Lee Bucknall of James Hardie looks forward to a ‘transformed’ industry for housebuilders and developers in 2025 and beyond, and how the cladding sector is responding to the challenges.
As we look ahead to 2025, the housebuilding and development sectors are poised for significant transformation. Staying ahead of emerging trends is vital for builders, developers, and architects alike, as evolving priorities and challenges shape the choices of industry professionals and homeowners.
ESG: Driving sustainability
Environmental, Social, and Governance (ESG) considerations are no longer optional; they have become a cornerstone of industry strategy. The shift from being a regulatory tick-box exercise to a priority for every stakeholder highlights the urgency of achieving tangible sustainability goals. Reaching net zero by 2050 demands coordinated efforts, innovation, and measurable progress across the supply chain.
A key challenge remains the measurement and management of ‘Scope 3’ emissions, which rely heavily on accurate data from supply chain partners. For housebuilders and developers, investing in materials and systems with transparent and verifiable sustainability credentials is essential. Collaborating with suppliers who provide detailed emissions data can support compliance and help align with broader sustainability targets.
Future resilience
Managing rising costs continues to dominate the agenda for housebuilders. Labour shortages, driven by an ageing workforce, skills gaps, and the cost-of-living crisis, are impacting the affordability and efficiency of construction projects. To address these challenges, partnerships with educational institutions and training initiatives are essential to cultivate the next generation of skilled workers.
Housebuilders are increasingly prioritising cost-effective and durable materials. Fibre cement cladding, for example, is becoming a popular choice for its low maintenance and long-term performance. Also, its ease of installation reduces build times and labour costs, while its durability ensures fewer repairs and repainting, offering significant savings over the lifecycle of a building. Such materials enable developers to balance upfront affordability with long-term value.
Workforce wellbeing:
Competitive edge
The construction industry’s workforce dynamics are evolving. The competition for skilled labour has intensified, and workers are prioritising mental health, work-life balance, diversity, and inclusion when evaluating job opportunities. For housebuilders, creating a supportive and inclusive workplace culture is now a business imperative.
Adopting policies that promote wellbeing and diversity can improve employee satisfaction and retention, making companies more attractive to top talent. Gen Z, in particular, value organisations that align with their expectations for meaningful work and inclusive practices. Investing in leadership development, technical training, and employee engagement programmes can help housebuilders build a resilient and motivated workforce.
At James Hardie we’re seeing how Gen Z in particular is redefining the workplace. We believe that a skilled and diverse workforce encompasses different viewpoints, expertise, attributes and life experiences. We’re really proud of our new ’people strategy’ which is designed to drive results by building and retaining a robust talent pool, expanding technical and leadership capabilities, and inspiring and engaging employees.
Innovation:
The catalyst for growth
Innovation remains central to the industry’s evolution. Advancements in construction materials and technologies not only drive efficiency but also help meet stringent building standards and design aspirations. For housebuilders, embracing innovation is crucial to staying competitive in a rapidly changing market.
New developments in cladding materials and systems are addressing the need for cost-effective and high-performing solutions. For instance, thinner, lightweight panels that achieve high impact resistance standards provide an affordable option for residential and commercial projects. Collaborations between manufacturers’ R&D teams and developers ensure that innovations align with the practical needs of the market.
External colour trends
The choice of exterior colours plays a significant role in defining the character and appeal of residential developments. In 2025, natural and pastel tones are set to dominate residential design, reflecting homeowners’ desire for wellness-inspired aesthetics.
In contrast, educational and commercial buildings are embracing bold, vibrant colours to foster engagement and energy. Warm tones like red and orange help stimulate attention and encourage interaction, making them a popular choice for schools and other communal spaces.
Advances in paint technology now offer durable, fade-resistant finishes that maintain aesthetic integrity over time. Housebuilders and developers are increasingly seeking products that combine visual appeal with low maintenance requirements, ensuring long-term satisfaction for homeowners and tenants alike.
Looking ahead
The coming year promises to be a dynamic period for housebuilders and developers. Addressing ESG goals, managing costs, prioritising workforce wellbeing, embracing innovation, and adapting to evolving design trends will be critical to success. By staying informed and proactive, the industry can navigate challenges and capitalise on opportunities to build a more sustainable and prosperous future.
Lee Bucknall is country manager UK & Ireland at James Hardie. Visit James Hardie for more information.