Civils workload growth drops to four-year low

Workload growth across the UK’s civil engineering sector has slowed to its weakest level since the Covid-19 pandemic, prompting the Civil Engineering Contractors Association (CECA) to call for renewed government action ahead of next month’s Autumn Budget.

The industry body reported that just 7 per cent of firms experienced workload growth in the second quarter (Q2) of 2025 — the lowest reading since late 2020.

The figure marked a drop from 10 per cent in Q1 2025 and a significant fall from the 28 per cent reported in Q2 2024.

Electricity recorded the strongest performance, with 57 per cent of firms reporting an increase in work.

But workloads shrank in motorways, local roads, rail, communications and airports, CECA said in its latest Workload Trends Survey.

The association warned that the data points to a “two-speed industry”, with energy and utilities buoyed by public investment while core infrastructure sectors remain stalled.

Director of policy and public affairs Ben Goodwin said the survey should act as “a warning sign” to government, highlighting the risk that inflation, supply chain disruption and skills shortages could stall expansion.

“The UK’s ambitions for net zero, regional regeneration and improved connectivity demand sustained investment and policy certainty,” said Goodwin. “Our members, particularly SMEs, are disproportionately exposed to rising costs, and more must be done to stabilise the market.”

The latest survey found that civils workloads in England fell by 14 per cent in Q2 – the first decrease since 2020, while Scotland recorded 7 per cent growth. CECA did not collect data for Wales in the latest report.

Contractor optimism has also weakened. On balance, 37 per cent of firms said they expect workloads to rise over the next 12 months, down from 53 per cent in Q1.

Order books rose for 20 per cent of firms in Q2, with electricity and water leading the gains. However, the number of sectors recording declines outpaced those with growth, and orders for motorways, local roads, and preliminary works fell for a fifth consecutive quarter.

Tender price inflation remained elevated but showed signs of cooling, with new work prices rising 52 per cent on the previous year, down from 81 per cent in Q2 2024.

Repair and maintenance work also showed a reduced increase, with prices up 54 per cent compared to 77 per cent a year earlier.

CECA welcomed the creation of the National Infrastructure and Service Transformation Authority (NISTA) and the government’s 10-year infrastructure plan, but said these initiatives must now be backed in the next Budget by funding certainty and progress on procurement reform.

“We urge the government to focus on delivery, particularly in stalled areas like local roads and rail,” said Goodwin. “Industry needs the confidence to invest in skills and training that match real-world needs.”

Source: CECA Workload Trends Survey