Market Intelligence Reports

Overview

The UK construction market continues to show cautious but positive growth, with NACF contractors reporting a 2.93% increase in tender workload year-on-year and strengthening opportunities across the public sector.

Despite this encouraging trend, cost inflation remains the industry’s most significant challenge. Rising material, energy, fuel, transport and labour costs continue to drive higher building costs, while geopolitical instability, tariffs and regulatory changes are creating additional uncertainty across supply chains. Many suppliers are unwilling to commit to long-term pricing, making fixed-price tendering increasingly difficult and placing greater pressure on project budgeting and risk management.

Market conditions remain mixed, with some businesses reporting improving enquiry levels and confidence, while others continue to face project delays, planning constraints and funding uncertainty. Labour availability, specialist product lead times and supply chain resilience remain key concerns as demand grows.

Looking ahead to Q2 2027, the industry forecasts further increases in tender workload, employment and building costs, signalling continued growth but also potential capacity challenges. To achieve greater certainty on cost, programme and delivery, organisations are increasingly encouraged to adopt collaborative procurement strategies, engage supply chains earlier and proactively manage risks throughout the project lifecycle.