ICE warns UK infrastructure strategy at risk without urgent boost to industry capacity

The UK may struggle to deliver the Government’s £725bn 10-year infrastructure strategy unless immediate action is taken to strengthen industry capacity, productivity and collaboration, according to the Institution of Civil Engineers’ (ICE) State of the Nation 2026 report.

Drawing on insights from expert panels across transport, energy and water sectors, alongside industry interviews, the report highlights that years of fragmented planning, skills shortages and inconsistent investment have left the infrastructure sector underprepared for the scale of work ahead.

While the Government’s new infrastructure strategy and project pipeline provide greater visibility of upcoming projects, the ICE warns that delivery will require the sector to increase productivity, expand capacity and adopt new ways of working.

Innovation needed to boost productivity

The report stresses that large-scale innovation will be essential if the industry is to meet demand.

Key areas identified include:

• New investment and procurement models

• Greater use of digital tools and artificial intelligence

• Adoption of Modern Methods of Construction (MMC) and industrialised building approaches

• Increased standardisation and offsite construction

While these technologies offer significant potential to reduce costs, labour requirements and project timelines, the ICE says slow adoption and fragmented implementation across the industry are limiting progress.

Supply chain facing growing pressure

The report also warns that the infrastructure supply chain is already under strain due to shortages of skilled workers, equipment and materials.

Competition between major schemes could further intensify these pressures, with large flagship projects such as HS2 and Sizewell C potentially drawing specialist expertise away from smaller but essential schemes.

Some sectors — particularly asset maintenance and specialist engineering roles — are already experiencing critical skills gaps.

The ICE notes that developing new professionals typically takes five to seven years, highlighting the importance of a long-term workforce strategy aligned with the Government’s infrastructure ambitions.

Collaboration essential for delivery

The report highlights the creation of the National Infrastructure and Service Transformation Authority (NISTA) as an opportunity to improve coordination across the sector.

However, the ICE says meaningful change will require organisations to move beyond traditional transactional relationships.

Recommended approaches include:

• Integrated delivery models and enterprise-style partnerships

• Longer-term frameworks

• Shared data and digital collaboration

• Greater transparency in the national infrastructure pipeline

Providing clearer information about upcoming projects would help suppliers plan investment in skills, equipment and technology more effectively.

Warning over deteriorating infrastructure assets

Alongside new construction challenges, the ICE warns the UK is facing an “asset management emergency”, particularly across local roads and ageing transport infrastructure.

Delayed maintenance is increasing safety risks and long-term costs, the report states.

The ICE recommends expanding the Government’s proposed road usage charging system, with revenues ring-fenced specifically for highway maintenance and asset renewal.

Call for urgent action

ICE President David Porter said the UK faces a critical moment for its infrastructure ambitions.

“The UK has set out an ambitious and much-needed infrastructure vision. But we cannot deliver it with the systems, behaviours and capacity we have today.“We need a step change in how the sector works — with more collaboration, more innovation, and far greater investment in people and productivity.”

He added that if government and industry act quickly, the sector can deliver the infrastructure needed to support economic growth and resilient communities across the UK.