The government has confirmed today the construction industry has secured a sector deal, through the Construction Leadership Council, as part of the Industrial Strategy. The white paper announcement includes £170 million to transform the construction sector to help create affordable places to live and work that are safer, healthier and use less energy,
The sector deal contains commitments to work collaboratively in three areas:
- Procuring for Value: The sector will aim to develop a procurement standard and work with the Infrastructure and Projects Authority to develop cost and performance benchmarks for assets and contractors and monitor outcomes including increased housing capacity, productivity and pre-manufactured value.
- Industry-led Innovation: A joint commitment to invest in a transformative programme which brings together the construction, digital technology, manufacturing, materials and energy sectors to develop and commercialise digital and offsite manufacturing technologies.
- Skills for the Future: The construction sector, with support from the government, will work to drive increased investment in skills development, whilst adopting a more strategic and coordinated approach to recruitment, and equipping workers with the skills that they will need for the future.
View the Industrial Strategy white paper here.
Dr Diana Montgomery, Construction Products Association Chief Executive said: “The construction sector has great potential as a key enabler of UK economic growth, and given last week’s downgrade from the OBR for UK productivity this takes on a greater urgency. The newly announced sector deal for construction will be crucial for the whole supply chain over the coming years, especially if we are to help government achieve its aims of building more homes and improving the UK’s infrastructure. In addition, given the risks around skills shortages and productivity weakness, we welcome government’s much-needed boost to improve digitalisation and construction skills. Critical to the success of any sector deal is leadership within industry through the Construction Leadership Council (CLC) to offer an effective contribution.
“The manufacturing and distribution of construction products has an annual turnover of more than £55 billion, providing employment for 330,000 people across 22,000 companies. The CPA strongly encourages government to ensure manufacturers and distributors are invited to make a more significant contribution to the CLC and that ultimately what has been announced today is not harmed by the Brexit transition period and the UK’s post-Referendum deal once it has been finalised. As nearly 80% of construction products used in the UK are made in the UK, this long-term view will give our industry the reassurance to invest in our sector.”