Construction in the North West is the fastest-growing region in the UK where activity has risen by 31% since 2016.
According to a report by Turner & Townsend and published by Place North West , it makes construction in the region the UK’s fastest-growing market.
The report said construction output in the region was up by 30.7% in the first quarter of the year, compared with the second quarter of 2016, with activity growing ahead of the West Midlands at 27.8% and the South West at 27.2%.
In London, construction activity dropped by 5.7% over the same period.
Stockport, which is currently enjoying a £1bn regeneration programme, has reaped the rewards of its investment across the town. The new leisure area at Redrock is attracting higher than anticipated visitors; 2 Stockport Exchange is set to compliment the sell-out grade A office accommodation in the new business area and town centre gateway while the latest industrial park at Aurora has attracted new businesses and new jobs.
But, the North West, South West and the West Midlands also saw high demand and insufficient contractor supply pushing up tender prices.
Tender prices are forecast to grow by 2.2% in the North West, which Turner & Townsend said was “modest” given the flurry of work going on in the region.
This has given rise to an increase in single-stage tendering, which has risen by over 10% over the past 18 months, while two-stage tendering has dropped by 5% over the same time.
Paul Connolly, Turner & Townsend director, said:
As market uncertainty continues to weigh heavily on the construction industry, output data in several regions gives early signs of a correlation between regional autonomy and resilience to the confidence-sapping impact of an uncertain political future.”
“Notwithstanding this increased appetite, clients need to remain cautious on what risk is actually being taken on and managed by contractors. The failure of Carillion and the rising number of insolvencies suggests risk transfer in the current environment can be illusory.”
The full report can be downloaded here.