This Sector Deal sets out an ambitious partnership between government and industry that aims to transform the sector’s productivity through innovative technologies and a more highly skilled workforce.
The life of every person in Britain is affected by the construction sector. It is one of our truly nationwide industries – encompassing individual homes in remote areas and some of the greatest infrastructure projects of our generation, in every corner of the United Kingdom. It is one of our major employers, with around 3.1 million people working in the sector, most of whom are outside London and the South East.
The construction sector has an important role to play in achieving the vision set out in our Industrial Strategy: strengthening the foundations of our economy and achieving the Grand Challenges:
- putting the UK at the forefront of the AI and data revolution
- maximising the advantages from the global shift to clean growth
- becoming a world leader in the future of mobility; and
- meeting the needs of an ageing society
The construction sector, encompassing contracting, product manufacturing and professional services, had a turnover of around £370 billion in 2016, adding £138 billion in value to the UK economy – 9% of the total – and exported over £8 billion of products and services.
However, the potential of the sector has been held back by productivity that is historically below than the wider economy – an average of 21% lower since 1997.
The Farmer Review, published in 2016, highlighted a combination of factors behind this problem, including the cyclical nature of the sector, the unpredictability of future work and a lack of collaboration across the sector. It concluded that transforming the industry would require shared leadership by the industry, its clients and the government.
This Sector Deal meets that goal, bringing together a coalition of businesses from across the sector, its clients, the government and research institutions to set out a strategy to improve the industry’s performance and help it fulfil its potential to deliver wide-reaching social benefits.
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The Infrastructure Industry Innovation Platform (i3P) will align strategic R&D investment by the consortium with the Industrial Strategy Challenge Fund Transforming Construction programme, to accelerate change in the infrastructure and construction sector. Currently Infrastructure Industry Innovation Platform (i3P) members invest more than £150m per annum in R&D
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Consider with the sector how to increase the capability of the Infrastructure Industry Innovation Platform (i3P) consortium so that it can fully support innovation in the construction sector
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