Regional Construction Hotspots in Great Britain 2018

Regional Construction Hotspots in Great Britain 2018

Regional Construction Hotspots in Great Britain 2018

Aforward-lookinganalysisofconstruction activitybyregionandbysector. RegionalConstruction HotspotsinGreatBritain2018 BROUGHTTOYOUBY… BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology Home About the CPA

Regional Construction Hotspots in Great Britain 2018

London is the UK’s largest regional economy and construction gross value added (GVA) in 2016 (the latest available from the ONS) was £19.5 billion, accounting for 18% of the UK total.

With a construction GVA of £17.5 billion, the South East accounts for a similar proportion of UK construction (16%), which can lead to bias in perceptions of growth and activity in other regions of the country (see fig. 1.1). Indeed, when thinking about regional construction activity, the relative size of the London and South East economies, populations and concentration of the services-based industry, it is easy to think that the majority of construction work is taking place in these regions.

By using ONS regional economic data, it becomes clear that despite its overall dominance, there were only three London sub-regions in the top ten largest local authority areas for construction activity in 2016: Westminster, Harrow and Hillingdon, and Camden and City of London (see fig. 1.2). Similarly, three sub-regions in the South East feature in this ranking. Furthermore, it is Hertfordshire, in the East of England, which is recorded as the sub-region with the largest value of construction activity in 2016. Parts of the West Midlands and South West complete the top ten list, underscoring the fact that there are large areas of activity beyond the traditional engines of growth.

This piece of work seeks to analyse construction contract awards on a high level of regional granularity, firstly to identify pockets of growth or contraction – hotspots and coldspots – in regional activity and secondly, to offer a forward-looking indication of growth by region and by sector. One of the challenges in using such granular data is the large lags in reporting of official output data, as evidenced by the most recent macroeconomic data published by the ONS being for 2016. By using data on contract awards over 2017, this will highlight construction work ahead, rather than reporting on activity is past periods that may not be relevant.

OVERVIEW… TheUKConstructionIndustry FIG 1.2 Source: ONS FIG 1.1 Source: ONS CONTINUED Construction GVA in 2016 – Top 10 £m Region Hertfordshire 3,209 East of England West Surrey 1,804 South East Berkshire 1,759 South East Westminster 1,605 London Harrow and Hillingdon 1,534 London Oxfordshire 1,461 South East Devon CC 1,460 South West Staffordshire CC 1,437 West Midlands Camden and City of London 1,425 London Bath and NE Somerset, N Somerset and S Gloucestershire 1,416 South West Construction GVA in 2016 £m London 19,470 South East 17,501 East of England 12,250 North West 9,383 South West 9,309 Scotland 8,448 West Midlands 8,299 Yorkshire and the Humber 7,532 East Midlands 7,221 Wales 3,814 North East 3,019 In 2016 Hertfordshire yet again recorded the largest value of construction activity London is again the UK’s largest regional economy and construction gross value added (GVA) in 2016 was £19.47 billion ★ BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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Regional Construction Hotspots in Great Britain 2018

What is a hotspot or a coldspot? Hotspots and coldspots seek to identify regions where contract awards in 2017 were significantly above or below previous years, highlighting pockets of activity of contraction in construction activity over the near- term horizon. As discussed, some regions of the country host more construction activity than others.

Camden and the City of London, for example, was the ninth largest in terms of construction GVA in 2016. In 2017, it was also in the top 30 largest regions in terms of the value of contracts awarded. However, this was 40% below the value of contracts awarded in the previous year and below the long-term average, so whilst it is a large source of construction work, it is not a hotspot region experiencing growth (see fig. 1.3).

There may also be regions that have recorded strong growth in the value of contracts awarded, but account for a small proportion of overall activity. For example, the Orkney Islands was the second-smallest region in terms of construction activity (£49 million in 2016), but was the fastest-growing region in terms of contract awards in 2017, pushed up by a single residential contract award, in a region with total contract awards of just £78 million (see fig. 1.4 & 1.5). Large growth rates or contractions themselves do not necessarily signify a hotspot or coldspot, which is a key consideration for regions hosting small volumes of construction work, where growth rates on annual basis can be volatile.

The analysis in this publication compares the value of construction contracts awarded in 2017 with the average value of contract awards over the last four years across the residential, commercial and infrastructure sectors. If 2017 contract values are significantly above the long-term The value of contract awards in 2017 – Top 10 £m Annual % change Birmingham 3,800 93% Leeds 3,060 374% Westminster 2,029 68% West Northamptonshire 1,808 198% Tower Hamlets 1,756 -8% Hounslow and Richmond upon Thames 1,755 148% Manchester 1,698 17% Warwickshire 1,628 118% Haringey and Islington 1,288 179% Wandsworth 1,191 359% FIG 1.4 Source: Barbour ABI FIG 1.3 Source: Barbour ABI Growth in contract awards in 2017 – Top 10 £m Annual % change Orkney Islands 78 1472% Leeds 3,060 374% Wandsworth 1,191 359% Brighton and Hove 422 303% Southend-on-Sea 87 291% Gwent Valleys 145 253% Clackmannanshire and Fife 351 244% Essex Haven Gateway 1,093 243% Barnsley, Doncaster and Rotherham 1,029 209% West Northamptonshire 1,808 198% CONTINUED…THEUKCONSTRUCTIONINDUSTRY Orkney Islands recorded the largest growth in contract awards in 2017, with an increase of 1472% ▲ ▼ CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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Regional Construction Hotspots in Great Britain 2018

average, then this is considered a hotspot. Conversely, a region is considered cold if 2017 contract values are significantly below the long-term average. There are clear hotspots for upcoming construction activity over the next 6-12 months in Great Britain. There were no broad hotspots in 2017 – where contract awards in each of the three main construction sectors of residential, commercial and infrastructure are significantly above the long-term average and nine regions with hotspots in two sectors.

Where hotspots were restricted to a single construction sector, they were spread across the regions of Great Britain. Construction hotspots may also show due to a single large project in one sector. Although these may be viewed as skewing results, they still represent a significant driver of regional growth and activity alongside a key driver of hotspots throughout the country. These tend to be high-value transport or utilities projects in the infrastructure sector where contracts are awarded, but take time to build out. The award of contracts for phase 1 of HS2 in 2017 Q3 has produced clear infrastructure hotspots along the route from London to the West Midlands (see fig.

1.6). In smaller sub-regions, large offices, retail and residential projects can also generate hotspots.

The Regional Construction Hotspots report also covers coldspots. Coldspots also feature across Great Britain and across the three main construction sectors. In London, however, coldspots are clustered in the residential sector, across inner and outer boroughs of the capital. Residential contract awards in 2017 were significantly lower than in 2016 in 18 out of 21 sub-regions of the capital, suggesting that house builders are focusing on the build-out of schemes awarded contracts in 2015 and 2016, rather than new project starts.

