Body sets out three key areas of focus for sector
Improvements in construction productivity could deliver £45bn in savings and additional value, according to new research by the Construction Leadership Council (CLC).
While productivity per worker is higher in construction than in the wider economy, the productivity per hour worked lagged 13.5% behind, the report found. Meanwhile, the cost of errors in the sector is estimated to be worth seven times the annual total profit it generates.
The CLC’s report, which drew on ONS data and existing industry research, identifies three key areas where billions of pounds of savings could be made.
The first is better preparation for projects through reforms to the planning process and improved collaboration, which it said could deliver a 17% productivity boost and £30bn in added value.
Maximising the use of modern methods of construction could deliver a 7% boost and £12.7bn in value, while 2% and £2.8bn could be delivered by supporting industry to do business more productively through supporting digital investment for SMEs, better utilisation of capital and improved data on productivity at a sector level.
Richard Robinson, deputy chair at CLC, said: “Improving the construction industry’s productivity offers the UK one of our largest economic opportunities.
>>See also: Building the Future Commission
“If we can build faster, at a reduced cost, we can spur growth and job creation across the UK – delivering the places and infrastructure our communities want and our economy needs without delay.
“At a time when construction costs and the complexities of planning policy are rightly under scrutiny within the UK, this latest report from the CLC lays out the scale of the opportunity and sets out a roadmap to partner with Government to help us realise it.
“This isn’t just something that benefits our industry – it’s something that could be transformative for the entire country.”
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