Projects down but value up – Barbour ABI
26th January 2016

Overall construction value increased 16% to £74billion in 2015. However this was only held aloft by ‘mega projects’ such as offshore windfarms and river tunnels – i.e. big bucks but not many windows – while the overall number of projects decreased in the year …and the spectre of skill shortages once again threatens to dampen any optimism.

According to the latest Economic & Construction Market Review from Barbour ABI, the number of projects commissioned in 2015 decreased year on year to under 12,000, however the total value was not negatively affected thanks to the increased number of mega projects. This resulted in the average construction project value increasing by 18 per cent to £6.2 million for the year.

An example of some of the large scale commisioned projects in 2015 include the £1.3 billion Rampion  offshore wind farm, the £1 billion Thames Tideway Tunnel and a £330 million extension of Walney offshore wind farm.

Commenting on the figures, Michael Dall, lead economist at Barbour ABI, said: “The return of the ‘higher value project’ has certainly been one of the biggest focal points for construction in 2015. Confidence seems to have returned for many of the larger companies within the industry, who must have felt that the time was right in 2015 to start commissioning mega projects that should provide a boost to the industry for years to come.”

“However, the question remains as to whether the construction industry has the supply, principally skilled labour, to deliver on these contracts awarded in the timescales envisioned. Solving these supply side problems will be critical for constructions prospects in 2016 and beyond.”

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