A survey recently highlighted in Construction News found that 85% of UK construction firms feel held back by legacy systems, with many approaching innovation in an “ad hoc” way.

Frankly, we were surprised.

Not because we doubt the data, but because it feels like a lagging indicator. Our conversations with the UK’s major contractors, developers and frameworks tell a different story over the past couple of months alone – one of immense appetite for change. The overwhelming feeling we get on the ground isn’t one of being “stuck.” It’s one of “readiness.”

We believe the 85% figure doesn’t represent stagnation; it represents the tension right before a major shift. That feeling of being “held back” is the very catalyst driving firms to seek out smarter, more efficient ways of working. The pain has become acute enough to force action, and the hard realities are impossible to ignore.

The Data Behind the Disruption

The pressure to innovate is no longer theoretical. The numbers driving this change are stark:

• The Waste Mountain: Construction, Demolition, and Excavation (CDE) activities generate 62% of the UK’s total waste, making it the single largest waste stream by a huge margin. (DEFRA)
• The Economic Engine: The construction sector’s output is a cornerstone of the UK economy, forecast to have reached £151 billion in 2024. A productivity lag in an industry this size isn’t a minor inefficiency; it’s a national economic drag. (Construction Products Association Forecast)
• The Tax Hammer: The standard rate for Landfill Tax is now a painful £126.15 per tonne. This isn’t a future warning; it’s the cost of doing business in 2025.

For years, this was absorbed as “the cost of doing business.” That era is over. The “ad hoc” approach is now a direct threat to the bottom line.

From ‘Ad Hoc’ to AI-Driven

The leaders we speak with are no longer asking if they should digitise their material flows, but how fast they can do it. They see the multi-billion-pound opportunity hidden in what was once written off as ‘waste’.

The old way is a project manager spending hours manually scanning site reports and treating surplus soil as a problem to be disposed of.

The Nexus ReGen way is different. It’s a fundamental shift in mindset, powered by technology:

1. AI-driven insight replaces the paper chase. Instead of manually digging through documents, our platform ingests your site reports and instantly understands your material needs and surpluses. It finds the signal in the noise.
2. Automated opportunity turns waste into a resource. Our system doesn’t wait to be asked. It proactively finds new homes for your surplus materials on sites that need them.
3. An entire ecosystem replaces isolated phone calls. We connect buyers, sellers, and supply chain users in a single, efficient marketplace, streamlining the logistics that transform waste into a valuable asset.

This is what happens when you stop digitising old habits and start building entirely new, profitable, and sustainable workflows. Profit and planet aren’t in conflict; they are two sides of the same, smarter-working coin.

The Future is Now

The data shows an industry feeling the constraints of the past. Our experience shows the leaders who are already building the future. The 85% aren’t stuck; they’re poised for the leap.

FAQs:

1: What are the biggest barriers to innovation in the UK construction industry? The primary barriers are outdated legacy systems and traditional, inefficient processes. A recent survey found 85% of UK construction firms feel held back by these issues, preventing strategic adoption of new technology.

2: What is the UK landfill tax rate for 2025? The standard rate for UK landfill tax in 2025 is £126.15 per tonne. This is a significant direct cost for any construction project generating waste.

3: How can the circular economy reduce construction costs? The circular economy reduces costs by turning waste materials into valuable assets. Instead of paying landfill tax on surplus materials like soil, firms can use platforms like Nexus ReGen to exchange them, avoiding disposal fees.

4: How is AI changing construction material management? AI is automating material management. It can instantly analyse project documents (site plans, reports) to identify material surpluses and needs, then proactively match buyers and sellers in a digital marketplace to prevent waste and cut operational costs.

5: Why is construction waste a major issue in the UK? Construction, Demolition, and Excavation (CDE) is the UK’s largest waste stream, accounting for 62% of all waste. This has a massive environmental impact and represents a significant financial loss for the industry due to high disposal taxes.