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Jul 16 2014

More balanced construction growth in the UK

Crane Graph ConstructionIn a May post, we reported Government figures for construction sector output in Q1, accompanied by upwardly revised growth predictions for 2014.  This week, construction intelligence provider Glenigan released its predictions, having reported a 10% rise in project starts for first half of 2014.

Sustained construction output through rest of 2014 and into 2015
Largely due to an increase in consumer confidence and rising private sector investment, work volumes will continue to pick up across most sectors throughout the second half of the year.  There are positive forecasts for the majority of sectors (except social housing and health), with some of the stronger forecasts being for industrial projects (28%), private housing (14%), with health sector and office development (each 9%), civil engineering (8%), and hotel and leisure (7%).


Pre-construction pipeline remains firm
Having grown by 19% over the last two years, the value of projects securing detailed planning approval during the first six months of 2014 was supported in particular by strong growth in private housing projects.


Increased output across the Country
London has led the initial recovery; the capital was the fastest growing part of the UK during 2013 with the value of underlying project starts rising by 21%.  However, a more balanced construction growth is expected for the latter half of 2014, with central and northern England expected to enjoy the strongest growth, as the rise in housing market turnover and mortgage availability spur private housing development.

Forecasts of recovery in construction across sectors and regions are supported by our experience, with recent projects using CONJECT solutions including the £200m Haymarket development in Edinburgh, hospital projects in Rhys and Bangor in Wales, plus various projects in the education, retail and hotel and leisure sectors.

Rise in office and government capital developments
Office project starts are anticipated to pick-up in major metropolitan areas as the demand for more quality office space spreads beyond the capital, such as the £100 million Central Square development in Leeds. Retail and leisure project growth is also expected to be widely spread across the UK as consumer spending picks up.

The focus of government capital expenditure on transport will broaden from rail towards road projects and this will lead to a more even spread of infrastructure work across England. As such, Glenigan forecasts an 8% rise in civil engineering starts in 2014 – on par with last year’s improvement.

What are you experiences of activity in the sector this year?  Share your experiences and views in the comments.

 

[1] Source – http://www.glenigan.com/construction-market-analysis

 

About the author

Michelle Mason

Michelle Mason leads the UK and MEAP Marketing team, with far too many years in B2B marketing to mention. A CONJECT newbie, Michelle is eagerly climbing a steep learning curve.

View my LinkedIn profile:
http://uk.linkedin.com/in/michellemason04

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