Construction Industry Statistics 2024

All of the latest construction industry statistics 2024

We work predominantly within the construction sector, with many variants of construction-related clients. We are fascinated with the ever-changing landscape of the industry, including the impressive architecture, developments, solutions and results it produces within our society, in the UK… and even globally! There have been many unprecedented changes in the landscape over the last two years due to various socio-economic factors so the construction industry statistics for 2024 are particularly interesting.

Key Statistics on the UK construction industry as a whole in 2024

• In the quarter leading up to January 2024, construction output saw a decrease of 0.9%. This decline was primarily driven by a 4.5% fall in new work, while construction repair and maintenance activities experienced a 4.0% increase (ONS,2024).
• Using current 2024 figures, construction costs in the UK are predicted to rise by 3 – 3.8% this year, following an increase of 4.1% in 2023. (Construction Media, 2024)
• In 2023, The construction industry saw more company closures than any other sector, with a record 4,371 building firms collapsing in England and Wales. (Construction News, 2024)
• The leading construction firms in the U.K. are: Balfour Beatty pc, Ferrovial S.A., Acciona, S.A, Interserve Group Limited, Costain Group PLC, Taylor Wimpey PIc, Crest Nicholson Holdings PLC, and Berkeley Group Holdings PLC (Gminsights, 2024)
• The most expensive project in the UK, which is planned to begin in October 2024 is, Sizewell C Nuclear Power Station Infrastructure in Leiston. It is going to cost £34,800,000,000 (£34.8 Billion) (Barbour-Abi, 2024)
• The biggest killer in the construction industry is still asbestos. Although it was banned in the UK in 1999, the construction workforce are still suffering the implications of the toxic material. (Construction News, 2024)
• 45% of all work-related fatalities in the UK happen within the construction sector (*latest statistics 2022-2023, new data set due July 2024) (Health and Safety Executive, 2023)
• 68 members of the public were killed in work-related accidents in 2022/23 with the main incidents being falls from height, being struck by moving objects and vehicles. (Health and Safety Executive, 2023)

Construction Industry Employment Stats

• Still, in 2024, women account for just under half of the total UK workforce but only 11 per cent of the construction workforce overall and just 1 per cent of workers on site. (Construction Industry Council, 2024)
• The number of construction-related employees (excluding self-employment) in Great Britain increased 3.3% in 2022 compared with 2021, totalling at 1.4 million workers; the biggest contributor to the growth in 2022 was England with a growth of 3.5%, Wales and Scotland both increased by 2.0%. (ONS,2024)
• There was an average of 674,000 self-employed construction workers in Great Britain in 2022. This a decrease of 24,000 (3.4%) compared with 2021. (ONS,2024)
• The construction sector had the highest number of self-employed jobs across the whole economy, making up 16.7%. (ONS,2024)
• The number of construction-related employees (excluding self-employment) in Great Britain increased 3.3% in 2022 compared with 2021, totalling at 1.4 million workers. (ONS,2024)
• There were 374,332 Value Added Tax (VAT) and Pay As You Earn (PAYE) registered construction firms operating in the construction industry across Great Britain in 2022. The number of registered firms grew 5.9% in Quarter 3 2022 compared with Quarter 3 2021. This was the strongest growth since 2017 (6.2%). (ONS,2024)

Brexit and the Construction Industry

• Construction saw a 59.3% increase in the number of company insolvencies in 2022, this has been said to be as a result of Brexit, COVID-19 and the Global Energy Crisis. (ONS,2024)

• Analysis of data from EU member states, the central EU database, Eurostat, and the UK Department for Business, Energy and Industrial Strategy show that between 2015 and 2022 the cost of construction materials including cement, timber and steel increased by 60%. At the same time, the cost of labour in the UK went up by 30% (The Guardian, 2024).
• Construction costs in the UK are predicted to rise by 3.8% this year, following an increase of 4.1% in 2023. Increases will challenge construction firms, which will need to develop new processes and capabilities to keep costs under control and projects on track (Currie & Brown, 2024)
• However, 2024 and 2025 will see the sector grow by 12% and 3%, respectively. Challenges remain, however, and both contractors and clients will need to navigate a complex landscape shaped by skills shortages, inflation and evolving regulatory environments. (Glenigan, 2024)

Construction Industry Trends in 2024 – Where are we headed?

