Construction 2025 Strategy and more
The Construction 2025 strategy has been ongoing since 2013, so where does the industry sit? Here's a run down of what it is - and some extra takeaways.
The Construction 2025 Strategy, created by the UK government in 2013, is an in-depth look at what the public sector needs to do to work with the industry closely and successfully.
At the time of its creation, the global construction market was forecast to increase by around 70% by the year 2025. So, with that in mind they outlined some key areas of focus and dedication to ensure this was capitalised on. Also, to make sure that UK businesses were in prime position to have their services and goods within the public sector.
The five elements of public sector construction
The strategy outlines five key areas that it focuses in on. These are PEOPLE, SMART, SUSTAINABLE, GROWTH and LEADERSHIP.
These elements make up the main aspects of the strategy – but how so? Here’s a quick break down to save you some time.
A focus on hiring, training and retaining valuable people to meet the demand of increases in construction. To do this, they want to ‘reinvigorate the image of the industry’, making sure that young people are encouraged to take up construction as their career path. Currently, the construction industry supports 2 million jobs. So retention and skills are a high priority.
Innovation and technology! Increases in the use of Internet of Things and integrated city systems means that many construction services have a foot in the future. The strategy emphasises that UK construction has to put effort into people and technology – especially if they it wants to see advances in sustainable and smart construction.
Sustainable construction should be affordable and accessible to all markets – not just the public sector markets. There’s a big big focus on low-emission construction now. This is evident also in the added emphasis on Social Value in procurement – but has been around a long time.
It’s not just about the work being done turning green either, it’s about the whole procurement process. Making sure it is efficient and adaptable to the future.
The construction industry is growing – £117bn market in 2018 alone. There’s more work being carried out. This is because of a lot of demands: Growing populations and urbanisation, for example.
With this comes to the ability of supply chains to adapt and grow too.
Lastly, the strategy outlines that a clear and solid leadership should be maintained. This is by The Construction Leadership Council. They’ll be the ones making sure all of this is met, and that the industry thrives until 2025 – hitting targets.
What are the targets of the Construction 2025 strategy?
There are four main goals set by the strategy:
- 33% lower costs on construction
- 50% faster delivery of projects
- 50% lower emissions
- 50% improvement in exports
Beyond the strategy
The Construction 2025 strategy is just one of many ways the government is aiming to improve the industry. For example, the Government Construction Strategy 2016-2020, was designed to run alongside this. Building on elements of the Construction Strategy 2025, it set out ambitions on digital skills, emissions and the industry. In short, delivering £1.7bn worth of efficiency in government procurement of construction.
During this timeframe the government “set up bodies such as the Construction Innovation Hub and the Centre for Digital Built Britain” progressing the support within the industry and helping companies in their digital capabilities. As well as making big strides in the procurement world too, with new routes to market such as various frameworks like this one.
Although there is debate whether the strategy has been successful (some say only the emissions target is now achievable), we are expecting to see more progress happen towards 2025. With £37bn worth of government contracts due in 2021, there’s proof of that.