From Net Zero to Nuclear: the skills gap that could stall UK growth
The UK has no shortage of ambition when it comes to infrastructure.
From Net Zero commitments and energy security to rail modernisation, water resilience and nuclear new build, the pipeline of nationally significant projects is substantial. Yet beneath the headlines lies a constraint that threatens to undermine delivery across all of them: a critical shortage of skilled labour.
While capital allocation, planning reform and supply chains dominate much of the public debate, workforce capability is increasingly the factor that determines whether projects progress as planned — or drift into delay and cost escalation.
A delivery problem, not an ambition problem
Major infrastructure programmes are now competing for the same finite pool of specialist workers. Nuclear, energy, rail, highways and utilities all require highly trained, safety-critical labour — often with overlapping skill sets and increasingly demanding compliance standards.
The issue is not simply one of headcount. It is about availability, competence, governance and the ability to mobilise skilled teams at scale, at pace and with certainty.
As Brusk Korkmaz, CEO of Hercules PLC (LON: HERC) explains:
“The UK doesn’t have an ambition gap in infrastructure — it has a delivery gap. And increasingly, that gap is driven by skills. You can have funding in place and projects approved, but without the right workforce, execution risk rises very quickly.”
For investors, that execution risk matters. Labour constraints translate directly into delays, margin pressure and reduced visibility — all of which undermine confidence in long-term returns.
Why short-term labour models are being reassessed
Historically, the construction sector has relied on fragmented, short-term labour solutions to bridge skills gaps. That approach is proving increasingly misaligned with today’s infrastructure environment.
Long-duration programmes such as nuclear, regulated utilities and energy transition projects demand continuity, workforce planning and robust compliance frameworks. Tier one contractors and public-sector clients are under greater scrutiny than ever — to deliver on time and on budget, as well as to demonstrate governance, safety and ESG standards across their supply chains.
“Labour can no longer be treated as a variable cost solved at site level,” says Korkmaz.
“For major infrastructure, workforce capability has become a board-level issue. It’s about predictability, control and resilience — the same attributes investors expect in any well-run business.”
Workforce capability as a strategic, investable asset
Addressing the skills gap requires a shift in mindset. Workforce capability needs to be treated as infrastructure in its own right — planned, invested in and managed over the long term.
This is where the structure of the labour provider matters. Specialist, regulated businesses with the scale to invest in training, retention and systems are increasingly playing a strategic role in de-risking delivery.
As an AIM-listed business, Hercules operates within a governance framework that brings transparency, auditability and long-term discipline to a part of the infrastructure value chain that has traditionally been fragmented. For clients, that translates into delivery confidence. For investors, it brings visibility and repeatability to revenues that sit at the heart of project execution.
Predictable labour supply underpins predictable outcomes — aiding margin stability, cash flow visibility and sustainable expansion.
What investors should be watching
As infrastructure spending accelerates, investors are looking beyond headline contract values to assess execution capability.
The ability to secure and deploy skilled labour — particularly in high-barrier sectors such as nuclear, energy and regulated utilities — is emerging as a key differentiator. Businesses that can demonstrate control over workforce risk are better positioned to navigate economic cycles, protect returns and support long-term value creation.
“There’s a growing recognition that infrastructure isn’t just about assets on a balance sheet,” Korkmaz notes.
“It’s about whether you can deliver reliably over time. Companies that provide workforce certainty at scale are becoming strategically important to the UK’s infrastructure ecosystem — and that has clear implications for investors.”
A pivotal moment for UK infrastructure
The coming decade represents a defining opportunity for UK infrastructure. But ambition alone will not deliver Net Zero, energy security or modernised transport networks. People will.
Closing the skills gap will require collaboration between industry, government and specialist providers — and a recognition that workforce capability sits at the heart of national delivery. Without it, even the most well-funded projects risk becoming unrealised potential.