{"id":162845,"date":"2026-06-11T11:02:06","date_gmt":"2026-06-11T10:02:06","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=162845"},"modified":"2026-06-11T11:02:06","modified_gmt":"2026-06-11T10:02:06","slug":"slow-decision-making-could-cost-construction-firms-1-1bn-a-year","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/slow-decision-making-could-cost-construction-firms-1-1bn-a-year\/162845\/","title":{"rendered":"Slow decision-making could cost construction firms \u00a31.1bn a year"},"content":{"rendered":"

UK mid-market property and construction firms could be\u00a0missing out on\u00a0around \u00a31.1bn in\u00a0additional\u00a0annual economic output because key decisions are not being made quickly enough, according to new research from advisory firm FRP<\/h2>\n

The\u00a0data\u00a0suggests\u00a0delays in decision-making are holding back growth, efficiency and resilience across a sector facing cost pressures, policy changes and shifting market conditions.<\/p>\n

David Hudson, restructuring partner at FRP, said: \u201cProperty and construction firms are operating in one of the most complex decision-making environments in the UK mid-market.<\/p>\n

\u201cDecisions are often capital-intensive, exposed to changing regulation and closely linked to confidence in the wider economy.\u201d<\/p>\n

Slow decision-making contributes to 0.6% of the UK\u2019s GDP<\/h3>\n

The findings form part of FRP\u2019s new Decision Economy\u00a0report<\/a>,\u00a0a major new study delivered in partnership with research firm\u00a0Development Economics\u00a0to\u00a0assess the importance of mid-sized businesses\u00a0to the UK economy,\u00a0and how effectively they make decisions.<\/p>\n

The\u00a0results\u00a0show that slow decision-making is costing up to \u00a313.7bn in growth across the UK mid-market \u2013 equivalent to around 0.6% of GDP.<\/p>\n

Property and construction firms are already a major part of the UK mid-market, generating more than \u00a3139bn in annual turnover and supporting around 412,000 jobs.<\/p>\n

Businesses find it harder to make choices amidst growing barriers<\/h3>\n

However, the sector is facing a more difficult decision-making environment. More than three-quarters (76%) of property and construction leaders said making choices has become harder since the General Election, with rising energy costs<\/a> named by 46% as a major factor shaping decisions.<\/p>\n

The key barriers preventing faster action include\u00a0competing business priorities, cited by 31% of property and construction leaders, followed by the time required to gather information needed to assess options (29%),\u00a0the time needed to appraise options in detail (29%)\u00a0and risks or uncertainty around available options (29%).<\/p>\n

\"\"
\u00a9 Grace Hughes<\/figcaption><\/figure>\n

FRP estimates that this is contributing to a \u00a31.1bn missed opportunity, with faster decision-making unlocking around \u00a3435m from faster revenue growth decisions and \u00a3670m from quicker decisions linked to cost savings and efficiencies.<\/p>\n

Could cutting-edge technologies be the answer to these problems?<\/h3>\n

In response, firms are investing in the tools and capabilities needed to improve operational performance<\/a>.<\/p>\n

Around\u00a021% have invested in production technology such as advanced automation, while\u00a043% have invested in IT, including AI, and 21% have made major capital investments.<\/p>\n

\"\"
\u00a9 Grace Hughes<\/figcaption><\/figure>\n

\u201cThis research shows that delays are creating a significant missed opportunity. Faster, more confident decision-making could unlock more than \u00a31bn in\u00a0additional\u00a0economic output, while helping firms protect margins, improve\u00a0efficiency\u00a0and respond more quickly to changing market conditions,\u201d Hudson stated.<\/p>\n

\u201cThe sector is already investing in technology,\u00a0automation\u00a0and capital projects, but businesses need clarity to act. Clearer policy signals, better access to insight and the right financial support would help property and construction firms move forward with greater confidence and unlock more of their growth potential.\u201d<\/p>\n

\n<\/div>","protected":false},"excerpt":{"rendered":"

UK mid-market property and construction firms could be missing out on around \u00a31.1bn in additional annual economic output because key decisions are not being made quickly enough, according to new research from advisory firm FRP.<\/p>\n","protected":false},"author":37,"featured_media":162848,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[856,908,173126,621],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-162845","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-planning-construction-news","8":"tag-construction-technology","9":"tag-economy","10":"tag-reports-and-analysis","11":"tag-sme"},"acf":[],"yoast_head":"\nSlow 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