Healthcare construction projects up 8%, according to industry figures

Glenigan report reveals strengthening of market, but warns impact of Brexit and Russian/Ukraine conflict continue to impact projects

The construction sector has seen an overall 9% increase in projects starts in the last three months
The construction sector has seen an overall 9% increase in projects starts in the last three months

The outlook for the healthcare construction sector is looking up after the number of project starts increased by 8% in the three months to May compared to the previous quarter.

The figures are provided in the June edition of Glenigan’s Construction Industry Forecast, which showed that the value of underlying work starting on site across all construction sectors increased by 9% in the last three months.

However, this figure remains 19% lower than a year ago across all sectors and remains unchanged for the healthcare sector.

Commenting on the findings, Glenigan’s senior economist, Rhys Gadsby, said “This month we have seen a slight uptick in project-starts, and this increase in work commencing on-site suggests much-desired signs of recovery after almost a year of decline.

“I am hopeful that the June Index signifies a turning point for the construction industry following a very-challenging period.”

But he warned of continuing issues with ‘external influences’, particularly the fallout from the Russia-Ukraine War and Brexit, which continue to send shockwaves through UK business and industry, with supply chains tightly squeezed throughout the first half of 2022.

“Inevitably, this has led to building product and manpower shortages as well as soaring prices with construction material inflation rising around 25% year on year,” the report states.

“This has resulted in significant delays to projects commencing on-site, as start dates are pushed back to accommodate higher material and labour costs.”

Gadsby adds: “Sharp increases in labour and material costs have presented a challenging few months for the industry, but a near 10% increase in the value of project starts is a welcome change of direction, offering a promising outlook for the second half of 2022.”

Related Stories
Construction industry comes together to make history
UK manufacturers and design teams have been at the forefront of the country’s response to the coronavirus outbreak.
The healthcare building forum has been postponed to 18th & 19th March 2021
The healthcare building forum has been postponed to 18th & 19th March 2021 so It is not too late to register for your complimentary place and join a wide range of companies. If you are from the NHS trust, council, contractor, healthcare lead architect, care home designer, working on existing healthcare projects and looking to extend your supply chain.
Morgan Sindall Construction wins £19m contract at Royal Devon and Exeter Hospita
Morgan Sindall Construction has won a £19m contract to deliver an extension and programme of improvements to the emergency department at Royal Devon and Exeter Hospital. Royal Devon and Exeter NHS Foundation Trust selected its main contractor for the scheme through the Southern Construction Framework; a collaborative delivery vehicle run by Hampshire and Devon County councils. Plans were submitted to expand the hospital’s busy A&E last year, due to significant service pressures.  The new build will hel...
Work due to start on Salford trauma hospital
NCA chief executive, Raj Jain, said: “This important facility has been many years in the planning with a number of our local, regional and national partners, and it’s great to now be just weeks away from the official start date of construction.” Rob Bailey, BAM’s healthcare construction manager, adds: “We have worked extensively on the design and programme with the trust to understand fully what its requirements are and to focus completely on what matters to them – providing a high-quality building in wh...
New leadership for new hospitals projects
  The Government’s commitment to build 40 new hospitals by 2030 has been boosted by the appointment of Natalie Forrest to oversee the construction programme. Forrest has worked in the NHS for over 30 years and is a registered nurse. She most recently led the construction and operationalisation of NHS Nightingale London in response to the COVID-19 pandemic. Alongside this role, she was also Chase Farm Hospital’s chief executive, where she successfully led operational and clinical teams to design an inno...

Login / Sign up