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Regional Construction Hotspots in Great Britain 2019 Report

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Regional Construction Hotspots in Great Britain 2019 Report UK Construction Hotspots REPORT 2019 To navigate just click on buttons below and they will take you directly to your chosen section. Home Introduction Overview Key regional hotspots Regional Construction Key regional coldspots REGION FOCUS… Hotspots in Great Britain 2019 East of England East Midlands London North East A forward-looking analysis of construction North West Scotland activity by region and by sector. South East South West Wales West Midlands BROUGHT TO YOU BY… Yorkshire & Humber CASE STUDY… Northern Powerhouse Methodology About the CPA BROUGHT TO YOU BY UK Construction INTRODUCTION… Hotspots About Barbour ABI and the CPA REPORT 2019 To navigate just click on buttons below and they will take you directly to your chosen section. Home Introduction Barbour ABI is a leading provider of construction intelligence services. With a team of in-house research The Construction Products Association (CPA) is the UK’s leading voice to promote and campaign for construction Overview specialists and a dedicated chief economist, it provides commercially relevant insight and unique analysis of product manufacturers and suppliers. Key regional hotspots trends and developments within the building and construction industry. This vital UK industry defines our built environment, providing the products and materials needed for homes, Key regional coldspots Our dedicated construction companies database is flexible to your needs. We gather the intelligence you need offices, shops, road, railways, schools and hospitals. The sector directly provides jobs for 337,000 people across to target decision makers, at the precise moment they require your services. We are proud to play a part in 24,000 companies and has an annual turnover of more than £60 billion. REGION FOCUS… significantly increasing the amount of new business won for clients across the UK. We are committed to raising the profile of our industry and members’ businesses, helping grow the market and East of England Barbour ABI is the chosen provider of Construction New Orders estimates data to the ONS, and partner of the reducing regulatory risk. We champion our members’ interest across both manufacturing and construction East Midlands HM Government Infrastructure and Projects Authority in providing the National Infrastructure and Construction industries. Because we are product-neutral, the CPA speaks for the construction products industry as a whole London Pipeline, which outlines future construction and infrastructure projects where public funding is agreed. with one strong, united voice. North East North West We provide data for all sectors, including: We provide our members with unique expertise and support, including: Scotland • Residential • Industrial • Tracking and assessing government policies • Representing our members across industry-wide South East • Infrastructure • Medical & health • Interpreting those policies and regulations and organisations and alliances South West Wales • Commercial & retail • Education providing expert advice • Supporting and lobbying policy makers in the UK and EU to develop effective, evidence-based West Midlands • Hotel, leisure & sport • Producing authoritative economic, technical and sustainability publications policies and solutions Yorkshire & Humber • Leading consensus with members and the wider Find out more at www.barbour-abi.com or follow us on Twitter @BarbourABI CASE STUDY… construction supply chain on major issues Northern Powerhouse Find out more at www.constructionproducts.org.uk or follow us on Twitter @CPA_Tweets Methodology About the CPA BROUGHT TO YOU BY UK Construction OVERVIEW… Hotspots The UK Construction Industry REPORT 2019 To navigate just click on buttons London is the UK’s largest regional economy and construction gross activity in 2017. Cities in the West Midlands and Yorkshire and the below and they will take you directly Construction GVA in 2017 £m value added (GVA) in 2017 (the latest available Humber, and a county in the South West complete the top ten list, to your chosen section. London 19,280 from the ONS) was £19.3 billion, accounting underscoring the fact that there are large areas of activity beyond Home South East 17,888 for 17.3% of the UK construction total the traditional engines of growth (see fig. 1.2). Introduction East of England 12,730 (see fig. 1.1). With a construction This piece of work seeks to analyse construction contract Overview GVA of £17.9 billion, the South East North West 9,904 awards at a high level of regional granularity, firstly to Key regional hotspots accounts for a similar proportion of UK South West 9,410 identify pockets of growth or contraction – hotspots and Key regional coldspots