Carrington West consultants gathered key insights from senior figures in rail engineering design consultancies and contractors at the recent RIN Derby event. While there was a sense of cautious optimism, the conversations highlighted ongoing uncertainty and strategic caution across the sector.

General Market Sentiment: “Steady but Volatile”

The consensus among industry leaders is that the current work pipeline is challenging. With delays to Control Period 7 (CP7) continuing to disrupt financial planning, business leaders expressed a mixture of frustration and realism. One recurring theme was the industry’s struggle to move from early optimism to sustained momentum, with several describing the current state of affairs as a “slog”.

While business is “ticking along”, few reported exceptionally high activity levels. Firms noted a steady, but not busy, workload, with some engineering calculation work even being outsourced to partners, highlighting a preference for flexibility in resource allocation.

The topic of CP7 dominated much of the discussion. Despite initial hopes of an October start, there was widespread scepticism that this timeline would be met. The repeated shifting of tender deadlines has made long-term business planning difficult. Several described the constant delays as a breach of trust, calling it “dishonest” and a core reason behind their cautious approach to growth.

This sense of caution is compounded by the broader volatility within the market. Senior leaders pointed to an unpredictable environment where making reliable forecasts is increasingly difficult.

Project Updates: Big Names, Mixed Momentum

The conversations also shed light on major UK infrastructure projects:

• HS2 is reportedly in a “reset” phase. While it mandates SME engagement, attendees criticised its poor communication of supply chain opportunities. HS2’s intention to improve this is welcome, but for now, there’s a gap between policy and practice.

• East West Rail (EWR), although quiet at present, has secured its next round of funding. The project is expected to engage the supply chain extensively over the next two years, with a focus on more meaningful SME involvement than HS2.

• TransPennine Route Upgrade (TRU) Project is progressing at “full speed”, actively securing further funding for depot and maintenance expansions.

This competitive landscape between projects could encourage better outcomes for SMEs, as stakeholders look to differentiate through more effective and transparent engagement strategies.

Recruitment Outlook: Flexible Demand and Long-Term Skills Development

In terms of hiring, many companies are pursuing a pragmatic, risk-aware approach. Firms remain reluctant to commit to permanent hires without the certainty of future workload. Instead, they are increasingly open to hiring contractors on a short-term basis, typically for three to four months, to meet specific project needs without long-term risk exposure.

While project activity remains “fairly quiet”, most leaders anticipate an uptick in recruitment once CP7 formally begins, likely around mid-next year. Until then, most felt any headcount growth will be directly tied to confirmed work.

That said, the long-term skills pipeline remains a concern. Industry leaders expressed a strong and unified call for more apprenticeships to close the widening skills gap. One design consultancy shared a success story of a former work experience candidate who joined as a CAD Technician and is now on track to become a chartered engineer within four years. Currently, they have two apprentice CAD technicians, a model other firms could look to replicate.

Additionally, many attendees voiced support for the design and build model, which they say enhances coordination between design and delivery phases, ultimately leading to better project outcomes and resource planning.

Conclusion

The RIN Derby event made it clear that while the UK rail sector remains resilient, it is navigating a delicate period of uncertainty. Delays to CP7 and mixed momentum across major projects are challenging traditional business and hiring models. However, with strategic workforce planning, greater SME involvement, and an emphasis on apprenticeships, there is a clear route forward.

At Carrington West, we remain committed to supporting our clients and candidates through these transitions. If you're planning ahead for CP7 or seeking agile resourcing solutions in the meantime, we're here to help.