Arron Jameson is head of projects at Keyline Civils Specialist, a subsidiary of Travis Perkins
The government has pledged £725bn to civils spending over the next decade, in a welcome boost to our industry. The 10-year Infrastructure Strategy presents a significant opportunity for the construction sector to fuel long-term growth, improve procurement practices, and invest in new technologies and expertise.
“Contractors will need a supply chain prepared to meet shifting demands to mitigate risk”
However, as the demand for materials increases, contractors’ ability to deliver on this ambitious plan will partially depend on whether the supply chain can evolve to become more agile, resilient and collaborative. Is the supply chain ready to embrace this shift?
This long-term outlook from the Labour government increases confidence to invest, but the sector must ensure broader plans align with current market conditions, while being flexible enough to adjust course when required.
Contractors will need a supply chain prepared to meet shifting demands to mitigate risk; it’s fast evolving to support this effort, with many investing in real-time reporting tools, inventory planning and regional distribution networks.
Driving sustainability at scale
Delivering clean power by 2030 and supporting the 2050 net zero target both hold significant weight in the new Infrastructure Strategy. Contractors are under increasing pressure to meet sustainability and environmental, social and governance targets – but with Scope 3 emissions accounting for a significant percentage of their total, contractors will need a supply chain ready and equipped to support them.
To meet the demands of the strategy, it is essential to partner with suppliers that are transparent about carbon data and taking active steps to reduce impact and increase provision of low-carbon materials. Certifications like PAS 2080 make this process simpler. They provide clear, third-party verification of sustainability ambitions and, specific to PAS 2080, a standardised data framework that helps contractors and the supply chain to align.
Suppliers able to support modern methods of construction – another component of the strategy – such as offsite manufacturing and modular construction, will also be crucial to lowering carbon emissions and overcoming widespread skill shortages in the industry.
Compliance with Construction Playbook guidance – which emphasises the importance of early supply chain involvement (ESI) and cross-industry collaboration – was again reinforced in the strategy.
Increased demand will stress material availability and introduce logistical challenges, but ESI can help identify and address potential bottlenecks long before they arise. It will require a carefully coordinated effort, collaborating closely early in projects, and moving away from competition towards longer-term relationships. This will help the supply chain share skills and pivot from a reactive approach to an explorative one, looking at ways to improve and innovate.
Alleviating cost pressures
Amid general economic uncertainty, exacerbated by factors such as increased national insurance contributions and fast wage growth, cost pressures are a significant challenge to delivering the strategy. But the supply chain is not just a source of risk in this regard – it’s a vital part of the solution.
By facilitating early procurement, integrating sustainability measures into their schemes and mitigating logistics challenges during periods of high demand, the supply chain can help contractors plan proactively and boost productivity without adding cost.
The Infrastructure Strategy provides an excellent foundation for the construction sector, offering much-needed long-term direction and certainty.
With the new National Infrastructure and Service Transformation Authority’s plan to bi-annually update the infrastructure pipeline of projects online, a clear, accessible view is available for the first time. This, in combination with effective sector collaboration, will help the supply chain support and anticipate the demands placed upon contractors.
Communication will be increasingly critical. The right supply chain partners can add real value – improving productivity, reducing costs and helping to reach ambitious goals.