UK mid-market property and construction firms could be missing out on around £1.1bn in additional annual economic output because key decisions are not being made quickly enough, according to new research from advisory firm FRP
The data suggests delays in decision-making are holding back growth, efficiency and resilience across a sector facing cost pressures, policy changes and shifting market conditions.
David Hudson, restructuring partner at FRP, said: “Property and construction firms are operating in one of the most complex decision-making environments in the UK mid-market.
“Decisions are often capital-intensive, exposed to changing regulation and closely linked to confidence in the wider economy.”
Slow decision-making contributes to 0.6% of the UK’s GDP
The findings form part of FRP’s new Decision Economy report, a major new study delivered in partnership with research firm Development Economics to assess the importance of mid-sized businesses to the UK economy, and how effectively they make decisions.
The results show that slow decision-making is costing up to £13.7bn in growth across the UK mid-market – equivalent to around 0.6% of GDP.
Property and construction firms are already a major part of the UK mid-market, generating more than £139bn in annual turnover and supporting around 412,000 jobs.
Businesses find it harder to make choices amidst growing barriers
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 named by 46% as a major factor shaping decisions.
The key barriers preventing faster action include competing business priorities, cited by 31% of property and construction leaders, followed by the time required to gather information needed to assess options (29%), the time needed to appraise options in detail (29%) and risks or uncertainty around available options (29%).
FRP estimates that this is contributing to a £1.1bn missed opportunity, with faster decision-making unlocking around £435m from faster revenue growth decisions and £670m from quicker decisions linked to cost savings and efficiencies.
Could cutting-edge technologies be the answer to these problems?
In response, firms are investing in the tools and capabilities needed to improve operational performance.
Around 21% have invested in production technology such as advanced automation, while 43% have invested in IT, including AI, and 21% have made major capital investments.
“This research shows that delays are creating a significant missed opportunity. Faster, more confident decision-making could unlock more than £1bn in additional economic output, while helping firms protect margins, improve efficiency and respond more quickly to changing market conditions,” Hudson stated.
“The sector is already investing in technology, automation and 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.”
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