Capacity Constraints in construction: rethinking the business environment

The Wider Built Environment Research

Capacity Constraints in construction: rethinking the business environment

A new economic report exploring the construction industry’s capacity to deliver on key targets and meet demand for new homes and infrastructure in the UK has been published by the CIOB.

David Barnes
David Barnes

Head of Policy and Public Affairs UK

Last updated: 7th October 2025

The Labour government has placed major improvements to the built environment at the core of its growth mission. To meet the government's aspirations, the role played by the wider construction sector will be critical. However, the industry and related industries that deliver the built environment will need to rapidly increase capacity in many areas if it is to meet the challenges so far outlined.

The aim of this report is to help policymakers and industry leaders form a coherent response to the multiple capacity challenges that lie ahead for construction. The aim is not to present detailed answers but analysis and pointers to policy options that should lower the likelihood of capacity constraints that repeatedly dog the industry.

The report discusses five areas where improvements might be made that should reduce capacity constraints within the construction sector. These are not fully-fledged policies in themselves, but guide to key areas that might be addressed and how policy prescriptions might be formulated, these are:

  • Reducing volatility
  • Ensuring more transparent, accessible, usable, and coordinated knowledge
  • Improved policy effectiveness
  • Better coordination of policy with clearer signals
  • Improved diffusion and adoption of innovation

For further information, please email [email protected]

A full copy of the report can be downloaded below.

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