CONTINUED…THEUKCONSTRUCTIONINDUSTRY FIG 1.6 Source: Barbour ABI Single projects driving hotspots £m Area Transpennine Rail route upgrade 2,250 Leeds Birmingham Spur (HS2) 1,500 Birmingham Chiltern Tunnels (HS2) 1,300 Hounslow and Richmond upon Thames North portal of Chiltern Tunnel (HS2) 1,300 West Northamptonshire Delta Junction (HS2) 1,300 Birmingham Euston tunnels and approaches (HS2) 900 Haringey and Islington Long Itchington Wood Tunnel (HS2) 900 Warwickshire Rivenhall integrated waste management facility 679 Essex Haven Gateway East Midlands Gateway – rail freight interchange 558 Leicestershire CC and Rutland Riverside Energy Park, Belvedere 500 Bexley and Greenwich FIG 1.5 Source: Barbour ABI Falls in contract awards in 2017 – Top 10 £m Annual % change Isle of Anglesey 34 -93% Norwich and East Norfolk 293 -89% Peterborough 34 -87% Inverness & Nairn and Moray, Badenoch & Strathspey 343 -83% Darlington 29 -82% Powys 62 -81% Wakefield 141 -72% Flintshire and Wrexham 90 -71% Kensington & Chelsea and Hammersmith & Fulham 318 -70% Walsall 42 -70% Despite being top last year, the Isle of Anglesey recorded the lowest growth in contract awards in 2017 with a decrease of 93% The award of contracts for phase 1 of HS2 in 2017 Q3 has produced clear infrastructure hotspots along the route from London to the West Midlands BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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Regional Construction Hotspots in Great Britain 2018

Hotspots can be driven by a large number of projects awarded contracts in a region, or by a single large project. Manchester is a residential hotspot, for example, driven by the award of contracts for the regeneration of the city centre, and five contracts ranging in value between £77 million and £235 million for developments in Circle Square, Portugal Street East, Princess Street and Jacksons Row.

The status of Leeds as an infrastructure hotspot, on the other hand, is driven by the contract award for the Transpennine rail route upgrade – the largest contract awarded in 2017 at £2.25 billion. Six contract awards for HS2, at values of around £1 billion each, produced infrastructure hotspots in Birmingham, Warwickshire, West Northamptonshire, Haringey & Islington and Hounslow & Richmond upon Thames. Half of the sub-regions in the North West and two-thirds of the sub-regions in the South West were hotspots.

A summary of key regional hotspots by sector is shown here. North East South Teesside Commercial Tyneside Infrastructure London Bexley and Greenwich Infrastructure Croydon Commercial Haringey and Islington Residential Infrastructure Hounslow and Richmond upon Thames Residential Infrastructure North West Blackburn with Darwen Residential Blackpool Residential Commercial Greater Manchester North East Commercial Greater Manchester South East Infrastructure Greater Manchester South West Infrastructure Lancaster and Wyre Commercial Liverpool Commercial Infrastructure Manchester Residential Sefton Infrastructure Warrington Commercial Wales Bridgend and Neath Port Talbot Commercial Central Valleys Infrastructure Gwynedd Commercial Isle of Angelsey Commercial Powys Residential Commercial Swansea Infrastructure West Midlands Birmingham Infrastructure Coventry Infrastructure Sandwell Infrastructure Stoke-on-Trent Infrastructure Warwickshire Infrastructure Yorkshire & Humber Barnsley, Doncaster and Rotherham Commercial Bradford Infrastructure Leeds Infrastructure East Midlands Leicestershire CC and Rutland Infrastructure Nottingham Commercial West Northamptonshire Infrastructure East of England Essex Haven Gateway Commercial Infrastructure Essex Thames Gateway Commercial Southend-on-Sea Commercial Suffolk Residential Commercial Thurrock Commercial South East Brighton and Hove Commercial Central Hampshire Commercial East Kent Infrastructure Mid Kent Commercial Milton Keynes Commercial South Hampshire Infrastructure West Sussex (North East) Infrastructure West Sussex (South West) Commercial Scotland East Lothian and Midlothian Residential Eilean Siar (Western Isles) Infrastructure Inverness & Nairn and Moray, Badenoch & Strathspey Residential Commercial North Lanarkshire Infrastructure Orkney Islands Residential Perth & Kinross and Stirling Infrastructure Scottish Borders Residential Shetland Islands Commercial South Ayrshire Residential South West Bath and North East Somerset, North Somerset and South Gloucestershire Commercial Bournemouth and Poole Infrastructure City of Bristol Infrastructure Devon CC Commercial Dorset CC Commercial Somerset Infrastructure Swindon Commercial Wiltshire Residential Commercial EXECUTIVESUMMARY… KeyRegionalHotspotsbySector BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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Regional Construction Hotspots in Great Britain 2018

There were fewer coldspots than hotspots across Great Britain in 2017 and there was only one broad coldspot – Walsall – where contract awards in all three residential, commercial and infrastructure sectors were below the long-term average. Most other coldspots were limited to a single construction sector, most notably residential in London, where over 80% of the capital’s sub-regions recorded a fall in contract values and two-fifths recorded residential contracts below the long-term average.

There were no coldspots in the North East.

A summary of key regional coldspots by sector is shown here. London Brent Residential Bromley Residential Infrastructure Camden and City of London Residential Croydon Residential Hackney and Newham Residential Lambeth Residential Lewisham and Southwark Residential Redbridge and Waltham Forest Residential Westminster Residential North West Chorley and West Lancashire Residential East Lancashire Residential Lancaster and Wyre Infrastructure Liverpool Residential Wirral Commercial Wales Cardiff and Vale of Glamorgan Residential Commercial Conwy and Denbighshire Residential Flintshire and Wrexham Residential West Midlands Solihull Residential Walsall Residential Commercial Infrastructure Yorkshire & Humber City of Kingston upon Hull Commercial North and North East Lincolnshire Residential Wakefield Residential East Midlands Leicester Residential South and West Derbyshire Infrastructure South Nottinghamshire Commercial West Northamptonshire Residential East of England Breckland and South Norfolk Commercial Central Bedfordshire Residential Peterborough Residential South East Berkshire Commercial Milton Keynes Residential North Hampshire Commercial Scotland E Dunbartonshire, W Dunbartonshire and Helensburgh & Lomond Commercial East Ayrshire and North Ayrshire mainland Infrastructure Lochaber, Skye & Lochalsh, Arran & Cumbrae and Argyll & Bute Residential Orkney Islands Commercial Scottish Borders Infrastructure South Ayrshire Commercial South Lanarkshire Infrastructure West Lothian Commercial South West Cornwall and Isles of Scilly Residential Swindon Residential EXECUTIVESUMMARY… KeyRegionalColdspotsbySector North East No major coldspots BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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Regional Construction Hotspots in Great Britain 2018

FOCUSON… EastofEngland The East of England region accounts for 8.6% of total UK GVA and key sectors of regional economic activity are industrial production and manufacturing, distribution and transport, public administration and business services. Construction grew 2.4% in 2016 and accounted for 8.2% of total East of England GVA in that year.

The value of contracts awarded in the region totalled £5.1 billion in 2017, a decrease of 28.9% from the previous year. There were four hotspots in terms of overall contract awards: Bedford, Essex Haven Gateway, Southend-on-Sea and North and West Norfolk. West Essex was a coldspot based on overall contract awards.

