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Civil Engineering & Construction in London: Growth Ahead Amid Shifting Dynamics – May 2025 Insights

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The civil engineering and construction landscape in London is entering a pivotal phase. As we move further into 2025, the sector- particularly within utilities and infrastructure- is navigating a complex but opportunity-rich environment. Bolstered by government investment, digital transformation, and a strong project pipeline, the year ahead promises both growth and disruption.

This article highlights key developments, challenges, and emerging trends shaping the industry and includes some lesser-known facts to spark curiosity and conversation across the sector.

Key Growth Drivers in 2025

1. Strong Global Expansion
The global civil engineering and construction market is projected to grow by over 70%, opening new pathways for firms in the UK to diversify and scale.

2. Government-Led Infrastructure Investment
The UK continues to channel capital into major infrastructure programs aimed at stimulating long-term economic growth. This includes significant upgrades in transportation, utilities, and energy.

3. Technology-Driven Transformation
Digital tools like Building Information Modeling (BIM), digital twins, automation, and AI-driven analytics are being widely adopted to enhance efficiency, productivity, and planning precision.

4. Improved Economic Conditions
With declining interest rates and moderating inflation, borrowing becomes more viable for large-scale public and private investment.

5. Expanding Project Pipeline
According to Glenigan’s May 2025 report, the UK’s top construction projects include a substantial share in civil engineering, positioning London as a key hub for national development.

Ongoing Challenges

1. Geopolitical & Trade Pressures
Global instability continues to impact supply chains and material costs, introducing uncertainty to project delivery timelines.

2. Evolving Safety Regulations
Enhanced scrutiny following recent events has led to more rigorous building safety protocols and remediation obligations.

3. Shifting Government Policy
The UK Spring Statement outlined fiscal changes that impact infrastructure funding, placing pressure on developers and contractors to adapt swiftly.

4. Legislative Reform
Major infrastructure initiatives—akin to the US IIJA—are driving legislative changes across transport, housing, and utilities sectors.

Strategic Priorities for London-Based Firms

1. Infrastructure Modernisation
Projects in transport, energy, and digital infrastructure remain central to the UK’s long-term economic strategy.

2. Sustainability Alignment
In line with the Construction 2025 roadmap, efforts are intensifying to reduce carbon emissions, manage resources efficiently, and adopt green construction techniques.

3. Digital Integration
Tech adoption is no longer optional. Firms are now expected to fully integrate digital solutions to remain competitive.

4. Talent Attraction & Upskilling
With an ageing workforce and talent shortages, retaining experienced professionals and investing in apprenticeships is critical for sector resilience.

Major London Projects Underway

  • London Gateway Port Expansion (£3 billion): The largest active construction project in the UK, designed to boost trade capacity.
  • Gatwick Airport Northern Runway (£2.2 billion): A significant milestone in aviation and infrastructure growth.
  • Fen Lane Data Centre Campus (£1.7 billion): A cutting-edge digital infrastructure initiative within the growing London Data Freeport.

Fun & Lesser-Known Facts – London Construction (May 2025)

Even industry professionals might be surprised by these:

  1. London’s Clay = World-Class Tunnelling
    The unique consistency of blue London clay makes it one of the most ideal materials for underground engineering globally.
  2. An Ageing Workforce
    The average UK construction worker is over 45, creating a pressing need for new talent and experienced mentors like Myra Carino to bridge the skills gap.
  3. BIM Usage Still Limited
    Despite years of digital strategy talk, over 60% of UK firms still operate at BIM Level 1, lacking true data integration.
  4. Concrete Moves > People Moves
    During upgrades, the London Underground transports more tonnes of concrete than passengers—mostly overnight!
  5. 75%+ of Construction Waste is Recycled
    Construction is now one of London’s top recycling industries—outperforming household waste recycling by a wide margin.
  6. Flood Defence Design Is Hidden Infrastructure
    From pumping stations to sluice gates, civil engineers ensure flood resilience in London with little public recognition.
  7. HS2 = Lighter, Greener Trains
    HS2’s high-speed trains are being built with carbon fibre-reinforced components, making them lighter and more energy-efficient.

Final Thoughts

The London civil engineering and construction sector is primed for sustained expansion, supported by investment, innovation, and a forward-thinking approach to sustainability and technology.

However, it’s also a space that demands adaptability, collaboration, and knowledge-sharing—especially across disciplines and generations.

Let’s keep the conversation going:

  • Which 2025 trend or project excites you most?
  • How are you embracing change in your own organisation?
  • What hidden fact surprised you most?

Feel free to connect, comment, or share—and let’s continue building a future that’s not just structurally sound, but smart, green, and inclusive.

