BCUK Construction Market Analysis
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NOVEMBER REPORT CONSTRUCTION MARKET ANALYSIS 25 - NOV - 2020 The below information has been collated by BCUK from the latest release from the Office of National Statistics & other partners including REC and national media sources. We have pulled out key data points for the construction sector & wider economy for your interest. Should you require any further detail or your organisation would like access to other market analyses, please get in touch at [email protected] 15.5% 1.1% According to the lates6t 3%ONS data, the UK economy grew by 15.5% in the third quarter. Q3 September While this is positive news, its important to remember that Q2 experienced a drop of 19.8%. Growth Growth Recent news has been focused on successful Output in September was slow, with only 1.1% vaccine trials, which suggests stronger recovery growth. National recovery is likely to be ahead in 2021, but economic activity will still be furthered hindered by another lockdown affected by rising unemployment as well as ongoing in November, social distancing measures that reduce output. Economic Context Construction output grew by 2.9% for the 5th Contributions to Growth 2.9% consecutive month, but the slowest growth of that time. Record growth for Q3 due to record growth in 33.3% 41.7% both new work (40.8%) and repair and Repair & maintenance (43.7%) Maintenance Level of output 7.3% below Feb 2020 figures. New Work Only infrastructure & private new housing have 7.3% returned to a2b1o%ve their pre-pandemic levels of output 66.7% New orders grew by a record 89.2% in Q3, 89.2% following the record quarterly fall in Q2 of 54%. Q3 returns to a level comparable with 2019, increasing by 0.6% in the quarter-on-year series. Construction Output Healthcare The North West was the leading 2.9% region in October with 19.8% of Infrastructure 22.2% awards and 120 projects. Residential 36.8% 3 of the Top 10 projects for October are in the North West Education 7.8% Metallurgical Coal Project, Woodhouse Colliery Leisure & Sport Cumbrian deep coal mine 4% Value: £175m Sector: Infrastructure Commercial & Retail Industrial 14.3% 12.1% One City Road Redevelopment Office development Types of Projects Awarded Value: £121m Sector: Commercial/Retail The residential sector took top position with Logistics North, Cutacre, F2/H 36.8% contract awards and 202 projects. Warehouse & Distribution Value: £68m Sector: Industrial This was followed by infrastructure with 22.2% of awards and 131 projects, and commercial & retail with 14.3% of awards and 148 projects. Projects Awarded The residential sector maintains in pole position for projects awarded, with infrastructure and commercial and retail following. Here are the top 5 movers & shakers of the sectors for 2019-2020. Residential Infrastructure Commercial & Retail 1. Persimmon Homes Ltd 1. BAM Construction 1. Mace Ltd Awards: 104 Value: £1662M Awards: 13 Value: £1355M Awards: 5 Value: £606M 2. Barratt Homes 2. Balfour Beatty Group Ltd 2. Skanska UK Awards: 101 Value: £1561M Awards: 35 Value: £1260M Awards: 5 Value: £512M 3. The Berkeley Group 3. Costain Group PLC 3. Sir Robert McAlpine Ltd Awards: 34 Value: £1492M Awards: 5 Value: £938M Awards: 7 Value: £368M 4. Taylor Wimpey 4. RJ McLeod (Contractors) Ltd 4. Domis Property Group Awards: 75 Value: £1328M Awards: 5 Value: £547M Awards: 3 Value: £311M 5. Bellway Homes 5. VolkerWessels UK 5. Laing O'Rourke Awards: 72 Value: £1171M Awards: 15 Value: £458M Awards: 3 Value: £302M Top Key Contractors Should you require any further detail or your organisation would like more market analyses, please get in touch at [email protected] .