Value of the Construction Industry Rockets by 67 per cent in 12 Months

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LONDON, Jan 24, 2014 /PRN=KYODO JBN/ --

    - The value of new construction contracts awarded in December 2013 is

valued at GBP6bn, a 67.1 per cent increase on December 2012

    - Infrastructure projects were accountable for 36 per cent of the total

contract value and data suggests this sector will continue to grow throughout

2014

    - These figures are "a reflection of an exciting year for the construction

industry" marking a significant period of sustained growth in activity in the

UK, according to economists.

    The value of construction projects in the UK has rocketed by 67.1 per cent

in the last year, according to a report published today. New project contracts

awarded in December 2013 totalled GBP6 billion, compared to GBP3.6 bn in the

same month in 2012.

    The infrastructure sector proved to be an area of significant growth last

month, with the total value of projects awarded reaching GBP2.2 billion, a 10.6

per cent increase from November 2013 and a huge 101.6 per cent year-on-year

growth.

    These latest figures, taken from Barbour ABI's Economic & Construction

Market Review, also highlight sustained growth in the residential construction

sector, which continues to be boosted by initiatives such as the Government's

Help to Buy scheme. The total contract value for December in this sector grew

by 88.2 per cent year-on-year.

    On the findings of the report, Michael Dall, lead economist at Barbour ABI,

commented: "Residential construction remained strong throughout the latter half

of 2013 and has truly spurred on the growth of the industry. In the most part,

the increase in residential activity can be attributed to the Government's Help

to Buy scheme, but there are concerns that demand created by such schemes will

surpass the rate of house building. This is a topic that will be the source of

major debate over the next 12 months in the lead up to the 2015 elections.

    "The performance of infrastructure as a sub-sector is also incredibly

encouraging. The figures are a reflection of an exciting year of renewed

optimism for the construction industry and, as a major contributor to figures

for the industry as a whole, the sustained period of strong project values in

this sector is good news and a key indicator for future growth.

    "The National Infrastructure Plan, as published by the Government on

December 4th 2013, updated the top 40 infrastructure projects in the pipeline

for the UK, outlining a pathway for potential growth. An increase in new orders

data recorded by Barbour ABI encourages me to suggest that the sector does have

strong growth potential this year."

    As well as highlighting key sub-sector trends within the construction

industry, data in the report also identifies regional variations in overall

construction performance. Last month, Wales took the lead as the most prominent

area, accounting for 19 per cent of the UK total. This is largely attributable

to an GBP800 million waste treatment project announced in Clwyd, providing a

huge boost to the figures. London accounted for 18 per cent of all contracts

awarded, while Yorkshire and the Humber and the South East were not too far

behind, each accounting for 13 per cent and 12 per cent of the total

respectively.

    The Economic & Construction Market Review is a monthly report designed to

give valuable, current insight into UK construction industry performance. The

Review is compiled from Barbour ABI's records of construction data for every UK

planning application, and key indicators, such as the Office for National

Statistics' Construction New Orders data.

    The Economic and Construction Market Review will be published monthly and

is available to download at http://bit.ly/1eUKB9P

    Notes to editors:

    About Barbour ABI:

    Barbour ABI is a leading provider of construction intelligence services.

With a team of in-house research specialists and a dedicated lead economist, it

provides commercially relevant insight and unique analysis of trends and

developments within the building and construction industry.

    Barbour ABI is the chosen provider of industry data and indicators for

Government bodies including the Office for National Statistics and the UK

Government's Construction and Infrastructure Pipeline, which outlines future

construction and infrastructure projects where public funding is agreed.

Barbour ABI also provides data for independent organisations, such as the

Construction Products Association.

    Barbour ABI is part of global events-led marketing services and

communications company, UBM, and is headquartered in Cheshire Oaks, Cheshire.

    For more information, please visit http://www.barbour-abi.com

    About UBM: UBM helps businesses do business, bringing the world's buyers

and sellers together at events and online, as well as producing and

distributing news and specialist content. Its 5,500 staff in more than 30

countries are organised into expert teams which serve commercial and

professional communities, helping them to do business and their markets to work

effectively and efficiently.

    For more information, go to http://www.ubm.com; follow us on Twitter at

@UBM_plc to get the latest UBM corporate news.

     Press enquiries to:    

     Jo Hart or Sarah Whittle at Tangerine PR

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    SOURCE: Barbour ABI