Each month Barbour ABI analyses the contract awards figures throughout the UK in all sectors. We have seen a shift in the geographical distribution of projects in June, construction activity has moved out of the capital and spread more evenly across the country.
For June, we have seen an increase in contract awards across all sectors. The total value of project awards was £5.2 billion based on a rolling three-month average. This is an increase of 5.5% on May 2019.
The infrastructure sector accounted for 37.2% of total value of contract awards. This was due to the SPRS Construction Programme at the Sellafield Site. The project is valued at £1.5 billion, and as a result has boosted the North West’s project share.
Regional analysis shows that the North West was the leading region for contract awards in June with a 36.6% value share. The aforementioned Sellafield programme substantially boosting the figures.
Looking further into the regional analysis, London dominated in only two of the seven sectors for June. Residential with a 26.2% share, and commercial & retail with a 23.7% share of total contract awards.
Therefore, showing that construction activity has moved out of the capital for June, with a more even spread of contract awards across the UK. The East Midlands dominated the industrial sector, largely due to investment in warehousing and storage. The South West took the top spot for hotel, leisure & sport and Scotland took the lion’s share of projects in the medical & health and education sectors.
Summary
London has dominated project awards every month in 2019. However, for the first time this year, we see a shift in the spread of project awards across the country. Likewise, for the first time this year, we see infrastructure investment overtake the residential sector. The residential sector has been the most active sector of construction across the UK for over 6 months.
Featured in the press…
Planning & Building Control Today – ‘North West tops construction contract awards in June’
Building Products – ‘UK construction activity moves out of the capital’
The Planner – ‘North West leads on construction contract value awarded’
