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News archive - May 2013

Switch of focus as healthcare construction industry weathers the storm

Switch of focus as healthcare construction industry weathers the storm

Despite a lack of capital funding leading to fewer large hospital schemes being approved, opportunities will still be created for the UK healthcare construction industry as the emphasis switches to the primary and community care sectors, experts predict.

While the large hospital schemes that have kept the industry going for the best part of a decade will all but dry up over the coming months, there will still be contracts to be won, according to forecasters.

Construction analysis agency, Glenigan, reports there are currently just over 780 UK hospital projects in the pipeline of various sizes. Of these just 15 are for major new hospitals worth more than £100m, with just one of those having already started on site. A total of 176 of the hospital schemes are worth more than £5m, with 111 involving refurbishment. All the rest are lower-cost contracts mainly involving the refurbishment or extension of existing facilities.

The primary care sector is expected to prove particularly lucrative as GPs modernise the estate to coincide with the take-over of NHS commissioning duties. Glenigan reports around 820 health centre and surgery projects in the pipeline, with 71 already started on site. Most of these are in the £1m-5m band.

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