{
  "query": "UK construction cost inflation 2024-2026 steel sector news NEC4 project performance trends",
  "raw_results": [
    {
      "url": "https://www.steelconstruction.info/images/f/fb/Costing_Steelwork-31.pdf",
      "title": "[PDF] COSTING STEELWORK #31 - SteelConstruction.info",
      "content": "Tender price inflation strengthened in the final quarter of 2024, pushing up to 2.4% in the year. This has been due to the underlying reduced capacity in the industry leading to increased pressure when demand picks up. The building cost index rose by 3.7% in Q4, reflecting wage inflation and material price increases. The consumer price index kept below 2% for 2024; however, the increase in the energy price cap from January is likely to put further pressure on inflation.\nSpecification enhancements and regulation changes as a result of the carbon agenda and increased safety in buildings have had a significant impact on construction costs, which is a continued driver as the baseline of buildings has increased. [...] At the end of 2024, UK construction material prices were 1% lower than at the start of the year. The annual fall in the price of fabricated structural steel was 6.9%, whereas ready-mix concrete prices showed a rise of 4.3% over the same period. The availability and cost of labour remains one of the greatest challenges facing UK construction. The demographics of the current workforce and delays to new infrastructure projects contributed to the fall in construction employment, which is estimated to have lost around 350,000 workers over the last five years. Annual apprenticeships starts are around 31,000 per year, but with a drop-out rate of around 40%. This is insufficient to replace the older workers leaving the sector. [...] MARKET UPDATE AND GUIDANCE ON EUROCODE UPDATES COSTING STEELWORK #31 COSTING STEELWORK Forecast Quarter 2020 2021 2022 2023 2024 2025 2026 1 120.4 120.0 131.2 145.4 145.8 150.3 156.9 2 121.0 122.6 134.5 146.6 147.0 151.5 158.7 3 119.1 125.3 138.1 146.8 148.1 153.2 160.4 4 119.1 127.5 142.3 145.6 149.1 155.2 162.2 S P O N S O R E D F E AT U R E otal UK construction output is forecast to have fallen by 2.9% in 2024. New construction activity fell by 4.3% in 2024, with repair and maintenance falling by 0.9%. A slowly improving UK economy is expected to yield construction growth of 2.1% in 2025 and 4% in 2026.\nThe economy returned to modest growth in 2024 supported by higher government spending and a recovery in consumer spending. UK economic growth is forecast to be 1.7% in 2025.",
      "score": 0.7440808,
      "raw_content": null
    },
    {
      "url": "https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025",
      "title": "UK Construction Sector Report December 2025 - Tokio Marine HCC",
      "content": "Source: ONS\n\nOutput price inflation in the British construction sector had dropped to 1.6% y/y in March 2024, the lowest reading since late 2020. This was then followed by a short-lived increase (rising to above 3% y/y in October 2024-March 2025) before moderating again in Q2 2025. Latest available data for September 2025 shows construction sector output price inflation standing at 2.7% y/y, thereby exceeding input price inflation. Positively, this is supporting profit margins following several years of material price inflation severely outstripping output price inflation.\n\n##### Output [...] Source: ONS\n\nMeanwhile, output price inflation (prices charged by construction companies) has also eased since 2022-23 but still remains positive3. ONS data shows that output price inflation in the sector peaked in mid-2022: in June, inflation for new construction work stood at a very high 12.1%. Repair and maintenance inflation came in at 7.9% y/y, leading to average construction sector output inflation of 10.7%.\n\nUK Construction Sector Output Price Inflation (y/y change in %)\n\nSource: ONS [...] Source: ONS\n\nA closer look at the 2025-data shows that things have changed and that new work has become the growth driver. Since the start of the year, repair and maintenance growth (measured in seasonally adjusted moving three-month averages) has remained in a 0.0% to 1.3% y/y corridor, far below the corresponding new work readings (which stood between 1.3% and 3.5% in January to September 2025). On balance, output growth in the construction sector had picked up in spring, reaching 2.2% y/y in the three months to April 2025, the best reading since February 2023. However, since then, performance has slowed down and sectoral output growth moderated again, dropping to 1.5% y/y in the July-September period.",
      "score": 0.7361925,
      "raw_content": null
    },
    {
      "url": "https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends",
      "title": "Global construction cost trends - GCMI 2025",
      "content": "In developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] Image 28\n\nConstruction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends.\n\nGiven the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions.\n\n#### GLOBAL\n\n## Construction input costs and global supply trends\n\n### Labour",
      "score": 0.7206637,
      "raw_content": null
    },
    {
      "url": "https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html",
