Bridging the Skills Gap in the UK Infrastructure and Engineering Sector Amid Infrastructure Growth
According to CSN Industry Outlook – 2024-2028, the UK infrastructure / construction sector saw over a 4% rise in output in 2023, following stagnation in 2022. However, growth is projected to slow to just 1.5% annually from 2024 to 2028, among the lowest in the industry. This deceleration is compounded by construction cost inflation, which has heavily impacted project budgets. The highly publicised HS2 project is now estimated between £49bn and £56.6bn, well above the latest government forecast of £45bn.
Other significant programs, such as Network Rail’s Control Period 7 and the £5.2bn capex programme for flood defences, have also been hit hard by inflation and skills shortages. For example, the Environment Agency has only delivered 20% of its flood defence target despite using 33% of its available time and over 25% of its funding by November 2023.
As the government rethinks its infrastructure priorities, reallocating £4.7bn following the cancellation of the northern leg of HS2, projects like the new Local Transport Fund aim to enhance public transport, reduce congestion, and upgrade stations. This is crucial for the North and Midlands, which will receive £2.5bn and £2.2bn, respectively.
As infrastructure / construction projects progress, there is a growing demand for specialized skills. This includes digital expertise, sustainable construction proficiency, and hands-on technical roles. Investing in upskilling is crucial to address both current and future needs.
The skills gap in the UK’s infrastructure / construction sector has become a growing concern, with the demand for new talent expected to reach over 250,000 workers by 2026. This challenge is exacerbated by the sector’s increasing reliance on digital technologies and the urgent need to meet net-zero carbon targets. As we move towards more sustainable and tech-driven projects, the next generation of workers will need diverse skills—from AI-powered project management to retrofitting traditional buildings with sustainable materials.
In recent years, the infrastructure / construction sector has experienced accelerated recovery post-COVID, but with this recovery comes a need to adapt to evolving skill demands. Notably, the industry is undergoing a digital transformation, with new technologies like automation, data analytics, and machine learning reshaping how projects are designed and executed. Digital proficiency will be crucial for future roles, significantly as the sector expands into net-zero carbon initiatives that involve retrofitting buildings using sustainable materials and AI.
What skills do you believe will be absolutely essential for tackling the challenges that lie ahead?
