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Annual Overview Brought to you by… 2020

January 2021

2021 January Overview

• Home • About us • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure • Commercial & retail • Hotel, leisure & sport • Industrial • Medical & health • Education

Construction Barbour ABI, Hinderton Point, Lloyd Drive, Cheshire Oaks, highlights Cheshire, CH65 9HQ Contract award values still reach £57bn for 2020 despite a 5% fall 0151 353 3500 Industry activity maintained by healthcare and infrastructure sectors [email protected] www.barbour-abi.com Next month: We're changing… @BarbourABI

1 Welcome

Welcome to our Economic & Construction We're changing… Market Review annual overview Next month we’re proud to launch our new slimmed down monthly ECMR “Snap Analysis”. Our annual overview of the 2020 construction market, Economic & Construction Market Review includes It will still include all the information in the old version, industry insight, market analysis and sector trends. but we’ve added new features and expanded it to include analysis on planning applications and approvals. 2021 Analysis on the UK regions experiencing the most construction contracts and AMA Research It's compact, highly visual and data rich to get you the growth is also detailed, as is insight on the key sectors in growth or decline. January AMA Research is widely recognised as the leading specialist provider of market key analysis you need in a flash. Created using our market leading construction project and company data, this research and industry insight to the UK building and construction industry. intelligence provides a valuable tool for all those with an interest in construction. Overview Publishing over 150 off-the-shelf market reports and industry forecast bulletins, Who we are the team specialise in building and construction, environmental and a host of • Home Barbour ABI is the market leading provider of construction intelligence and other B2B sectors in the UK. These high-quality reports are recognised by many • About us building project leads. leading UK companies as an essential tool in developing their own marketing • Economic context and strategic policies. • The construction sector With a team of in-house research specialists and a dedicated chief economist, it provides commercially relevant insight and unique analysis of trends and AMA Research also offers a broad range of bespoke services including developments within the building and construction industry. Barbour ABI is commissioned market research projects as well as consumer and Industry sectors the chosen provider of industry data and indicators for Government bodies business surveys. • Residential including the Office for National Statistics and HM Government National Contact AMA Research • Infrastructure Infrastructure & Construction Pipeline, which outlines future construction Eagle Tower, Montpellier Drive, Cheltenham, Gloucestershire, GL50 1TA • Commercial & retail and infrastructure projects where public funding is agreed. Barbour ABI T: 01242 235 724 E: [email protected] W: www.amaresearch.co.uk • Hotel, leisure & sport also provides data for independent organisations, such as the Construction @AMAResearch @ama-research-ltd @ama_research Tom Hall • Industrial Products Association. Chief Economist • Medical & health Contact us Tom is Chief Economist at Barbour ABI and AMA • Education Hinderton Point, Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ Research, providing analysis and economic insight for the construction and related sectors, assessing the T: 0151 353 3500 • E: [email protected] • W: www.barbour-abi.com Downloads trends and developments that impact the industry. @BarbourABI @barbour-abi @barbour_abi Offering bespoke research and tailored analysis to our clients, Tom also speaks at industry events and works closely with journalists and other industry bodies to Barbour ABI, Hinderton Point, provide commentary on the built environment. ECMR Latest issue of Lloyd Drive, Cheshire Oaks, Methodology Market Insight Cheshire, CH65 9HQ 0151 353 3500

[email protected] www.barbour-abi.com Partner of the Infrastructure and Projects Authority in Chosen provider of Construction @BarbourABI providing the National Infrastructure and Construction Pipeline New Orders estimates to the ONS

2 Economic context

UK enters a third nationwide lockdown as a 2.6% decrease thin Brexit deal is agreed in GDP in November 2020

The rollout of vaccines raises hopes of a loosening of restrictions in the late spring or summer. Everything is now riding on the effectiveness of the The Christmas Eve agreement sealed a deal with the EU that avoided the At the sector level, as expected the services sector took the largest hit vaccine and the level of immunity that arises. 2021 disastrous cliff-edge of a no-deal Brexit. On first inspection, the British in November, falling by 3.4%. The sector is now 10% smaller than it government appears to have scored a success, achieving its desired was in February. Positively in-month production activity was broadly January Summer Autumn Remaining “thin” deal that releases it from regulatory alignment with the EU. The unchanged. The construction sector grew by 1.9% and is now 0.6% above Initial fall recovery stagnation recovery price is the greatest imposition of red tape and trade barriers in memory. February’s level. We discuss construction output in the next section. (GDP change (GDP change (GDP change (GDP change Overview The deal also leaves many areas unresolved, the largest being the critical Feb-Apr) Apr-Jul) Jul-Oct) Feb-Sep) Expectations for 2021 • Home services sector which makes up 80% of economic output. GDP -25.0% 20.2% 1.1% -9% Over 2021 we expect the recovery to remain protracted due to the • About us So far over the first few weeks of January there have been some issues Services -23.8% 17.3% 0.3% -10% deteriorating macroeconomic situation, however there is more upside • Economic context with cross-border trade in food, especially in Northern Ireland. Time will thanks to the rollout of vaccines. The recovery is likely to be held back Production -23.6% 23.3% 1.5% -4% • The construction sector tell whether these are merely teething problems or more severe issues by the impact of ongoing distancing restrictions even with a level of arise over the course of 2021. Rather than getting Brexit done, what we Manufacturing -29.4% 30.6% 3.8% -4% immunity. This will be felt especially in the services sector which is the are likely to end up with is a continuous re-evaluation of agreements Construction -43.3% 58.6% 10.8% 0% Industry sectors dominant sector of the economy. with the EU, with future standards in the hands of trade committees Other economic indicators: Agriculture -8.6% 7.0% -1.9% -4% • Residential unaccountable to parliament and the electorate. • Infrastructure ● Inflation: CPI averaged 1.0% over 2020 to November. It is expected Meanwhile the UK has entered a third nationwide lockdown until Economic context 1.1 Source: ONS • Commercial & retail to remain low in the near term, picking up as worldwide demand February or even March, thanks to the new more infectious virus strain GDP by sector • Hotel, leisure & sport increases as economies recover from the pandemic. combined with the allowing of household mixing over Christmas, with • Industrial ● Interest rates: The Bank of England is expected to maintain ultra-loose record numbers of hospitalisations and fatalities at the current time. • Medical & health rates into the medium term. While this lockdown is less restrictive than the first, the impact to • Education ● Exchange rates: Sterling has strengthened against the dollar to levels economic activity will still be significant. With vaccinations now taking place, there are hopes of a loosening of restrictions in late spring or not seen since 2018. However against the Euro it has remained

relatively weak compared to historical standards. Ongoing currency summer. Everything is now riding on the effectiveness of the vaccine and the level of immunity that arises. More than ever we need long-term weakness is expected to continue over 2021 until economic

an planning as we will have to live with this virus for the foreseeable future. It uncertainty clears. de ● Trade: imports and exports strengthened in November, both over In Barbour ABI, Hinderton Point, is critical that the vulnerable are protected and we can maintain the virus erices Lloyd Drive, Cheshire Oaks, at minimal levels that ensures the functioning of society and the economy. £50bn for the first time since February. roduction Cheshire, CH65 9HQ ● Unemployment: unemployment has already picked up to 4.9% Manufacturin Economic activity Construction between August and October. It is anticipated to deteriorate further, GDP in November fell by 2.6% (see fig. 1.1) as the second nationwide 0151 353 3500 especially in the retail and service industries, as government support an eb Mar Apr Ma un ul Au ep ct o lockdown inhibited activity. This was less than experts’ predictions measures are withdrawn. [email protected] of 5-6%. We expect the economy to end 2020 7.5% below where it Economic context 1.2 Source: ONS www.barbour-abi.com finished in 2019. @BarbourABI GDP by sector

