Pockets of growth for public sector construction projects

Against a backdrop of Brexit and ongoing economic uncertainty, the number of public sector construction projects in both the UK and Ireland has continued to flounder over a three year period. And yet, according to Millstream, some regions are beginning to bounce back.

Private construction companies in the East Midland, South West and Yorkshire are experiencing a telling rise in tenders available, all of which bodes well for the future. Millstream’s statistics indicate a whopping 42% rise in public sector construction tenders throughout Yorkshire, while the East Midlands and South West have similarly risen by 19% and 16% respectively.

What’s changed? Millstream say continued investment in the so-called ‘Northern Powerhouse’ and ‘Midlands Engine’ – in addition to firmer assurances over HS2 and a tranche of new City Deals – are likely to be the “key drivers” here. Public sector spending in such schemes as the Great Yorkshire Way in Doncaster, Northampton University’s much-anticipated waterside campus and a new school development in Devon have each contributed to the number of tenders locally.

According to Millstream, devolved powers and investment in key infrastructure is absolutely critical if this trend is to continue.

“The significant rise in public sector construction tenders in Yorkshire, East Midlands and the South West underlines that confidence is returning to the construction sector albeit in specific areas,” said Penny Godfrey, General Manager at Millstream. “It shows how important the public sector is as a target for the construction sector. There are clearly opportunities even if the wider construction environment is still in recovery mode after the hard years of the recession.

“While the national picture for public sector construction contracts may remain flat, this surge in regional confidence in the construction sector is heartening.”

Sweco – a Leeds-based engineering, environment and design consultancy – has first-hand experience of this upward trend, having taken part in a number of major infrastructure schemes including an upgrade to the A1M and the Saltend Wastewater Treatment Works in Yorkshire.

Max Joy, Managing Director of Sweco UK, had this to say: “Public sector construction contracts have played a key role in the strength of our UK business. The Government’s recent announcement of additional investment in infrastructure looks set to increase the number of opportunities in the region.

“We are continuing to see high demand for our services and expertise, and look forward to delivering more projects that will contribute to infrastructure development and growth across Yorkshire and the UK.”

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