construction (16%), which can lead to Scotland 8,671 coldspots – in regional activity and secondly, to offer a bias in perceptions of growth and activity West Midlands 8,145 forward-looking indication of growth by region and by sector. REGION FOCUS… in other regions of the country. Indeed, Yorkshire and the Humber 7,547 East of England when thinking about regional construction East Midlands 7,001 activity, the relative size of the London and East Midlands Yet again London was the UK’s largest Wales 3,813 South East economies, populations and London regional economy and construction gross North East 3,069 concentration of the services-based industry, North East it is easy to think that the majority of construction value added (GVA) in 2017 at £19.28 billion FIG 1.1 North West work is taking place in these regions. Source: ONS Scotland By using ONS regional economic data, it becomes clear One of the challenges in using such granular Construction GVA in 2017 – Top 10 £m Region South East that despite its overall dominance, there were only three data is the large lags in reporting of official Hertfordshire 3,293 East of England South West London sub-regions in the top ten largest local authority output data, as evidenced by the most West Surrey 1,791 South East Wales recent macroeconomic data published Berkshire 1,767 South East by the ONS being for 2017. By West Midlands In 2017 Hertfordshire still recorded the using data on contract awards Camden and City of London 1,533 London Yorkshire & Humber largest value of construction activity over 2018, this will highlight Westminster 1,517 London construction work ahead, Devon CC 1,489 South West CASE STUDY… ★ rather than reporting on Oxfordshire 1,472 South East Northern Powerhouse areas for construction activity in 2017: Westminster, activity is past periods that may Birmingham 1,412 West Midlands Camden and City of London, and Harrow and not be relevant. Harrow and Hillingdon 1,404 London Methodology Hillingdon. Similarly, three sub-regions in the South Yorkshire and Leeds 1,404 About the CPA East feature in this ranking. However, it is Hertfordshire, the Humber in the East of England, which was recorded as the FIG 1.2 sub-region with the largest value of construction Source: ONS BROUGHT TO YOU BY CONTINUED UK Construction CONTINUED…THE UK CONSTRUCTION INDUSTRY Hotspots REPORT 2019 What is a hotspot or a coldspot? region in terms of contract awards in 2018, pushed up by three industrial warehouses contract awards worth a combined £132 million, in a region To navigate just click on buttons Hotspots and coldspots seek to identify regions where contract awards with total contract awards of £234 million (see fig. 1.4 & 1.5). Large growth below and they will take you directly in 2018 were significantly above or below previous years, highlighting to your chosen section. pockets of activity of contraction in construction activity over the near- Home term horizon. Peterborough recorded the largest growth in contract Introduction As discussed, some regions of the country host more construction awards in 2018, with an increase of 581% Overview activity than others. Birmingham, for example, was the eighth largest in Key regional hotspots terms of construction GVA in 2017. In 2018, it was also in the top 10 largest Key regional coldspots regions in terms of the value of contracts awarded (see fig. 1.3). However, rates or contractions themselves do not necessarily signify a hotspot or this was 76% below the value of contracts awarded in the previous year coldspot, which is a key consideration for regions hosting small volumes of REGION FOCUS… and slightly below the long-term average, so whilst it is a large source of construction work, where growth rates on an annual basis can be volatile. construction work, it is not a hotspot region experiencing growth. East of England The analysis in this publication compares the value of construction East Midlands There may also be regions that have recorded strong growth in the value contracts awarded in 2018 with the average value of contract awards London of contracts awarded, but account for a small proportion of overall over the last four years across the residential, commercial and activity. For example, Peterborough is in the bottom 20 in terms of infrastructure sectors. If 2018 contract values are significantly above North East construction activity (£231 million in 2017), but was the fastest-growing the long-term average, then this is considered a hotspot. Conversely, a North West Scotland South East The value of contract awards in 2018 – Top 10 £m Annual % change Growth in contract awards in 2018 – Top 10 £m Annual % change South West Lincolnshire 2,406 153% Peterborough 234 581% Wales Inverness & Nairn and Moray, Badenoch & Strathspey 2,145 526% Inverness & Nairn and Moray, Badenoch & Strathspey 2,145 526% West Midlands
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