Key construction sectors poised for recovery, finds industry monitor

Planning activity in the key sectors is showing signs of an upturn in the economy according to construction industry monitor, Glenigan.

Analysis by Glenigan has found that there is a significant volume of schemes in the UK expected to start in the next 12 months in the key sectors of housebuilding, civil engineering and office construction work.

Glenigan’s construction market data found that nearly 45,000 high value private housing developments (over £250,000 in value) are due to start in the 12 months to mid October 2024. Over 20,000 office schemes are also set to begin construction in the same period.

Despite the government’s cancellation of the Northern leg of HS2 earlier this month, funding is set to be redirected into smaller infrastructure scale projects across the country worth a collective £36 billion. The construction sector monitor also recorded over 1,000 projects under £100 million were set to start in the next 12 months, while civil engineering starts in the three months to the end of September 2023 rose 48% on the previous quarter.

Among the major construction projects in the North West expected to start in the next 12 months are a £92.5 million office scheme, The Republic, in Manchester’s Mayfield Quarter on the edge of the city centre, and a £23 million link road connecting the M58 and M6 to the A49 in Wigan.

The optimistic outlook for key construction sectors followed a further quarter of an overall decline in starts for the industry according to Glenigan’s September analysis of the sector, with the North West suffering a fall in project-starts against both the preceding three months and previous year. The Glenigan Index also highlighted the uncertainty and possible delays in planning approvals that may come with a 2024 general election and change of government.