• The IDC predicts that investments in smart cities will grow to £159.9 Billion in 2024. Some estimates also indicate that the market will double again to over £532.4 billion by 2028. (IDC, 2024)
• More AI applications this year will emerge in construction. (Forbes, 2024)
• Generative AI is helping us to use parametric models and evidence-based design to test and iterate, using genetic algorithms, to achieve the most optimal design at an early stage, driving up efficiency and driving down carbon emissions. (Building, 2024)
• Many startups are addressing the urgent need for alternatives to cement, a major contributor to the world’s annual CO2 emissions. (Forbes, 2024)
• As part of a mandatory future homes standards scheme, from June 2024, all newly built homes must emit 75-80% less carbon than current properties, necessitating high insulation specs and renewables like heat pumps. – (Trademansaver, 2024)
• Construction has an ongoing mental health crisis with people working in the sector still three times more likely to take their own lives than those in other sectors. This is particularly high among unskilled workers. To create a change in the industry, current trials and research are on-going. An example is, an 18-month study trialling different models of flexible working – led by some of the UK’s largest contracting businesses showed no negative impacts on deadlines or budgets and a significant upturn in employee job satisfaction. (British Safety Council, 2024)

Construction Industry Growth Stats Across 2024

• The global modular construction market was worth about $91 billion as of 2022. And it is expected to grow to $120.4 billion by 2027. (Exploding Topics, 2024)
• The private end-use segment recorded 74.2% share of the U.K. construction market in 2022 due to the growing emphasis on sustainability in its construction projects. (GM Insights, 2024)
• According to the National Infrastructure and Construction Pipeline, there is a £164bn planned investment in construction in the UK by 2024/25. (Gov.uk, 2024)

House Building Stats

• In 2022-23, there were 234,400 net additional dwellings in the UK- (Gov.uk, 2024)
• In the year ending December 2023, authorities received 361,800 planning applications, down 12% from the year ending December 2022. – (Gov.uk, 2024)
• The January 2024 data shows: On average, house prices have risen 0.5% since December 2023 (Gov.uk, 2024)
• There has been an annual price fall of -0.6% which makes the average property in the UK valued at £282,000 (Gov.uk, 2024)
• The biggest house developer in the UK, as of 2024 is Barrat Homes, completing 17,200 homes last year and posting profits of £705m. (The Guardian, 2024)
• As of February 2024, Barrat began the purchase of Redrow. The two companies reached an agreement over an all-share offer from Barratt. The merged group, Barratt Redrow, would be expected to build about 23,000 homes a year and have a turnover of more than £7bn. (The Guardian, 2024)

Construction Industry Questions – What is the data telling us?

Does the data provide a promising outlook for the construction sector in 2024? 

All in all, it looks as though we are set to continue to see growth within the construction sector, which includes an increasing construction workforce and amount of pending, newly started and completed projects. In addition to this, prices in construction work and materials are stabilising and dropping slightly, following the unprecedented surge of inflation we have experienced in the last two years. Positively the data also shows, that innovative technologies and eco-conscious start-ups are creating the foundations to pave the way to a more efficient and greener construction landscape.

What are the most exciting areas of growth and trends to focus on? 

The long-awaited growth within the sustainability and technology sector is going to create a huge movement within the construction industry. Both of which complement each other when co-ordinated correctly. We can see the focus on researching and trailing alternative environmentally friendly building materials is becoming very important. If these alternatives are successful, they could change the foundations of the construction industry over the next decade and beyond. We should see many other innovative advancements in technology paving the way for us to become net zero as of 2050.

Davis Trackhire thoughts, here’s what we have to say

We are feeling positive about where the overall industry is headed and what that means for the trackway sector. There are always areas of concern and negative factors which we actively work to combat and will continue to do so within our own health and safety procedure, workforce culture and equality.

If you have found our Construction Industry Statistics 2024 helpful, you can read further industry insights, here. Finally, if you would like to hire trackway for your construction project, you can get in touch with our friendly team.