3 Construction sector

Construction contract awards propped up by 8.5% East Midlands healthcare and infrastructure sectors East of England London 21.6% Total number of contract awards decrease by 16% in 2020 and values fall by 5%. North East 3.7% North West Annual performance Those areas that took the brunt of the force, positive and negative, 12.9% 2021 Scotland Construction output increased by 2% in November, bringing the in-month can be seen through the sudden change in contract awards throughout South East 10.7% value above pre-Covid levels for the first time. This was achieved 2020. The hotel, leisure and sport sub-sector was the worst affected January in terms of value and number of contracts awarded with a decline of South West through strong infrastructure activity, as well as repair & maintenance Overview activity across all sectors. Private housing was also strong in November 43% and 52% respectively when compared with 2019. Regionally this Wales was felt most in the East of England. The sector faring better through 5.9% and continued its upward trajectory since the summer. West Midlands • Home 2020 is the healthcare sector with award values up 62% on those of 7.1% However aggregate output for 2020 remained significantly down on 2019 Yorkshire & Humber • About us 2019. Value wise, this had the most positive impact on the London 8.1% (see fig. 2.1). Housing has taken the largest hit, at 20% below last year’s 3.5% • Economic context region as the £156m contract for Phase 2 of the new extension to the levels – public housing especially is down, by 28%. The industrial and • The construction sector Evelina Children’s Hospital was awarded to Bouygues UK in July 2020 12,284 commercial sectors are 18% and 17% lower respectively. The sectors least contracts and the £149m contract for Phase 4 of Great Ormond Street Hospital awarded for London 10.1% impacted are infrastructure (-3%), RMI (-5%) and public non-housing (-7%). in 2020 8% Industry sectors Contract awards overview Jan-Nov Jan-Nov Year on year • Residential 2019 2020 % change The value of all construction contract awards in 2020, according to Construction sector 2.2 Source: Barbour ABI • Infrastructure Barbour ABI data, was £57.0 billion. This represents a decrease of 4.7% Total All Work 161.9 141.3 -12.7% Locations of contracts awarded • Commercial & retail on 2019 which in turn was marginally higher than 2018 (see fig. 2.3). All New Work 109.2 93.0 -14.8% • Hotel, leisure & sport Despite its challenges, contract award values remained fairly buoyant in • Industrial Public Housing 6.4 4.6 -28.1% 2020 however the number of contract awards declined by almost 16%. • Medical & health While this continues a downward trend in numbers of contract awards, Private Housing 37.3 30.2 -19.0% 80 14000 • Education as exhibited in recent years, the fall in 2020 is almost three times the 70 Infrastructure 21.4 20.7 -2.9% 12000 average decline seen within the 5-year review period. Public (ex Infrastructure) 9.8 9.1 -7.4% 60 The effects of Covid-19 have been felt across the construction industry. 10000 Private Industrial 5.5 4.5 -18.1% 50 Number of projec The ongoing impact concerns both the practical implications affecting 8000 materials, labour and timing and the pipeline implications of demand for Private Commercial 28.8 23.9 -17.1% 40

lue (£ billion) 6000 Va Barbour ABI, Hinderton Point, construction work. 30 Repairs & Maintenance 52.7 48.3 -8.4% ts Lloyd Drive, Cheshire Oaks, At the end of 2020 there were still many shortages across construction 4000 Public Housing 6.9 6.0 -12.8% 20 Cheshire, CH65 9HQ and manufacturing due to continued delays at ports. As we enter 2021, 2000 Private Housing 19.9 17.6 -11.5% 10 and although with a new Brexit deal, fears of rising inflation are high 0151 353 3500 Non-Housing 25.8 24.6 -4.8% 0 0 as businesses look to recover monies lost in 2020 as they hope for 2015 2016 2017 2018 2019 2020 consumer confidence to start to increase as the Covid-19 vaccine is [email protected] www.barbour-abi.com rolled out across the UK and consumers look to spend their money in Construction sector 2.1 Source: ONS Construction sector 2.3 Source: Barbour ABI @BarbourABI areas where they have been unable, such as travel and leisure. Construction activity by sector Construction activity trends

4 Construction sector

developments was awarded to John Sisk & Son in June 2020. Notably with the second highest proportion of contract awards by value in 2020 of 25% (£14.5bn) of contract awards, considerably higher than the 17% these contracts were awarded at the peak of the contract award boom with 12.9% share (£7.3bn), which is 7.0% lower than 2019. It was also the it held in 2019. The largest overall infrastructure award during 2020 was seen in June and July respectively as local authorities resumed work location for two of the top 15 contract awards for 2020, including Domis the £2bn RWE Renewables offshore wind farm development, Sophia, following the first nationwide lockdown of the year. Property Groups Albion Street Towers development. The Yorkshire and in Dogger Bank. The second being Transport for London’s Silvertown Humber region was the third largest in 2020, overtaking the South East in Tunnel, valued at £1bn, which was awarded to Riverlinx Consortium and Regions overview 2019, accruing 10.7% (£6.1bn) of all construction contract awards. The the third being the £500m Heads of the Valley Dualling Scheme awarded Regional analysis indicates that London had the highest share of contract largest contract award for the region was the £2bn RWE Renewables to Future Valleys. The sector accounting for the third largest share of awards in 2020 with 21.6% (£12.3bn), which compares to a 22.3% share offshore wind farm development, Sophia, in Dogger Bank. Another key contract awards in 2020 was the commercial sector with a share of 13% of awards in 2019 (see fig. 2.2 & 2.4). The three largest contracts for the contract award for the region was the £392m Costain Group Smart (£7.3bn) with stronger than expected offices activity, such as the £400m region in 2020 had a combined value of £1.9 billion, the largest of which Motorway development of the M62, Junctions 20-25 and Balfour Beatty’s Leadenhall Gotham City office development in London, awarded to Mace. was Transport for London’s Silvertown Tunnel, valued at £1bn, which was £355m A63 Castle Street improvements in Hull, both contributing heavily 2021 awarded to Riverlinx Consortium. Other key contract awards include the Expectations for 2021 towards contract awards within the infrastructure sector for 2020. £500m Berkeley Homes Plumstead – West Thamesmead development, We will see in 2021 how the changes experienced over the last year January and the £470 million Consort Place development, previously called Sub-sector performance overview will manifest as we adjust to living with the virus, and which cultural Alpha Square, by JRL Environmental. The North West was the region The residential sector maintains its position as the leading sector in 2020 shifts that have arisen through the various lock-down periods become Overview accounting for 36% (£20.3bn) of all construction contract awards, which embedded. Given the severeness of the third national lockdown and • Home is slightly lower than 2019 (see fig. 2.5). Leading residential contract the wider economic uncertainties, construction growth may be slower • About us -25% East Midlands -25% South East awards during the year included the £500m Berkeley Homes Plumstead – than many expect, certainly over the first half of 2021 until there is a • Economic context West Thamesmead development, the £470m JRL Environmental Consort level of immunity and movement restrictions can be eased. Higher levels -18% East of England -3% South West • The construction sector Place development, previously called Alpha Square and the £250m of construction activity remain heavily dependent on the government’s -8% London +7% Wales Carey Group Audley Square development, all London based projects. “build back better” strategy, which will increase investment significantly The second largest sector in 2020 was infrastructure which had a share in the infrastructure and public sectors. Industry sectors 0% North East +10% West Midlands • Residential -7% North West +51% Yorkshire & Humber • Infrastructure +7% Scotland Top 10 Projects Contract awarded 2020 • Commercial & retail • Hotel, leisure & sport Construction sector 2.4 Source: Barbour ABI • Industrial Proportional change in regional activity (YonY) Dogger Bank – Creyke Beck 1.4GW offshore wind farm • Medical & health 1 Value: £2,000m • Region: Yorkshire & Humber • Sector: Infrastructure • Education

Project name Value (£m) Region Sector

36% Residential 2 Silvertown Tunnel – Transport for London 1,000 London Infrastructure 10% Industrial 3 A465 Heads of the Valley dualling scheme sections 5 & 6 514 Wales Infrastructure 13% Commercial & retail 4 Plumstead, West Thamesmead – plots 2, 3, 4, 7 & 8 500 London Residential Barbour ABI, Hinderton Point, 6% Hotel, leisure & sport Lloyd Drive, Cheshire Oaks, % 5 Viking wind farm 457MW – Shetland Islands 500 Scotland Infrastructure 3% Medical & health Cheshire, CH65 9HQ 6 Consort Place, Alpha Square – South Quay 470 London Residential 8% Education 7 40 Leadenhall, Gotham City – office development 400 London Commercial & Retail 25% Infrastructure 0151 353 3500 8 M25 junctions 10-16 smart motorway 400 East of England Infrastructure [email protected] www.barbour-abi.com Construction sector 2.5 Source: Barbour ABI 9 M62 junctions 20-25 smart motorway 392 Yorkshire & Humber Infrastructure @BarbourABI Type of projects awarded 10 A63 Castle Street improvements 355 Yorkshire & Humber Infrastructure

