New Data Shapes UK Construction Strategy                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

The UK’s industrial construction sector is undergoing a notable shift. Manufacturing project starts grew 18% year-on-year, now valued at approximately £1 billion and making up around two-thirds of all industrial activity.

In contrast, however, the warehousing and logistics sector has declined by a worrying 33%, with new construction projects worth roughly £457 million, suggesting a move away from large-scale speculative builds and more towards tailored, purpose-driven industrial construction facilities.

Overall construction activity remains mixed; the latest Purchasing Managers’ Index revealed the steepest quarterly slowdown in over five years, reflecting weaker demand in housing, civil engineering, and commercial construction. Yet, new construction orders still rose by more than 10% in early 2025, with infrastructure showing particular resilience.

The rise in manufacturing construction projects highlights a growing demand for advanced facilities such as factories, laboratories, and production plants. Drivers include the reshoring of supply chains, technological innovation, and a national push towards decarbonisation. These types of industrial construction projects often require specialist expertise, complex permitting, and tightly managed delivery.

The downturn in warehousing, meanwhile, reflects market saturation and a shift in occupier requirements. Logistics investment is becoming more selective, with an emphasis on location, sustainability, and adaptability rather than scale alone.

Together, these contrasting trends underline the importance of strategic planning in both industrial construction and commercial construction projects.

Industrial and commercial construction is more than a sectoral trend: it is a foundation of the UK’s long-term growth. Industrial construction projects such as advanced manufacturing plants drive productivity and innovation, creating jobs and strengthening supply chain resilience.

Commercial construction projects contribute by providing spaces for businesses, services, and communities to thrive, and both are critical to ensuring the UK has the infrastructure it needs to compete globally.

At a time of economic uncertainty, the ability to deliver robust, future-ready construction projects is vital. From industrial facilities that support innovation to commercial buildings that enhance everyday life, the sector plays a central role in shaping the UK economy, society, and individual opportunity.