Predicted 2021 R&D Innovations in Construction

Construction is full of challenges, so R&D spend will always be welcome. Innovation to meet these challenges is crucial to keep the industry competitive.Having committed to raising R&D investment, the UK government wants exactly this - to keep industries competitive and industry-leading. The government aims for R&D spending to reach 2.4% of GDP by 2027 and 3% in the longer term. The target is certainly ambitious and relies on a combination of both public investment and business investment. The two categories that spur government investment in R&D are firstly building on strengths, and secondly, action needed. The impetus for investment is therefore retaining a global market-leading role, or to improve standards so as to better compete.As R&D Tax Incentive Advisors, here at Kene we have our ear to the ground when it comes to government R&D investment. This article will look at R&D investment in the construction industry in particular, for a brief overview of the current and predicted levels of R&D innovation within construction.

Current R&D in Construction

The construction industry is one with perennial challenges to be faced. Many of these can benefit from innovative new solutions. Some such challenges relate to overcoming problems onsite, such as manoeuvring heavy and or awkward materials, and also the development of new and innovative materials in the industry. Relatively unusually, bespoke and site-specific solutions can be required in order to perform best for the specific need - and to meet the thorough industry standards.In the UK in 2018, total R&D expenditure was £37.1 billion, the equivalent of 1.7% of GDP. The government aim to increase this, as mentioned above, was supported by the March 2020 Budget, which promised to “Get Britain Building”. COVID compounds the logistical difficulties already expected from BREXIT, but the government cast these in a positive light. The “Get Britain Building” campaign was sold as: “a unique opportunity to build for the future and, in doing so, create jobs, promote inclusive growth, deliver a balanced economy and promote a greener environment”.This supports the significant drive for increased efficiency and innovation the construction sector has been employed with over the past few years.

Future R&D spend in Construction

The use of innovative approaches to delivering infrastructure and to digital technologies will likely be a key focus in the future of R&D spend. Homes England, the government’s housing accelerator,  are also driving innovation in the sector with their own study into modern methods of construction (MMC). The focus on new processes, approaches, MMC, and design for manufacture and assembly (DFMA) means that the planned investment here, governmental and beyond, is unlikely to be curtailed despite our difficult economic moment. The R&D push here brings with it an opportunity for companies to claim tax relief on R&D costs, which can provide cash flow benefits and additional, secure funding to plough into industry innovation.

R&D Tax Credits in Innovation

The potentiality for an R&D tax claim in the construction industry is quite broad. The types of activities that generally might qualify include working with innovative new materials (or improvements to existing ones), and innovative and industry-changing techniques and processes. R&D tax credits are designed to reward the risk-taking involved in R&D investment into a challenging field.Arrange a free consultation with our team of experienced and approachable tax incentive advisors today. At Kene, our mission is to help innovative companies access millions of pounds of government money set aside for funding your innovation. Your business could be next.