      "title": "2026 Engineering and Construction Industry Outlook | Deloitte Insights",
      "content": "Recent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8",
      "score": 0.65887916,
      "raw_content": null
    },
    {
      "url": "https://interactive.usa.skanska.com/2026-winter-construction-market-trends",
      "title": "2026 Winter Construction Market Trends ... - Skanska",
      "content": "Structural Steel Inputs\n\nConcrete and Cement\n\nDrywall, Gypsum and Insulation\n\nLumber and Wood\n\nPiping\n\nMetals\n\nClick an index or material to view details\n\nWinter 2025 Construction Pricing Snapshot\n\nMaterials Index\n\nThe ENR Materials Index continues to cool from the significant year-over-year inflation experienced in 2021 and 2022. Like the BCI and CCI, the Materials Index doesn’t include mechanical and electrical equipment cost impacts, which have driven project costs higher than traditional measures of construction inflation. With the large volume of high-tech work and expanding electrification efforts in service of decarbonization, such equipment costs will remain high.\n\nSource: Engineering News-Record\nData as of November 2024 [...] Limited material supply, tariffs and local sustainability mandates are causing material cost escalation, especially for mechanical and electrical systems. Early 2026 projections place project cost escalation at 4–6 percent, with tariff-driven scenarios potentially reaching 7–10 percent. [...] The answer, in a word, is metals. Metals pricing is experiencing inflation in nearly every category. The combination of tariffs, constrained supply and increasing demand is driving prices higher. Here are some examples of what we are seeing:\nSteel\nHRC/CRC prices continueing to rise and areis up nearly 45 percent% since mid-2025. This is driving up the cost of metal studs. Major stud manufacturers have announced increases of 10–15 percent, effective in January, in addition to previous increases that were implemented in November. In addition, structural steel pricing is also on the rise. Wide flange pricing is up $100/ton from October 2025. The combination of tariffs and strong demand from data centers and manufacturing facilities are key factors driving up prices.\nCopper",
      "score": 0.6238588,
      "raw_content": null
    }
  ],
  "formatted": "Source: [PDF] COSTING STEELWORK #31 - SteelConstruction.info\nURL: https://www.steelconstruction.info/images/f/fb/Costing_Steelwork-31.pdf\nTender price inflation strengthened in the final quarter of 2024, pushing up to 2.4% in the year. This has been due to the underlying reduced capacity in the industry leading to increased pressure when demand picks up. The building cost index rose by 3.7% in Q4, reflecting wage inflation and material price increases. The consumer price index kept below 2% for 2024; however, the increase in the energy price cap from January is likely to put further pressure on inflation. Specification enhancements and regulation changes as a result of the carbon agenda and increased safety in buildings have had a significant impact on construction costs, which is a continued driver as the baseline of buildings has increased. [...] At the end of 2024, UK construction material prices were 1% lower than at the start of the year. The annual fall in the price of fabricated structural steel was 6.9%, whereas ready-mix concrete prices showed a rise of 4.3% over the same period. The availability and cost of labour remains one of the greatest challenges facing UK construction. The demographics of the current workforce and delays to new infrastructure projects contributed to the fall in construction employment, which is estimated to have lost around 350,000 workers over the last five years. Annual apprenticeships starts are around 31,000 per year, but with a drop-out rate of around 40%. This is insufficient to replace the older workers leaving the sector. [...] MARKET UPDATE AND GUIDANCE ON EUROCODE UPDATES COSTING STEELWORK #31 COSTING STEELWORK Forecast Quarter 2020 2021 2022 2023 2024 2025 2026 1 120.4 120.0 131.2 145.4 145.8 150.3 156.9 2 121.0 122.6 134.5 146.6 147.0 151.5 158.7 3 119.1 125.3 138.1 146.8 148.1 153.2 160.4 4 119.1 127.5 142.3 145.6 149.1 155.2 162.2 S P O N S O R E D F E AT U \n\n---\n\nSource: UK Construction Sector Report December 2025 - Tokio Marine HCC\nURL: https://www.tmhcc.com/en/news-and-articles/thought-leadership/uk-construction-sector-report-december-2025\nSource: ONS Output price inflation in the British construction sector had dropped to 1.6% y/y in March 2024, the lowest reading since late 2020. This was then followed by a short-lived increase (rising to above 3% y/y in October 2024-March 2025) before moderating again in Q2 2025. Latest available data for September 2025 shows construction sector output price inflation standing at 2.7% y/y, thereby exceeding input price inflation. Positively, this is supporting profit margins following several years of material price inflation severely outstripping output price inflation. ##### Output [...] Source: ONS Meanwhile, output price inflation (prices charged by construction companies) has also eased since 2022-23 but still remains positive3. ONS data shows that output price inflation in the sector peaked in mid-2022: in June, inflation for new construction work stood at a very high 