Regional pockets of growth in Public Sector construction industry

Yorkshire, East Midlands and South West have seen highest growth in new public sector construction projects in last three years despite flat growth across UK and Ireland as a whole.

Despite flat growth across the UK and Ireland in the number of new public sector construction projects over the past three years there are significant regional pockets of growth according to the latest figures from public sector tender alerts service, Tenders Direct.

There was a considerable rise in tenders available to private construction firms in Yorkshire, East Midlands and the South West. Yorkshire showed the greatest level of growth with a 42 per cent rise in public sector tenders in the construction sector, with East Midlands and the South West rising by 19 and 16 per cent respectively.

Continued investment in the ‘Northern Powerhouse’ and ‘Midlands Engine’, the HS2 project and the announcement of new City Deals are likely to be key drivers. Public sector investment in schemes such as the Great Yorkshire Way in Doncaster, Northampton University’s new waterside campus and a new school development in Devon have contributed to the number of tenders locally for example.  Increased devolution and public spending in infrastructure will continue to support ongoing recovery and growth.

Penny Godfrey, General Manager at Millstream, which delivers Tenders Direct, said: “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. 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.”

Leeds-based Sweco, Europe’s leading engineering, environment and design consultancy, has worked on a number of major infrastructure projects across the UK, including the upgrading of the A1M and Saltend Wastewater Treatment Works in Yorkshire.

Max Joy, Managing Director of Sweco UK said: “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.”