Construction firms will contribute £250M to modernising the industry after business secretary Greg Clark revealed details for the construction sector deal.
In Monday’s Industrial Strategy Clark confirmed that a construction sector deal had been reached with £170M of government funding expected over three years through the Industrial Strategy Challenge Fund.
Construction firms will match-fund the government with a £250M contribution. Through the Construction Leadership Council (CLC), the government and the construction industry reached the deal to improve productivity in the sector.
It will focus on modernising construction practices through new digital and manufacturing techniques, and a boost to the number of skilled workers through a £64M investment for construction skills training.
“The agreement embodies our vision for a modern Industrial Strategy, with government and industry working together in a strategic partnership towards the common goal of higher productivity, and a more skilled construction workforce with more earning power,” said Clark.
Sector deals, which combine government and private sector investment, have also been reached with the artificial intelligence, automotive and life sciences industries.
Clark said the deal’s four main objectives (see box) must be achieved by 2025.
CLC chair and Crossrail chief executive Andrew Wolstenholme said: “I am delighted that construction has been included in the first wave of sector deals. It presents a huge opportunity for one of the UK’s largest industries and the broader economy.
“With a projected £600bn pipeline of infrastructure projects to be delivered over the coming decades, it is vital that the industry and government work together to realise the full potential of the deal.”
Sector deal 2025 objectives
- To achieve a 33% reduction in the costs of construction and whole-life costs of assets.
- To halve the time it takes for refurbishments and new build projects to be completed.
- To reach a 50% reduction in greenhouse gas emissions in the built environment.
- To secure a 50% drop in the trade gap between total exports and imports of construction products and materials.