The deliverability divide
From infrastructure pipe dreams to collaborative delivery
Report
Meeting the UK’s unprecedented capital delivery challenge
Find out why the UK’s infrastructure plans are at risk and the critical actions needed to ensure successful delivery.
The UK’s water and electricity sector faces an unprecedented surge in capital investment as part of a 10-year £725 billion infrastructure strategy. It demands a radical overhaul of traditional delivery models. Water companies are set to double spending to £104 billion in AMP8, while electricity transmission companies will invest £80 billion. But is this ambition deliverable?
Our research report, developed in collaboration with Utility Week, and based on extensive surveys and interviews with 58 senior utility leaders, reveals the deliverability divide: a dangerous confidence gap. While asset owners are optimistic, their supply chain partners are not convinced. Our findings reveal the systemic blockers and the critical actions required to avoid over-promising and under-delivering.
Water and electricity companies are set to invest a colossal £184 billion (£104bn water and £80bn electricity) over the next five years, doubling spending and placing unprecedented pressure on an already strained supply chain.
Topping the list of systemic blockers, the shortage of skilled people is the single biggest threat to delivery. Our report reveals the key pinch points and the strategies needed to achieve more with less.
Over 80% of asset owners are confident in their plans, but this plummets to just 40% for their supply chain partners. This report uncovers the reasons for this divide and how to close it.
Navigating the path to successful delivery
The sheer scale of investment means ‘business as usual’ is not an option. Our research reveals that without fundamental change to the capital delivery approach, utilities will not achieve their investment targets. We have identified four key steps required to succeed:
- Tackle the critical barriers holding the industry back, including severe skills shortages, bureaucratic planning restrictions, and key equipment constraints.
- Move beyond transactional relationships to build genuine, long-term partnerships and enterprise models that align incentives and drive shared success across the supply chain.
- Harness the power of common data environments, digital twins, and AI to improve asset knowledge, streamline design, and boost construction productivity.
- Embed a culture of ‘doing more with less’ through greater standardisation of assets, modular construction, and risk-based governance that empowers faster decision-making.
How we can help
Our teams provide expert guidance and practical support, combining sector knowledge with a collaborative, outcomes-focused methodology.
To transform capital programme delivery across organisations, we:
- Navigate complex regulatory and planning landscapes
- Design and implement resilient operating models for capital delivery
- Drive strategic procurement and optimise supply chain performance
- Embed digital transformation and exploit AI where appropriate
- Manage change and the necessary cultural shift for efficient and effective delivery
- Attract, develop, and retain the talent needed to achieve an unprecedented investment.
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