Today’s ONS figures show UK construction output fell by 2% in the three months to February 2026, marking a fifth consecutive decline. Njy Rios, Partner at innovation consultancy Ayming UK, believes the most concerning part of these figures is that they don’t reflect the full impact of the war in Iran – regarding aspects like materials shortages and supply chain disruption, which means we’re likely to see output continue to fall in the months ahead.
She also highlights a key but often overlooked pain point facing construction firms: a lack of access to skills and talent.
“The drop in construction output underscores the persistent challenges facing the sector: rising material costs, ongoing uncertainty, and growing labour shortages. What’s more concerning is that these figures reflect the situation before the recent escalation of the conflict in the Middle East, meaning supply chain disruption and delays to material availability are likely to further slow momentum in the months ahead.
‘Growth in construction depends on both resilience and capability’
“Construction is one of the largest sectors in the UK economy, and while the government is making the right noises around planning reform and its long-term infrastructure strategy, the industry is contending with a complex mix of pressures.
“Alongside rising input costs and constrained supply chains, access to the right skills and talent remains a critical challenge. Our own research found that 47% of construction leaders see a lack of available skills as the biggest barrier to innovation, with nearly a quarter identifying it as their top priority for 2026.
“Ultimately, growth in construction depends on both resilience and capability. Without addressing supply pressures such as material shortages and cost inflation, as well as building a sustainable talent pipeline, even the most ambitious infrastructure plans risk stalling before they begin.
“A stronger focus on vocational training and skills development will be essential to ensure the sector can weather the current challenges and bounce back.”
