Peter Graham, partner and Regional Head of Real Estate and Construction in the North at RSM UK, reacts to UK Infrastructure: A 10-year strategy:
“Delays to planning reform, labour shortages and uncertainty over pipelines have been key challenges for the construction industry, with mandatory housing targets adding another layer of pressure. The government’s pledge to catalyse investment in construction skills and technology to increase productivity is a step in the right direction, as on-site labour productivity and workforce deficits have been a major barrier to achieving housing targets, as outlined in RSM’s Real Estate 360 survey.
“The Infrastructure Pipeline will give businesses more visibility on future projects in the next 10 years, enabling them to plan, forecast, and identify the right people with the right skillsets to deliver. In Manchester, we’re seeing major transformation in 2025, with four key neighbourhoods undergoing development as part of the city’s broader regeneration plan in Ancoats, Collyhurst, Strangeways and Moston. While these developments are intended to drive regional growth and help meet national housing targets, one of the biggest challenges for construction businesses is commercial viability, as government funding will only go so far. In the North West, the government has lined up investment for the Transpennine Route upgrade, the School Rebuilding Programme, North Manchester General and Leighton Hospital, Barrow regeneration and the CCUS Hynet Cluster, with construction key to delivering these projects.
“The Infrastructure Pipeline data will also enable better understanding of construction skills needs, market capacity and spatial planning, so businesses can plan with more certainty and commit to projects. For the North West, this may help to address productivity challenges in Manchester and Liverpool by improving connectivity and attracting highly skilled workers. Our latest Economic Outlook highlights a slowdown in growth due to higher tax burdens and a softening of the labour market, so the government’s investment in new technologies will address labour shortages and attract new people with different skillsets to the industry.
“Given the new pipeline has been designed based on supply chain input, this should stop previous tensions from continuing and foster much-needed collaboration in the industry. We’ll also likely see more partnerships following the launch of the National Housing Bank, which will help to unlock an anticipated £53bn in private investment to scale up and deliver more than 500,000 new homes. The North West is already leading the way for public and private sector partnerships, with the JV North consortium bring together public and private sector organisations and appointing new contractors to its procurement framework. With improved visibility, strategic funding, and strengthened collaboration, the North West is in a strong position to set the pace for national housing delivery and ensure long-term, sustainable growth.”