The latest Super Sectors report from leading construction industry intelligence provider, Barbour ABI, shows there is significant agreed and future investment secured for construction projects in the East of England.
The Super Sectors report is a monthly examination of Planning Application Approvals and Contract Awards by sector and region, giving a robust picture of the construction industry across the UK. By examining planning approvals as well as contract awards, the report shines a light on the current and likely short-term future of the industry in each region. The February edition has just been launched and indicates some interesting trends in the construction industry in the East of England.
The East of England region topped the UK list for the value of planning applications approved for infrastructure projects, with a whopping £2.9bn worth of proposals given the go-ahead. This leads the UK by some considerable margin, with the next region, Scotland, approving £673m of infrastructure projects. £110m of infrastructure construction contracts were awarded in February in the region, so the future is very exciting for this sector in the East of England.
The move to renewal energy supplies is fuelling the infrastructure investment in the East of England. One project, valued at £60m, is the construction of a solar farm and battery storage facility in Norfolk. The Estuary Farm project in Kings Lynn is due to break ground in November 2023 and be complete by April 2025.
The residential construction sector is also looking bright in the East of England. £523m worth of planning applications were approved in February, making the region second only to London as far as residential construction projects in the UK are concerned.
The East of England was also second only to London in terms of the value of contracts awarded in the hotels, leisure & sport sector. Contracts worth £66m were awarded in the sector showing hospitality is growing again following the difficult years brought about by the pandemic.
The region was also second in the UK for the value of contracts awarded in the industrial construction sector. With £157m of contracts awarded in February, the East of England came second to the North West, with £199m, and a long way ahead of the West Midlands and Yorkshire & Humber with £72m each.
Tom Hall, Chief Economist at Barbour ABI said: “Strong investment in infrastructure, residential, hospitality and industrial construction bodes well for the region’s recovery from covid. Healthcare had a poor month for approvals with just £3m of contracts given planning consent, but the recent pipeline has been very strong and there are plenty of projects around.”