THE CONSTRUCTION sector in Wales is entering 2026 with cautious optimism, supported by continued public sector investment and a pipeline of major infrastructure and energy projects, according to a new report.

Analysis by Rider Levett Bucknall suggests that long-term commitments to energy transition, digital infrastructure and transport upgrades are helping to stabilise the market, despite ongoing global uncertainty.

Major projects highlighted in the report include the proposed Wylfa small modular reactor, the green industrial transition at Port Talbot, and the development of AI Growth Zones. These schemes are expected to create significant opportunities for contractors across Wales, particularly in infrastructure and energy resilience.

However, the report warns that short-term challenges remain. Global pressures, including instability in the Middle East, continue to create uncertainty, while longstanding domestic issues such as planning delays are still affecting progress.

Daniel Walker, an associate at the consultancy based in Cardiff, said that while activity levels remain steady, structural barriers are slowing delivery.

He said: “Across Wales, on-site construction activity remains steady, with visible progress across major centres including Cardiff, Swansea and several valley towns. However, structural challenges remain. Planning delays, particularly those linked to sustainable drainage system approvals, continue to slow early-stage progress on both private and public sector schemes.

“Despite this, and wider geopolitical uncertainty, the market has seen a slight increase in project starts over the past quarter.”

Public sector spending continues to underpin much of the activity. The report notes that devolved fiscal powers have unlocked an additional £505 million for infrastructure and local development, supporting projects in education, healthcare and transport.

Wales is also emerging as a growing hub for digital and energy infrastructure. Investment in data centres is ongoing, while preparatory work linked to Wylfa and the decarbonisation of steel production at Port Talbot is expected to drive demand for construction in the coming years.

Infrastructure remains one of the strongest-performing sectors, supported by transport upgrades and early work associated with the proposed Crossrail Cymru programme. Industrial and energy-related construction is also expanding as Wales accelerates its shift towards low-carbon industries.

In contrast, the high-end residential market has softened, although affordable housing and build-to-rent developments continue to perform more strongly.

The consultancy is currently involved in the Cowbridge Road East scheme in Cardiff, a project aimed at delivering affordable and sustainable housing. It said work is ongoing to ensure the scheme remains viable while helping meet demand for new homes.

The report concludes that, despite ongoing challenges, the combination of public investment, energy transition projects and digital growth places the Welsh construction sector on a broadly positive footing for 2026 and beyond.

Tender price inflation is forecast to remain stable, with a projected rate of 3.4% in Wales for 2026, slightly below the UK average of 3.45%.

CARDIFF AIRPORT has outperformed some of the UK’s busiest hubs for flight punctuality over the Easter period, according to new analysis — but longstanding concerns over its size, routes and public funding continue to cast a shadow over its future.

The study, based on Civil Aviation Authority data from April periods between 2022 and 2025, found that Cardiff Airport recorded a delay rate of 23.8% for departing flights. This placed it ahead of several major UK airports, including Heathrow Airport (26.4%), Gatwick Airport (26.0%), Edinburgh Airport (27.2%) and Newcastle International Airport (25.8%).

The figures, compiled by travel analysts Locals Insider, examined more than 650,000 flights across 24 UK airports, offering a snapshot of performance during one of the busiest travel windows of the year.

Smaller airport, smoother operations

Supporters say the findings highlight Cardiff’s reliability at a time when many passengers face disruption at larger, congested hubs.

A spokesperson for Locals Insider said the airport’s performance “paints a reassuring picture for Welsh travellers”, particularly as passenger numbers are expected to rise over Easter and new routes are introduced.

However, the data also reflects the scale difference between Cardiff and the UK’s largest airports. Over the four-year period analysed, Cardiff handled just 1,918 April flights — compared with nearly 148,000 at Heathrow alone.

This disparity means smaller airports can often maintain better punctuality simply due to lower traffic volumes and reduced pressure on infrastructure.

Wider challenges remain

Despite the positive figures, Cardiff Airport continues to face scrutiny over its long-term viability and performance.

The airport has been owned by the Welsh Government since 2013, and has received significant public investment in an effort to boost connectivity and economic growth.

Critics argue that passenger numbers remain relatively low and that the airport struggles to compete with nearby Bristol Airport, which offers a far wider choice of destinations and attracts millions more travellers each year.

There have also been ongoing questions about whether public funding represents value for money, particularly at a time of pressure on public services.

Growth and opportunity

Supporters of the airport point to signs of recovery and growth, particularly following the pandemic, with increased passenger demand and efforts to expand routes.

They argue that Cardiff plays a vital strategic role for Wales, providing international connectivity, supporting tourism, and contributing to the regional economy.

While the latest punctuality data offers a positive headline, the broader challenge remains whether Cardiff Airport can translate operational reliability into sustained growth and greater passenger numbers.

As the busy Easter travel period approaches, the airport may be performing well on timekeeping — but the debate over its future is far from settled.

A CUTTING-edge defence technology company that now owns West Wales Airport has revealed how its rapid growth is helping put the region firmly on the map for high-tech innovation and skilled jobs.

The company, Tekever, has expanded significantly across the UK in recent years—but it is its presence in west Wales that is playing a crucial role in its operations.

The firm owns West Wales Airport near Aberporth, where it tests advanced unmanned aerial vehicles (UAVs), trains operators and demonstrates cutting-edge systems to clients.

Strategic role for west Wales

What began as a small UK operation has grown into a major player in defence and security, specialising in AI-driven autonomous systems used for intelligence, surveillance and reconnaissance.

Company founder Paul Webb said the airport in west Wales is central to that vision.

He explained that the site provides a unique environment where new technologies can be tested safely while supporting collaboration across the wider aerospace sector.

The Herald understands that facilities like West Wales Airport are increasingly seen as vital national assets, particularly as the UK looks to strengthen its domestic defence capability.

From small beginnings to global reach

Tekever, originally founded in Portugal, established its first UK base in Southampton before expanding to Bath and London. It is now preparing to open a major engineering and manufacturing hub in Swindon.

Its growth has been supported in part by early backing from Farnborough Aerospace Consortium, which helped the company develop key software systems in its early days.

FAC chief executive Alan Fisher said the company’s success highlights the importance of supporting innovative businesses from the outset.

He said: “It is remarkable to see how far the company has progressed. It shows what can be achieved when strong ideas and technical talent are backed in the right way.”

Jobs and opportunities

The expansion is expected to bring further investment and high-skilled employment across the UK, with west Wales playing a continuing role in testing and development.

While much of the manufacturing will take place elsewhere, the airport’s role in trials, training and demonstrations ensures the region remains an important part of the company’s long-term plans.

For west Wales, the presence of a world-leading UAV firm offers not just prestige, but the potential to attract further aerospace and defence businesses to the area.