UK industrial strategy outlines eight priority sectors for growth, but construction still plays a vital role as a foundational industry supporting them all. Though not listed among the IS-8, the construction sector stands to benefit from targeted policy support, including £625 million for skills, reduced energy costs, and major infrastructure investment.

This article breaks down what the strategy means for construction, explores how foundational industries underpin economic growth, and offers guidance for marketers seeking to position their brands ahead of a predicted demand surge.

They’ve only gone and done it.

After nearly a year in office the new(ish) government has published its Modern Industrial Strategy, the country’s first since 2017 (or five prime ministers ago). You can read the full thing here.

While many argue that industrial strategies are a crucial component to shaping future economic activity and a guiding framework for government departments, trade bodies, businesses and investors to follow, there are some that are critical of the concept – claiming it creates an imbalanced economy based on ‘winners and losers’, with some sectors made to look more attractive than others by virtue of their appearance on the list (and increased investment etc.).

The UK industrial strategy marks a significant pivot point in that debate, offering a framework that recognises foundational industries, including construction, as key enablers.

Contents

• Meet the IS-8

• The bigger picture for construction

• Opportunity knocks for construction marketers?

• FAQs

Meet the IS-8

So, who are the big winners this time? There are eight in total:

• Advanced manufacturing
• Clean energy industries
• Creative industries
• Defence
• Digital and technologies
• Financial services
• Life sciences
• Professional and business services

These sectors, dubbed the ‘IS-8’ have been selected for their higher-than-average growth potential, offering the government the highest rate of payback on any investment, as well as the opportunity to create valuable jobs and IP to further boost the UK economy.

Notice that ‘construction’ or ‘built environment’ doesn’t appear? Me too, but do a little light digging and you’ll find it all over the broader strategy underpinning the Industrial Strategy. The UK industrial strategy describes the sector as one of the ‘foundational industries’ that effectively acts as part of the supply chain of all of the so-called ‘IS-8’ sectors, along with the likes of infrastructure such as energy networks and ports, and essential materials like critical minerals and chemicals.

While it may be disappointing to see construction omitted from the IS-8 list, this position of support provides plenty of opportunities for construction in delivering these high-growth, high-investment sectors – in addition to the billions of pounds already earmarked for infrastructure and housing in the UK over the next decade.

The bigger picture for construction

There is specific interventions listed for the sector within the broader strategy, however, with investment into modern methods of construction (MMC) singled out as being prioritised in government infrastructure projects – presumably in an attempt to boost that part of the sector and to speed up building. There’s also an extra £625m to train an additional 60,000 more skilled workers, as well as the previously launched planning reforms and infrastructure planning dashboard.

As an aside, it’s worth noting that some of the figures above have been trailed and/or launched previously and so don’t represent ‘new’ investment. But let’s not forget that these additional opportunities are a bonus on top of the sums already invested or promised to the sector over the coming decade, including a guaranteed £725bn in infrastructure delivered as part of last week’s Infrastructure Strategy (more information on that here.

There’s also the small matter of planning reform, housebuilding targets and myriad other opportunities to increase the sector’s output.

Added to that, in being one of these foundational industries that form the supply chain of the IS-8, construction businesses can benefit from a reduction in energy costs of up to 25% from 2027, with bigger benefits to those also looking to carbon reduction plans as part of their manufacturing efforts – no doubt a huge help to businesses that have seen margins eroded by increasing costs in recent years. These benefits, outlined in the UK industrial strategy, suggest a clear direction of travel.

So, some disappointment in not making the ‘eight’, but plenty of certainty for those working in the sector and those who might invest in it.

Given that one of the primary reasons that construction businesses have cited for low levels of investment and activity in recent years was lack of certainty, might this now be the point where companies need to move at pace to satisfy rapidly rising demand?

Opportunity knocks for construction marketers?

For those responsible for managing construction and manufacturing brands the picture looks much rosier than that of the recent past. From Brexit, to COVID, to tariffs, every time the sector has seemed poised to rebound there’s been a macro factor to undermine confidence. This now doesn’t seem to be the case.

Is everything perfect? No, the planning reforms introduced have caused some issues and the sector has a long way to go to repair the damage to its reputation caused by Grenfell. However, the volumes of work already at planning stage combined with the sums promised for further development demonstrate a serious opportunity, and it won’t be long until the winners are announced.

As ridiculous as it sounds, the window of opportunity for brand managers and marketers is slim and closing. Research shows that businesses that invest in marketing and developing their brand in ‘down’ markets, balanced sensibly against cost cutting measures, outperform their more cautious rivals time and time again – I’ve written about it before numerous times, including here.

With competitors reducing their investment in areas like media, your media spend buys you even more real estate, offering the opportunity to enhance brand recall among your target audiences, even if they’re not yet in the market to buy. Or, in our world, even if your product or service won’t be relevant to them until later in the development process, it still pays to stay front of mind.

Of course, once investment kicks in, projects get through planning, and decisions are made on commissions/specifications/appointments, which brands are considered first? Those that adhere to the 95:5 rule? (that is, those that consistently market themselves to the 95% of their audience that is currently not interested in purchasing at this moment, but will be at some point). To quote Peter Weinberg and Jon Lombardo, the brand that gets remembered gets purchased.

Have you done enough during the quiet times to make your brand cut through the coming noise? The next 10-years of your brand’s development may hinge on it.