Mark Beard, chairman of Beard, discusses the three foundations that will deliver success for the construction industry
The mood music around the wider economy suggests it’s a difficult time to do business. Housebuilders face particular challenges around development viability, planning regulation and stealth taxes.
But when we look at what is happening with well-established contractors, a more positive picture emerges.
In recent months, there has been a steady stream of strong results from major contractors. Medium-sized firms have also posted strong results this year. Government statistics support the confident trading statements: just last month, ONS reported that new orders had grown by more than 16% in 2025.
The success outlined in these numbers is driven by a very different industry from the one I entered more than four decades ago. It also highlights what I believe is key to building sustainably on this recent success: we must look beyond net margins to the qualities that sustain the good growth that everyone wants to see.
Investing profits wisely
Congratulations to all those businesses that have delivered improved financial results, found ways to innovate and made our industry a great place to work. However, the strong trading conditions will not last forever, and companies need to invest profits wisely and establish strong balance sheets that stand the test of time.
Successful construction projects need contractors and suppliers that are well funded and teams working well together. Bringing contractors and suppliers into discussions early and paying them promptly helps them do their best work.
At Beard, we’ve seen how strong financial results provide opportunities to strengthen relationships, with suppliers committed to our projects and customers confident that we can deliver for them. This confidence allows customers to be more selective with using performance bonds, which in turn bring down project costs.
How do we reach this destination, and stay there over the long term? Based on learning from leading a business over a quarter of a century, these are my thoughts on three areas that I think will be crucial in the years ahead.
Three steps to sustainable growth
- Purpose: Construction has a vital role to play in the wider economy, creating new infrastructure, providing good employment and supporting communities where people live and work. I’m regularly struck by our team’s effort to go the extra mile for good causes. This is a core part of our drive to deliver positive environmental and social impact in every region we operate. I see how it supports and inspires people, strengthens connections with partners and instils pride in places we support.
- People: The skills shortage is the biggest challenge facing the industry, which remains labour-intensive, even as AI advances into all aspects of our working lives. With estimates suggesting that construction needs to recruit more than 200,000 workers by 2030 to replace those leaving, we must look right across our talent pipelines. Giving younger recruits a positive start to working life, investing in cutting-edge technology, leadership and management development and nurturing a culture in which teams can thrive gives great people strong reasons to join and remain in the sector.
- Place: Construction workplaces have changed enormously since I entered the industry. Better site facilities and close attention to safety improve work for hundreds of our people and supply chain partners. In our recent Investors in People assessment, colleagues singled out the quality of our site facilities and the well-developed IT systems as an early sign that the business cared about them. Well-presented hoardings also tell people something about us. Taking pride in places we work in drives better results.
A people business
Investing in people, supporting partners, taking pride in places to create things that last. These are hallmarks of a successful construction industry.
It’s an industry that employs people in all parts of the country. This means that, together, construction could play a key role in bringing good growth to every part of the country.
After a recent positive run, now is the time to make that happen. I believe these three steps provide a route towards that destination.
