Positive signs for region’s construction sector

ACTIVITY in the region’s construction sector is picking up and the value of new projects has reaching its highest level in more than three years.

The total value of construction projects in the North West reached £1.69bn in Q2 of 2013, its highest level since mid-2009, following more than a year of consistent quarter-on-quarter growth.

The North West is second of 11 regions in the UK, and trails only London, which had a  total new orders value of £2.9bn in the three months to June 30.

According to data collated by construction intelligence specialist Barbour
ABI, the majority of new projects for the region are in Greater Manchester
(36%) and Merseyside (26%). In public construction, the infrastructure and healthcare sectors are performing strongly, while in private construction, housing projects make up 39% of activity.
 
Michael Dall, lead economist at Cheshire Oaks-based Barbour ABI, said: “In the last year we’ve seen a consistent increase in the value of new orders in the North West.
 
“This is positive news for the region and demonstrates that the area is
following the nationwide trend of a slow but steady construction industry
upturn.

“It’s interesting to note that in the North West, the industrial, healthcare
and infrastructure sectors are showing particular strength compared to
how these sectors are performing elsewhere in the UK. In addition, major
schemes in the pipeline – such as the Amazon distribution warehouse in
Merseyside, valued at £100m – indicate that the region is a highly sought
after warehousing location, reflecting its position as a gateway to other
northern conurbations.

“Our data presents a rosy picture for construction in the North West and
we’ll watch with interest to see how the sectors within the region continue
to perform in the coming months.”