5 Residential

6.8% Residential declines as project value falls by -33% East Midlands -22% East of England

12% and the number of awards falls by 15% -20% London 23.6% 3.7% +21% North East Northern England experiences growth in 2020 awards, while East Midlands and South East see large falls. 15.3% +31% North West Residential contract awards in 2020 were valued at £20.3bn, a decrease In the North West the largest contract award was the £150m City View 7.7% 2021 of 12% on 2019, and the number of awards also fell by 15% (see fig. 3.1). development - Regent Plaza in Salford. Other leading residential contract -12% Scotland

The pipeline appears to be weakening due to the deteriorating economic awards in the North West included the £100m Vinci Construction New -27% South East January picture combined with long-standing consumer affordability issues, Victoria development and the £100m Renaker Build Affinity Living 5.1% -7% South West and the potential withdrawal of the Help to Buy scheme. Meanwhile the Riverview development both in Manchester. 7.5% Overview 8.1% demand for housing has seen a great increase thanks to the stamp duty In the South East, the largest residential award was the £100m McAleer -29% Wales 2.3% • Home holiday and house buyers moving to suburban areas in search of more & Rushe development at The Landing in Maidenhead. Other leading -2% West Midlands indoor and outdoor space. As a result, house prices have experienced • About us residential contract awards in the South East included the £68m Wates 10.8% • Economic context their “strongest run” since 2004, according to Halifax. Construction Free Wharf, Shoreham By Sea development and the £60m -3% Yorkshire & Humber 9.1% • The construction sector Looking forward, demand for housing is likely to fall as the end of the Hill Partnerships Littlemore Park development in Oxford. Residential 3.2 stamp duty holiday nears, and the construction pipeline is looking Type of projects - performance overview Residential 3.3 weaker especially in London and the South East. Proportional change in Industry sectors While the Private Sector remained the largest type of project, it regional activity (YonY) Value of contracts by region Regions overview experienced a fall of 8% in 2020. Other areas, such as sheltered housing, Source: Barbour ABI Source: Barbour ABI • Residential There has been no major shift to the top three regions. Maintaining its halls of residence and local authority suffered the largest falls. However • Infrastructure position as the leading region, London accrued a share of 23% which the value of housing association awards increased by 30% and elderly • Commercial & retail • Hotel, leisure & sport is a decrease of 6% on 2019. The second largest region was the North persons and children’s homes was flat (see fig. 3.4). • Industrial

83% Private housing • Medical & health While house prices have experienced their strongest 25 3500 • Education run since 2004, the construction pipeline is looking slower, 4% Housing association 3000 especially in the South East. 20 2% Local authority 2500 % 2% Sheltered housing

15 Number of projec 2000 West which accounted for 15%, a significant increase from its 12% Hostels/halls of 5% share in 2019. The region in third place with a share of almost 11% of lue (£ billion) 1500 res./barracks Va 10 Barbour ABI, Hinderton Point, ts contract awards in 2020 was the South East, a decrease of just over 2% Elderly persons/ Lloyd Drive, Cheshire Oaks, 1000 4% compared with 2019 (see fig. 3.2 & 3.3). childrens homes Cheshire, CH65 9HQ 5 The largest residential contract award in London was the £500m 500 32.7% Arrows indicate change between 2019 increase Berkeley Homes Plumstead - West Thamesmead development. Other and 2020 in housing association 0151 353 3500 0 0 2015 2016 2017 2018 2019 2020 leading residential contract awards in London included JRL’s Consort [email protected] Place, previously Alpha Square, development and Carey Group’s Audley Residential 3.1 Source: Barbour ABI Residential 3.4 Source: Barbour ABI www.barbour-abi.com Square development. @BarbourABI Project value showing year on year Type of projects awarded

6 Residential

Top 10 Projects Contract awarded 2020

PID Project name & location Value (£m) Date Funding Contractor 1 2 12110330 London • Consort Place, Alpha Square – South Quay 470 Sep 2019 – Jan 2021 Private JRL Environmental Limited 3 10601547 London • Audley Square development 250 Jul 2020 – TBC Private Carey Group PLC Plumstead – West 4 12436839 Yorkshire & Humber • Heworth Green, York 200 Aug 2020 – Jun 2021 Private Tolent Construction Limited Thamesmead Plots 2, 3, 4, 7 & 8 5 11123974 West Midlands • Connaught Square, Birmingham – 940 flats & commercial units 150 Oct 2020 – Oct 2024 Private Colmore Tang Construction Limited 6 12235743 North West • City View development – Regent Plaza 150 Mar 2020 – Jul 2023 Private Swanside Group Developments PID: 12491792 2021 7 12485011 London • Goodmayes Railway Station – 1,280 apartments 128 TBC Private Weston Homes Limited Location: London Value: £500m 8 12202783 West Midlands • Exchange Square – phase 2 110 Jul 2020 – Feb 2024 Private McAleer & Rushe Limited January Date: Sep 2020 – Sep 2025 9 12108851 London • Marylebone Square, Moxon development – 79 flats, retail and restaurants 106 Nov 2020 – Jul 2023 Private Kier London Limited Overview Funding: Private 10 10556132 Yorkshire & Humber • Germany Beck – 677 houses 100 Jun 2017 – Jun 2027 Private Persimmon Homes Limited Contractor: Berkeley Homes East • Home Thames • About us • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Top 10 Key Clients Top 10 Key Architects Top 10 Key Contractors • Commercial & retail • Hotel, leisure & sport Company name Awards Value (£m) Company name Awards Value (£m) Company name Awards Value (£m) • Industrial 1 Barratt Homes 97 1,534 1 Persimmon Homes Limited 59 826 1 Persimmon Homes Limited 97 1,472 • Medical & health

2 Persimmon Homes Limited 97 1,487 2 Taylor Wimpey 35 711 2 Barratt Homes 95 1,451 • Education

3 Taylor Wimpey 77 1,432 3 McBains 7 581 3 Taylor Wimpey 80 1,440

4 The Berkeley Group 29 1,350 4 Lifschutz Davidson Sandilands 3 540 4 The Berkeley Group 31 1,373

5 Bellway Homes 69 1,061 5 Pegasus Group 33 512 5 Bellway Homes 68 1,064

6 Countryside Properties (UK) Limited 31 902 6 HTA Design Llp 15 499 6 Countryside Properties (UK) Limited 32 915 Barbour ABI, Hinderton Point, 7 Redrow Homes Limited 43 626 7 Chapman Taylor Partners 3 451 7 Morgan Sindall Plc 46 700 Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ 8 Bloor Homes 34 623 8 PRP Architects 29 421 8 Redrow Homes Limited 44 608 9 Peabody Trust 2 500 9 JTP 21 372 9 Bloor Homes 34 594 0151 353 3500 10 Far East Consortium International Limited 1 470 10 Sheppard Robson 5 371 10 Vistry Partnerships 32 578 [email protected] www.barbour-abi.com @BarbourABI

The ranking tables are compiled from Barbour ABI database and are based on the total value of contracts awarded over the previous 12 month period. The values represent the construction cost of each project. 7 Infrastructure

