Top 5 Key Trends and Insights for Construction Recruitment in 2025
The construction industry is poised for significant transformation in the coming years. According to the latest forecast from the Building Cost Information Service (BCIS), several pivotal trends are expected to shape the landscape in the next 5 years.
Rising Building Costs and Tender Prices
BCIS projects a 17% increase in building costs over the next five years, with tender prices anticipated to rise by 19% during the same period. This escalation underscores the importance of strategic planning and cost management for construction projects.
Growth in New Work Output
After a period of contraction since mid-2023, new work output is expected to rebound, with a forecasted growth of 21% over the next five years. This resurgence presents ample opportunities for professionals and firms ready to adapt to the evolving market demands.
Labour Costs as a Primary Driver
Labour costs remain a significant factor influencing overall building expenses. The BCIS Labour Cost Index is forecast to increase by 19% up to the fourth quarter of 2029. Driven by factors such as increases in employers’ National Insurance contributions and the National Living Wage. This trend highlights the critical need for effective talent acquisition and retention strategies.
Moderation of Materials Cost Inflation
Following a peak in 2022, materials cost inflation has been moderating. The BCIS Materials Cost Index experienced negative annual growth from Q3 of 2023 to Q2 of 2024. However, we expect a 15% growth over the forecast period, indicating a gradual stabilisation of materials costs.
Construction Recruitment Trends Implications
These trends have profound implications for construction recruitment:
Demand for Skilled Labour: With labour costs on the rise, there will be an increased demand for skilled professionals who can deliver quality work efficiently. Recruitment agencies must proactively identify and engage talent to meet this need.
Strategic Workforce Planning: The anticipated growth in new work output necessitates strategic workforce planning to ensure that the right skills are available at the right time. This includes investing in training and development to upskill the existing workforce.
Cost Management Expertise: As building costs and tender prices rise, there will be a premium on professionals with expertise in cost estimation, budgeting, and financial management to help projects stay within budget.
We Build Recruitment stays ahead of industry trends to provide our clients and candidates with informed, strategic recruitment solutions.
By understanding and anticipating the shifts in the construction landscape, we aim to connect the right talent with the right opportunities, fostering growth and success for all parties involved.
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