Navigating Chaos: The Construction Industry in a Mad, Mad World

A summary of Stewart Grant’s address to the GM Chamber Property & Construction Annual Dinner on 6 March 2025

We don’t need reminding that we are living in extraordinary and challenging times. Wars, economic instability, and political turbulence are creating a chaotic and uncertain world.

Democracy is under pressure, mass migration is rising, and environmental crises are escalating. The world feels like it’s on fire—sometimes quite literally.

It’s a mad world, but hasn’t it always been? In 1963, the film It’s a Mad, Mad, Mad, Mad World highlighted how greed can drive human behaviour—something we continue to witness today. But while history may repeat itself, there’s always an opportunity to shape the future differently.

The Reality for Construction: Challenges and
Opportunities

The construction sector, integral to the UK economy, is facing significant headwinds. Escalating costs, supply chain pressures, and ever-changing regulations have made
development funding and project viability increasingly complex. The Building Safety Act, introduced post-Grenfell, is essential for safer buildings but has also introduced significant delays and costs. And with an urgent need for 1.5 million new homes, these roadblocks must be overcome.

One of the most pressing challenges is the industry’s workforce. According to CITB’s latest Construction Skills Network Report, the UK will need an additional 251,500 construction workers by 2028. Yet, a YouGov survey commissioned by Deconstruction revealed that 69%
of UK adults wouldn’t consider a career in construction, and only 3% view it as the most important industry. The sector desperately needs a rebrand to showcase its innovation and opportunities.

Learning from Manchester: Turning Challenges into
Strengths

If there’s one place that embodies resilience, it’s Manchester. As we approach the 30th anniversary of the 1996 Manchester bomb, we are reminded of how the city turned devastation into opportunity. Today, Manchester continues to lead in growth and regeneration.

In 2023, Greater Manchester’s GVA grew by 5.9%, outpacing the Northwest (4.9%) and the UK as a whole (4.1%). Over the past decade, property and construction
growth in GM has consistently surpassed the national average.

Despite economic challenges, construction activity remains strong. Deloitte’s recent Crane Survey found that while 2024 saw only 20 new projects break ground—the lowest since 2014—the 27 completed projects marked a significant increase from the previous year. Sustainability and retrofit projects are becoming more prevalent, ensuring long-term
resilience.

So, in the face of uncertainty, what can businesses do? The fundamentals remain the same:

 Look after your people.

 Build strong relationships with clients and supply chains.

 Stay true to your values.

 Do what you do—exceptionally well.

Looking Ahead

With the Spring Budget and enhanced devolution on the horizon, the construction industry has opportunities to drive growth. Visionary leadership, resilience, and adaptability have always defined successful businesses, and in these turbulent times, they are more important than ever.

The sector may face stress factors, but Greater Manchester’s history proves that challenges can be transformed into opportunities. The construction industry isn’t just about bricks and mortar—it’s about shaping the future. And despite the headwinds, that future remains full of potential.

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Navigating Chaos: The Construction Industry in a Mad, Mad World

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