10.9% Infrastructure contact award values up 40% +19% East Midlands -10% East of England year on year +75% London 10% 3% -21% North East Large increases for West Midlands and Yorkshire while awards in the North West and North East fall. 11.7% -33% North West Infrastructure contract awards in 2020 were valued at £14.5bn, an The largest contract award in Yorkshire & Humber was the £2bn RWE 23.5% 2021 increase of 40% on 2019, although the number of contracts awarded Renewables offshore wind farm development, Sofia, at Dogger Bank. +61% Scotland declined by 12% (see fig. 4.1). The increase in contract award values Once completed it will be the world’s largest wind farm. +25% South East January 5.5% has helped turnround a two-year decline for the sector, however Other leading contract awards for the region were the £392m Costain +14% South West 2020 values remain significantly below 2015-17 levels. Covid-19 has Group Smart Motorway development of the M62, Junctions 20-25 and 8.4% Overview 7.6% highlighted the need for the government to address funding outside of Balfour Beatty’s £355m A63 Castle Street improvements in Hull. +64% Wales 5.2% London and the South East with the spending review of 2020 focusing • Home In Scotland, the £500m Viking Wind Farm in the Shetland Islands +206% West Midlands on the greater funding for regions outside of London, especially in • About us contributed to the region’s strong 2020 performance. 7.6% • Economic context areas such as Transport. With that in mind however, contract awards +242% Yorkshire & Humber 6.6% Type of projects - performance overview • The construction sector 2020 saw a large increase in utilities and civil engineering projects, Infrastructure 4.2 The Covid-19 pandemic highlights need for the increasing by 61% and 54% respectively (see fig. 4.4). At the level below Proportional change in Infrastructure 4.3 Industry sectors government to address funding outside of London and the this, the largest growth areas were Coastal, Water, Road and Power. regional activity (YonY) Value of contracts by region • Residential South East. Meanwhile, somewhat unsurprisingly there was a dramatic fall in the Source: Barbour ABI Source: Barbour ABI • Infrastructure value of new projects in the Air sector. • Commercial & retail remain prominent within areas such as civil engineering and utilities as • Hotel, leisure & sport local authorities push through the back log accrued during the first UK • Industrial lockdown period. • Medical & health Looking forward the sector is expected to hold up the construction 25 2000 • Education 10% Transport industry with the government’s “build back better” strategy. The level of ambition will impact the expectations for the industry as a whole as those 20 1600 7% Civic & public sectors sensitive to the wider economy are likely to remain depressed. % 38% Utilities

15 1200 Number of projec Regions overview 44% Civil engineering lue (£ billion) Thanks to a significant contract award in early 2020, Yorkshire and Va 10 800 ts 1% Miscellaneous Barbour ABI, Hinderton Point, Humber have changed the shape of the top three regions within the Lloyd Drive, Cheshire Oaks, 5 400 infrastructure sector for the year. Regional analysis indicates that Arrows indicate change between 2019 Cheshire, CH65 9HQ Yorkshire & Humber accounted for the largest share of infrastructure and 2020 60.9% 0 0 contract awards in 2020 at 24%, compared with only 7% in 2019. The 2015 2016 2017 2018 2019 2020 in increaseutilities 0151 353 3500 North West was the second largest region accounting for 12% of awards [email protected] which is a significant decline when compared to the 17% share it held in Infrastructure 4.1 Source: Barbour ABI Infrastructure 4.4 Source: Barbour ABI www.barbour-abi.com 2019. The third largest region was Scotland with 11% share of contract @BarbourABI Project value showing year on year Type of projects awarded awards (see fig. 4.2 & 4.3). 8 Infrastructure

Top 10 Projects Contract awarded 2020

PID Project name & location Value (£m) Date Funding Contractor 1 2 11996408 London • Silvertown Tunnel – Transport for London 1,000 May 2020 – Jan 2025 Private Riverlinx Consortium 3 11139119 Wales • A465 Heads of the Valley dualling scheme sections 5 & 6 513.7 Apr 2021 – Dec 2025 Public Future Valleys Dogger Bank Creyke Beck 4 11818618 Scotland • Viking wind farm 457MW – Shetland Islands 500 Aug 2020 – Aug 2024 Private RJ McLeod (Contractors) Limited 1.4GW offshore wind farm 5 12141946 East of England • M25 junctions 10-16 smart motorway 400 Mar 2021 – Mar 2024 Public Balfour Beatty Group Limited

PID: 11857688 6 12142662 Yorkshire & Humber • M62 junctions 20-25 smart motorway 392.3 Sep 2021 – Sep 2024 Public Costain Group Plc Location: Yorkshire & Humber 2021 7 11859850 Yorkshire & Humber • A63 Castle Street improvements 355 Mar 2020 – Mar 2025 Public Balfour Beatty Value: £2,000m Mainly January Date: Jan 2020 – Jan 2022 8 12147463 West Midlands • Wednesbury to Brierley Hill extension 343.6 Feb 2020 – Jan 2023 Midland Metro Alliance Public Funding: Private Contractor: TBC 9 12520600 West Midlands • M40 and M42 interchange – smart motorway 312 Aug 2020 – Sep 2024 Public BAM Nuttall/ Morgan Sindall JV (BMJV) Overview 10 12225846 North West • Thirlmere to West Cumbria Link Water Mains Project 300 Sep 2018 – Sep 2022 Private Farrens Roadbridge JV • Home • About us • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Top 10 Key Clients Top 10 Key Architects Top 10 Key Contractors • Commercial & retail • Hotel, leisure & sport Company name Awards Value (£m) Company name Awards Value (£m) Company name Awards Value (£m) • Industrial 1 Highways England 47 2,831 1 Jacobs Limited 4 209 1 BAM Construction 14 1,372 • Medical & health

2 Equinor ASA Limited 1 2,000 2 West Cumbria Mining Limited 1 175 2 Balfour Beatty Group Limited 29 1,209 • Education

3 SSE Renewables Developments 1 2,000 3 Alessandro Caruso Architecture and Interiors Limited 1 161 3 Costain Group Plc 5 949

4 Transport for London 3 1,212 4 Race Cottam Associates Limited 1 150 4 RJ McLeod (Contractors) Limited 5 547

5 Scottish & Southern Energy 2 560 5 UMC Architects 3 125 5 Future Valleys 1 514

6 The Welsh Government 2 515 6 Halliday Clark Limited 1 120 6 J Murphy Group/ Hochtief JV 1 400 Barbour ABI, Hinderton Point, 7 National Grid Property Holdings 1 400 7 Knight Architects 3 83 7 J Murphy & Sons Limited 12 369 Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ 8 West Midlands Combined Authority 2 400 8 Savills Plc 1 80 8 Carey Group PLC 2 353 9 Westminster City Council 1 350 9 Mott MacDonald Group Limited 4 77 9 Midland Metro Alliance 1 344 0151 353 3500 10 United Utilities Plc 3 301 10 Community Windpower Limited 1 75 10 VolkerWessels UK 11 328 [email protected] www.barbour-abi.com @BarbourABI

4.6% Commercial sector falls only 4% in 2020 -64% East Midlands +31% East of England thanks to strong offices contract awards -4% London 48.4% 2.9% -8% North East Increases in contract awards in the North West, East of England and the South West. 13.1% +85% North West Contract awards in the commercial sector valued £7.3bn, 4% lower One City Road redevelopment also in Manchester awarded to 3.8% 2021 than 2019’s £7.6bn (see fig. 5.1). The number of projects fell by 17% to Marshall Construction. -34% Scotland

1,100 from 1,400. This is broadly consistent with preceding years and The single remaining project valued over £100m not in the capital was -28% South East January 2.9% continues the long negative trend in the sector. the Santander Tech Hub Campus in Buckinghamshire in the South East, +28% South West The sector experienced a major shock this year with a huge increase in awarded to Byrne Group. 4.1% Overview 6.7% home working leaving offices unoccupied and retail stores shuttered for -40% Wales 1.1% Type of projects - performance overview • Home much of the year resulting in a surge in online purchases by consumers. Underneath the surface there are some interesting trends. Food retailing -6% West Midlands • About us 7.3% The sector has seen major impacts this year with a huge had a strong year as consumers switched purchases on food and drink +3% Yorkshire & Humber 5.1% • Economic context away from restaurants: the sector grew by 4% in 2020, but it constitutes • The construction sector increase in home working leaving offices unoccupied and only 5% of the overall value (see fig. 5.4). General retailing fell very Commercial & retail 5.2 retail stores shuttered for much of the year resulting in a significantly by 50% from 1.2bn to £600m, reflecting the difficulties Proportional change in Commercial & retail 5.3 Industry sectors surge in online purchases by consumers. arising from the Covid-19 pandemic. regional activity (YonY) Value of contracts by region • Residential Meanwhile those prophesising the death of the office may be slightly Source: Barbour ABI Source: Barbour ABI • Infrastructure premature: contract awards for offices held the sector up, totalling How embedded these changes become as the Covid-19 situation • Commercial & retail £5.9bn for the year compared to £5.6bn in 2019, an increase of 6%. improves will have a major bearing on the sector. Given the current climate • Hotel, leisure & sport Offices now account for 82% of the value in the sector. it would be brave to forecast a resurgence in commercial over 2021. • Industrial Regions overview • Medical & health 12 2000 • Education Across the country, several regions increased in contract value from 82% Offices

10 2019: the North West, East England and the South West. Meanwhile 1600 4% Shopping centres others fell significantly, led by the East Midlands, Wales, Scotland and 8 5% Food retailing % the South East. London unsurprisingly dominated the overall value of 1200 Number of projec awards with 48% (see fig. 5.2 & 5.3). 6 8% General retailing lue (£ billion)