12.1%. Repair and maintenance inflation came in at 7.9% y/y, leading to average construction sector output inflation of 10.7%. UK Construction Sector Output Price Inflation (y/y change in %) Source: ONS [...] Source: ONS A closer look at the 2025-data shows that things have changed and that new work has become the growth driver. Since the start of the year, repair and maintenance growth (measured in seasonally adjusted moving three-month averages) has remained in a 0.0% to 1.3% y/y corridor, far below the corresponding new work readings (which stood between 1.3% and 3.5% in January to September 2025). On balance, output growth in the construction sector had picked up in spring, reaching 2.2% y/y in the three months to April 2025, the best reading since February 2023. However, since then, performance has slowed down and sectoral output growth moderated again, dropping to 1.5% y/y in the July-Septembe\n\n---\n\nSource: Global construction cost trends - GCMI 2025\nURL: https://publications.turnerandtownsend.com/global-construction-market-intelligence-2025/global-construction-cost-trends\nIn developed regions, construction inflation rates continued normalising in 2024, as the effects of restrictive interest rates and softening demand filtered through the economy. The UK recorded an average increase of 3.0 percent, while Europe experienced average inflation of 2.9 percent. North America reported 3.6 percent, whereas Australia and New Zealand experienced a higher rate of 4.7 percent for the year, largely driven by a newly negotiated enterprise agreement introducing a payrise for construction labour, though this still marks an improvement compared to previous years. These figures indicate a return to escalation rates more aligned with those seen prior to the pandemic, suggesting greater stability in material pricing and project-related costs. [...] Image 28 Construction cost growth continues to show signs of easing at the global level. On average, construction cost inflation is projected to settle at 3.9 percent globally in 2025, before rising marginally to 4 percent in 2026, though regional disparities persist. [...] In the UK and North America, construction cost inflation is anticipated to remain steady at 3.5 percent and 3.8 percent, respectively. However, at the time of the survey, uncertainties persist, particularly in the US, where policy changes could have significant implications for construction. Factors such as fluctuations in plant and material costs and deportation policies affecting labour availability are expected to be key considerations influencing future trends. Given the potential for rapid market shifts, ongoing monitoring of developments is advised to ensure timely adaptation to changing conditions. #### GLOBAL ## Construction input costs and global supply trends ### Labour\n\n---\n\nSource: 2026 Engineering and Construction Industry Outlook | Deloitte Insights\nURL: https://www.deloitte.com/us/en/insights/industry/engineering-and-construction/engineering-and-construction-industry-outlook.html\nRecent tariffs, especially on steel and aluminum, reaching up to 50%5—have sharply raised construction material costs.6 The effective tariff rate for construction goods climbed to a 40-year high of 25% to 30% in 2025.7 The financial impact is evident: Material prices have risen steadily from May through August 2025.8\n\n---\n\nSource: 2026 Winter Construction Market Trends ... - Skanska\nURL: https://interactive.usa.skanska.com/2026-winter-construction-market-trends\nStructural Steel Inputs Concrete and Cement Drywall, Gypsum and Insulation Lumber and Wood Piping Metals Click an index or material to view details Winter 2025 Construction Pricing Snapshot Materials Index The ENR Materials Index continues to cool from the significant year-over-year inflation experienced in 2021 and 2022. Like the BCI and CCI, the Materials Index doesn’t include mechanical and electrical equipment cost impacts, which have driven project costs higher than traditional measures of construction inflation. With the large volume of high-tech work and expanding electrification efforts in service of decarbonization, such equipment costs will remain high. Source: Engineering News-Record Data as of November 2024 [...] Limited material supply, tariffs and local sustainability mandates are causing material cost escalation, especially for mechanical and electrical systems. Early 2026 projections place project cost escalation at 4–6 percent, with tariff-driven scenarios potentially reaching 7–10 percent. [...] The answer, in a word, is metals. Metals pricing is experiencing inflation in nearly every category. The combination of tariffs, constrained supply and increasing demand is driving prices higher. Here are some examples of what we are seeing: Steel HRC/CRC prices continueing to rise and areis up nearly 45 percent% since mid-2025. This is driving up the cost of metal studs. Major stud manufacturers have announced increases of 10–15 percent, effective in January, in addition to previous increases that were implemented in November. In addition, structural steel pricing is also on the rise. Wide flange pricing is up $100/ton from October 2025. The combination of tariffs and strong demand from data centers and manufacturing facilities are key factors driving up price"
}