Market Insight: Construction, M&E and Logistics Demand Trends – January 2026

As the UK and wider European market moves through the end of January 2026, demand across Construction, Mechanical & Electrical (M&E), and Logistics continues to rise, driven by sustained infrastructure investment, data centre expansion, energy transition projects and ongoing supply chain pressure.

Early indicators from Q1 suggest that workforce demand is not only remaining strong but is accelerating earlier in the year than in previous cycles. Many organisations are now prioritising forward planning and early hiring strategies to secure critical skills before competition intensifies later in the quarter.

This Strong Group market update explores the key drivers shaping recruitment demand across these sectors and outlines why proactive workforce planning has become essential heading into 2026.

Construction: Project Pipelines Remain Robust

The Construction sector enters 2026 with a healthy and diverse pipeline of activity. Commercial developments, large-scale refurbishments, transport infrastructure and energy-related projects are continuing at pace, creating sustained demand for skilled trades, supervisory staff and experienced site management professionals.

Contractors are increasingly reporting pressure to secure reliable site teams early, particularly as project timelines tighten and multiple schemes run concurrently. Labour availability remains uneven across regions, making early engagement with recruitment partners a critical factor in maintaining delivery schedules and cost control.

As compliance and safety standards continue to evolve, demand for experienced personnel who can integrate quickly into live environments is expected to remain strong throughout Q1 and beyond.

M&E: Data Centres and Energy Projects Drive Growth

The Mechanical & Electrical sector continues to be heavily influenced by the expansion of data centres across the UK and EU, alongside renewable energy and power infrastructure projects. These developments are driving consistent demand for commissioning engineers, M&E engineers, supervisors and shift teams capable of operating within complex, highly regulated environments.

With data centre programmes moving from planning into active construction and commissioning phases, competition for qualified M&E professionals has intensified. Businesses that delay recruitment are increasingly exposed to skills shortages, programme delays and increased labour costs.

Early workforce planning is proving particularly important in this sector, where specialist skill sets and project experience are critical to successful delivery.

Logistics: Continued Pressure on Supply Chains

Logistics demand remains strong as businesses continue to respond to evolving consumer behaviour, e-commerce growth and the need for resilient supply chains. Distribution centres, warehouses and transport operators are maintaining consistent hiring activity to ensure operational continuity.

Demand for drivers, warehouse operatives and logistics support staff remains steady across multiple regions, with many employers securing labour early to mitigate disruption during peak periods later in the year.

As operational efficiency and compliance remain key priorities, organisations are increasingly seeking dependable, pre-screened personnel who can contribute immediately.

Why Early Planning Matters in 2026

Across Construction, M&E and Logistics, one consistent theme has emerged: early planning is no longer optional. In a competitive labour market, businesses that engage early are better positioned to secure quality candidates, control costs and avoid delays that can impact project delivery and operational performance.

Strong Group continues to support clients across these sectors by providing access to industry-experienced, pre-screened professionals, helping businesses stay ahead of demand as 2026 progresses.

Our teams will continue to monitor market trends closely and provide timely insight to help clients navigate an evolving recruitment landscape.

Contact Strong Group

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