Va 800

Most major projects were in London. The £400m Leadenhall Gotham ts Retail warehouse & 4 1% Barbour ABI, Hinderton Point, City office development, awarded to Mace was the single largest project garden centres Lloyd Drive, Cheshire Oaks, 400 2 in 2020. Other projects in the capital were the £250m Ropemaker Street Arrows indicate change between 2019 Cheshire, CH65 9HQ office development awarded to Skanska; the £200m Whiteleys Centre and 2020 6.1% 0 0 redevelopment and the Timber Square office and commercial project 2015 2016 2017 2018 2019 2020 inincrease offices 0151 353 3500 worth £195m, both awarded to Laing O’Rourke. [email protected] Elsewhere the Manchester Central office and apartments project on Commercial & retail 5.1 Source: Barbour ABI Commercial & retail 5.4 Source: Barbour ABI www.barbour-abi.com Albion Street valued at £300m awarded to Domis Property Group @BarbourABI Project value showing year on year Type of projects awarded contributed to the North West’s strong year, as well as the £120m 10 Commercial & retail

Top 10 Projects Contract awarded 2020

PID Project name & location Value (£m) Date Funding Contractor 1 2 12275717 North West • Manchester Central former Bauer Millett site – office/375 apartments 300 Feb 2024 – TBC Private Domis Property Group 3 12309344 London • 20 Ropemaker Street, London – office development 250 Feb 2020 – Oct 2022 Private Skanska Construction 40 Leadenhall, Gotham City 4 12175001 London • Whiteleys Centre redevelopment 200 Jan 2020 – Jan 2024 Private Laing O'Rourke Office development 5 12228642 London • Timber Square – office & commercial buildings 195 Aug 2022 – Nov 2025 Private Laing O'Rourke

PID: 12028153 6 12384507 South East • Santander – new tech hub campus 150 Sep 2021 – Dec 2024 Private Byrne Group Plc Location: London 2021 7 12527629 North West • One City Road redevelopment 121.4 Jan 2022 – Jan 2026 Private Marshall Construction (West Yorkshire) Limited Value: £400m Date: Mar 2020 – Nov 2023 8 1194 4986 London • 33 Charterhouse Place – shops/offices 120 Jan 2021 – Sep 2022 Private Mace Limited January Funding: Private 9 12339709 London • Eco Park House South – North London Heat & Power Project 106.6 Jan 2021 – Jul 2022 Public Vinci Construction Contractor: Mace Limited Overview 10 12139417 London • White City Place, plots 6, 7 & 8 – Gateway East, West and Central 103 Aug 2020 – TBC Private Sir Robert McAlpine Limited • Home • About us • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Top 10 Key Clients Top 10 Key Architects Top 10 Key Contractors • Commercial & retail • Hotel, leisure & sport Company name Awards Value (£m) Company name Awards Value (£m) Company name Awards Value (£m) • Industrial 1 Vanquish Properties (UK) Limited Partnership 1 400 1 MAKE Architects 3 722 1 Mace Limited 4 591 • Medical & health

2 Ask Property Development Limited 2 324 2 Foster & Partners 5 395 2 Skanska UK 5 422 • Education

3 Finchatton 3 302 3 Simpson Haugh & Partners 3 350 3 Domis Property Group 3 311

4 Meyer Bergman Property Investments 2 300 4 EPR Architects Limited 3 253 4 Laing O'Rourke 3 302

5 Old Park Lane Management Limited 1 250 5 Allies & Morrison Urban Practitioners 5 185 5 Sir Robert McAlpine Limited 5 298

6 Stanhope Plc 2 153 6 LOM Architecture and Design 4 184 6 Bowmer & Kirkland Limited 10 249 Barbour ABI, Hinderton Point, 7 Osborne and Company 1 150 7 Lifschutz Davidson Sandilands 2 141 7 Willmott Dixon Construction Limited 10 226 Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ 8 Helical Plc 4 147 8 Jon Matthews Architects 2 133 8 BAM Construction 8 201 9 Commercial Development Projects Limited 1 121 9 Corstorphine & Wright 8 121 9 Multiplex Construction Europe Limited 2 200 0151 353 3500 10 North London Waste Authority 1 107 10 Cooper Cromar 2 119 10 John Sisk & Son Limited 1 150 [email protected] www.barbour-abi.com @BarbourABI

10.2% Hotel and leisure sector sinks by 43% to the -50% East Midlands -74% East of England lowest level since 2011 -26% London 34.9% 3.1% -12% North East A rapid reversal for the sector due to the restrictions required to combat the Covid-19 virus. 12% -60% North West In 2020 the hotel, leisure and sport sector sank to its lowest level since As usual the largest projects were in London, which suffered a smaller 3.3% 2021 2011. The annual contract award value of £3.1bn was a fall of 43% fall than most regions of -26%. The Art’Otel in Hoxton was the -47% Scotland compared to 2019 (see fig. 6.1). The number of awarded projects also highest value project in the sector worth £180m and awarded to Gear -56% South East January fell by 33% to 843. This is a rapid shift compared to buoyant activity Construction. This was closely followed by the West India Dock Road 4.4% -24% South West experienced in 2017 and 2019 but is unexpected given the Covid-19 Hotel development of £151m, awarded to John Sisk and Son. Outside 5.7% Overview 3.2% restrictions which have forced hotels and leisure venues to close for the capital the largest projects awarded were the £70m Epic Aparthotel -51% Wales 3.8% much of the year. in Liverpool in the North West awarded to Newry Construction, and the • Home +13% West Midlands £70m Bath Street redevelopment on the island of Jersey in the South • About us While vaccines are currently being rolled out at pace, the Covid-19 virus 8.8% • Economic context is going to be with us for the long-term and we are going to have to learn West awarded to Camerons Ltd. -58% Yorkshire & Humber 10.5% • The construction sector to live with its continued presence. Those who expect a speedy return Type of projects - performance overview Hotel, leisure & sport 6.2 The type of project most impacted in 2020 were arenas & stadia, and Hotel, leisure & sport 6.3 Industry sectors The East of England, North West, South East, Yorkshire Proportional change in audience & exhibition centres, falling by 68% and 63% respectively (see regional activity (YonY) Value of contracts by region and Humber, Wales and East Midlands all suffered falls of over fig. 6.4). Restaurants were the least impacted, falling by 32%, with leisure Source: Barbour ABI Source: Barbour ABI • Residential 50% in 2020 demonstrating the size of the crash in the sector. centres falling by 33%. Hotels, which make up the majority of projects • Infrastructure moved in line with the sector overall, falling by 42%. • Commercial & retail • Hotel, leisure & sport to previous activity levels in the spring or summer may be disappointed. • Industrial Those sectors that require movement of people and groups of people 54% Hotels/motels • Medical & health coming together have been hardest hit and are likely to be required to 7 1800 Public houses/ • Education 7% operate under greater restrictions than in the past. The hotel and leisure 1600 6 restaurants sector is therefore unlikely to return to previous levels over 2021. 1400 5 3% Arenas/stadia 1200 %

Regions overview Number of projec 4 1000 26% Leisure centres Across Great Britain, all regions suffered falls in activity apart

lue (£ billion) 800 3 Audience/exhib from the West Midlands which saw an increase of 13% to £180m Va 7% ts 600 centres Barbour ABI, Hinderton Point, (see fig. 6.2 & 6.3). The region was boosted by the £60m 2022 2 Lloyd Drive, Cheshire Oaks, 400 Community/day 3% Commonwealth Games project at the Alexander Stadium in 1 Cheshire, CH65 9HQ 200 centres Birmingham, awarded to McLaughlin & Harvey, as well as the £38m 67.6% 0 0 Arrows indicate change between 2019 2015 2016 2017 2018 2019 2020 decrease Wolverhampton Civic Hall extension and refurbishment awarded to and 2020 in arenas/stadia 0151 353 3500 Wilmott Dixon. [email protected] Other regions suffered large falls. The East of England, North West, Hotel, leisure & sport 6.1 Source: Barbour ABI Hotel, leisure & sport 6.4 Source: Barbour ABI www.barbour-abi.com South East, Yorkshire and Humber, Wales and East Midlands all suffered @BarbourABI Project value showing year on year Type of projects awarded falls of over 50% in 2020 demonstrating the size of the crash in the sector. 12 Hotel, leisure & sport

