Major project plans ‘a struggle’ due to industry’s failure to modernise

National infrastructure goals are being undermined by the construction sector’s reluctance to modernise, a leading industry figure has warned.

Infrastructure and Projects Authority (IPA) chief executive Nick Smallwood said the industry had not changed in 40 years and actively resisted the adoption of new technologies as it was “paid the revenue for doing it the long way”.

Addressing a meeting of the House of Lords’ Built Environment Committee, he warned that the ambition behind the government’s National Infrastructure Strategy and associated £650bn pipeline of work may fail to materialise because of a lack of skills and capacity in the sector.

“I think we will struggle to deliver that unless we have two fundamental shifts,” he told peers. “One is that we need to invite and invest more into the construction sector, to grow that population and community with the right skills.

“And secondly, those skills need to change because the industry needs to change, it needs to modernise.”

The IPA, which reports to the Treasury and Cabinet Office, is described as the government’s centre of expertise for infrastructure and major projects.

Smallwood said that after working for 38 years in the oil and gas sectors, when he took up his current role he found that the construction sector “looked the same” as it did four decades ago.

“It just has not modernised,” he said. “And yet you look at automotive, aeronautical or the oil and gas world, they’ve moved on.”

The issue was not an absence of technology, he added. “Digitalisation and technology is already in front of us, available and mature, that is not being used in UK construction,” said Smallwood.

He rejected a suggestion from committee chair Lord Daniel Moylan that this was partly due to a lack of available capital in the industry, saying companies were financially incentivised to continue using inefficient methods.

“They get paid the revenue to do it the long way rather than using technology to take hours and time out,” he said.

He expressed similar sentiments in a 2020 interview with Construction News when he highlighted the widespread use of 5D computer-aided design (CAD) – a model that incorporates planning and materials availability as two extra dimensions – in the energy sector.

“I’ve yet to see that kind of technology on UK [construction] projects. There are many technologies that aren’t cutting-edge – they’ve been around for two to five years – and I think we really need to step up and use them,” he said at the time.

Smallwood also previously warned that a lack of specialist labour in the sector posed a “huge challenge” for the delivery of major infrastructure schemes.

At the committee meeting this week, he said a digitalisation infrastructure guide was available from the government, and a suite of best-practice guides had been published.

“I can tell you there are pockets and seeds of excellence now appearing,” he told peers.

One of these was at Hinkley Point C, although as a private scheme the power plant was not one of the projects in the IPA’s portfolio.

“They are leading the way now on using a data lake [centralised information repository] and digital technologies to really drive their performance on that project, not only in the build phase but also in how they’re going to commission, operate and start up that asset, so there’s huge opportunity,” he said.

Read More
Kerry Lorimer

Latest

The Area Where Duke Could Dominate College Basketball Next Season

Basketball The Duke basketball program will enter the 2026-27...

Don’t call us just a WLFI treasury company, says AI Financial

The company says it is building a broader fintech, tokenization and digital infrastructure business, but its latest SEC filing shows WLFI still dominates the balance sheet. May 21, 2026, 5:20 a.m. 2 min read Make preferred on AI Financial, formerly known as Alt5 Sigma, wants the market to know that it's more than just its

The new art of war is just as bloody as the old

For help please visit help.ft.com. We apologise for any inconvenience. The following information can help our support team to resolve this issue. Reason Challenge Request ID 9ff3d58409635031 Status Code 403

Navigate Sole Trader Registration With This Step-By-Step Guide

Steering sole trader registration can seem intimidating, but it doesn’t have to be. You’ll begin by selecting a unique business name and, if needed, filing an Assumed Name Certificate. Next, securing an Employer Identification Number (EIN) is vital for tax purposes. Opening a dedicated business bank account helps maintain financial clarity. Comprehending the necessary licenses

Newsletter

Don't miss

The Area Where Duke Could Dominate College Basketball Next Season

Basketball The Duke basketball program will enter the 2026-27...

Don’t call us just a WLFI treasury company, says AI Financial

The company says it is building a broader fintech, tokenization and digital infrastructure business, but its latest SEC filing shows WLFI still dominates the balance sheet. May 21, 2026, 5:20 a.m. 2 min read Make preferred on AI Financial, formerly known as Alt5 Sigma, wants the market to know that it's more than just its

The new art of war is just as bloody as the old

For help please visit help.ft.com. We apologise for any inconvenience. The following information can help our support team to resolve this issue. Reason Challenge Request ID 9ff3d58409635031 Status Code 403

Navigate Sole Trader Registration With This Step-By-Step Guide

Steering sole trader registration can seem intimidating, but it doesn’t have to be. You’ll begin by selecting a unique business name and, if needed, filing an Assumed Name Certificate. Next, securing an Employer Identification Number (EIN) is vital for tax purposes. Opening a dedicated business bank account helps maintain financial clarity. Comprehending the necessary licenses

What Makes an Effective Accounts Receivable Management Strategy?

An effective accounts receivable management strategy is essential for maintaining healthy cash flow in your business. It starts with clear communication about payment terms and a streamlined invoicing process that reduces errors. Implementing solid credit policies helps assess customer risk, as well as leveraging technology can improve efficiency. By monitoring key performance indicators, you can

Tesla’s Business Has Become Much More Diversified in Just the Past Five Years. Does That Make Its Stock a Better Buy Today?

Key Points Tesla's energy generation and storage segment generated 27% revenue growth last year. The company's non-automotive segments were able to help offset a double-digit decline in auto revenue in 2025. These 10 stocks could mint the next wave of millionaires › Tesla (NASDAQ: TSLA) is known for its electric vehicles (EVs), and while they

WD sees sustainability as key business driver in an ‘AI economy’

Hard drive company WD promoted long-term operations and sustainability executive Jackie Jung to become its first chief sustainability officer in February, as it steps up sales to companies building AI data centers. Her vision: Turn sustainability into a “brand” for WD, a strategy that reduces risk for the $6 billion company (formerly known as Western

5 Business Ideas Worth Starting in 2026

If there is one thing Nigerians understand well, it is how to spot opportunity inside hardship. In 2026, that mindset will matter more than ever. The economy is tough, competition is rising, and many people are looking for smarter ways to earn, build, and survive. But even in a difficult environment, some businesses still stand