The Chartered Institute of Building says it is “disappointed” at the “lack of explicit focus” on construction and the wider built environment in the government’s industrial strategy proposal.
In its 16-page response to the Department for Business and Trade’s (DBT) consultation, CIOB said construction should have been “explicitly listed” as one of the government’s “foundational sectors” providing infrastructure and “critical inputs” to the economy.
David Barnes, acting head of policy and public affairs at CIOB, said the methodology used in the document to identify the growth-driving sectors was “flawed”. CIOB is asking the government to improve the quality of data used to avoid making wrong assumptions about the industry’s productivity and innovation.
“The current definition of the construction industry, based on standard industrial classification codes, omits key contributions from architects, engineers, quantity surveyors, and manufacturers involved in the sector,” Barnes said.
“This narrow approach fails to capture the full scale of the industry’s impact, which includes essential services such as building materials production, equipment rental and consultancy.”
He added: “Data in its current guide often perceives construction to be unproductive and one that does not innovate, routinely ignoring the value added within equipment rental, building materials manufacturing, consultancy and design and component production.”
Construction’s key role
Barnes highlighted CIOB’s concerns over the lack of construction recognition in the government’s industrial strategy.
He said: “We believe construction should be central to the industrial strategy and the industry must be recognised as a foundational sector. Construction has a key role in driving economic, social, and environmental progress which is critical for other sectors to succeed.
"We urge the government to improve the quality of data, which is not fit-for-purpose, used in defining the construction sector and its role in the economy. A better understanding of the built environment is needed to accurately reflect its contributions and drive innovation and productivity across the wider economy.”
In October, the government published its proposed 10-year industrial strategy for the UK economy. DBT opened a six-week consultation asking businesses, relevant organisations, trade unions and experts to offer their input on the proposed plans.
The final industrial strategy will be published in spring 2025, alongside the multi-year spending review.
