The global construction market is, however, facing major transformation as businesses continue to respond to the challenges of the economic crisis since 2008, begin to shift to green and sustainable construction and seek to take advantage of the opportunities provided by the digital economy. The competitiveness and readiness of the UK construction sector will be crucial if the UK is to take advantage of these opportunities. This paper reviews the latest evidence in order to inform the Industrial Strategy for Construction and provide insights on key drivers and barriers to UK growth in construction. The construction sector is a key sector for the UK economy. For the purpose of this publication, the construction sector is defined as: (i) the construction contracting industry; (ii) the provision of construction-related professional services; and (iii) construction-related products and materials. Construction is one of the largest sectors of the UK economy. It contributes almost £90 billion to the UK economy (or 6.7%)2 in value-added, comprises over 280,000 businesses3 covering some 2.93 million jobs4, which is equivalent to about 10% of total UK employment. The construction sector has been affected disproportionately since the recession of 2008. In 2007 the construction sector accounted for 8.9% of the UK’s GVA but by 2011 the sector contribution had decreased to 6.7%. In early 2012, the construction contracting industry returned to recession for the third time in 5 years. Despite the recent economic and financial crisis which affected most developed economies, the UK construction contracting industry remains one of the largest in Europe, measured by employment, number of enterprises, and gross value added5. However, the UK construction industry is also more fragmented than its major European competitors and the evidence shows it has higher levels of sub-contracting. Over the medium term, a number of overarching factors are likely to affect demand for construction. These include: globalization, demographic changes, demand for green and sustainable construction, both in the UK and abroad, increasing importance of technology in construction and growing demand from emerging economies such as China and Brazil.