#Construction2025 #LondonInfrastructure #CivilEngineering2025 #DigitalConstruction #HS2 #QuantitySurveying #CommercialManagement #ConstructionManagement #GreenConstruction #Utilities #Water #Energy #Power #HotJobs2025 #ConstructionTrends #UKInfrastructure #SmartCities

Civil Engineering & Construction in London: Growth Ahead Amid Shifting Dynamics – May 2025 Insights

Report on Jobs May 2017

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As we approach the third quarter of 2017 I would like to share some recent findings from June’s edition of the report on Jobs, produced by IHS Markit and the Recruitment Employment Confederation.

At Intersect Global 2017 has so far been a good year for both permanent and contractor placements we have seen a greater demand for staff that the first six months of 2016 across the civil engineering and infrastructure sectors in which we operate.
We have seen increased demand at the more senior management level than in 2016.

The main challenge we face is sadly still very much the same as it has been since I started in this sector 18 years ago; skill shortages right across the board and for both permanent and contract jobs.

The REC’s report seems to mirror our own findings:

Growth for both permanent placement and temp billings across recruitment firms accelerated in May
Demand for staff has reached a 21 month peak
Sharpest drop in permanent candidate numbers since 2015

Commenting on the latest survey results the REC’s Director of Policy says:

“The challenges facing the next government are stark. Demand for staff is the strongest in almost two years, but the number of people available to take those jobs has plummeted
Official data shows unemployment has dropped to the lowest level since 1975 and EU Citizens are leaving the UK in droves. Employers seeking to fill vacancies are running out of options.

Skill shortages are causing headaches in many sectors, The NHS for example is becoming increasingly reliant t on short-term cover to fill gaps on hospital rotas. Meanwhile the shortage of people with cyber security skills is a particular concern in many businesses in the wake of the recent high-profile WannaCry attacks.

Whichever party forms the next government must focus on improving the employability of our young and boosting inclusion for underrepresented groups. Alongside this these figures clearly show that in many sectors we need more not fewer people so that our businesses can grow and public services continue to deliver”

Intersect Global spend most of our week searching for the skills sets our sector so desperately need. I am pleased to say that in recent months we have successfully placed commercial and operational staff with experience outside of traditional civil engineering main contracting with key tier one main contractors.
As an industry we all need to be a little more open minded to what skills sets can cross over to help fill the ever growing gap.

As ever we have a range of live permanent and contract vacancies across the rail,water, highways and infrastructure sectors on our web-site.
Many of the exclusive roles we are working on are not listed therefore if you do not see anything of interest to you please give us a call on 020 76820668 to discuss how we may be able to help you in your next career move.

In the meantime, enjoy the sunny weather this weekend and take care.

Employers using Contractors to Plug Skills Gap

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As we approach half way mark of 2017 I thought it would worth sharing some statistics from this month’s JobsOutlook Survey. I hope you find it of interest.

This information is gathered from employers across every sector, what is interesting is that the construction and technical sector continues to rank amongst the highest in terms of skill shortages.

Here are some of the key findings:
89 per cent of employers will increase or maintain their temporary workforce in the next three months.

This is a rise of nine percentage points compared to findings reported in March (80 per cent), suggesting that businesses may become increasingly reliant on temporary workers.

The survey of 606 employers also reveals:   
33 per cent report having no spare workforce capacity within their organisation
46 per cent anticipate a shortage of candidates to fill permanent roles in the next year, with construction, engineering & technical, and health & social care highlighted as particular areas of concern 
In the three months to April, one third (34%) of employers felt that UK economic conditions
were improving. This is compared to 27% of employers who thought the economy was worsening. However, marginally more large employers (250+ employees) felt the economy was worsening (29%) than improving (28%). Large employers were also the least content about making hiring and investment decisions as a consequence.

The UK workforce increased by 122,000 in January–March 2017 compared to October–December 2016. Self-employment decreased by 13,000, with a 14,000 decrease in self-employed part-timers and a 1,000 increase in self-employed full time workers. Temporary employment fell by 31,000 whereas permanent employment rose by 167,000. The UK workforce was 381,000 higher than the same period in the previous year. Year-on-year, permanent employment increased by 350,000, self-employment increased by 82,000, and temporary employment fell by 68,000.

Intersect Global have a range of permanent and contract vacancies, many are listed on our website but not all are.
Please get in touch if you would like us to help you with your next career move or contract assignment. You can call us on 020 76820688 or email your details to info@intersectglobal.co.uk
In the mean time I hope you are enjoying this good weather and make the most of the Bank Holiday weekend when it comes.