Despite having the largest growth in contracts awardedin2016,in2017NorwichandEastNorfolk had the lowest growth, decreasing by 89.4% GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% East of England 24,488 21.1% 8.2% 3.6 12,250 2.4% -28.9% Peterborough 28,544 25.6% 4.1% 6.0 229 -3.0% -87.2% Cambridgeshire CC 28,984 22.0% 5.1% 1.7 971 -0.6% -27.6% Suffolk 23,132 16.0% 7.0% 4.0 1,210 2.5% -10.0% Norwich and East Norfolk 22,664 15.8% 6.2% 6.3 516 3.4% -89.4% North and West Norfolk 19,043 18.2% 7.7% 2.0 373 2.8% 94.9% Breckland and South Norfolk 19,466 20.0% 7.5% 3.5 392 1.3% -68.4% Luton 24,563 23.5% 6.6% 6.0 353 0.0% -36.7% Hertfordshire 30,564 25.9% 8.9% 3.0 3,209 5.1% -25.4% Bedford 23,941 19.9% 6.6% 2.6 266 1.5% 156.7% Central Bedfordshire 20,383 23.7% 10.0% 3.3 569 1.8% -32.4% Southend-on-Sea 18,111 17.4% 8.0% 4.2 259 1.6% 290.7% Thurrock 21,076 15.3% 9.9% 4.2 347 7.4% 65.2% Essex Haven Gateway 19,424 18.4% 10.4% 4.7 967 -0.7% 243.0% West Essex 26,431 26.7% 11.0% 3.4 876 1.6% -28.6% Heart of Essex 25,205 19.6% 11.3% 4.6 895 2.3% -7.3% Essex Thames Gateway 19,196 14.7% 11.9% 2.5 818 1.4% 39.2% Source: Barbour ABI, CPA, ONS CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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Regional Construction Hotspots in Great Britain 2018

COLCHESTER COLCHESTER COLCHESTER NORWICH NORWICH NORWICH PETERBOROUGH PETERBOROUGH PETERBOROUGH ELY ELY ELY CAMBRIDGE CAMBRIDGE CAMBRIDGE ST ALBANS ST ALBANS ST ALBANS Contract awards for infrastructure projects in the East of England totalled £1.1 billion in 2017, which was 63.9% lower than the value awarded in 2016.

Essex Haven Gateway was the sole hotspot, reflecting the award of the £679 million contract for the Rivenhall integrated waste management facility in Braintree. The A13 widening around Stanford-le-Hope (£66 million) and £48.9 million in highway and infrastructure works to support the development of the former RAF barracks at Northstowe. Commercial contract awards totalled £841 million in 2017, 31.6% higher than in 2016. Hotspots for commercial activity were Essex Haven Gateway, Essex Thames Gateway, Southend-on-Sea, Suffolk and Thurrock. Breckland and South Norfolk was a coldspot. Six of the top ten largest contract awards were for retail, including two for the redevelopment of Intu Lakeside, totalling £230 million.

Office buildings at the Cambridge Science Park accounted for two of the top ten projects.

£2.0 billion worth of residential contracts were awarded in the East of England in 2017, 1.8% higher than the value awarded in 2016. Suffolk registered as a hotspot and Peterborough was a coldspot. The highest value project in the region was the £50 million second phase of the Meadows student accommodation at the University of Essex and two £45 million projects: South Oxhey Central in Watford and the Carrow Quarter in Norwich. InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project.

Project Value Start Finish Rivenhall integrated waste management facility £679m Aug 17 Aug 21 A13 widening, Stanford le Hope £66m Oct 17 Oct 19 Northstowe highway and infrastructure works £48.9m Oct 17 Oct 19 Norwich, Yarmouth and Lowestoft resignalling £29m Aug 17 Apr 19 Port of Felixstowe, berth 9 expansion £25m Jan 18 Aug 19 Stewartby Park, phase 2 infrastructure works £15m - - Cambridge Mosque, phase 2 £15m Aug 17 Oct 18 Norwich Crown Point depot improvements £15m Nov 17 Jan 19 Warner Bros Studios parking deck £11.2m Mar 17 Mar 18 Great Dunmow stage 2 infrastructure £10m May 17 May 19 Source: Barbour ABI, CPA Project Type Value Start Finish Intu Lakeside redevelopment Retail £180m Sep 17 May 19 Cambridge Science Park – offices Offices £67.2m Apr 18 - Stane Park, Colchester Retail £65m Jul 18 Jul 21 Intu Lakeside block A Retail £50m Sep 17 Mar 19 John Adams Toys, Huntingdon Retail £19m Mar 17 - ARM HQ fit-out, Cambridge Offices £19m - - Queensgate shopping centre extension Retail £18.7m Dec 17 Mar 18 St John's College, Maurice Wilkes Building Offices £17m Feb 17 Aug 18 Cambridge Science Park, plots 22 and 25 Offices £16.9m - - Primark, Haymarket, Norwich Retail £15m Jan 18 Jul 18 Source: Barbour ABI, CPA Project Units Value Start Finish University of Essex – Meadows phase 2 - £50m Jun 17 Oct 18 South Oxhey Central 374 £45m Jul 18 Jul 21 Carrow Quarter, Norwich - £45m Apr 18 Dec 21 Tye Green redevelopment, Braintree - £30m - - Oak Road, Braintree 292 £29.2m - - Stewartby Park phase 2, Bedford 285 £28.5m Feb 18 - Greenfields Road, Breckland 285 £28m Apr 17 Apr 20 Hampton Water, Peterborough 269 £27m - - Holt Road, Broadland 259 £25.3m - - St Stephens Tower student accommodation - £25m Aug 17 Aug 19 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…EASTOFENGLAND 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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Regional Construction Hotspots in Great Britain 2018

FOCUSON… EastMidlands GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% East Midlands 21,502 19.1% 7.1% 4.4 7,221 6.5% 75.0% Derby 27,786 18.7% 4.4% 4.3 315 11.3% 180.8% East Derbyshire 18,820 20.3% 7.0% 4.9 372 6.3% 176.5% South and West Derbyshire 19,727 18.7% 7.6% 1.7 752 12.2% 53.0% Nottingham 27,852 15.1% 4.1% 7.9 374 5.6% 85.9% North Nottinghamshire 18,926 15.9% 9.0% 4.1 794 7.7% 20.2% South Nottinghamshire 17,557 23.3% 7.9% 3.7 475 -3.8% -7.7% Leicester 21,984 23.2% 4.2% 6.0 321 -1.8% 8.3% Leicestershire CC and Rutland 22,920 21.2% 8.0% 3.9 1,328 1.1% 54.3% West Northamptonshire 25,936 21.2% 8.2% 6.4 847 10.9% 197.9% North Northamptonshire 20,403 17.8% 7.7% 4.0 526 1.9% -13.3% Lincolnshire 18,754 16.6% 8.0% 4.4 1,116 14.3% 41.6% Source: Barbour ABI, CPA , ONS The East Midlands region accounts for 5.8% of total UK GVA.

Key sectors of regional economic activity are industrial production and manufacturing, business services, public administration and distribution and transport. Construction gross value added grew 6.5% in 2016, faster than the UK overall growth rate. Construction accounted for 7.1% of regional GVA. The value of contracts awarded in the region totalled £6.2 billion in 2017, an increase of 75.0% from the previous year. In terms of overall contract awards, there were hotspots in East Derbyshire, Leicestershire CC and Rutland and West Northamptonshire. Contract values were lower than the long-term average in North Northamptonshire.

