The UK construction industry faces a productivity crisis worse than the 1970s, according to Mark Reynolds, head of Mace Construct. Despite completing projects like The Shard and Battersea Power Station, Reynolds warns that construction output is 20% less productive than it was 50 years ago, posing a threat to national growth. This contradicts the sector’s public image of building iconic structures, highlighting a systemic inefficiency rooted in outdated practices and workforce instability.
Productivity Decline and Historical Context
Reynolds, whose company has worked on high-profile UK developments, attributes the crisis to factors like workforce churn and low project predictability. He notes that construction productivity has stagnated since the 1930s, a period marked by ambitious projects like the Empire State Building, but with poor health and safety standards. Modern safety regulations, while necessary, have contributed to slower progress. Digitization and robotics, Reynolds argues, offer a path to recovery, but the industry remains distant from fully automating roles traditionally filled by skilled laborers.
The Mace research builds on broader economic data showing anaemic productivity growth since the 2008 financial crisis. Reynolds, who co-founded Mace in the 1990s after leaving Bovis, studied Japanese car manufacturers’ efficiency to inform his approach. He emphasizes that construction’s fragmented workforce—40% of workers are self-employed—exacerbates inefficiencies. Unlike stable manufacturing lines, construction projects suffer from inconsistent labor availability, complicating training and skill development.
Automation Challenges and Workforce Realities
While robotics show promise, Reynolds points out current limitations in humanoid technology. Chinese-made Unitree robots, for example, can lift only 2kg, far below the 25kg needed for typical construction tasks. He estimates this gap could narrow in five years. Reynolds also highlights the industry’s aging workforce: around half of UK construction workers are over 50, with just 2.1 million total employees. Younger workers often lack job opportunities, as firms hesitate to hire inexperienced laborers despite training programs.
The Skills Mission Board, which Reynolds co-chairs, aims to address this by promoting long-term project pipelines. He estimates £700 billion in potential projects, such as reservoirs and nuclear plants, as essential for stabilizing demand. Reynolds stresses that predictable pipelines allow apprentices to gain skills, ensuring a steady flow of qualified bricklayers capable of laying 480 bricks daily, a benchmark for productivity and fair wages.
Mace’s recent restructuring, splitting its building division from its consultancy arm, reflects strategic shifts. Goldman Sachs acquired a 75% stake in Mace Consult for an estimated £750-800 million, while Reynolds retains majority control of Mace Construct. This separation aims to eliminate conflicts of interest in sectors like rail and aviation, opening doors to new projects. Reynolds, the largest individual shareholder, acknowledges the company’s aging leadership and hints at future plans to ensure continuity, though a stock market listing remains unconfirmed.
Workforce Training and Wage Benchmarks
The Skills Mission Board emphasizes that long-term project visibility enables effective workforce training. This productivity standard supports fair wages and sustainable business models. However, approximately half of young trainees fail to secure employment due to insufficient job openings and employer hesitation toward inexperienced workers.
Mace Restructuring and Future Investment
Reynolds, the largest individual shareholder, acknowledges that five of six shareholders are over 60, necessitating succession planning to ensure business continuity beyond current leadership. While he does not confirm a stock market listing, he indicates the company aims to be “as investable as possible,” suggesting a potential public offering may follow. Reynolds expresses enduring passion for the industry, noting its unique capacity to create structures that endure for millennia.
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