Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to a newer version or another browser.

Your browser appears to have cookies disabled. For the best experience of this website, please enable cookies in your browser

We'll assume we have your consent to use cookies, for example so you won't need to log in each time you visit our site.
Learn more

Confidence gap widens for regional contractors

Carillion

Regional differences between contractors’ confidence are becoming more pronounced, according to a Turner & Townsend report.

The UK Market Intelligence report shows contractors foresee an increased level of stability for the UK construction industry, with order books showing growth in the first quarter of this year.

However, growth is set to be down in 2017/18 and 2018/19 and estimates for tender price increases vary significantly across the regions.

Contractors in the booming London and North West markets foresee an increase of 4.1% while contractors in the North East, historically more dependent on EU funding for projects, anticipate a tender price rise of just 1.4%.

Turner & Townsend managing director for UK cost management Paul Connolly said devolution appeared to be acting as a catalyst for growth in some regions.

“Birmingham and Manchester in particular are emerging as attractive alternatives to the capital, reporting a stronger market outlook than city regions yet to agree a devolution deal with central Government,” said Connolly.

“With large volumes of work coming forward in these regions, tender conditions are strong, with contractors experiencing less competition and a general movement towards price growth.”

HS2 is said to be partly responsible for the strong performance in the West Midlands, which showed order book completion rates of 78% for 2017/18.

Concerns over skills shortages prevail, particularly in the North East and Northern Ireland where skilled candidates move elsewhere for work.

The report collated responses from tier one, two and three contractors from across the UK.

Have your say

You must sign in to make a comment

Please remember that the submission of any material is governed by our Terms and Conditions and by submitting material you confirm your agreement to these Terms and Conditions. Please note comments made online may also be published in the print edition of New Civil Engineer. Links may be included in your comments but HTML is not permitted.