Contract awards to suppliers hit year-high in July

Grant Prior 10 months ago
Share

The value of contracts awarded to suppliers reached a year-high last month with 7.6bn of work in July according to industry expert Barbour ABI’s latest analysis.

A 184% monthly increase in the industrial sectors, including manufacturing, warehouses, and military projects was the driving force behind the uptick, alongside a positive month for infrastructure.

Infrastructure contributed £2bn in contract awards, mainly from renewable power generation, and the commercial sector also had a good month with £1.1bn awarded in large office projects.

Infrastructure also sawan exceptional month for planning approvals, posting £5.1bn, thanks to the £2.6bn Hornsea Project 4 and other renewable generation projects, contributing to £13.bn of approvals in total – up from £8.4bn in June

The industrial sector saw its highest planning approval values in over a year, and the hotel and leisure sector saw the highest since January 2021 thanks to the Gateshead Quay Arena redevelopment.

Residential construction continued to struggle as contract awards remained low at £1.8bn – 15% down compared to 2022.

Barbour ABI Chief Economist Tom Hall said: “Our latest analysis shows some respite after a difficult period for the construction industry.

“However, given the uncertainties in the wider economy, these improved levels are unlikely to continue over the coming months. Meanwhile, the residential sector, hammered by high-interest rates and inflation, continues to struggle to keep its head above water.

“Planning applications, which are a strong indicator of future output, saw a very weak end result of £7.5bn per month in Q2, the lowest quarterly result since the first Covid-19 lockdown.

“Overall planning application activity was 23% lower in Q2 compared to last year. We also saw a 45% decrease month on month in infrastructure planning applications in last month’s figures, so this sector is unlikely to prop up the industry for much longer.”

For more construction market data click here.

Latest news

Stonehenge tunnel hit by another legal delay

Court upholds latest appeal against £1.7bn scheme by campaigners
8 hours ago

Plans go in for huge Olympic Park construction hub

Bow Goods Yard could deliver 3.5m tonnes of materials a year to sites across London
13 hours ago

40% affordable homes target for Labour’s new towns

Labour pledges to select new town sites by end of first year
11 hours ago

Plan for £100m Liverpool Baltic station

Construction work could begin next year
16 hours ago

Surgo Construction went down owing £4.5m

Biggest creditor is Bellway Homes after dispute on housing job
15 hours ago

Vistry seals £157m West London housing deal

Around 575 homes to be built at Merrick Place scheme in Ealing
15 hours ago

Streamlined Watkin Jones returns to profit in first half

Multi-room specialist sees secured work pipeline hit £1.4bn
15 hours ago

Bellway hires ex-brickie as group construction chief

James Griffin to oversee move to the Future Homes Standard and timber frame.
16 hours ago

Persimmon under fire for delays to £10m relief road

West Suffolk Council serves Breach of Condition Notices after timetable slips again
16 hours ago

BAM wins £33m Kent secondary school job

Replacement Swanley academy to be built at live school site
16 hours ago

Aluminium cladding specialist collapses

Melton Mowbray-based firm worked for several main contractors
2 days ago

Brickwork contractor Lee Marley returns to profit

Affordable and rental homes demand lifts brickwork contractor
2 days ago

Housing contractor Durkan suffers second year of losses

More fire safety provisions tip firm into £3.9m loss
2 days ago

Farrans makes breakthrough on tricky tunnel job

Tunnel under Tees latest part of new £155m water pipeline job
2 days ago

Heidelberg buys aggregates and earthworks specialist B&A

Latest deal follows acquisition of Mick George
2 days ago

Flagship biodiversity net gain scheme flawed

NAO warns Government's flagship green development scheme at risk of failure
5 days ago

Plan in for £3bn Lincolnshire mega data centre

3.3m sq ft Humber Tech Park will be one of Europe's largest data centres
5 days ago

Green light for Digbeth 1,300 homes scheme

Warner’s Fields scheme to start with excavation and landscaping of the River Rea
5 days ago

£210m M3 Junction 9 upgrade gains consent

VolkerFitzpatrick to start work in early 2025 on Winnall roundabout, near Winchester
5 days ago

United Living wins 14-year L&Q homes repairs deal

Trafford housing upkeep deal worth £205m
5 days ago

£400m Lewisham resi-led scheme advances

Land deal paves way for Amro Partners' 1,000-home London scheme
5 days ago

McLaren gets go-ahead for Grade II listed Leeds student scheme

Springfield House to be revamped and two new wings added
5 days ago

Piling giant to fit people alarms on all rigs

Cementation Skanska upgrades site safety systems
5 days ago

Vistry to make £800m profit after subcontractor cost cuts

House builder bullish about shareholder returns after asking suppliers for discounts
6 days ago

Shareholders approve £2.5bn Barratt and Redrow merger

Final hurdle is for the competition regulator to approve the deal.
6 days ago

Green light for £80m Leith waterfront revamp

Build-to-rent homes and student accommodation scheme to be built
6 days ago

Tilbury Douglas clears Interserve legacy jobs to return to profit

Revenue tops £500m in first year as standalone contractor
6 days ago

Land deal paves way for Manchester civil service office hub

Government buys five acres at former Central Retail Park
6 days ago

Speller Metcalfe wins Wolverhampton library upgrade

Full works are due to start in the autumn
6 days ago

Skills shortage puts big infrastructure projects at risk

Government failing as an intelligent client and now over-reliant on consultancies
7 days ago

Contractor services