Top 10 Projects Contract awarded 2020

PID Project name & location Value (£m) Date Funding Contractor 1 2 12228983 London • West India Dock Road – 66 flats & hotel 151 Jan 2020 – Jan 2023 Private John Sisk & Son Limited 3 12507607 London • Nine Elms – 600 bed Hampton by Hilton hotel 76 Oct 2020 – Jan 2024 Private McAleer & Rushe Limited Art'otel London Hoxton 4 12443028 South West • Bath Street redevelopment – hotel, retail & 145 flats 70 Feb 2020 – Feb 2022 Private Camerons Limited Shell & core 5 12179188 North West • Epic ApartHotel – Baltic Triangle 70 TBC Private Newry Construction

PID: 11811767 6 12165917 Scotland • India Building – Virgin Hotel 65 Oct 2020 – Mar 2023 Private Thomas Johnstone Limited Location: London 2021 West Midlands • Birmingham 2022, Commonwealth Games – Alexander Stadium 7 12351635 60 Jul 2020 – Nov 2021 Public McLaughlin & Harvey Value: £180m redevelopment Date: Jun 2020 – Jun 2021 January 8 12265119 London • Eastern & Oriental Hotel – Landmark House 51.2 Jul 2020 – Jul 2022 Private Eastern & Oriental Plc Funding: Private Contractor: Gear Construction 9 12500703 London • Talgarth Road – Project Alma 50.5 May 2020 – Aug 2023 Private McAleer & Rushe Overview 10 12033587 South West • Retallack Resort development 50 May 2020 – Feb 2022 Private Eko Custom Homes Limited • Home • About us • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Top 10 Key Clients Top 10 Key Architects Top 10 Key Contractors • Commercial & retail • Hotel, leisure & sport Company name Awards Value (£m) Company name Awards Value (£m) Company name Awards Value (£m) • Industrial 1 Dominvs Group 3 257 1 Squire and Partners 3 267 1 McAleer & Rushe Limited 3 196 • Medical & health

2 Art'otel 1 180 2 Simpson Haugh & Partners 1 151 2 Gear Construction 1 180 • Education

3 Rockwell Property 1 151 3 Rogers Stirk Harbour and Partners 2 138 3 John Sisk & Son Limited 2 176

4 Cheshire West & Chester Council 2 72 4 Sheppard Robson 1 100 4 ISG 10 101

5 India Buildings Limited 1 65 5 ICA Architects & Designers 4 96 5 Willmott Dixon Construction Limited 5 100

6 Birmingham City Council 1 58 6 AHR Building Consultancy Limited 2 82 6 McLaughlin & Harvey 2 93 Barbour ABI, Hinderton Point, 7 Eastern & Oriental Plc 1 57 7 Axis Mason Limited 2 75 7 Farrans (Construction) Limited 1 81 Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ 8 Aria Resorts Group 1 50 8 Space & Place 4 71 8 Camerons Limited 1 70 9 Drift Properties Limited 1 41 9 LMF Jersey Investment Limited 1 70 9 Thomas Johnstone Limited 4 70 0151 353 3500 10 LCR Property 1 40 10 Ove Arup & Partners International Limited 1 58 10 Vinci Construction 1 70 [email protected] www.barbour-abi.com @BarbourABI

6.8% Industrial contract awards fall 23% to +9% East Midlands -15% East of England

£5.5bn in 2020 -66% London 3.6% 7.7% -8% North East Warehousing now constitutes 50% of all industrial awards as new production projects tumble. 10.6% -31% North West The value of contract awards in the industrial sector fell to £5.5bn in The largest industrial project in 2020 was the £270m Jaguar Land Rover 7.9% 2021 2020, a fall of 23%. The number of awards fell by 11% to 1,218 projects M42 warehouse and distribution centre in the East Midlands, awarded +45% Scotland

(see fig. 7.1). While this is a significant fall, it is in line with 2016 and 2017 to Winvic Construction. This was closely followed by the £250m -37% South East January values: activity was stronger in 2018 and 2019. BritishVolt Electric Vehicle Battery Plant in Northumberland in the North 17.3% -14% South West As with other commercially sensitive sectors, the many headwinds West awarded to ISG. Elsewhere the £200m Amazon distribution hub 7.5% Overview 11.4% facing the economy have forced industrial contract awards down in in Wiltshire in the South West also awarded to ISG rounded up the +12% Wales 2.6% • Home 2020. Private investment fell significantly over the year due to the top three. -33% West Midlands • About us Covid-19 pandemic and the uncertainty arising from the UK’s exit 16.7% Type of projects - performance overview • Economic context from the EU. Looking forward, some of that uncertainty may have -34% Yorkshire & Humber 8% Across the industrial sector, the ongoing trend of warehouse demand • The construction sector cleared with the Christmas Eve agreement and the rolling out of intensified as customer demand moved online and businesses acted to Industrial 7.2 viable Covid-19 vaccines. Underlying structural changes away from insulate themselves from Brexit-related uncertainty (see fig. 7.4). Overall Proportional change in Industrial 7.3 Industry sectors awards were broadly consistent year-on-year with £2.7bn compared to The demand for warehouses intensified as customer regional activity (YonY) Value of contracts by region £2.8bn in 2019. Warehouse activity now constitutes 50% of all industrial Source: Barbour ABI Source: Barbour ABI • Residential demand moved online and businesses acted to insulate new awards, a milestone for the sector. Conversely factories and • Infrastructure themselves from Brexit-related uncertainty. Warehouse production activity suffered large falls: Heavy industry fell significantly by • Commercial & retail activity now constitutes 50% of all industrial new awards. 40%; labs and R&D also fell by 46% and food production fell by 41%. • Hotel, leisure & sport • Industrial

23% Heavy industrial • Medical & health production and towards warehousing intensified over the course of the 8 1800 • Education 16% Light industrial year. It is therefore much too early to tell if there is substance behind 7 1600 the government’s aspiration for a shift towards a high technology and 1400 Food production/ 6 4% innovation industrial revolution. 1200 cold stores % 5 Number of projec 1000 49% Warehouse/storage Regions overview 4

lue (£ billion) 800 Va Most regions saw a fall in activity in 2020 (see fig. 7.2 & 7.3). Scotland 3 6% Laboratories/R&D ts 600 Barbour ABI, Hinderton Point, saw the largest increase of 45% however constituted only 7% of all 2 Agricultural Lloyd Drive, Cheshire Oaks, 400 1% activity. Wales and East Midlands saw smaller increases of 12% and 9%; buildings Cheshire, CH65 9HQ 1 200 in all other regions awards reduced year-on-year. The largest reduction Arrows indicate change between 2019 51.5% 0 0 2015 2016 2017 2018 2019 2020 increase was London (by two-thirds); other regions falling by around a third were and 2020 in agricultural buildings 0151 353 3500 the North West, South East, West Midlands and Yorkshire. The areas [email protected] with the most activity overall were the East Midlands, South East, East Industrial 7.1 Source: Barbour ABI Industrial 7.4 Source: Barbour ABI www.barbour-abi.com England and the North West. @BarbourABI Project value showing year on year Type of projects awarded

14 Industrial

Top 10 Projects Contract awarded 2020

PID Project name & location Value (£m) Date Funding Contractor 1 2 12539081 North East • Britishvolt – Gigaplant electric vehicle battery plant 250 Jul 2021 – Oct 2023 Private ISG 3 12357715 South East • Littlebrook Power Station – Amazon distribution unit 200 Apr 2020 – Apr 2022 Private ISG Jaguar Land Rover, 4 12485199 South West • Amazon distribution unit – Symmetry Park, phase 6 114 Sep 2020 – Nov 2021 Private Buckingham Group Contracting Limited junction 11, M42 Warehouse & distribution 5 12254926 West Midlands • Jaguar Land Rover – Logistics Operations Centre (LOC) 85 Jan 2020 – Feb 2021 Private Winvic Construction Limited centre 6 12399495 North East • Gosforth Metro Depot, Cheswick Drive – train maintenance facility 70 Jul 2020 – TBC Private VolkerFitzpatrick Limited 2021 7 12453797 North West • Unit 2, Icon World Logistics Hub – warehouse, offices & parking option 1 70 Sep 2020 – May 2021 Private Winvic Construction Limited PID: 12347789 8 12461858 East Midlands • Magna Park, Building 8 – logistics centre 69.4 May 2020 – Feb 2022 Private TSL Projects January Location: East Midlands Caddick Construction Limited Caddick Civil Value: £270m 9 12420516 North West • Logistics North, Cutacre, F2/H – warehouse & distribution 67.5 Oct 2020 – Jul 2022 Private Engineering Overview Date: Sep 2020 – Sep 2022 10 12394914 South East • Harwell Campus – Vaccine Manufacturing & Innovation Centre 65 Apr 2020 – Jun 2021 TBC Glencar Construction Limited Funding: Private • Home Contractor: Winvic Construction • About us Limited • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Top 10 Key Clients Top 10 Key Architects Top 10 Key Contractors • Commercial & retail • Hotel, leisure & sport Company name Awards Value (£m) Company name Awards Value (£m) Company name Awards Value (£m) • Industrial 1 IM Properties PLC 2 305 1 UMC Architects 18 621 1 Winvic Construction Limited 14 806 • Medical & health