Most of the regions had increased growth in 2017, with West Northamptonshire recording the highest increase of 197.9% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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LINCOLN LINCOLN LINCOLN LEICESTER LEICESTER LEICESTER NOTTINGHAM NOTTINGHAM NOTTINGHAM DERBY DERBY DERBY Contract awards for infrastructure projects in the East Midlands region totalled £2.7 billion in 2017, which was five times higher than the value awarded in 2016. Contracts awarded in 2017 include the Northern Portal of the Chiltern Tunnel for HS2 (£1.3 billion), which made West Northamptonshire a hotspot.

The £558 million East Midlands Gateway rail freight interchange in Charnwood also produced a hotspot in Leicestershire CC and Rutland. A £450 million expansion to the Spalding gas-fired plant completed the top three projects. Commercial contract awards totalled £314 million in 2017, 21.9% higher than in 2016. Nottingham was a hotspot for commercial activity, whilst South Nottinghamshire was a coldspot. Among the largest contract awards in the region were phase 1 of the Intu Broadmarsh shopping centre (£92 million), with work through to early 2020 and Four Waterside, an offices development in Northampton, with a contract value of £30 million.

£1.3 billion worth of residential contracts were awarded in the East Midlands region in 2017, 13.6% lower than the value awarded in 2016. There were no hotspots during 2017, but Leicester and West Northamptonshire were coldspots. Key projects in the region include £45 million for the first phase of the Canwick Avenue/ Bracebridge Heath development, building 450 houses in North Kesteven and the £39.5 million Foxlow Farm development in Buxton.

InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish North Portal of the Chiltern Tunnel (HS2) £1.3b Dec 18 Dec 23 East Midlands Gateway – rail freight interchange £558m Feb 17 Feb 21 Spalding energy expansion – 300mw gas turbine £450m Sep 17 - M1 J24 to J25 smart motorway £80m Mar 17 Dec 18 Rookery South Pit energy from waste facility £60m Oct 17 Apr 20 Triton Knoll substation £30m Jan 18 Jan 21 A1 Spittlegate separated junction £23m Jan 18 Jun 19 Lindhurst redevelopment – phase 1 infrastructure £20m Jan 17 Jan 18 Market Harborough station improvements £20m Aug 17 Feb 19 Mountsorrel quarry extension £20m Dec 15 Dec 20 Source: Barbour ABI, CPA Project Type Value Start Finish Intu Broadmarsh, Nottingham Retail £92m Feb 18 Feb 20 Four Waterside, Northampton Offices £30m Jan 17 Jan 19 Brackley redevelopment Offices £18.4m Apr 17 - Mattioli Woods head office, Leicester Offices £14m - - Clifton Triangle retail park Retail £6m Aug 17 Aug 18 Lidl store and Wickes warehouse, Wigston Retail £6m Oct 17 Oct 18 Pond End, Castle Donington Offices £5.8m - - House of Fraser, Leicester Retail £5m Jul 17 Jul 18 Alltech UK, extension and refurbishment Offices £4.6m Jan 17 Jan 18 Sports Direct, Brook Park, Bolsover Retail £4.5m Jun 17 Jun 18 Source: Barbour ABI, CPA Project Units Value Start Finish Canwick Avenue/Bracebridge Heath 450 £45m - - Foxlow Farm, High Peak 395 £39.5m Apr 18 - Loughborough University student accomm - £35m Aug 17 Sep 19 Papplewick Lane, Gedling 300 £30m Sep 17 - Hackwood Farm, south Derbyshire 290 £29m Oct 17 - Mansfield-Ashfield Regeneration 280 £28m - - Foxton Place, Harborough 215 £27m Aug 17 Aug 20 Ladybank Road, south Derbyshire 252 £25.2m - - Mansfield Road, Derby 250 £25m Jul 17 - Chellaston phase 2, south Derbyshire 240 £24m Jul 17 - Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…EASTMIDLANDS 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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FOCUSON… London GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% London 45,046 25.7% 4.9% 5.3 19,470 11.8% 7.3% Camden and City of London 309,427 32.1% 1.8% 5.9 1,425 14.7% -40.4% Westminster 227,468 30.1% 2.8% 6.0 1,605 9.2% 67.8% Kensington & Chelsea and Hammersmith & Fulham 66,292 16.5% 2.6% 5.5 588 12.6% -70.3% Wandsworth 34,086 20.7% 4.1% 2.2 445 13.8% 359.0% Hackney and Newham 24,152 21.6% 8.3% 4.5 1,234 4.0% -27.7% Tower Hamlets 90,386 19.0% 2.4% 9.7 652 14.2% -8.4% Haringey and Islington 46,295 20.6% 4.4% 5.6 1,031 5.0% 178.5% Lewisham and Southwark 32,695 17.3% 5.1% 5.3 1,035 12.0% -61.8% Lambeth 32,707 22.1% 4.3% 5.0 459 3.1% -38.4% Bexley and Greenwich 17,841 18.9% 11.0% 5.4 1,032 9.2% -18.4% Barking & Dagenham and Havering 20,979 24.4% 11.7% 6.4 1,131 10.8% -13.7% Redbridge and Waltham Forest 17,010 22.4% 11.7% 5.5 1,140 13.5% -46.6% Enfield 20,052 19.4% 9.8% 6.5 654 8.8% -58.4% Bromley 22,604 19.7% 7.2% 4.6 531 13.0% -26.1% Croydon 19,475 11.9% 7.7% 7.8 571 13.7% 39.0% Merton, Kingston upon Thames and Sutton 24,987 18.8% 7.0% 3.7 1,022 15.6% 13.9% Barnet 25,787 27.7% 8.3% 2.9 823 15.3% 14.8% Brent 26,217 35.5% 11.0% 7.2 950 15.9% 42.8% Ealing 27,417 26.7% 8.5% 4.5 803 15.0% 54.7% Harrow and Hillingdon 33,528 31.1% 8.3% 4.4 1,534 16.7% -13.9% Hounslow and Richmond upon Thames 41,089 50.9% 4.2% 6.2 805 13.5% 147.5% Source: Barbour ABI, CPA , ONS London is the largest regional economy, accounting for 22.7% of total UK GVA and the highest GVA per head.

Construction represents only 4.9% of regional GVA and construction GVA increased 11.8% in 2016, the fastest regional growth rate of the year. Key sectors of economic activity are focused in real estate activities, financial and insurance services, professional, scientific and technical activities and business services. The value of contracts awarded in the region totalled £14.1 billion in 2017, 7.3% higher than the previous year. In 2017, overall hotspots were in Haringey and Islington and Hounslow and Richmond upon Thames. There were four coldspots: Lambeth, Hackney and Newham, Redbridge and Waltham Forest, and Kensington & Chelsea and Hammersmith & Fulham.

