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ECONOMIC AND SOCIAL IMPACT

Socio-Economic Impact of
Construction
The construction industry has a profound economic, social and
environmental impact. It affects every member of society, influencing
productivity and wellbeing at home and at work. But for most people
outside the industry, understanding how the construction industry operates
and its impact on our lives is vague at best.
Home Industry Policy and Research Our Policy Positions Socio-Economic Impact o

Key Issue
Construction is a naturally volatile industry that is responsive to fluctuations in both
consumer and business confidence. Sustained low economic growth typically leads to a
construction recession and high economic growth leads to a rapid acceleration of
construction activity.

Our Position
Construction is a key part of the economy, a driver of jobs and growth. The quality of our
buildings has a lasting impact on the wellbeing of individuals and communities across all
regions and sectors. We recognise that the construction industry plays a unique role in
economic growth and has a huge impact on both the economy and society. In 2018 the
industry contributed £117 billion to the UK economy (6% of UK GDP) and influenced
employment, productivity and business growth.
With a weak construction industry, we will fail to adequately reshape the country’s built
environment to meet the rapidly changing challenges we face in the coming decades. But
with a strong construction industry we can take advantage of the expanding opportunities to
sell our expertise around the globe, while improving the lives of our citizens at home.
We recommend that policy makers look to policies that help stabilise construction activity,
this could be achieved through more labour-intensive work that takes long periods to carry
out (e.g. repair and maintenance) or a financial pool to provide funding for an agreed
prioritised schedule of long-term projects.

Further Information
We have produced several pieces of research detailing construction’s contribution at both a
social and economic level to the UK economy. Our Real Face of Construction report from
2020 highlights the contribution on a regional level, as well as how the construction industry
is directly and indirectly improving important societal challenges such as social mobility and
productivity.
Useful Links
We have policy positions that cover a wide range of key issues affecting the construction
industry.
View our Policy Positions

Explore our work on the Socio-Economic Impact on

Construction
 ECONOMIC AND SOCIAL IMPACT RESEARCH

The Real Face of Construction 2020

Brian Green
February 24, 2020
Find out more

ECONOMIC AND SOCIAL IMPACT RESEARCH

The Real Face of Construction

Brian Green
September 8, 2014
Find out more

Other Issues in Economic and Social Impact of

Construction
Productivity
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Climate Change and Sustainability

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