London – October 28, 2009 – A report published today reveals that spending on construction offers significant benefits to the UK economy. According to the report, Construction in the UK Economy: The Benefits of Investment, every £1 spent on construction leads to GDP growth of £2.84.

Produced by L.E.K. Consulting, a leading international strategy consultancy, and commissioned by the UK Contractors Group in partnership with the CBI, the report shows that construction investment provides both short- and long-term benefits – an example shows that the total return to the UK economy of new educational buildings can be calculated at between £3.87 and £5.04 for each £1 invested.

This investment return is achieved through construction output equal to the value of the investment, stimulation elsewhere in the construction value chain, benefits of employment opportunities and wider social and economic benefits such as better education services delivering a higher-skilled workforce.

Colin Farmer, Partner at L.E.K., commented: "This is the first in-depth study conducted into the commercial and economic impact of investment in the UK construction industry. With the recession hitting construction particularly hard, this is an important and timely demonstration of the significant short- and long-term benefits of investing in construction.”

John Cridland, CBI Deputy-Director General, said: “With the Chancellor’s Pre-Budget Report looming, the CBI is continuing to press the case for protecting capital spending by government. A strong economy needs fit-for-purpose schools and hospitals, and it will be the construction industry that builds the new transport and energy infrastructure needed to shift to a low-carbon economy. This timely report outlines the essential relationship between the construction sector and other parts of the economy, as well as its important contribution to numerous other social and economic objectives, including regional development and employment.”

James Wates, Chairman of the UKCG, said: “This is the first time the industry has put together a set of compelling and powerful arguments to support the case for investment in infrastructure. Now is the time for the whole industry to come together behind the CBI to press the message home.”



Notes for editors

For further information, contact James Lloyd on + 44 207 389 7456 

About L.E.K. Consulting

L.E.K. Consulting is an international firm that specializes in strategy, transaction services and performance improvement consulting. It advises the largest private and public sector organizations, private equity companies and smaller, more entrepreneurial businesses.

With a reputation for resolving the most complex commercial issues, L.E.K. helps business leaders consistently make better decisions, deliver improved business performance and create greater shareholder returns.

The firm was founded in 1983 and employs over 850 staff in 20 offices across Europe, North America and Asia Pacific. In 2007, L.E.K Consulting was awarded the Queen’s Award for Enterprise for its achievements in international trade.

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About UKCG

The UK Contractors Group (UKCG) represents some 30 leading contractors operating in the UK on construction specific issues. Its mission is to represent contractors’ interests to government and key clients and to encourage contractors to work together to promote change and best practice, especially on health and safety and environmental issues. UKCG also works closely with the CBI Construction Council to ensure that contractors’ interests are properly reflected in the wider business agenda. Further information is available at  

About CBI

The CBI is the UK's leading business organization, speaking for some 240,000 businesses that together employ around a third of the private sector workforce. With offices across the UK as well as representation in Brussels, Washington, Beijing and Delhi the CBI communicates the British business voice around the world. The CBI’s Construction Council was formed in 2008, and represents contractors, house builders, civil engineers, component and product manufacturers, designers and support services.

L.E.K. Consulting completes first economic impact study for the construction sector