Construction contracts awarded down 13.1% during 2018
The value of all construction contracts awarded in the UK in 2018 was £61.6 billion and is a decrease of 13.1% on the previous year. The number of contracts awarded also continued on a downwards trend with 10,352 awarded during 2018, a decline of 8.2% on 2017 and 16.8% down from the 2014 peak of 12,440.
However, the planning pipeline remains positive with infrastructure particularly strong with 113% increase on 2017.
The latest edition of the Economic & Construction Market Review from industry analysts Barbour ABI highlights levels of construction contract values awarded across Great Britain throughout 2018. The residential sector had the highest proportion of contract awards by value in 2018 with 37% share, which is an increase of 2% on 2017. Infrastructure was the second largest sector for contract awards in 2018 with 21% share, a decrease of 9% on 2017.
Infrastructure will remain strong in 2019 and beyond due to the commencement of HS2 projects in the rail sector with further investment in electricity distribution and generation also forecast to continue.
Looking regionally, London had the highest share of contracts awarded in 2018 with a 19.4% share, down slightly from 20% in 2017. The South East had the second highest share of contracts awarded by value in 2018 with 12.1% share, which is 0.1% higher than for 2017. In third position, the North West accounted for 11.8% of contract awards in 2018 which is a 0.2% decrease on 2017.