2 Power by Britishvolt Limited 1 250 2 Michael Sparks Associates 10 398 2 ISG 4 464 • Education

3 Bericote Properties Limited 2 224 3 Stephen George & Partners 13 262 3 Buckingham Group Contracting Limited 7 349

4 St Modwen Developments Plc 9 164 4 Pininfarnia 1 250 4 Readie Construction Limited 14 231

5 First Panattoni Limited 3 157 5 AJA Architects LLP 13 237 5 TSL Projects 8 215

6 Gazeley Properties Limited 3 137 6 Ashton Smith & Associates 6 220 6 A & H Construction & Development 10 145 Barbour ABI, Hinderton Point, 7 Stoford Properties Limited 2 122 7 PHP Architects 5 123 7 Robertson Group Limited 8 111 Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ 8 Tritax Group 4 122 8 Ridge & Partners LLP 3 92 8 Glencar Construction Limited 7 106 9 Segro Plc 7 120 9 Webb Gray and Partners Limited 4 79 9 Parkway Construction MK Limited 6 79 0151 353 3500 10 Prologis UK Limited 3 116 10 Roberts Limbrick Architects 4 71 10 Caddick Construction Limited 9 76 [email protected] www.barbour-abi.com @BarbourABI

8.6% Healthcare contracts increase by 62% as -64% East Midlands -8% East of England awards total £2bn +269% London 38.2% 1.9% -19% North East Sector sees an increase in investment to fight the Covid-19 pandemic. 11.4% +40% North West The healthcare sector experienced a large increase in the value of to John Sisk & Son. London had seven of the top ten projects in 2020, 1.8% 2021 contract awards to £2.0bn in 2020, this was a 62% increase on 2019 underlining the skew of spending towards a small number of regions. +69% Scotland

(which saw mostly small scale refurbishments and extensions of existing This will hopefully be reversed over the coming years if the levelling up -32% South East January facilities) and a 13% increase in the number of projects (see fig. 8.1). agenda is to be achieved. 1.5% +56% South West This is the largest annual value since 2015. The most active months Outside the capital, the South West had the largest project: the £61m 4.2% Overview 4.3% for contract awards were in April, June, July and September which Musgrove Park Hospital Surgical Centre project awarded to Kier. Next +83% Wales 8.5% • Home correlated with the demand for essential facilities at the outbreak was the Royal Alexandra Hospital in Clwyd, Wales worth £40m that was -19% West Midlands of the pandemic and later release of pent up demand once the first • About us also awarded to Kier. 5% • Economic context lockdown eased. +36% Yorkshire & Humber 14.7% Type of projects - performance overview • The construction sector Looking forward the short term need for higher Covid-19 spending Most types of projects saw large increases in 2020. Somewhat Medical & health 8.2 should remain, but at lower levels as the country hopefully moves into a surprisingly, private hospitals experienced the largest increase, growing Medical & health 8.3 less harmful phase of the pandemic over the course of 2021 as vaccines Proportional change in Industry sectors by 643% compared to 2019 – though the previous year’s value was regional activity (YonY) Value of contracts by region exceptionally small. Public hospitals grew by 80% with smaller increases Source: Barbour ABI Source: Barbour ABI • Residential Spending was uneven: over a third of contract value was for surgeries and nursing homes (see fig. 8.4). • Infrastructure concentrated in the capital, an increase of 269%. • Commercial & retail • Hotel, leisure & sport • Industrial are rolled out and a degree of immunity in the population is achieved. • Medical & health Over the longer term the sector should remain relatively buoyant as the 2.5 500 Hospices, nursing & 9% • Education government has made major pledges to invest in healthcare. We are yet psychiatric homes to see anything significant materialise in the planning pipeline. 2.0 400 9% Private hospitals % 63% Public hospitals

Regions overview 1.5 300 Number of projec

The London region saw the highest increase in contract awards: over Surgeries, health &

lue (£ billion) 18% a third of contract value was concentrated in the capital, with a 269% Va 1.0 200 medical centres ts Barbour ABI, Hinderton Point, increase totalling £735m. Other regions with the largest 2020 increases 1% Veterinary services Lloyd Drive, Cheshire Oaks, 0.5 100 were the South West with awards valued at £282m (+56%), North West Cheshire, CH65 9HQ Arrows indicate change between 2019 at £219m (+40%) and Wales at £163m (+83%). Some regions however 642.6% 0.0 0 and 2020 saw falls: the Midlands, South East, North East and East of England (see 2015 2016 2017 2018 2019 2020 in privateincrease hospitals 0151 353 3500 fig. 8.2 & 8.3). [email protected] There were two projects awarded over £100m in 2020 were both in Medical & health 8.1 Source: Barbour ABI Medical & health 8.4 Source: Barbour ABI www.barbour-abi.com London: the £156m Guys and St Thomas Triangle Building awarded to @BarbourABI Project value showing year on year Type of projects awarded Bouygues, and the £149 Great Ormond Street Phase 4 project awarded 16 Medical & health

Top 10 Projects Contract awarded 2020

PID Project name & location Value (£m) Date Funding Contractor 1 2 12224816 London • Great Ormond Street Hospital – phase 4 149 Jan 2022 – Jan 2025 Mixed John Sisk & Son Limited 3 12211967 London • Springfield Hospital modernisation – phase 3 – forensic and non-forensic wards 74 Feb 2020 – Feb 2022 Mixed Sir Robert McAlpine Limited Guys and St Thomas NHS Integrated Health Projects (Vinci / Sir Robert 4 12507304 London • Maudsley Hospital – Children's and Young People Building 65 Jan 2021 – Jan 2023 Public Evelina 2 – Triangle McAlpine – joint venture

Building 5 12344108 South West • Musgrove Park Hospital phase 2 – surgical services centre 61 Dec 2021 – Dec 2025 Private Kier Western Limited

PID: 12443303 6 12226927 London • Royal Brompton Hospital – Sydney Wing extension – phase 2 – P22 60 Sep 2020 – Sep 2024 Public Kier Construction – Major Projects 2021 Location: London 7 12452295 London • The Royal Marsden Hospital – Oak Cancer Centre 50 Sep 2020 – Jun 2023 Public ISG Value: £156m January 8 12521408 Wales • Royal Alexandra Hospital – North Denbighshire Community Hospital 40 Jan 2021 – Jun 2023 Public Kier Northern Date: Jul 2020 – Jul 2024 Funding: Public 9 12469285 London • Guys and St Thomas NHS – Evelina 2 – block 4a 40 Jul 2020 – Jul 2023 Public Morgan Sindall (Construction) Plc Overview Contractor: Bouygues UK Limited 10 12389663 South West • Gloucestershire Royal Hospital – Acute Care 39.5 Jul 2020 – TBC Private Kier Construction • Home • About us • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Top 10 Key Clients Top 10 Key Architects Top 10 Key Contractors • Commercial & retail • Hotel, leisure & sport Company name Awards Value (£m) Company name Awards Value (£m) Company name Awards Value (£m) • Industrial 1 Guys and St Thomas' NHS Foundation Trust 3 196 1 BDP 11 432 1 Kier Construction Limited Building UK 28 370 • Medical & health

