New report shows slump in project delivery confidence - finding the right people and skills could be the answer

New research from Association for Project Management (APM) reveals a sharp decline in optimism among UK business leaders, as recruitment hurdles and budget constraints impact the project landscape at the start of 2026.

After a buoyant 12 months for businesses delivering projects, APM's Business Leader Index Survey 2025/26 reveals a shift in sentiment as business leaders navigate a more challenging environment.

While 2025 was marked by high optimism for strategic transformation, the start of 2026 saw a dip in confidence driven by a tightening labour market and restricted investment.

The latest data from APM, sourced in partnership with research company Censuswide, follows a year-long tracking survey of 500 CEOs and Managing Directors in the UK and the Channel Islands.

Business confidence slumps

When leaders were asked about their own organisation’s ability to deliver projects successfully, confidence was above 60% throughout 2025, peaking at 72% in October, but falling to 46% in January 2026.

Broken down by sector, the data showed a mixed picture. Construction ranked the lowest for confidence in January 2026 after falling to just 20%. This was followed by the legal and telecoms sectors which fell to 39% and 35% respectively. The only two sectors to remain above 50% for confidence in January 2026 were transport and logistics (65%) and Technology (69%).

The business leaders identified a lack of investment in training and professional development, recruitment challenges, and insufficient project funding as the main reasons for these declines.

Skills and recruitment challenges

The research also highlights a growing squeeze on skills. In 2025, over 70% of leaders felt their organisation had enough project professionals to deliver effectively, peaking at 83% in October. However, this again dropped in January 2026 to 64% which suggests more recent challenges with skills shortages - from reduced investment in training to ageing workers retiring and not being replaced quickly enough - have been exacerbated.

Meanwhile, confidence in finding people with the right skills hovered around 50% throughout 2025, peaking at 62% in October, but similarly fell to its lowest level of 38% in January which suggests businesses are navigating a more challenging recruitment market.

For the first time, the findings showed data literacy as being the most important skill for project professionals according to business leaders. With the growth of artificial intelligence and technology delivering more data and insights throughout a project, being able to manage and interpret data accurately to make informed decisions has become essential to project success.

Professor Adam Boddison OBE, Chief Executive of APM, said: “An increasingly volatile political and economic climate has resulted in a sharp decline in key metrics this January. It’s vital business leaders take action now, so they can be confident in their ability to deliver the changes that will drive strategic success and ensure their organisations remain adaptable. Successful projects can support real transformation and, in turn, futureproof organisations.

“That’s why we urge businesses to adequately fund projects, invest in professional development, and focus recruitment efforts on chartered and certified project professionals who have the skills needed to deliver projects successfully.”

Read the APM Business Leader Index Survey 2025/2026 here.