UK construction leaders are calling on central government and local authorities to speed up investment in infrastructure projects and promote investment in the industry as an important means of stimulating jobs and growth.

The CBI and the UK’s leading construction companies are backing the UK Contractors Group’s new campaign Creating Britain’s Future. The CBI highlighted the crucial role that the construction sector has to play as a job-creator and key player in the infrastructure renewal urgently needed for economic growth.

 Speaking at the campaign launch, Rhian Kelly, CBI Director for Business Environment, said:

 “Our analysis shows that the construction sector has the potential to create 215,000 jobs across the UK and throughout the supply chain.

 “It is more important than ever that we recognise the role of construction, both as a catalyst for local job creation across the UK in the short-term, and as the lead mover in the £250bn infrastructure renewal needed to underpin economic growth in the long-term.

 “To get spades in the ground on infrastructure delivery, there must be an urgent focus across the UK on bringing forward repair, maintenance and improvement projects, for example on roads, to deliver immediate and tangible results in terms of local jobs and growth.”

New ways of financing construction projects needed

Paul Sheffield, CEO of Kier Group pointed out that although the construction industry has one of the highest multipliers of any industry – with every £1 invested in construction generating £2.84 in economic value - construction output was falling as government spending contracts and public sector projects are delayed.

 He commented;

“Within the current reduced public sector budget, there is more the national government and local authorities could be doing to stimulate construction and create growth; not least by speeding up decision making and finding new ways of financing construction projects.”

Additional investment could stimulate northern UK economy

Graham Cash, Chief Executive of BAM Construct UK said that it was particularly important that Government focused on the benefits that additional investment could yield in helping to stimulate local economies in the northern half of Britain.

Dame Tessa Jowell MP, a member of the Olympic Board,  joined the CBI and UK construction leaders in calling on the public and private sectors to back the industry. She said:

“The story of the Olympic construction is a success story for British business. A project twice the size of Heathrow’s Terminal 5 was built in half the time and half a billion pounds under budget. A strong business legacy and potential area of export growth has been created - with new capacity created for Britain to compete in construction and project management. It’s a real vote of confidence in the ability of UK plc to achieve large scale infrastructure projects.”

Pointing to the dangers of neglecting construction, James Wates, Chairman CITB-ConstructionSkills said:

“Investing in skills and training is a pre-requisite as we move out of recession and back to growth. Construction has lost 200,000 people since the start of the recession and apprenticeship numbers have halved – leaving fewer opportunities for young people coming into our industry. Our industry faces a ticking time bomb, so we have to invest now to help industry and the UK economy to grow and prosper in the long term. If we fail to invest now, we risk widening the skills gap in the future.”