2 Christie Hospital NHS Trust 5 154 2 Hawkins Brown Architects 1 156 2 Integrated Health Projects 12 185 • Education

3 Great Ormond Street Hospital for Children NHS 1 149 3 Ryder Architecture 3 89 3 Bouygues Group 1 156

4 South West London and St Georges NHS Trust 1 74 4 Gilling Dod Architects 6 88 4 John Sisk & Son Limited 1 149

5 Taunton and Somerset NHS Foundation Trust 4 71 5 CF Moller Denmark A/S 1 74 5 BAM Construction 7 147

6 Camden and Islington Community NHS Trust 1 70 6 Murphy Philipps Architects Limited 4 70 6 Sir Robert McAlpine Limited 5 118 Barbour ABI, Hinderton Point, 7 The Department Of Health 39 62 7 IBI Group 7 64 7 Vinci Construction 4 85 Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ 8 Royal Brompton & Harefield NHS Trust 1 60 8 Mackie Ramsay & Taylor 1 56 8 Robertson Group Limited 3 81 9 NHS Grampian 1 56 9 ADP 4 54 9 Interserve Plc 9 76 0151 353 3500 10 Royal Marsden Hospital NHS Trust 2 51 10 DAY Architectural 12 53 10 Morgan Sindall Plc 3 70 [email protected] www.barbour-abi.com @BarbourABI

16.4% Education sector falls for 6th consecutive -58% East Midlands -21% East of England year to £4.4bn -21% London 11.4% 4.2% +46% North East A more equitable distribution of awards across the country with Scotland gaining the largest share. 9.2% -15% North West The value of Contract awards in the education sector fell by 14% in 2020 The Newcastle University Stephenson Building redevelopment 6.2% 2021 from £5.1bn to £4.4bn (see fig. 9.1). The number of awards also fell, by in the North East was the single largest project in 2020 (with the +36% Scotland

17%, from 1,211 to 1,010 projects. This is the 6th straight year of decline, aforementioned Darwin redevelopment), worth £90m and awarded to -17% South East January falling from £7.8bn in 2014. Bowmer & Kirkland. The largest school project was the £64m Fitzalan 4.1% -34% South West With the government’s renewed focus on “building back better”, and a High School redevelopment in South Glamorgan, Wales. 7.9% Overview 13.4% desire to level up, it is hoped that over the coming years sentiment will turn +71% Wales 5.7% Type of projects - performance overview • Home into the material investment in education that will give the country the skills The type of projects awarded in 2020 have also changed. While -36% West Midlands • About us to achieve this. However, there is nothing in the pipeline yet to suggest this 14.6% large-scale university projects gain the headlines, compared to 2019 • Economic context will happen in 2021. With the focus on digitisation and ensuring schools +15% Yorkshire & Humber 6.9% schools have been more robust, falling to a lesser extent, especially • The construction sector are Covid-19 secure there may be an increase in contract awards that are nurseries. Meanwhile the value of new awards for universities have been Education 9.2 not traditional “bricks and mortar” as we enter the new year. hit harder: falling by 19% while training centres have reduced by 42%. Proportional change in Education 9.3 Industry sectors Regions overview Secondary schools remain the largest type of project, followed by regional activity (YonY) Value of contracts by region 2020 saw some significant changes in the distribution of projects across universities and primary schools, but similarly to regions, the value has Source: Barbour ABI Source: Barbour ABI • Residential the country. Regions with increases in awards included Wales, the North been more fairly spread compared to 2019 (see fig. 9.4). • Infrastructure East, Scotland and Yorkshire (see fig. 9.2 & 9.3). Meanwhile the East • Commercial & retail • Hotel, leisure & sport Midlands saw the largest fall, with the South West and West Midlands • Industrial falling by a third. Other regions experienced smaller falls. 2.4% Nurseries • Medical & health Scotland became the country with the largest overall share in 2020, 8 2500 18.5% State primary • Education thanks in part to three major university projects: the £90m University 7 32.4% State secondary of Edinburgh Darwin redevelopment awarded to Balfour Beatty, the 2000 6 Private, church 7.5% % 5 schools & colleges While large-scale university projects gain the headlines, 1500 Number of projec compared to 2019 schools have been more robust, falling to 4 State colleges lue (£ billion) 29.7%

Va 1000 & universities 3 a lesser extent. ts Barbour ABI, Hinderton Point, 6.3% Special schools 2 Lloyd Drive, Cheshire Oaks, 500 Cheshire, CH65 9HQ 1 Trade colleges 3.2% £86m Adam Smith Business School at the University of Glasgow & training centres 24.3% 0 0 2015 2016 2017 2018 2019 2020 increase awarded to Multiplex, and the £65m University of Strathclyde National Arrows indicate change between 2019 in special schools 0151 353 3500 Manufacturing Institute awarded to Morrison Construction. and 2020 [email protected] Scotland was followed by the South East, the East of England and then Education 9.1 Source: Barbour ABI Education 9.4 Source: Barbour ABI www.barbour-abi.com London. Overall the share of projects across the country was more @BarbourABI Project value showing year on year Type of projects awarded equitable than in 2019. 18 Education

Top 10 Projects Contract awarded 2020

PID Project name & location Value (£m) Date Funding Contractor 1 2 12021252 Scotland • University of Edinburgh – Darwin redevelopment 90 May 2020 – Jan 2022 Public Balfour Beatty Construction Services UK 3 12192660 Scotland • University of Glasgow – Adam Smith Business School & Postgraduate Hub 86 Jul 2020 – TBC Private Multiplex Newcastle University 4 12131326 North West • Manchester Metropolitan University – Science & Engineering project 82 Apr 2021 – Apr 2024 Private Bowmer & Kirkland Limited Stephenson Building Mainly 5 12444186 Scotland • University of Strathclyde – National Manufacturing Institute Scotland 65 Nov 2020 – Aug 2023 Morrison Construction redevelopment Public

PID: 12439467 6 12448657 Wales • Fitzalan High School redevelopment 64 Mar 2021 – Nov 2022 Public Kier Western Limited 2021 Location: North East 7 12345964 Scotland • Winchburgh Village – 2 high schools & primary school 60 May 2020 – May 2022 Public Morrison Construction Value: £90m January 8 12255745 Scotland • King's Buildings Nucleus – Nucleus Student Hub – stage 4a 48 May 2020 – May 2025 Mixed Wates Construction Limited Date: Jul 2020 – Jul 2023 Funding: Private 9 12238643 London • Wren Academy & One Degree Academy 45 TBC – Apr 2022 Public Bowmer & Kirkland Limited Overview Contractor: Bowmer & Kirkland 10 12398160 West Midlands • University of Birmingham – Molecular Sciences Building phase 1 40 Jan 2021 – Jul 2022 Public Morgan Sindall • Home Limited • About us • Economic context • The construction sector

Industry sectors

• Residential • Infrastructure Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Jan 2020 – Dec 2020 Top 10 Key Clients Top 10 Key Architects Top 10 Key Contractors • Commercial & retail • Hotel, leisure & sport Company name Awards Value (£m) Company name Awards Value (£m) Company name Awards Value (£m) • Industrial 1 Department For Education 53 584 1 Stride Treglown Limited 18 154 1 Morgan Sindall Plc 49 458 • Medical & health

2 University of Edinburgh 4 160 2 AHR Building Consultancy Limited 21 142 2 Bowmer & Kirkland Limited 20 420 • Education

3 University of the Arts London 1 120 3 Bond Bryan Partnership 13 142 3 Kier Construction Limited Building UK 46 391

4 University of Glasgow 3 117 4 BDP 5 134 4 Willmott Dixon Construction Limited 26 215

5 Manchester Metropolitan University 4 112 5 Jestico + Whiles 6 123 5 Galliford Try Construction 19 210

6 Newcastle University 1 90 6 Allies & Morrison Urban Practitioners 1 120 6 BAM Construction 15 169 Barbour ABI, Hinderton Point, 7 Cardiff County Council 3 74 7 Ryder Architecture 4 103 7 Wates Construction Limited 7 135 Lloyd Drive, Cheshire Oaks, Cheshire, CH65 9HQ 8 Leeds City Council 6 69 8 Norr 5 95 8 Interserve Plc 17 126 9 Buckinghamshire County Council 12 68 9 Ostick & Williams Limited 1 90 9 Mace Limited 1 120 0151 353 3500 10 West Lothian Council 2 67 10 Feilden Clegg Bradley Studios (FCB) 1 90 10 Multiplex Construction Europe Limited 4 119 [email protected] www.barbour-abi.com @BarbourABI