Despite widespread concern about costs, policy uncertainty and the broader economic outlook, construction firms are continuing to grow their workloads, according to the latest market intelligence report from multi-disciplinary consultancy Pick Everard.
The survey of 100 contractors, developers, clients, consultants and other construction professionals shows an industry that remains cautious about the future but is still finding ways to create growth opportunities.
More than half (52 per cent) of respondents said workloads have increased over the past 12 months, while a further 21 per cent reported activity levels remained unchanged, meaning nearly three-quarters of organisations have maintained or expanded their order books.
However, confidence in the market remains fragile, with just 1 per cent of respondents strongly believing the Government understands the needs of the construction sector, while 59 per cent said they are either not very confident or not confident at all.
William Phillips, divisional director of cost management at Pick Everard, said: "The most striking finding from this year's survey is the contrast between how the industry feels and what it's actually doing. While 'concerned' was the dominant emotional response when we asked people how they felt about the state of the industry, more than half of respondents report being busier than they were this time last year.
"That tells us the sector is proving remarkably resilient and firms aren't standing around waiting for conditions to improve. They're adapting, evolving and finding ways to deliver in a challenging environment.
"One of the key takeaways from the data is that innovation and strategic focus will be essential to sustaining productivity and helping firms respond to emerging growth opportunities. Success is increasingly being driven not by volume alone, but by making smarter decisions, managing risk effectively and delivering projects more efficiently."
Cost pressures remain a major concern across the industry, with 83 per cent of respondents expecting tender prices to continue rising over the next 12 months.
William added: "Although rising costs remain a challenge, there are practical measures that can help projects move forward successfully. Early contractor engagement, clearer project briefs and a more proportionate approach to risk allocation all have a significant role to play in improving outcomes and creating greater certainty."
The report also identified encouraging signs around industry innovation and workforce capacity. More than half (56 per cent) of respondents believe the sector is becoming more innovative.
Meanwhile, the proportion of organisations reporting skills shortages has fallen from 53 per cent in Pick Everard's previous survey at the end of 2025 to 39 per cent in the latest research.
However, William cautioned against interpreting the reduction in skills concerns as evidence that the challenge has been solved. "There's an important distinction between having enough people to deliver today's workload and having enough capacity to deliver the pipeline of projects that lies ahead.
"For those of us working in construction, there's certainly no shortage of challenges to navigate. But what this report demonstrates is that the industry remains active, ambitious and determined to move forward.
"Strong planning, workforce development and digital adoption are helping organisations respond to market pressures and unlock new opportunities. As demand continues to evolve, adaptability and operational resilience will be critical to long-term success.
"The industry doesn’t have to face market volatility, rising costs and regulatory pressures alone. By streamlining operations, embracing innovation and de-risking projects through effective collaboration, businesses can build confidence and position themselves for sustainable growth."
Download Pick Everard’s Market Intelligence report for the full survey results.
