Infrastructure contractors are warning of a “two‑speed” civil engineering sector in the UK after a trade survey found growth in workloads has slowed to its weakest rate since Covid‑19 .
The Civil Engineering Contractors Association (Ceca) said its latest Workload Trends Survey showed only a marginal rise in activity across the industry, with a net 7% of firms reporting increased workloads. Growth was concentrated in just two areas — electricity and water & sewerage — while work in roads, rail and communications contracted.
The survey also revealed regional divergence. For the first time since 2020, workloads fell in England, while Scotland continued to register growth, Ceca said.
Overall, civil engineering contractors across Great Britain experienced annual workloads growth for a nineteenth consecutive quarter in Q2. On balance, 7% of firms reported an annual rise in workloads, down from 10% in Q1.
This was the lowest balance since 2020 Q3. Overall, 30% of the respondents reported that workloads had increased and 23% reported that they had fallen. In terms of the nations, growth in workloads was reported in Scotland in Q2, also according to a balance of 7%. Workloads fell in England, according to 14% of firms, on balance.
This was the first fall since 2020 Q4.
Ceca director of policy and public affairs Ben Goodwin described the findings as evidence of “a two‑speed industry”, in which utilities and energy investment are sustaining parts of the market while other sectors face falling workloads, narrowing margins and rising costs. He warned that cost inflation, supply‑chain disruption and skills shortages threaten to “choke off growth” just as the UK presses ahead with ambitions on net zero, connectivity and regional regeneration.
The trade body urged the UK government to act ahead of the Autumn Budget, calling for renewed focus on stalled areas such as local roads, rail and preliminary works, and for measures to ease inflationary pressure on small and medium‑sized enterprises that it says are particularly exposed to rising costs. Ceca also welcomed recent initiatives including the National Infrastructure and Service Transformation Authority (Nista) and the government’s 10‑Year Infrastructure Plan, but said further action is needed on procurement reform and support for employer‑led training.
Industry commentators say the pattern reflected in the Ceca survey aligns with broader macroeconomic pressures. Public sector capital budgets have been squeezed in recent years and rising material and labour costs have made some projects harder to deliver within existing contracts. Meanwhile, government policy priorities — particularly on energy and water networks needed to meet environmental targets — have channelled investment into certain subsectors.
The slowdown in roads and communications work is notable at a time when the government and regional authorities have highlighted transport and digital connectivity as priorities for economic levelling up. Contractors and local authorities have previously cited procurement delays, planning and funding uncertainty as obstacles to progressing schemes.
Labour market shortages in technical and site roles remain a persistent concern for firms. Ceca urged ministers to give employers greater flexibility to invest in training aligned to “real‑world demands” so the sector can scale up when commissions materialise.
The survey results are likely to be closely watched by policymakers as they prepare spending decisions in the Autumn Budget. With infrastructure seen as central to long‑term growth and to decarbonisation targets, the trade body argues that sustained, predictable investment and smoother procurement would help firms plan and deliver projects on time and on budget.
“The picture that emerges from this survey of Ceca members is of a two-speed industry, where investment in energy and utilities is providing a degree of resilience, while other parts of our sector are seeing falling workloads, squeezed margins, and rising costs.
“Although workloads and employment are continuing to grow across the industry as a whole, there is a palpable slowing down of expansion. Ahead of the forthcoming Budget, this should act as a warning sign to government.
“Our members are reporting that cost inflation, supply chain challenges, and skills shortages are threatening to choke off growth at a time that the UK’s ambitions for net zero, connectivity, and regional regeneration require sustained investment, investor confidence, and a business environment in which contractors can plan for the future.
“We call on the UK Government to renew its focus on stalled sectors such as local roads, rail, and preliminary works, as well as taking positive steps towards addressing inflationary pressures, particularly for SMEs, that are disproportionately exposed to rising costs.
“Recent policy developments, such as the creation of the National Infrastructure and Service Transformation Authority (Nista) and the roll-out of the government’s 10 Year Infrastructure Plan, have been broadly welcomed by industry – but more can be done to prime the infrastructure sector for growth.
“That’s why ahead of the Autumn Budget, Ceca has called for the UK Government to maintain momentum in project delivery, work with industry on procurement reform to optimise outcomes, and to give employers the flexibility to invest in training that reflects real-world demands.
“If the UK government wants Britain’s infrastructure ambitions to be delivered in full, it must act now to give businesses the certainty and stability they need, to ensure communities can benefit from the roads, rail, energy and utility systems that are the backbone of sustainable economic growth.”
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