Built Environment: Construction in 2025
The Armstrong team have worked on a number of deals in the built environment sector over the last year and we are already seeing plenty of interest from mid-market UK investors in 2025. We attended the London Build 2024 Expo last week, here is what we learned…
Overall, there was a real sense of an industry in transition, that wants to make changes and become safer, more compliant, accelerate tech adoption and become more sustainable, but is unsure how to get there.
Sectors to watch
- Fire safety and sustainability stages were packed – these remain some of the hottest topics for people in the built environment.
- There are opportunities across the circular economy – everything from new manufacturing processes to reduce embodied carbon, to detailed tracking of how products and materials have been used, to reuse and recycling. There are numerous services required across the value chain.
The technology conundrum
- Tech adoption across the sector continues to grow, but budgetary and talent hurdles are slowing speed of adoption.
- BIM and Digital Twin are recognised as the future way of working but ensuring a clean building ‘databook’ and translating BIM applications to site remain challenges over the mid-term.
- Collaboration between sustainability and digital remains critical to achieving net zero targets. Carrying out a digital & sustainability audit is needed to understand where businesses are on their journey, where they need to go, and how they can get there.
What investors need to know
- Retrofit is as much of a challenge (if not more so) than new construction when it comes to ensuring compliance and sustainability.
- Challenges to the industry are internal as much as external, with a lack of collaboration and skills shortages consistently highlighted.
- Government housebuilding targets are way beyond current levels, and there is real uncertainty over how these can be met. Numerous areas will need to be examined, from financing and planning all the way through to construction and operation.
Get in touch with the team to discuss opportunities in the built environment.
Matt McNally
[email protected]
+44 7894 736 523
Brandon Matthews
[email protected]
+44 7850 564 693