Housing and supermarkets lead recovery

Grant Prior 16 years ago
Share

Residential schemes and supermarket developments led the private-sector recovery as construction starts rose 10.5% during the first quarter of this year.

The value of supermarket work was double that of a year ago and private housing project starts were 41% up on the same period in 2009.

Experts at Glenigan are now hoping the private sector recovery will offset the anticipated cuts in public sector work. The firm’s figures track all projects under £100m.

Economics director Allan Wilen said: “The construction industry will be looking to a continued rise in private sector work over the coming months with public sector expenditure cuts looming.”

Continued weakness in the industrial and office sectors was partially offset by hotel and Olympic related schemes.

Additionally, the underlying value of health and education projects increased compared to a relatively weak period in the three months to April 2009 despite a slowing in government funded projects.

Civil engineering project starts re-bounded following a weak start to 2010. The Glenigan Civil Engineering Index was down four per cent in April 2010, compared to 36%  and 24% in February and March 2010 respectively.

Wilen said “Civil engineering was boosted by an increase in utility projects, however growth was tempered by fewer road and rail projects.”

Regionally, project starts increased considerably in the Midlands and North East. Northern Ireland, the south west and south east of England were the only regions to record a fall in project starts against the same period a year ago.

Looking ahead Mr Wilen said: “A further strengthening is anticipated over the forecast period (to Q2 2012). Weak industrial and office sectors will remain a drag on project starts over the next few months, however conditions in the industrial and commercial property markets have moved off the low point reached in the first half of 2009.

“We can see that housebuilders are keen to capitalise in recent improvements in market conditions, although weak household earning and consumer confidence combined with limited mortgage availability will restrict the pace of recovery in new house sales and project starts during the remainder of 2010.”

Latest news

Torsion Construction files administration notice

Directors at £165m-turnover construction arm battle cash flow crisis
17 hours ago

Civils firms upbeat on pipeline despite tough first quarter

Firms count on stronger workloads despite activity slide at the start of 2026
5 hours ago

OCS strikes £3.1bn deal to buy Mitie

Takeover creates £8.5bn UK-headquartered FM powerhouse
8 hours ago

5,000-home Royal Docks mega scheme set for 2028 start

Arada names professional team for landmark London waterfront scheme
8 hours ago

Kier closes in on £12bn order book after strong year

Strong second-half trading lifts order book 8%
9 hours ago

Skills cards stats show youngsters turning to construction

Significant jump in CSCS cards issued to workers under 25
9 hours ago

Green light for Derby city centre regeneration scheme

Planning approval paves way for demolition of Assembly Rooms building
9 hours ago

Muse picked to spearhead Bletchley station quarter revival

East West Rail station plan to drive town centre renewal
1 day ago

RED lands £42m Bristol and Bath office double

Firm to deliver Bristol's biggest office revamp alongside Bath HQ project
1 day ago

Severn Trent reveals timetable for £25bn deal race

Suppliers put on alert for AMP9, AMP10 and AMP11 frameworks
1 day ago

Railpen wins consent for London major office retrofit

Smithfield Market 120,000 sq ft office retrofit cleared for delivery
1 day ago

Tower Hamlets opens bidding on £31m social housing build

Former Bethnal Green coincil building to be cleared for 53 new homes block
1 day ago

Ethical Power contracting arms go into administration

Renewable energy specialist restructures
1 day ago

£33m race begins for Caerphilly bus and railway interchange

Main works to start in spring next year following a two-stage conest
1 day ago

Experts join forces for Sizewell piling works

Trio of specialists form Geotechnical Sub-Alliance at nuclear site
4 days ago

MOD maps out £26bn Project Royal Oak naval bases rebuild

Decade-long programme sets out dock, waterfront and engineering projects at Clyde, Devonport and Portsmouth
4 days ago

John F Hunt bags £20m enabling works deal at giant data centre

Site preparation contract for 41 acre site which will house ten data halls
4 days ago

Board suspends Alumasc CEO after trading update

Conduct investigation overshadows resilient year and stronger pipeline
4 days ago

Amey hires HS2 veteran to drive consulting growth

Jonathan Goring joins as executive advisor to expand consulting at home and overseas
4 days ago

Hill go-ahead for London New Era Estate rebuild

Work to start on 208-home tower block scheme in Hackney
4 days ago

Solihull backs 228-home Habiko mansion block build

Holbeche Place regeneration phase 2 signed off as Graham moves on phase 1
4 days ago

O’Rourke confirms major expansion of manufacturing capacity

Contractor doubles down on industrialised construction drive
5 days ago

Wates regional MD and director exit suddenly

Managing Director David Wingfield and Commercial Director Kyle McGrory have left the company with immediate effect
5 days ago

South Wales roads bodies launch £270m highways framework

Six-year framework covers highways, bridges and surfacing work
5 days ago

Construction output falls for second month

New build activity gains wiped out by housing RMI slump
5 days ago

Crest sinks to £35m loss as lender talks drag on

Net debt doubles to £142m as house builder extends covenant waiver
5 days ago

Plan for triple-tower Stratford scheme on former Sphere site

Hallmark reveals 47-storey cluster to unlock long-vacant Olympics site
5 days ago

SIG set for cost-cutting drive as materials market stalls

At least £100m target for efficiency improvements
5 days ago

Barratt claws back £38m from subcontractors in legacy job claims

House builder to double building safety spend to £300m this year
6 days ago

Chief executive Mark Lawrence leaves TClarke

CEO leaves with immediate effect after 40 years at the busines
1 week ago