The State of the UK Construction Hire Industry (2025): What It Means for Recruitment
The State of the UK Construction Hire Industry (2025): What It Means for Recruitment
By KMC Recruitment
If you’re in the UK construction hire sector right now, you don’t need another sugar-coated industry report - you’re living the reality. At KMC Recruitment, we’re speaking with businesses and candidates every single day who are feeling the pressure. The word “dire” isn’t an exaggeration for many.
Redundancies are up sharply across the industry. Recent estimates show that construction job losses increased by 14.8% year-on-year, with over 35,000 redundancies in the last 12 months alone. Plant hire businesses, in particular, have been hit by shrinking margins, contract delays, and a cautious lending environment - all of which translate into fewer roles and fiercer competition.
So where does that leave us? Somewhere between resilience and reinvention. And that’s where smart recruitment makes all the difference.
đźšś A Market That’s Growing - But Under Pressure
The UK’s plant and tool hire market is currently valued at around £3.56 billion, up 24% from 2020 - but growth is tapering, with just 2% projected year-on-year. Clients are becoming cost-sensitive, often buying second-hand machinery instead of renting. Meanwhile, hire companies are juggling rising operational costs, insurance premiums, and wage inflation.
This environment is shaping hiring decisions in real-time. Employers aren’t just looking for experience - they need multi-skilled, commercially aware professionals who can do more with less.
🧠The Talent Gap: Wide and Growing
The labour crisis isn’t looming - it’s already here.
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The UK construction sector is projected to need an additional 250,000 to 937,000 workers by 2028 just to meet demand.
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Wage inflation is up 20% for many trades, and competition for skilled staff is cut-throat.
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Apprenticeship uptake is stagnant, and many experienced hands are nearing retirement age.
For hire companies, this has created a perfect storm. Teams are shrinking, but the workload isn’t. The need for reliable, highly adaptable people has never been more urgent.
As a recruiter, we’re seeing the shift in what clients are asking for. More are open to career changers and cross-trained candidates who can plug urgent gaps - and candidates are increasingly open to moving for the right opportunity, especially when redundancy has forced their hand.
⚙️ Tech is Gaining Ground - So is the need for New Skills
Fleet telematics, AI-powered diagnostics, electric and hybrid equipment - it’s not science fiction anymore. Forward-looking hire businesses are already embedding these tools across operations.
What does this mean for talent? The CV of the future looks different. Hire desk roles now demand digital fluency. Workshop engineers are being asked to learn smart diagnostics. Even depot managers are expected to interpret data and optimise performance in real-time.
Recruitment is about looking beyond the job title - and spotting the transferable skills that will thrive in a tech-driven environment.
📉 Pressure on Profit = Pressure on People
Major players are tightening belts. Speedy Hire recently issued a profit warning. Ashtead (Sunbelt Rentals) is predicting flat growth through 2026. Meanwhile, smaller independents are consolidating or closing up altogether.
When revenues stall, the instinct is to cut headcount. But the smarter move? Invest in people who can generate value - fast.
That’s where targeted recruitment is essential. At KMC, we’re not just filling roles - we’re helping our clients reshape teams for resilience, matching them with candidates who can handle more than what’s on the spec sheet.
đź”® Where Do We Go from Here?
Despite the uncertainty, there’s reason to be hopeful. Infrastructure projects, modular construction, and net-zero ambitions are creating long-term tailwinds for the hire industry.
But getting from here to there will take grit - and the right people in the right seats.
đź’Ľ Final Thoughts from KMC
At KMC Recruitment, we’ve ridden many waves over the years in the industry - some far smoother than others. This current phase might feel particularly tough, but it’s not unfamiliar to many of us. We've seen markets contract and expand, companies fold and flourish, talent dry up and return.
What’s different now is the pace of change - and the sheer complexity of the challenges. That’s why recruitment today can’t just be reactive. It has to be strategic, insightful, and deeply industry-informed.
Whether you're a hire business forced to make tough calls, or a skilled professional facing redundancy, we're here to help you move forward - with clarity, confidence, and the right opportunities.
