The Farmer Review - What are the critical challenges facing the UK Construction Labour Model?

The Farmer Review of the UK Construction Labour Model, titled Modernise or Die, highlights the critical challenges facing the UK construction industry, particularly its reliance on a shrinking, ageing workforce, low productivity, and lack of innovation. The report diagnoses these issues as symptoms of a deeply fragmented industry with survivalist business models, low margins, and minimal investment in skills and technology. It warns that without urgent reform, the industry will face irreversible decline, especially with reduced access to migrant labour post-Brexit and increasing demand for housing and infrastructure.

To address these challenges, the review recommends a radical transformation driven by greater client leadership, government intervention, and industry-wide investment in innovation, skills, and modern construction methods such as offsite manufacturing. It calls for a reformed Construction Industry Training Board (CITB), policies to incentivise pre-manufactured housing, and a long-term pipeline of projects to stabilise demand. The report stresses that without strategic disruption and a shift towards digital and manufacturing-led approaches, the construction sector will struggle to meet future needs efficiently.

Farmer-Review.pdf

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