2025 - The Year of Resilience
2024 was a tough year for the demolition sector. And none of the factors that made it tough have gone away. But what doesn't kill you, makes you stronger.
We live in an age of reality TV, of doom-scrolling on social media, and in a world in which the Kardashians are still enjoying the sweet, sweet oxygen of fame. Little wonder then that the word of the year for 2024 was “brain-rot”.
My prediction is that the word of the year for demolition and construction in 2025 will be “resilience”.
As we prepare to turn the page to 2025, the demolition and construction industry finds itself at a critical juncture. The past year has been nothing short of a test of endurance, resourcefulness, and sheer determination. By the end of 2024, industry insolvencies have surged to levels not seen since the last major recession. According to the latest reports, over 4,000 construction-related businesses closed their doors this year alone. This wave of closures has been fuelled by a shrinking UK economy, rising interest rates, and persistent inflationary pressures that have squeezed margins to breaking point. And yet, here we stand, on the precipice of a new year; a new opportunity to rebuild, adapt, and thrive.
Resilience should be the watchword in 2025. Not just as a passive ability to withstand adversity but as an active commitment to innovation, adaptation, and unity. The challenges the sector faces are significant, but so is its collective strength. This industry has weathered worse storms and emerged stronger each time. The road ahead will not be easy, but history tells us that we are more than capable of navigating it.
The UK economy contracted by an estimated 0.8% in 2024, a reflection of broader global instability. For the construction sector, this has translated into delayed projects, tighter financing conditions, and rising material costs. The cost of steel, concrete, and other essentials has continued to climb, with price hikes outpacing inflation in several quarters. For demolition professionals, these costs are compounded by stricter environmental regulations and the growing expectation to manage projects with sustainability in mind.
These economic pressures have pushed many businesses to the brink. Insolvencies are no longer confined to small firms; even mid-sized and major companies with decades of experience have succumbed to the weight of rising overheads and reduced cash flow. Yet, this is not the first time we’ve faced such challenges. The financial crash of 2008, for example, saw a similar wave of closures, and yet the industry bounced back, leaner and more innovative than before.
Overlaying these economic difficulties is the persistent skills shortage that has plagued the industry for years. As of 2024, the Construction Industry Training Board (CITB) estimates that the UK needs an additional 225,000 workers by 2027 to meet demand. A combination of an ageing workforce, fewer young people entering the field, and the loss of EU workers post-Brexit has left the industry grappling with a widening talent gap.
Resilience in 2025 will mean looking beyond survival to embrace innovation. Technology, while not a panacea, offers powerful tools to help us do more with less. Autonomous machinery, remote project management tools, and AI-driven analytics are already transforming how we work. These technologies can help reduce costs, improve safety, and make the sector more appealing to the next generation of workers.
But innovation alone is not enough. Resilience also demands unity. In times of economic hardship, it’s easy for competition to breed division, for companies to undercut one another to secure work at unsustainable rates. We’ve seen this play out before, and it rarely ends well. Shared challenges require shared solutions, and by working together, we can create a more stable and sustainable industry for all.
If there is one thing this industry knows, it is how to endure. The oil crises of the 1970s, the financial meltdowns of the 1990s and 2008, and the seismic shifts brought by COVID-19; each of these moments tested the sector’s resolve. And each time, it found a way forward.
The lesson is clear: adversity drives progress. When we are forced to adapt, we often discover better ways of working. The key is to approach these challenges with an open mind and a willingness to change.
While the challenges are real and significant, there is also cause for cautious optimism. The UK government’s ongoing commitment to infrastructure investment - including projects like HS2 and the regeneration of urban areas - provides a pipeline of opportunities for the construction and demolition sectors. Sustainability goals, while demanding, also open doors to new markets, as clients increasingly seek out companies with green credentials.
On the skills front, there is growing recognition of the need to make the industry more inclusive and attractive. Diversity initiatives, better mental health support, and flexible working arrangements are no longer fringe ideas; they are becoming integral to how forward-thinking companies operate. These changes won’t happen overnight, but they are steps in the right direction.
Resilience in 2025 will mean different things for different businesses. For some, it will mean tightening operations, finding efficiencies, and navigating leaner times. For others, it will mean investing in innovation, upskilling workers, or exploring new markets. But for all of us, resilience will mean staying focused on the long game.
The demolition and construction industry has never been for the faint-hearted. It’s a sector that demands grit, determination, and no small amount of ingenuity. But it is also an industry defined by its resilience. Time and again, it has faced challenges that seemed insurmountable, only to emerge stronger, smarter, and more united.
As we look ahead to 2025, we need to draw on that legacy; commit to learning from the past, embracing innovation, and working together to overcome the hurdles before us. The road will be tough, but we have walked tougher roads before. Together, we can ensure that 2025 is not just a year of survival but a year of laying the foundations for a stronger, more resilient future.