Construction has no single agreed boundary. This toolkit works to the wider built environment, because that is who it is meant to help.
Our definition: the firms that design, make, build, supply, own and maintain the built environment, not only those working on site.
3 ways of drawing the line
- Narrow, around 6% of the economy: contractors and trades that build on site, which is Section F of the Standard Industrial Classification (SIC). This is the line drawn by the Office for National Statistics (ONS) and StatsWales.
- Broad, around 10%: the above, plus product manufacturers and professional and design services. Professional and trade bodies use this line in wider analysis of the sector.
- Wider built environment, up to 20%: our definition. The full supply chain, adding clients, suppliers and those who operate and maintain buildings in use. It is consistent with Welsh Government’s ‘Built Environment Mission Statement’ and its approach to the Foundational Economy.
Like for like, measured as Gross Value Added (GVA) for SIC Section F, construction is around 6% of the economy in both the UK and Wales. The figure of around 8% sometimes quoted for Wales comes from a different measure, the Index of Construction. The 10% and 20% figures are UK-level estimates.
We keep the official categories underneath our definition as a cross-reference, so the toolkit can still speak to official data.