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News archive - March 2015

Construction Pipeline shows hope for healthcare sector

Construction Pipeline shows hope for healthcare sector

New government figures show there are a total of 520 projects in the pipeline in the healthcare sector, worth £995.39m to industry during the current financial year.

Despite concerns that the number of commissions is falling due to the recent econmic unrest, uncertainty due to the upcoming General Election, and the slow-down of major hospital projects, the updated Construction Pipeline reveals some hope for the future.

The document, compiled by construction intelligence specialists, Barbour ABI, is designed to help businesses prepare for planned government spending streams.

Overall, the report reveals investment of £127billion in infrastructure and estate across all sectors to 2020 and beyond, rising in value by 10% over the six months to January this year.

Major projects on the list include the HS2 high-speed rail link, an £11billion nuclear waste management facility, and more than £12billion on education construction across the UK.

The healthcare sector is also providing opportunities, with a total of 520 projects in the pipeline in 2014/15, and more than £79m already planned from 2020 onwards, providing hope to those targeting the medical marketplace.

Projects already underway include 24-hour assessment and treatment facilities at Farnham Road Hospital in Surrey, the redevelopment of Bristol Royal Infirmary, a decant project at the regional centre for teaching, trauma and tertiary care at Brighton and Sussex University Hospitals NHS Trust, the Dover Hospital and St Bernard’s Hospital revamp projects, and the redevelopment of West Cumberland Hospital.

Schemes awaiting appointment or approval include plans for new theatres at Whipps Cross Hospital, the Whittington Hospital maternity and neonatal redevelopment, new accommodation for district mental health services in Manchester and Wigan, improvement works at Kettering Hospital, a new medium-secure unit at Maghull, the reconfiguration and refurbishment of Cannock Community Hospital, and the redevelopment of Berwick Infirmary.

Commenting on the figures, Simon Mahoney, managing director of Barbour ABI, said: “The Government is construction’s single largest client, providing over 40% of annual spend in the UK, therefore it’s imperative that this publicly-funded money is accessible and outlined clearly, allowing businesses to plan around the many thousands of projects within the construction pipeline.”

The pipeline is also helping to drive savings within the construction sector, which the Government is demanding.

Last year, the figures reveal, the Department of Health alone saved £60m on building projects – the equivalent of buying 67 new MRI scanners. Across all sectors, savings of £840m were achieved.

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