The value of infrastructure contracts in the East of England totalled more than £380 million in January, accounting for 40.8 per cent of the overall contracts awarded for the sector - an increase of 35 per cent from the same month last year. This is largely attributable to key projects such as the Boreham Interchange contract awarded this month at a value of £200 million, and the £80 million redevelopment to Stansted Airport.
These latest figures, taken from Barbour ABI’s Economic & Construction Market Review, highlight encouraging growth in the infrastructure construction sector UK-wide, with the value of projects totalling £1.7 billion in January based on a three month-rolling average – a 6.5 per cent increase on the same month last year.
On the findings of the report, Michael Dall, lead economist at Barbour ABI, commented: “While infrastructure construction in the East of England has been boosted by two huge contracts awarded this month, there is a consistent pipeline of significant projects including the £12 million solar farm in Reydon, the £6 million redevelopment to Bedford Bus Station and plans for an anaerobic digestion plant near Beccles worth £5 million.
“In terms of future outlook, the region should continue to benefit from £100 billion worth of investment that the Government committed to infrastructure construction from 2015 to 2020. Projects to look out for include the A5-M1 new link road, Lower Thames Crossing and the devolvement of part of the West Anglia rail franchise to the Mayor of London.”
John Bridge OBE, chief executive of the Cambridgeshire Chambers of Commerce, added: “We welcome this positive news for the construction industry and it’s a picture that is reflected locally. Our members are reporting an upturn in new contracts and improved projected turnover for the next quarter but that isn’t translating into improved profitability, with price pressures still creating challenges for the industry. The news that jobs will be created is positive but what construction firms need is confidence that growth will be sustainable."
The Economic & Construction Market Review is a monthly report designed to give valuable, current insight into UK construction industry performance. The Review is compiled from Barbour ABI’s records of construction data for every UK planning application, and key indicators, such as the Office for National Statistics’ Construction New Orders data.
The Economic & Construction Market Review is published monthly and is available to download at www.barbour-abi.com/zones/Economic_Construction_Market_Review_February_Premium.pdf
About Barbour ABI:
Barbour ABI is a leading provider of construction intelligence services. With a team of in-house research specialists and a dedicated lead economist, it provides commercially relevant insight and unique analysis of trends and developments within the building and construction industry.
Barbour ABI is the chosen provider of industry data and indicators for Government bodies including the Office for National Statistics and the UK Government’s Construction and Infrastructure Pipeline, which outlines future construction and infrastructure projects where public funding is agreed. Barbour ABI also provides data for independent organisations, such as the Construction Products Association.
Barbour ABI is part of global events-led marketing services and communications company, UBM, and is headquartered in Cheshire Oaks, Cheshire.
For more information, please visit www.barbour-abi.com
About UBM:
UBM helps businesses do business, bringing the world’s buyers and sellers together at events and online, as well as producing and distributing news and specialist content. Its 5,500 staff in more than 30 countries are organised into expert teams which serve commercial and professional communities, helping them to do business and their markets to work effectively and efficiently.
For more information, go to www.ubm.com; follow us on Twitter at @UBM_plc to get the latest UBM corporate news.
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