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UK construction industrial sector activity dominated by warehouse applications

Published by , Editorial Assistant
World Cement,

The value of all industrial construction contract awards in May 2019 was £614 million, based on a three month rolling average. Analysis indicated that in the three months to May, the total value of industrial contracts awards was £1.8 billion – an increase of 26.4% on the previous quarter. The warehousing and storage sector accounted for the largest share of industrial contracts awards with a 51.5% share.

The Northwest had the largest share of industrial contract awards in May at 20.4%. The two largest contracts awards in this area were a project for four industrial units at Haydock Lane Industrial Estate, valued at £27 million, and a £20 million logistics facility with warehousing and storage at Hillhouse Business Park in Blackburn. The Northwest was closely followed by the West Midlands with a 18.5% share, and the East Midlands was in third place with 15.8%.

The latest edition of the Economic & Construction Market Review from Barbour ABI highlights levels of construction contract values awarded across Great Britain. The overall outlook for May saw a total value of contract awards across all sectors at £5 billion, which is a decrease of 4.8% in contracts from April 2019 but 10.4% higher than May 2018.

The residential sector held the largest share of contract awards in May, with attributable shares of 42.3%. Infrastructure was the second largest sector this month, with awards share of 17%. This was followed by the industrial sector with 11.4% overall.

The largest residential sector contract award was the Clockhouse and Access House development at Bow in London, which was valued at £130 million and was awarded to Henry Construction Ltd. The largest contract award in the infrastructure sector was the new prison development at Wellingborough in Northamptonshire, which was awarded to Kier Construction Major Projects.

“Overall, the UK has seen a decline in contract awards in May, compared to April,” said Tom Hall, Chief Economist at Barbour ABI. “However, we continue to see increased activity in 2Q19 compared to 1Q19. The residential sector continues to dominate overall activity; however, it is interesting to see what is happening in the other sectors. We are experiencing a continued increase into 2Q19 in contract awards for the warehousing and storage sector, especially in more central areas of the UK perhaps for its transportation links.”

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European cement news UK cement news Cement news 2018