London has ambitious plans for growth, but delivering them will require more than money alone. The capital’s ability to provide the homes, infrastructure and public assets it needs will depend on how productively the construction sector can make use of its existing capacity. Drawing on Mace Construct’s Build Smart, Build Better report, we set out why productivity should be treated as a shared priority for government, clients and industry.
London’s growth ambitions are taking shape against a challenging backdrop. The capital needs more homes, better transport connections, modern social infrastructure and places that can adapt to a changing climate. Yet it faces constrained public spending, pressure on skills and increasing expectations around delivery certainty. For businesses, investors and communities alike, the question is not just what London wants to build but whether it can deliver it efficiently and at scale.
For too long, construction productivity has been seen as an issue for the construction industry alone. In reality, it has a direct bearing on whether London can achieve the growth it needs. When projects take longer than planned, cost more than expected or struggle to secure the right workforce, the consequences are felt by businesses, communities and investors alike, far beyond the site boundary.
The good news is that building more does not necessarily depend on finding more money or significantly expanding the workforce. There is an opportunity to unlock greater value from the resources already available.
Our report sets out the scale of that opportunity. Its modelling suggests that a 51% improvement in productivity could unlock £67.4bn of additional infrastructure from the UK’s infrastructure pipeline, complete that pipeline with 113,000 fewer workers per year and help build 22,000 more homes annually using the same budget and workforce.
One of the report’s clearest findings is that productivity is often won or lost before work starts on site. Too often, delays, inefficiencies and cost pressures are treated as construction problems when their root causes can be traced back to earlier decisions. Design maturity, procurement strategy, standardisation, logistics, modern methods of construction and supply chain integration all play a significant role in determining how efficiently a project can be delivered. Getting these fundamentals right at the outset increases certainty, reduces waste and creates the conditions for better project outcomes.
Improving productivity will require more than individual project teams working harder. Many of the biggest opportunities are shaped by decisions made before construction begins, by clients, policymakers and industry leaders alike.
For clients, that means setting clear requirements and adopting procurement approaches that reward long-term value rather than lowest cost alone. For government, it means providing greater certainty through stable pipelines and supportive policy. For industry, it means continuing to invest in skills, innovation and more consistent ways of bringing projects forward.
Productivity is not the responsibility of any one organisation or part of the supply chain. It is a shared challenge and a shared opportunity, with benefits that extend far beyond construction itself.
London has no shortage of ambition. The challenge is ensuring the city can build at the pace and scale required. That means recognising productivity as a strategic issue and giving it greater consideration in the decisions that shape projects from the outset. It also means continuing to invest in the workforce, embracing more repeatable approaches to delivery and making better use of data to improve performance and inform decision-making.
For London businesses, the prize is significant. Better productivity means greater delivery certainty, stronger returns on investment and increased confidence that the infrastructure needed to support growth can be brought forward. If the capital is to remain competitive, construction productivity cannot be an afterthought. It must be part of the growth conversation.