity constraints in the UK construction sector.
According to the report, named ‘Capacity Constraints in Construction: Rethinking the Business Environment’, the first area of focus is reducing industry volatility. The second is ‘ensuring more transparent, accessible, usable, and coordinated knowledge’ while the third area is improved effectiveness of policy.
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The remaining areas are ‘better coordination of policy with clearer signals’ and ‘improved diffusion and adoption of innovation’.
The CIOB report highlights the significant challenges faced by the UK construction industry, particularly in meeting housing and infrastructure demands.
It scrutinises issues such as recruitment, training, retention, and the sector’s inherent volatility.
Produced in collaboration with economist Brian Green, the study underscores the frequency of collapses within hundreds of construction businesses annually and its repercussions on the broader economy.
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By GlobalDataGreen said: “Construction is regarded as the most volatile major sector of the [UK] economy and it repeatedly faces capacity challenges. This means firms within the sector shape themselves to withstand swings between having too much work and too little resource and having too little work and too much resource. It is inefficient and debilitating to the industry.”
The CIOB indicated that it is advocating for a forward-looking approach, urging policymakers and industry leaders to consider sustainable and progressive strategies that enhance the sector’s resilience.
The organisation suggested that while immediate policies are not specified, these recommendations could inform future policy development.
Additionally, the CIOB proposes the establishment of an oversight body dedicated to the built environment. This entity should maintain a constructive relationship with those managing the natural environment, the report said.
However, it advises caution in creating such a body all at once, suggesting a more phased approach may be prudent.
CIOB policy and public affairs head David Barnes said: “The UK government’s 1.5 million new homes target over the five-year parliament has continued to receive a great deal of scrutiny, particularly on the construction sector’s capacity and capability to deliver.
“This report seeks to shift the dialogue from aspirational targets to understanding and analysing the deep and often challenging structural issues faced by the sector which make it volatile and unstable.
“This detailed analysis of the sector showcases the need to change the business environment, and the report details the five key policy objectives we believe need focus to improve performance and reduce capacity constraints on the sector.”
