Contractor says analysis of more than 200 sites shows staff turnover linked to £2,300 in lost output per hour
Workforce turnover in the UK construction industry is costing the country £1.3bn every year through lost productivity, a new report from Mace Construct says.
Large schemes in the UK’s infrastructure pipeline, from housing and schools to energy projects, are being delayed and made more expensive by rapid workforce churn in construction, the report added.
Mace Construct’s report, based on data from more than 200 projects, shows that when workers leave large sites, projects lose knowledge, coordination and output.
It said that on projects with around 500 workers, high churn is linked to about £2,266 in lost output per hour across the site, rising to nearly £20,000 per hour on projects with around 2,000 workers.
Over a typical 18-month, 500-worker scheme, it said that equates to roughly £5m in lost output.
If this figure was applied to the government’s infrastructure pipeline, Mace Construct said the figure would be around £1.3bn a year.
The report said that better productivity depends on earlier decisions on design, procurement and delivery models.
Mace Construct executive chairman Mark Reynolds said: “This report shows that workforce churn is not just a people issue – it is a productivity issue, a delivery issue and a cost issue for the whole country.
“When workers leave major sites and need to be replaced, projects lose knowledge, coordination and momentum. On the largest schemes, those losses become enormous, with high churn costing millions over the life of a project
“All of us – clients, contractors, and government – need to create the right conditions for firms to invest in permanent workforce capacity, direct employment, and apprenticeships. If procurement rewards companies that build and retain skilled teams, the sector will respond.”
The report said the industry will need to move beyond repeated productivity reviews and instead focus on structural reforms.
Reynolds said Mace Construct has pledged to measure its own productivity year on year, with the aim of becoming the most productive UK contractor by 2030.
Report recommendations
- Earlier design-stage decisions on procurement, modern methods of construction and digital coordination, with productivity treated as a commitment point before work starts on site
- Procurement reform that makes collaborative delivery, early contractor involvement and productivity governance the standard for major schemes
- Better use of the public pipeline and government incentives to support standardisation, off-site manufacturing and wider industrialisation across repeatable programmes
- A stronger focus on workforce stability, direct employment, apprenticeships and retention in the roles that matter most to productivity
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