How to course-correct your 2025 construction logistics strategy

2025 has already proven to be a year of unexpected turns for the UK construction sector.

The challenges faced in Q1 have forced many construction leaders to rethink their logistics strategies, and as we head into the second quarter, the ability to course-correct is essential for success.

The Q1 reality check

Economic pressures, rising material costs and stricter environmental regulations are just a few factors disrupting construction schedules and budgets. Contractors trying to save money by buying materials in bulk rather than paying the markup through sub-contractors makes material storage on site even more difficult as project footprints continue to shrink.

Construction activity in the UK has taken a sharp downturn in early 2025, with civil engineering seeing the fastest decline in recent years due to weak order volumes and delayed projects. 

At the same time, the government is pushing through controversial legislation that could potentially undermine some environmental protections, raising the stakes for balancing sustainable practices with the need for rapid development.

A new survey carried out by the Building Cost Information Service (BCIS) has projected that a rise of 12% can be expected in building costs by 2030, with homebuilders being encouraged to plan early to manage this increase. 

Labour constraints are continuing to be a major issue on construction projects across the country, with the construction industry losing approximately 350,000 workers between 2019 and 2024. With an ageing workforce and the struggle to recruit younger talent, the demand for labour is continuing to increase, putting more strain on sub-contractors to deliver their work to cost and programme. 

What can you do to course-correct in 2025? 

If your construction logistics strategy wasn’t built to withstand these challenges, now is the time to reassess and adjust.  

Here are five key areas to focus on as you prepare your logistics plan for the remainder of the year.

1. Supply chain resilience

The UK construction sector is feeling the impact of global trade tensions and material shortages, leading to delays and price hikes for key materials. Diversify your supplier base to reduce dependence on international supply chains and build flexibility into your logistics plan to adapt to sudden disruptions.

2. Material and delivery management  

Are you using your available space on-site to streamline material deliveries and storage? Reassess your just-in-time delivery strategy and look for ways to minimise site congestion. Using consolidation centres can ensure materials arrive when they’re needed to avoid slowing progress and causing programme delays.

3. Stay ahead of ESG and regulatory demands

Sustainability and regulation are front and centre in 2025. With stricter planning laws and rising ESG expectations, construction firms must align logistics with green goals and compliance. Now’s the time to explore low-emission fleets, sustainable sourcing, and better on-site waste management.

4. Use tech to stay in control

Real-time tracking gives you the visibility to spot issues early and keep projects on time and budget. Smart logistics tools make your operations more predictable – we’ve seen first–hand how technology helps project teams gain better control.

5. Early logistics planning to prevent operative turnover 

Operative turnover can cause delays, with many choosing to leave projects due to the unsatisfactory conditions they’re working in. By dedicating the time to plan your logistics early, you can ensure your project will run smoothly and your work force is happy, reducing the turnover percentage.

Our course-correction checklist: what you can do now 

✅ Review your supply chain resilience, diversify suppliers and explore your options. 

✅ Reassess your on-site logistics strategy and implement consolidation centres. 

✅ Align your logistics operations with sustainability goals and stay ahead of compliance changes. 

✅ Invest in technology to enhance logistics visibility and control – real-time tracking is key. 

✅ Plan your future logistics early to prevent operative turnover and ensure a smooth-running project.

Now’s the time to course-correct your logistics strategy for 2025.

If you’re finding it challenging to navigate the uncertainties of 2025 in the UK construction sector, we can help. Speak to our logistics experts today.