Building Systems Thinking: A make or break moment for UK infrastructure

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Fens Reservoir: A view of the proposed new reservoir from the nearby community of Doddington in Cambridgeshire

Sizewell C nuclear power station on the Suffolk coast

The Lower Thames Crossing between Essex and Kent

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Shortages of skills, equipment, materials, investment, data and collaboration put at risk the AEC industry’s ability to win, deliver and benefit from a once-in-a-generation opportunity. This warning is spelled out by the Institution of Civil Engineers (ICE) in its latest “state of the nation” report, published on 5 March.

In June 2025 the government published its £725bn 10-year infrastructure strategy. It includes homebuilding, schools, hospitals and prisons alongside digital, energy, transport and water infrastructure. While heavily focused on capital projects, it also emphasises the need for asset management, to sustain the condition and performance of existing buildings and infrastructure.

“While the strategy is hugely welcome, it sets a formidable challenge for the industry, which must solve several systemic problems to be able to deliver it,” said ICE president David Porter, introducing the report.

“With the strategy indicating a 50% increase on public infrastructure spending in 2015-25, can the supply chain increase its productivity, work smarter and boost its capacity sufficiently to deliver everything being asked of it?”

The ICE’s annual reports are steered by expert panels representing the energy, transport and water sectors, and address the issues of greatest concern to its members.

Porter noted that “investor and consumer confidence has been dented by the poor performance of both existing infrastructure and high-profile construction projects in recent years. The strategy represents a chance for the industry to start a positive new chapter and regain trust.”

But achieving that is a delicate balancing act, he cautioned: “Clients must build confidence by clearly signalling their needs. The industry can then show investors that it can execute projects efficiently and effectively.

“To support this, significant improvements to supply chain capacity and capability are needed to unlock funding and help bring projects to market.

“For the strategy to succeed, real progress needs to be demonstrated as soon as possible. Everyone in the sector must play their part.”

Headline requirements are:

• Boosting capacity and productivity in the industry, especially the supply chain.
• Promoting collaboration with better commercial arrangements and enterprise working.
• Applying innovative investment models.
• Making the most of digital technology and data.

Failing to achieve these needs will result in delayed projects and rising costs.

In the report, the ICE makes specific recommendations to tackle the industry’s capacity and competency “crunch”:

• The government should work with industry to publish a holistic workforce strategy that supports the aims outlined in its 10-year infrastructure strategy, its industrial strategy and its clean energy jobs plan.
• More detail about current and future project requirements should be added to the national infrastructure pipeline, to enable the supply chain to gear up for the anticipated workload.
• Public sector clients should lead the way in developing multi-year framework agreements to develop suppliers’ confidence to invest, supported by key performance indicators, targets and rewards to incentivise performance. Agreements should be rolling or negotiated well in advance to avoid cliff-edge uncertainty.

The ICE calls for greater innovation in investment both in projects and in asset management. “The government should build on its forthcoming electric vehicle excise duty by introducing a national road usage charging scheme, with proceeds ring-fenced to address the £50bn backlog in roads maintenance,” it says.