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News archive - September 2014

Future looks bright for UK construction sector

Future looks bright for UK construction sector

The future looks brighter for the UK healthcare construction market, with news that the Government will plough billions of pounds into enhancing infrastructure over the next five years.

Whitehall chiefs have published their updated National Infrastructure Pipeline, which shows that planned infrastructure investment has now increased up to 2020 and beyond – worth £383billion across all sectors over the coming years.

Published in an online portal, the forecast is designed to increase the visibility of future infrastructure investment in both the public and private sectors.

In this latest edition, the number of projects is 533, with £1.2billion being spent in the 2014/15 financial year and £1.06billion in 2015/16. Between 2016-2020 construction spend within the sector is expected to be around £1.4billion, while a further £4.36m is in the pipeline for 2020 and beyond.

Healthcare makes up quite a high proportion of the overall funding, with only the pipelines for flood defence work, housing and regeneration, and police force estate improvements worth more.

Following the publication, construction intelligence specialist, Barbour ABI, has converted the figures into a handy interactive map. Its lead economist, Michael Dall, told hdm: “This latest pipeline update will come as very positive news for the construction industry.

“With the pipeline representing more than £380billion of planned infrastructure investment over the coming years, the construction industry will receive a much-needed boost just as the latest output and new contract figures seem to indicate that the high rate of growth is slowing.

“While there have been concerns recently that the industry is becoming too reliant on the housing sector, this pipeline will offer greater visibility and understanding of the potential opportunities available in the infrastructure sector too.”

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