Wandsworth dominated the region, with the largest growth in contracts awarded in 2017, increasing by 359% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands North East North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology London About the CPA

UXBRIDGE UXBRIDGE UXBRIDGE UPMINSTER UPMINSTER UPMINSTER WESTMINSTER WESTMINSTER BROMLEY BROMLEY BROMLEY CROYDON CROYDON CROYDON KINGSTON UPON THAMES KINGSTON UPON THAMES KINGSTON UPON THAMES WESTMINSTER Contract awards for infrastructure projects in London totalled £3.3 billion in 2017, double the value recorded in 2016.

Contract awards for HS2 were the key driver of contracts growth and hotspots in Haringey and Islington (covering Euston station) and Hounslow and Richmond upon Thames (covering the Chiltern Tunnels). The £500 million Riverside Energy Park in Belvedere produced a hotspot in Bexley and Greenwich.

Commercial contract awards totalled £2.1 billion in 2017, 38.5% lower than the 2016 value. The only hotspot for commercial activity was Croydon. The £200 million 1 Park Place offices tower project in Canary Wharf was the largest commercial contract for the year, followed by the £188 million Ten Bank Street. The third largest project was a £130 million contract for the fit-out of the new Goldman Sachs HQ. £3.6 billion worth of residential contracts were awarded in London in 2017, 33.9% lower than the value awarded in 2016 and the lowest value in over six years. Nevertheless, there were two hotspots: Haringey and Islington and Hounslow and Richmond upon Thames.

Key projects in these sub-regions were phase one of the housing at the new Brentford FC stadium (£100 million) and the £76.5 million Lampton Road redevelopment of the former Hounslow civic centre.

InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Chiltern Tunnels (HS2) £1.3b Dec 18 Dec 23 Euston Tunnels and Approaches (HS2) £900m Dec 18 Dec 23 Riverside Energy Park, Belvedere £500m Jan 21 Jan 24 Jubilee Line escalators £76.3m Nov 17 Apr 25 Hampstead Road bridge replacement £50m - - Hobhouse Court art gallery £31m Aug 17 Aug 19 Big Ben refurbishment £29m Jan 17 Jan 21 Royal College of Music, courtyard development £25m Apr 17 May 19 Willesden Junction station – platform extension £22m - - Meridian Water site remediation £15m Mar 17 Mar 18 Source: Barbour ABI, CPA Project Type Value Start Finish 1 Park Place, Canary Wharf Offic es £200m Jul 17 - Ten Bank Street, Canary Wharf Offic es £188m - - Goldman Sachs fit-out, Clerkenwell Offic es £130m Oct 17 - 100 Liverpool Street refurbishment Offic es £120m - - 60 London Wall Offic es £100m Jul 17 Jul 19 One Crown Place, Hackney Offic es £80m Mar 17 Jul 20 207 Old Street – The Tower Offic es £73m Oct 17 Jun 18 Westminster City Hall refurbishment Offic es £50m Aug 17 Aug 19 114-150 Hackney Road Offic es £30m Jan 18 Jan 20 IKEA Greenwich Retail £30m Oct 17 Apr 19 Source: Barbour ABI, CPA Project Units Value Start Finish North Quay, Poplar 1,243 £800m - - Old War Office Building, Whitehall - £300m Oct 17 Oct 20 Wembley Park, Plot E05 - £155m Jan 18 Jan 21 225 Marsh Wall redevelopment - £150m Jul 17 Jul 21 Lionel Road, Kew Bridge phase 1 648 £100m Feb 18 Feb 21 Stephenson Street phase 1 1,020 £85m Feb 18 Feb 23 Wardian London, Canary Wharf 683 £80m Aug 16 Aug 20 Lampton Road, Hounslow 762 £76.5m Aug 17 - Wandle Terrace, Haslemere Estate - £70m Dec 17 Dec 19 High Lane estate renegeration, Ealing - £65m Jan 19 Jan 25 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…LONDON 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands North East North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology London About the CPA

FOCUSON… NorthEast GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% North East 19,542 14.8% 5.9% 6.2 3,019 -1.8% -19.5% Hartlepool and Stockton-on-Tees 19,452 12.9% 7.7% 6.8 434 0.7% -63.9% South Teesside 17,065 6.4% 5.7% 7.0 266 6.4% -32.9% Darlington 24,082 9.2% 3.9% 6.1 98 -4.9% -81.8% Durham CC 16,513 18.2% 6.7% 6.3 574 2.9% 12.9% Northumberland 16,604 16.5% 6.0% 4.5 314 -4.8% -7.5% Tyneside 22,277 14.3% 5.4% 6.4 1,024 -5.4% 56.2% Sunderland 21,021 21.6% 5.3% 6.3 309 -3.7% -43.9% Source: Barbour ABI, CPA , ONS The North East region accounts for 3.0% of UK GVA and had the highest regional unemployment rate in 2017 (6.2%).

Key sectors of regional economic activity are industrial production and manufacturing, distribution and transport, and public sector administration. Construction accounted for 5.9% of regional gross value added in 2016, and construction GVA fell 1.8%, the only region to record a decrease in construction in the year. The value of contracts awarded totalled £2.3 billion in 2017, a decrease of 19.5% from the previous year. In terms of overall contract awards, hotspots were Tyneside and Durham, whilst Sunderland was a coldspot.

Despite having the largest growth in contracts awarded in 2016, in 2017 Hartlepool and Stockton-in-Tees had one of the lowest growths, decreasing by 63.9% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology North East About the CPA

NEWCASTLE NEWCASTLE NEWCASTLE SUNDERLAND SUNDERLAND SUNDERLAND DURHAM DURHAM DURHAM Contract awards for infrastructure projects in the North East totalled £533 million in 2017, a decrease of 60.9% from 2016.

Tyneside was the sole infrastructure hotspot, due to the £300 million Blyth Offshore Wind Demonstrator project. There was no region where contract awards were significantly below the long-term average. The second-largest project awarded was in the energy sub-sector: the High Middlefield gas-fired energy reserve facility in Stockton-on-Tees (£50 million). Commercial contract awards totalled £93 million in 2017, a decrease of 49.4% compared to 2016. South Teesside was a hotspot in 2017, reflecting the award of contracts for the £10 million Cleveland Gate retail park.

The value of commercial contract awards in the sub-regions of Durham, Hartlepool and Stockton-on-Tees, Sunderland and Tyneside was below long-term averages. £1.1 billion worth of residential contracts were awarded in the North East in 2017, an increase of 17.7% from 2016. This represents a rebound from a weak year for contract awards in 2016 and a return to contract values in line with the long-term average. Therefore, there were no hotspots or coldspots in 2017. The largest contracts were for Mount Leven Retirement village in Stockton- on-Tees (£50 million) and 27 Rutherford Street in Newcastle-upon-Tyne (£40.5 billion).

InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Blyth Offshore windfarm demonstrator £300m Jan 17 Oct 17 High Middlefield Farm gas-fired energy reserve facility £50m Mar 17 - South Shields 365 transport interchange £20m Apr 18 Oct 19 Hemlington Grange, Cleveland Police HQ £12m - - Hemlington Community Safety Hub £12m Feb 17 Jun 18 Auckland Castle redevelopment £12m Jun 17 Nov 18 Whittle Dean water treatment works £11.1m - - Greatham Creek flood defence project £11m Jul 17 Dec 18 Greatham South flood alleviation scheme £11m Apr 17 Apr 20 University Hospital of North Tees energy centre £8m Apr 17 Apr 18 Source: Barbour ABI, CPA Project Type Value Start Finish Cleveland Gate retail park Retail £10m Jan 17 Jan 18 PIIPipelineSolutionsHQ,Northumberland Offices £7m Aug 17 Oct 18 Tombola Campus, Sunderland Offices £6m Mar 17 Sep 18 Pheasant Fields Lane, Skelton Retail £5.7m - - Northumberland Park, phase 1 Retail £4m Jan 18 Jul 18 Western Approach Trade Park Retail £3.5m - - HighwaysEnglandoffices,Northumberland Offices £3.5m May 17 Dec 17 Thinford Roundabout, starter Retail £3.3m - - M&S Food Hall, Darlington Retail £3m - - Aldi store, Thornaby Retail £2.5m - - Source: Barbour ABI, CPA Project Units Value Start Finish Mount Leven Retirement Village - £50m Apr 17 Apr 22 27 Rutherford Street, Newcastle-upon-Tyne 162 £40.5m Nov 17 Nov 19 East Benton Farm phase 2, North Tyneside 360 £36m Dec 17 Dec 22 Langley Park, Durham 353 £35.3m Jan 18 Jan 28 Whickham Highway, Gateshead 352 £35.2m Sep 17 Sep 23 18-29 Claypath student accommodation - £30m Jul 17 Jan 19 Wynyard Village extension, Stockton-on-Tees 280 £28m Apr 18 Apr 20 Lambton Lane, Bournmoor 271 £27.1m - - North Seaton, Ashington 240 £24m - - Arcot phase 1A, Northumberland 238 £23.8m Jul 17 Jul 23 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…NORTHEAST 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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FOCUSON… NorthWest GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% North West 22,899 18.7% 5.7% 4.4 9,383 1.0% 5.4% West Cumbria 23,981 23.3% 6.7% 4.1 378 3.3% -61.0% East Cumbria 24,821 23.3% 5.7% 2.5 373 -7.2% -48.4% Manchester 33,063 28.1% 2.7% 6.2 488 10.9% 17.1% Greater Manchester South West 29,338 19.7% 5.7% 4.3 815 10.7% 101.0% Greater Manchester South East 18,936 3.3% 5.4% 4.5 521 -9.2% 35.3% Greater Manchester North West 16,311 18.2% 8.5% 4.0 839 1.6% 20.9% Greater Manchester North East 17,483 21.2% 6.7% 5.4 746 3.0% -0.1% Blackburn with Darwen 20,340 24.1% 4.0% 6.1 121 2.5% 0.1% Blackpool 17,022 11.0% 4.2% 6.7 100 -9.1% 84.4% Lancaster and Wyre 16,512 13.4% 6.7% 3.3 280 -3.1% 10.2% Mid Lancashire 29,588 29.2% 8.5% 3.3 977 -4.3% -23.5% East Lancashire 18,628 17.8% 5.4% 4.3 329 -7.3% 0.7% Chorley and West Lancashire 18,984 15.1% 6.2% 4.0 268 -2.9% -17.4% Warrington 31,437 17.8% 6.6% 3.3 434 -2.9% 58.2% Cheshire East 33,279 30.1% 5.0% 1.2 631 7.9% 3.4% Cheshire West and Chester 27,900 16.9% 4.2% 5.8 396 4.5% 144.8% East Merseyside 22,304 16.0% 6.2% 4.1 627 1.0% -7.8% Liverpool 23,029 9.7% 4.6% 5.8 508 5.4% -2.7% Sefton 15,512 5.6% 6.1% 4.9 260 6.1% 46.7% Wirral 15,051 9.7% 6.0% 4.7 290 0.3% 30.7% Source: Barbour ABI, CPA , ONS The North West region accounts for 9.5% of UK GVA and includes two major cities: Manchester and Liverpool.

Key sectors of regional economic activity are industrial production and manufacturing, distribution and transport, and public sector administration. Construction accounted for 5.7% of regional GVA in 2016 and construction GVA grew 1.0%, slower than the UK overall in that year. The value of contracts awarded totalled £8.0 billion in 2017, an increase of 5.4% from the previous year. In terms of overall contract awards, hotspots were Blackpool, Greater Manchester South West, Sefton and Warrington. East Merseyside and Greater Manchester North West were coldspots. Cheshire West and Chester had the largest growth in contracts awarded in 2017, increasing by 144.8% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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CHESTER CHESTER CHESTER LIVERPOOL LIVERPOOL LIVERPOOL MANCHESTER MANCHESTER MANCHESTER SALFORD SALFORD SALFORD LANCASTER PRESTON PRESTON PRESTON CARLISLE CARLISLE CARLISLE LANCASTER LANCASTER Contract awards for infrastructure projects in the North West totalled £1.7 billion in 2017.

This is 26.9% lower than in 2016. Activity hotspots in 2017 were driven by a broad range of rail, energy, utilities and airport projects, including £350 million for the Trafford Park tram line, £300 million for the Thirlmere to West Cumbria water mains link and £300 million for the 60mw Lostock energy from waste facility in Northwich. There were three hotspots (Greater Manchester South East, Greater Manchester South West and Sefton) and one coldspot (Lancaster and Wyre).

InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Metrolink, Trafford Park £350m Nov 17 Nov 21 Thirlmere to West Cumbria water mains link £300m - - Lostockenergyfromwastefacility £300m Oct 18 Oct 21 Ince Resource Recovery Park £130m - - Manchester Airport T2 Transformation – taxiways £38m Oct 17 Jan 19 Weaver to Wavertress re-signalling £35m Jan 17 May 19 Halton Curve – Chester to Liverpool rail line £25m Jun 17 Sep 18 Merseyside Police – patrol facility £21.7m - - Jodrell bank Observatory – SKA HQ Building £20.4m Dec 16 Dec 17 Cheshire East BC – organic waste treatment centre £20m - - Source: Barbour ABI, CPA Project Type Value Start Finish Rochdale Riverside Retail £70m Nov 17 Aug 19 Warrington Bridge Street redevelopment Retail £69m Oct 17 Oct 18 Mercedes Benz dealership, Stockport Retail £60m Jan 18 - Dickenson House, Manchester Offic es £50m Apr 17 Oct 18 Paddington Square, Liverpool Offic es £40m Sep 17 Sep 20 Bridge Street Quarter, council HQ Offic es £19m - - Edge Lane retail park, Liverpool Retail £16.5m - - Westbrook and Delta Crescent, Warrington Retail £13.5m - - Electra House, Cheshire Offic es £12.3m Aug 17 Aug 18 New Mersey retail park Retail £12m Jan 17 Jul 18 Source: Barbour ABI, CPA Project Units Value Start Finish Sir Henry Royce Institute, Circle Square 266 £235m Oct 17 Oct 19 Portugal Street East Phase 1, Manchester 340 £150m Jan 18 Jan 21 Circle Square, Blocks 5 & 6, Manchester 411 £135m Sep 17 Sep 19 Chapel Wharf, Salford 995 £100m Jan 17 Jul 19 Princess Street/Whitworth Street - £80m Aug 17 Aug 19 Jacksons Row, Manchester - £77.1m - - Trinity, Salford 380 £60m Jul 17 - Gore Street, Salford 221 £60m Jan 18 Apr 19 Furness Quay, Salford 707 £53m Jul 17 Jul 20 Carleton Heights, Eden, Cumbria 505 £50m Feb 17 Feb 24 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…NORTHWEST Commercial contract awards totalled £684 million in 2017, 5.1% higher than in 2016.

