The CLC’s objective is to drive industry improvement. It draws together business leaders from across the sector to identify how to promote solutions to meet the ambition of a 33% reduction in cost, a 50% reduction in project time, a 50% reduction in carbon emissions and a 50% reduction in the trade gap.
The construction sector is massive, representing 8% of GDP and 10% of employment. It is 6 times larger than the automotive industry. Every year £150 billion is invested through the public and private sectors – creating the foundations for UK growth and playing a key role in achieving our clients’ wider social and environmental objectives.
At its best the UK construction sector is world class. We have a global reputation for our architectural and engineering skills and for our ability to deliver low carbon and sustainable solutions for the built environment. Our recent record of delivering mega-projects is the envy of the world.
But the sector continues to face fundamental issues. The combination of our cyclical workload and low levels of client leadership, result in a fragmented supply chain which blocks opportunities to identify and benefit from all of the value which exists across an asset’s life-cycle. This drives competition on the basis of price alone which results in low profit margins across the industry. This means in turn that the construction industry is unable to sustain the investment in skills, technology and innovation needed to deliver the step change in productivity necessary to meet the CLC’s ambitions.
Leadership Councils representing other sectors have achieved great improvements in productivity and competitiveness by focusing on a few big things, bringing industry with them and doing them well. Based on this proven route to success, the big question is, where should the CLC focus? Our answer is:
- DIGITAL – delivering better, more certain outcomes by using BIM enabled ways of working
- MANUFACTURING – increasing the proportion of off-site manufacture to improve productivity, quality and safety
- WHOLE-LIFE PERFORMANCE – getting more out of new and existing assets through the use of smart technologies.
By focusing on these 3 themes, and working with other organisations to join forces, mobilise and accelerate change, we can move the ‘dials’ to benefit the whole industry.
The CLC works through six work streams (supply chain and business models, skills, smart technology, innovation in buildings, exports and trade, green construction board, and communication) to identify the levers, and incentives to deliver the outcomes we desire and the benefits to all who participate.