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25/02/2021

Start of the year stats show decline in contract awards values

Words: Laura Edgar
Decline / iStock-1158023944

For January 2021, the total value of contract awards was £4.3 billion, which is 10 per cent less than the monthly average of £4.5 billion recorded for 2020.

It is also 12 per cent less than the total value awarded in December 2020.

Industry analyst Barbour ABI’s latest edition of the Economic & Construction Market Review found that the total value of infrastructure projects was £500 million in January. This is 57 per cent lower than December 2020.

The industrial sector saw a 24 per cent decline compared with December 2020, with a contract value of £600 million awarded. However, approvals were strong, with £700 million worth of permissions granted for the industrial sector. Approvals in the hotel leisure and sport sector are worth £1.8 billion. Large projects include the £1.3 billion Olympia Redevelopment in London, a £250 million Gateshead Quays Redevelopment in the North East, and the £350 million Manchester Arena scheme in the North West.

Barbour Abi said there was “significant” activity in the warehousing sub-sector. Its report shows that two of the top four overall contract awards in January were warehouse projects. These include the £125 million Next Warehouse in South Elmsall, Yorkshire, and the £100 million Uniserve Distribution Centre in Suffolk.

Tom Hall, chief economist at Barbour ABI and AMA Research said: “The planning environment maintained activity in January, continuing its recent trajectory at lower than average levels. Those hoping for a bounce in activity as we leave the EU will be disappointed; clearly the Covid-19 pandemic remains the main factor suppressing activity. Meanwhile, it is positive to see some life in the hotel and leisure sector, with record planning approvals over the last quarter.”

Image credit | iStock

 

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