During these uncertain times, the UK construction industry has been determined to get back to work, with industryтАЩs leaders urging the Prime Minister to keep construction sites open for as long as responsibly justified during the coronavirus outbreak.
Although turnover and cashflow will remain a concern over the remainder of 2020 as construction sites, the latest Glenigan Construction Industry Forecast has revealed that by 2022, the value of underlying project starts in the UK is forecast to total ┬г52.4 billion.
Are you a construction supplier? Learn more about how your business can win future opportunities below.
The construction sector will recover
According to Glenigan, the value of underlying project starts fell by an estimated 62% during the second quarter of 2020. However, a sharp rebound in construction output and project starts is forecast for the third quarter following the lifting of lockdown restrictions.
Glenigan has stated within their report that:
тАЬA more gradual, but sustained recovery is anticipated for the remainder of the forecast period. By 2022, the value of underlying project starts is forecast to total ┬г52.4 billion, just 1% below 2019 levels.тАЭ
Areas of opportunity
Due to the disruption caused by Coronavirus pandemic, the pattern of UK construction activity is being reshaped.
Within GleniganтАЩs key recommendations, the market intelligence expert revealed that:
тАЬThe best performing sectors will differ from those prior to the outbreak. Increased government funding will drive growth in the education, health, civil engineering and community & amenity sectors.тАЭ
Glenigan also expect that structural changes due to social distancing will create new opportunities in warehousing & logistics, office refurbishment and the repurposing of redundant commercial premises.
Within the report, Glenigan also references the latest National Infrastructure and Construction Procurement Pipeline, which was released by the Government in June 2020.
The pipeline is made up of work packages, projects and programmes that are planned to go out to market for procurement throughout the 2020/21 financial year, and:
тАЬThe procurements contained within the pipeline have an estimated total contract value of between ┬г29 billion and ┬г37 billion.тАЭ
Glenigan anticipates that part of this funding will be directed at areas such as tackling the maintenance backlog on the nationтАЩs roads, as the Infrastructure and Projects Authority has confirmed that procurements in this pipeline include a broad range of works across infrastructure and construction such as:
- repair and maintenance services
- construction work including building, design & build and civil engineering contracts
- architectural, construction, engineering, and inspection services
- consultancy services
Prepare your business for the opportunities that lie ahead
Moving forward, suppliers will need to target these new emerging opportunities. To do this, they require the right intelligence which can increase their exposure to growing markets.
The secret to success with commercial opportunities is being proactive. If early engagement is achieved at the early stages of a project, it will improve your chances of winning work with the private sector.
The best way to find commercial opportunities within the markets mentioned above is by using a business intelligence tool.
TrackerтАЩs Commercial Tenders tool gives users access to applications and decisions within 24 hours of publication as well as named contacts for key decision makers, influencers, and bidders.
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