Welsh construction pipeline looking healthy driven by public sector and infrastructure activity

Public sector and infrastructure activity are driving the Welsh construction industry despite ongoing economic uncertainty, according to the latest construction market intelligence by Welsh construction and property management consultant, Rider Levett Bucknall (RLB). 

 Welsh contractors are generally reporting healthy workloads and outlooks, with activity across public sector, infrastructure, healthcare and energy markets supporting demand although competition for projects has increased in some sectors as clients continue to scrutinise affordability and viability. 

Healthy pipelines into 2027

The latest report finds that while infrastructure and utilities work continue to underpin the market, there is increasing momentum within renewable energy, with both onshore wind and grid infrastructure projects generating future opportunities across North and South Wales. 

 Other sectors continuing to see strong activity include healthcare, driven by estate modernisation programmes, community healthcare developments and new hospital facilities. Education also remains active, although affordability pressures are extending project timescales, while affordable housing continues to be supported by the Welsh Government’s ambition to increase housing delivery.

Tender prices moderated while material costs stabilised

Tender price inflation has moderated compared with the significant volatility experienced over recent years. While material costs have largely stabilised, labour availability remains one of the greatest challenges facing the Welsh market, particularly in specialist trades and within major infrastructure and energy projects. Clients are increasingly focused on procurement strategy, early contractor engagement and robust risk management to secure value and programme certainty. 

Dan Walker, RLB Senior Associate, Wales, comments, “The transition to net zero, investment in healthcare estates, education facilities and transport infrastructure, alongside growth in renewable energy projects across Wales, should provide a steady pipeline of opportunities. However, wider economic factors, public sector budget constraints and geopolitical uncertainty continue to impact investment decisions.”

Click here to read RLB’s full Construction Market Intelligence Q3 report.