Positive Prospects for Construction
Posted on Wednesday, January 23, 2019 by Venn Group — No comments
2018 was a year of ups and downs for the Construction industry. In January, the industry took on the impact of the liquidation of Carillion, followed shortly after by the now infamous ‘Beast from the East’, which greatly hindered construction activity. However, Stan Murray-Hession, Director of our Construction and Engineering division, is confident of a positive 2019 for the sector:
The outlook for the construction sector is for a strong 12 months of growth in 2019 in both the private housing sector, commercial property sectors and multi use facilities, with construction output set to grow by an estimated 2.7% year on year.
Prospects for the north of England are increasingly encouraging. Growth here has outstripped that of south of the country since the inception of the Northern Powerhouse. One has to imagine that, given the level of new construction projects is still growing, this is set to continue.
With regards to major construction projects that will take centre stage in 2019, of course HS2 will have an impact. This will bring growth to the Midlands region, but admittedly we are unlikely to see major growth from this in the North straight away. However, there are other projects on the horizon that will have national benefits. The start of CP6 in the rail sector in April will see major infrastructure and capital project investment during Q2/3 and 4 of 2019, with the Network Rail releasing significant funds for the sector to the tune of £47-£48 billion.
CP6 (Control Period 6) is the latest five-year funding block from the government, the report for which effectively acts as a contract against which the Office of Rail and Road will measure performance. While CP5 was more focused on big projects such as Crossrail, Great Western electrification and London Bridge, Railway Gazette notes that CP6’s budget will instead be spent mainly on the maintenance and renewals of the country’s existing rail network. The generous budget allocation will play a significant part in the predicted growth of the construction industry overall.
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