2024 was a year of significance in the construction industry, characterised by a continued labour shortage, further progress on sustainability and huge advancements in artificial intelligence (AI). Those with their finger on the pulse will have capitalised on these trends to stay ahead of the competition. So, as we look ahead to 2025, our expert quantity surveyors in London are going to highlight the construction industry trends to keep an eye on over the next 12 months. From further AI integration to statutory changes, keep reading to give yourself a head start in the new year.
This Year’s Construction Industry Trends
Over the previous decade, the UK’s construction industry has experienced limited growth due to a number of challenges. From the impact of Brexit to navigating the COVID-19 pandemic, the industry has struggled to develop any momentum in recent years. However, according to many leading economists, the construction sector will bounce back in 2025. Forecasts estimate growth of 8% in 2025, with a further 10% in 2026. Below, we take a look at some of the key forces behind this anticipated growth.
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Technological Innovations
The most predictable construction trend of 2025 is the huge role technology will play in the sector’s advancement. Major firms like Procore Technologies and Autodesk continue to drive cutting-edge advancements in areas like automation, software, sustainable materials, and digital construction processes. In 2025, all businesses should be looking to leverage digital tools and AI to increase their capacity and offset the ongoing labour shortages.
Development Of Existing Systems
Further development of some of the industry’s most prevalent digital technological systems will help boost productivity, safety and resource allocation. Here are some of the systems predicted to undergo major improvements:
- Building Information Modelling (BIM): BIM systems have been a key player in the construction industry for decades, but they’re expected to become far more sophisticated in the near future. With more efficient data processing and the adoption of new standards like ISO 19650, BIM systems will help improve safety, sustainability and budget management.
- Digital Twin: This technology allows companies to create digital replicas of their developments to simulate and optimise the construction process. In 2025, we’ll likely see the integration of AI digital twin systems to streamline the process and alleviate labour constraints.
- Robotics And Automation: In recent years, many firms have been using robotics to help overcome the challenges imposed by the industry-wide labour shortage. Robots can help transport materials autonomously, perform precise welding, plan layouts, and operate remotely in hazardous environments. Additionally, advancements in AI mean these robots can quickly learn new tasks.
Artificial Intelligence (AI)
You’ll be hard-pressed to find an industry that AI won’t significantly influence in 2025, and the construction sector is no different. In fact, many experts predict construction will be among the industries most impacted by AI, with productivity forecast to grow by up to 50%. Here are a few of the areas in which AI will make a significant difference:
- Project Management: AI-powered project management tools will help optimise scheduling, resource allocation and risk management. With the help of AI, project managers can easily analyse past projects and identify patterns that lead to inefficiencies.
- Predictive Maintenance: Construction machinery with AI integration can often predict breakdowns before they occur, minimising downtime.
- Cost Management: AI will use historical data, market trends, and project risks to predict cost overruns. Additionally, smart procurement systems will ensure the timely delivery of materials at optimal prices.
- Quality Control: Using drone technology and AI, you can perform automated inspections that help accurately flag defects and anomalies.
Sustainability In Focus
In modern construction, sustainability is less of a trend and more of a necessity. A project can no longer be deemed successful without meeting its sustainability targets. Over the last decade, significant emphasis has been placed on enhancing energy efficiency and reducing carbon emissions, but the sector is likely to expand on these sustainability goals in 2025.
In the UK, the Government has outlined its goals in the Construction 2025 strategy, which aims to put ‘Britain at the forefront of global construction in the coming years’. Here are the areas this strategy will focus on:
- Increasing Workforce Capability: Engage with industry bodies to provide the current workforce with the resources they need to upskill. Train those in the UK construction industry in green measures and sustainable practices.
- Promote Research And Innovation: Invest in people, technology and research to become global leaders in green construction and digitisation. Work with academic and research institutions to support innovative developments and elevate the UK construction sector.
- Prioritise Sustainable Materials: Develop and invest in low-carbon construction materials and practices. Boost procurement efficiency through programmes like the Green Construction Board.
In addition to the Construction 2025 strategy, the UK Government have recently announced the Planning and Infrastructure Bill, a piece of legislation expected to be introduced in Spring 2025. This bill aims to accelerate the construction of high-quality infrastructure and housing throughout the UK by streamlining large parts of the planning process. The Government say the bill will ‘create a win-win for development nature’ and will focus on ‘driving up environmental outcomes over rigid processes that block and delay development.’
It’s also worth noting that since the turn of the century, many businesses in the construction industry have set sustainability targets that they intended to achieve by 2025. That means this year will be one of reflection for many of the industry’s key players. They’ll assess their performance against previous goals and set new sustainability targets. This could mean we’ll see an increase in the use of sustainable materials, renewable energy technologies and passive design strategies as businesses look to improve their sustainability performance.
Project Management Changes
2025 will likely bring significant changes to how construction projects are managed. Data-driven project management has been on the rise over the last few years, and this year, it is forecast to be more important than ever. With access to more advanced analytics and AI playing a huge role, risk assessment and mitigation will become far more manageable. Construction professionals will need to sharpen their data literacy skills and become comfortable working with digital project management tools if they want to remain competitive.
Additionally, modular and off-site construction methods are set to become a lot more popular in 2025. Thanks to major technological advancements, project managers can spend less time on site and more time co-ordinating the project through digital management tools. While this shift will improve efficiency, it will require tradespeople to adapt their working methods.
Refined Health And Safety
As always, health and safety will remain a top priority for the construction industry in 2025. New technologies and regulations should make protecting those involved in any construction project far easier. Many projects have introduced wearable devices, like smart helmets and vests, to track workers’ vital signs. The devices provide instant alerts in case of emergencies, allowing for a swift response. This kind of technology also enhances communication between workers, machinery and supervisors. If you spend a lot of time on-site, you’ll likely notice more and more of these wearable devices in the coming year.
In addition to technological integrations, we can expect to see stricter enforcement of safety standards with a greater emphasis on mental health and wellbeing. Mental health issues are a significant problem in the construction industry, with a 2020 study finding that 83% of workers in the sector had experienced problems with their mental health. As employers look for ways to tackle this worrying trend, here are some things you can expect to see more of this year:
- Mental health training for employers: A rise in training courses designed to raise awareness of the construction industry’s poor record on mental health.
- Implementation of mental health days: More mental health days will be included in a company’s leave policy.
- Increase in one-on-one meetings: Supervisors will be encouraged to have regular one-on-one meetings with their workers to discuss any issues.
- Partnering with charities: Many construction companies will look to partner with charities like Mates in Mind, which works to improve the mental health of those working in the construction industry.
- Peer support programmes: Employees will be given a safe space where they can discuss mental health challenges with co-workers.
Embrace 2025 With Bhangals
Evidently, the construction industry’s key driver in 2025 is technology. From AI integration to robotic automation, technology will be essential to overcoming many of the challenges the sector has faced for years. So, if you want to make 2025 your year in construction, it’s worth investing a significant of time into establishing which technological integrations will help streamline your workflow and set you apart from the competition.
Alternatively, lessen your workload and partner with a team ahead of the curve, like Bhangals Construction Consultants. Our market-leading quantity surveying services in London have helped our clients save an average of 27.8% on their construction projects, and our expertise allows us to navigate the ever-changing industry. Get in touch and find out how we can help you cut costs.