Market commentary

The UK engineering sector faced a year of cautious optimism in 2024, marked by resilience amidst global challenges. Recovery from supply chain disruptions and the energy crisis bolstered growth across key industries, including manufacturing, construction, and renewable energy. Public sector investments in infrastructure projects and government support for green energy initiatives, such as offshore wind and hydrogen technology, stimulated demand for engineering expertise.

However, the sector continues to grapple with persistent skills shortages, particularly in specialist roles, and inflationary pressures that increased project costs. The accelerating adoption of digital tools like AI, BIM and robotics to enhance efficiency are being embraced and also helping in some instances to offset labour gaps.

Looking to the year ahead in 2025, the outlook is broadly positive. A forecasted 2.5% growth in overall engineering output reflects stronger economic conditions, further bolstered by significant public and private investment in infrastructure and energy.

The continued rollout of net-zero policies and large-scale renewable projects, such as carbon capture and sustainable transport, are expected to drive growth in green engineering and we’re already seeing some really exciting projects coming through the doors.

Challenges remain, including the need for skilled talent and navigating evolving regulatory landscapes. Industry-wide initiatives to reskill the workforce and leverage technological innovation will be key to sustaining momentum. And we continue to invest heavily in nurturing the next generation of talent through our on-going apprenticeships and training schemes, as well as focus on retention of the best people in the industry.

In summary, we’re optimistic about being an integral member of the UK engineering sector as we enter 2025 positioned for growth, supported by robust investment in infrastructure and sustainability.