The Welsh construction sector is set for long-term growth after an Autumn statement that prioritised technology, energy resilience and regional regeneration, according to Rider Levett Bucknall’s (RLB UK) latest report.
New regional analysis of the independent built environment consultancy's recent Construction Market Intelligence (CMI) states that major commitments to transport upgrades, energy projects and industrial transformation signal substantial prospects for civil engineering, infrastructure specialists and contractors across the region.
Wales stands to benefit directly from planned investment in the Wylfa small modular reactor, AI Growth Zones, and Port Talbot’s green transition, alongside devolved fiscal powers providing the Welsh Government with an additional £505 million for local infrastructure and development schemes, the report suggests.
Daniel Walker, an Associate in RLB’s Cardiff office, said:
“This Budget reinforces Wales’ long-term prospects in infrastructure, green energy and technology-led regeneration. The opportunities are significant, especially around Wylfa, Port Talbot and innovation zones, but firms will need to manage higher labour costs and shifts in residential demand.
“However, the sector is still facing challenges. Rising labour costs, driven by the 4.1% increase in the National Living Wage, are likely to squeeze margins, particularly for SMEs. Property-related tax changes, including a mansion tax and council tax surcharges, may soften activity in the high-end residential market, while uncertainty around private housing output suggests slower growth in that segment.
“Those positioned for public, industrial and low-carbon projects are likely to be the strongest performers in the years ahead.”
Across the UK, near-term market conditions remain challenging as rising input costs, including higher wage rates, continue to place pressure on contractors and outpace tender price movements.
RLB’s CMI shows only marginal movements in Wales tender price inflation:
- Forecasts for 2025 have eased marginally from 3.2% to 3.17%
- Forecasts for 2026 have remained the same at 3.4%
Across the UK, near-term market conditions remain challenging as rising input costs, including higher wage rates, continue to place pressure on contractors and outpace tender price movements.
RLB’s CMI shows only marginal movements in national tender price inflation:
- Forecasts for 2025 have seen a slight uplift from 3.03% to 3.17%
- Forecasts for 2026 have eased marginally from 3.41% to 3.27%
