The UK’s civil engineering sector is in a state of transformation—and no, that’s not just a clever pun. With a new government in place, major funding promised, and a fresh national infrastructure authority leading the charge, things should be booming. But as always, the reality on the ground is more complicated.
Let’s take a look at where things stand in summer 2025.
Big Ambitions, Big Budgets
Earlier this year, the Labour government unveiled a £725 billion, 10-year Infrastructure Strategy aimed at revitalising everything from transport and flood defences to hospitals, housing, and clean energy.
The newly formed National Infrastructure and Service Transformation Authority (NISTA) is now overseeing delivery across the UK’s public sector project portfolio. The government’s focus? Long-term resilience, decarbonisation, and creating jobs through public sector investment.
Ongoing projects like HS2 & the East West Rail are progressing, while new developments in regional rail and green energy infrastructure are gaining traction.
Skills Shortage: The Industry’s Achilles’ Heel
Despite the optimism, a fundamental problem persists: a lack of skilled labour.
Since 2019, the UK has lost around 300,000 construction workers, due to a combination of Brexit, retirement, and reduced training uptake. That shortfall is now being felt across the civil engineering landscape—particularly in sectors like highways, energy, and utilities.
In March 2025, the Purchasing Managers’ Index (PMI) for civil engineering dropped to 46.4, indicating contraction. That’s the lowest figure in several years, driven by cautious hiring, delays in planning approvals, and uncertainty around delivery timelines.
Market Performance & Outlook
While 2023 saw a 6% drop in project starts, 2024 brought a 26% rebound, especially in sub-£100 million schemes. This year, analysts are forecasting 5% growth, with an even more optimistic 7% expected in 2026.
Long-term projections remain steady, with a 3–4% compound annual growth rate (CAGR) expected through 2034, largely thanks to:
However, inflationary pressures, high wage expectations, and regulatory hurdles continue to affect timelines and profitability.
Technology & Sustainability: From Buzzwords to Business As Usual
One of the most promising trends in the industry is the mainstream adoption of digital tools. Whether it's BIM, digital twins, or AI-powered project analytics, the sector is finally embracing tech to cut delays and increase efficiency.
Sustainability isn’t just a checkbox anymore. It’s a legal obligation, with net-zero targets baked into planning policy. Expect to see more investment in:
Final Thoughts
The civil engineering sector in the UK is filled with opportunity, but it’s not without its growing pains.
A well-funded public agenda, strong digital uptake, and clear environmental targets have the potential to transform the built environment over the next decade. But turning blueprints into reality depends on solving the most pressing challenge of all: getting enough skilled people into the industry.
With the right training, smarter planning processes, and better coordination between public and private sectors, civil engineering could well become one of the UK’s great success stories over the coming years.