There were five key hotspots: Blackpool, Greater Manchester North East, Lancaster and Wyre, Liverpool and Warrington. This reflects the awards of contracts for Rochdale Riverside (£70 million) and two projects at the Warrington Bridge Street redevelopment: a £69 million retail-led scheme and £19 million council offices. In contrast, the value of commercial contract awards in Wirral was below its long-term average. £3.8 billion worth of residential contracts were awarded in the North West in 2017, an increase of 39.7% from 2016. Hotspots were in Blackburn with Darwen, Blackpool and Manchester.

Half of the region’s top ten largest projects were in Manchester city centre, including two phases at Circle Square, the former BBC site, at £235 million and £135 million. Four projects totalling £273 million were awarded in Salford. The majority of projects are set to complete in 2019.

5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology North West About the CPA

FOCUSON… Scotland GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2015) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% Scotland 24,876 17.7% 6.3% 4.1 8,448 4.8% -41.7% Angus and Dundee City 21,388 16.0% 5.1% 4.5 286 -0.3% 42.8% Clackmannanshire and Fife 19,638 23.3% 7.0% 3.8 581 6.8% 244.1% East Lothian and Midlothian 16,722 25.1% 9.7% 3.3 311 -3.7% -25.4% Scottish Borders 18,099 12.3% 6.9% 4.2 143 -1.4% -64.8% Edinburgh, City of 38,396 17.8% 2.9% 2.6 569 8.0% -20.2% Falkirk 20,136 19.2% 8.9% 5 284 9.2% -44.0% Perth & Kinross and Stirling 24,920 24.9% 6.1% 3.3 369 -2.1% -53.9% West Lothian 20,927 4.7% 8.6% 3.3 325 -12.4% -11.5% E Dunbartonshire, W Dunbartonshire and Helensburgh & Lomond 16,749 13.4% 5.7% 4.1 212 8.7% -45.9% Dumfries & Galloway 19,826 19.7% 5.6% 2.1 167 4.4% -41.9% E Ayrshire and N Ayrshire mainland 15,627 13.8% 7.8% 7.6 307 3.7% -64.8% Glasgow City 33,660 19.8% 5.2% 5.6 1,077 2.1% -17.9% Inverclyde, E Renfrewshire and Renfrewshire 20,175 21.4% 6.8% 4.2 479 12.7% -55.6% North Lanarkshire 19,605 20.5% 10.0% 4.9 665 4.9% 113.4% South Ayrshire 23,948 22.4% 5.3% 4.4 144 19.0% 11.9% South Lanarkshire 19,991 19.2% 10.2% 3.7 649 13.9% 93.0% Aberdeen City and Aberdeenshire 35,786 11.4% 5.7% 3.5 1,008 7.3% -69.8% Caithness & Sutherland and Ross & Cromarty 20,426 21.7% 10.4% 3.7 200 6.4% na Inverness & Nairn and Moray, Badenoch & Strathspey 24,950 16.6% 6.7% 4.9 343 4.9% -83.2% Lochaber, Skye & Lochalsh, Arran & Cumbrae and Argyll & Bute 23,335 19.0% 6.6% 1.9 154 4.8% -58.5% Eilean Siar (Western Isles) 17,664 8.4% 7.4% 2.9 35 -2.8% -54.6% Orkney Islands 21,528 18.4% 10.4% na 49 8.9% 1472.3% Shetland Islands 29,317 19.5% 12.9% na 88 -3.3% -25.7% Source: Barbour ABI, CPA , ONS Scotland accounts for 7.7% of total UK GVA.

Key sectors of economic activity in the region are industrial production and manufacturing, distribution and transport and public administration. Construction accounted for 6.3% of regional gross value added in 2016 and increased 4.8% in that year, below the overall UK rate of growth. The value of contracts awarded in the region totalled £4.9 billion in 2017, a decrease of 41.7% from the previous year. In terms of overall contract awards, hotspots were in North Lanarkshire and the Orkney Islands. Coldspots were the Western Isles and East Ayrshire and North Ayrshire mainland.

The Orkney Islands dominated growth in contracts awarded in 2017, increasing by 1472.3% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology Scotland About the CPA

ABERDEEN ABERDEEN ABERDEEN INVERNESS INVERNESS INVERNESS DUNDEE DUNDEE DUNDEE PERTH PERTH PERTH STIRLING STIRLING STIRLING EDINBURGH EDINBURGH EDINBURGH GLASGOW GLASGOW GLASGOW Contract awards for infrastructure projects in Scotland totalled £1.0 billion in 2017, which was 73.4% below the value awarded in 2016.

Hotspots were recorded in the Western Isles, North Lanarkshire and Perth and Kinross and Stirling and coldspots in South Lanarkshire, the Scottish Borders and East Ayrshire and North Ayrshire mainland. The largest contract award was the £130 million Kype Muir wind farm and the £120 million converter station for the Abb Caithness Moray subsea cabling project.

Commercial contract awards totalled £244 million in 2017, 41.9% below the value recorded in 2016. Hotspots for commercial activity were in Inverness & Nairn and Moray, Badenoch & Strathspey and the Shetland Islands. The two largest contracts were for offices space in Glasgow: £50 million for Bothwell Exchange and £13.5 million for the fit-out of 1 Atlantic Quay. Coldspots were registered in South Ayrshire, Orkney Islands and East Dunbartonshire, West Dunbartonshire and Helensburgh & Lomond.

£2.0 billion worth of residential contracts were awarded in Scotland in 2017, 29.9% higher than the value awarded in 2016.

East Lothian and Midlothian, Inverness & Nairn and Moray, Badenoch & Strathspey, Orkney Islands, South Ayrshire and the Scottish Borders were hotspots, whilst Lochaber, Skye & Lochalsh, Arran & Cumbrae and Argyll & Bute was a coldspot. Three of the top five largest contract awards were in Edinburgh. The largest contract was for a £51 million development in Midlothian.

InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Kype Muir Wind Farm £130m Jan 17 Dec 17 Abb Moray converter station £120m Jan 17 Aug 18 Dalmarnock waste water treatment works £55m - - Shotts Electrification (Holytown to Midcalder) £49m Jan 17 Jan 20 Sound of Islay Stream Project £40m Aug 17 Jan 19 A737 Dalry Bypass £38m Jul 17 Jan 19 Tealing Solar Farm £31m Sep 18 Mar 20 Knocknagael to Tomatin overhead line £30m Dec 17 Dec 19 Wathegar 2 Wind Farm £27m Dec 17 - Edinburgh Waverly platform modifications £23m - - Source: Barbour ABI, CPA Project Type Value Start Finish Bothwell Exchange, Glasgow Offices £50m May 17 Nov 18 1 Atlantic Quay, Glasgow – fit-out Offices £13.5m - - Eastgate Shopping Centre, Highland Retail £13m Oct 17 Apr 19 Aviemore Retail Park Retail £10m May 17 Jan 18 Lerwick Fish Market Retail £10m Oct 17 Oct 18 Brechin Road, Montrose Retail £8.2m - - NFU Mutual office refurbishment, Glasgow Offices £8m Jan 17 Jan 18 West George Street office refurbishment Offices £7m Feb 17 Feb 18 4 North St Andrew Street extension Offices £6m Jun 17 Aug 18 JP Morgan office refurbishment, Edinburgh Offices £5.2m Oct 17 Apr 18 Source: Barbour ABI, CPA Project Units Value Start Finish Newton Farm and Wellington Farm 506 £51m Jun 19 Jun 26 Baileyfield South, Portobello 483 £48.3m Nov 17 Nov 22 Waterfront Plaza, Edinburgh 425 £45.5m Jul 17 Jul 20 South Scotstoun, Edinburgh 339 £45m Jan 18 Jan 25 Ness Side, Highland 446 £41.3m - - Former Scottish Power HQ, Glasgow 128 £40m Mar 18 Mar 19 Portstown phases 1 & 2, Aberdeen 363 £36.3m Dec 16 Dec 19 Pitskelly Farm phases 1 & 2, Angus 250 £35m Aug 17 Aug 22 Ellismuir Farm Road, Glasgow 374 £35m Jul 18 Jul 23 Summerhill, Aberdeen 369 £35m Oct 17 Oct 21 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…SCOTLAND 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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FOCUSON… SouthEast GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% South East 28,506 20.6% 6.8% 3.2 17,501 8.6% -4.3% Berkshire 40,077 16.0% 4.9% 2.9 1,759 17.1% -44.8% Milton Keynes 45,915 35.3% 2.9% 4.8 349 10.1% -42.1% Buckinghamshire CC 29,601 22.6% 7.0% 1.8 1,108 5.3% 49.9% Oxfordshire 33,096 25.7% 6.5% 3.8 1,461 14.1% 64.4% Brighton and Hove 25,719 28.8% 4.7% 6.3 348 2.4% 302.8% East Sussex CC 19,065 22.3% 8.6% 3.3 895 6.7% -31.3% West Surrey 35,935 26.5% 6.4% 2.3 1,804 11.4% -2.9% East Surrey 30,422 16.8% 9.3% 2.6 1,132 1.2% -58.5% West Sussex (South West) 21,376 11.6% 6.6% 2.6 630 7.1% -11.2% West Sussex (North East) 31,170 28.6% 5.8% 3.2 722 12.3% 108.1% Portsmouth 26,662 18.5% 6.0% 3.4 346 10.9% -40.3% Southampton 24,165 21.1% 5.4% 3.7 334 7.4% -27.4% Isle of Wight 19,290 19.2% 6.3% 4.9 170 12.6% -42.9% South Hampshire 23,815 13.5% 8.6% 3.3 928 6.9% 11.6% Central Hampshire 28,476 15.2% 7.5% 2.1 1,162 12.6% -40.4% North Hampshire 30,100 14.0% 5.7% 2.1 632 8.6% -16.3% Medway 18,550 28.7% 9.8% 5.5 508 4.1% -41.8% Kent Thames Gateway 21,894 26.5% 13.6% 3.1 1,065 -2.2% -33.2% East Kent 17,651 7.8% 7.7% 4.2 718 9.5% 143.8% Mid Kent 23,138 18.5% 8.7% 2.7 587 7.9% -35.2% West Kent 27,578 22.6% 8.4% 2.4 844 7.4% -5.5% Source: Barbour ABI, CPA , ONS The South East region accounts for 14.7% of total UK GVA and had the lowest regional unemployment rate in 2017 (3.2%).

Key sectors of economic activity in the region are distribution and transport, information and communications, real estate activities, business services and public administration. Construction accounted for 6.8% of regional GVA in 2016 and rose 8.6% in that year. The value of contracts awarded in the region totalled £8.3 billion in 2017, a decrease of 4.3% from the previous year. In terms of overall contract awards, hotspots were in East Kent and Brighton and Hove, whilst coldspots were in Portsmouth, Isle of Wight and West Sussex (South West). Brighton and Hove had the largest growth in contracts awarded in 2017, increasing by 302.8% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology South East About the CPA

BRIGHTON & HOVE BRIGHTON & HOVE BRIGHTON & HOVE CANTERBURY CANTERBURY PORTSMOUTH PORTSMOUTH PORTSMOUTH SOUTHAMPTON SOUTHAMPTON SOUTHAMPTON OXFORD OXFORD OXFORD WINCHESTER WINCHESTER WINCHESTER CHICHESTER CHICHESTER CHICHESTER CANTERBURY Contract awards for infrastructure projects in the South East totalled £1.7 billion in 2017, a decrease of 32.6% from the value awarded in 2016.

Hotspots of activity were in East Kent, South Hampshire and West Sussex (North East), reflecting the award of contracts for the extension of the cruise ship terminal at the Port of Dover (£400 million), the £180 million Gatwick Airport extension to pier 6, to be operational in 2022, as well as two contracts for onshore electricity work in Fareham for the France-UK interconnector, IFA2.

Commercial contract awards in the South East totalled £714 million in 2017, 3.3% higher than in 2016. Hotspots for commercial activity were Brighton and Hove, Central Hampshire, Mid Kent, Milton Keynes and West Sussex (South West). Berkshire and North Hampshire were coldspots. A £55 million digital and data centre at the Principal Park business park in Crawley was the region’s largest contract award, with work expected to last until early 2020. £3.1 billion worth of residential contracts were awarded in the South East region in 2017, 7.9% higher than the value awarded in 2016. There were no hotspots and only Milton Keynes was a coldspot.

Key projects awarded contracts include a £120 million development at Charter Square, Staines, £103 million for 1,000 units at Sandleford Park, Newbury and £75 million for the redevelopment of the former gas works in High Wycombe. InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Port of Dover – Terminal 2 £400m Feb 17 Feb 21 Channel Tunnel Interconnector £185m - - Gatwick Airport pier 6 extension £180m Apr 18 Apr 22 IFA2 – onshore converter station £100m Jan 18 Jan 20 IFA2 – onshore cabling £50m Oct 17 Oct 19 Folkestone converter station £40m Jan 17 Jan 19 MK Centre multi-storey car park £30m Sep 17 Sep 19 Didcot Parkway – IECC Scalable extension £27m Mar 17 Mar 20 Didcot Parkway – 6-storey car park £25m Aug 17 Jul 18 Canterbury Cathedral refurbishment £19.4m Dec 17 Dec 21 Source: Barbour ABI, CPA Project Type Value Start Finish Principal Park, Crawley Offic es £55m Jan 17 Jan 20 McArthur Glen retail outlet extension Retail £40m Dec 17 Dec 19 Nexus parcel 1 and 3, Crawley Offic es £27.5m Apr 17 Oct 18 Kings Court development, Woking Offic es £25.5m May 17 Nov 18 Station Street, Brighton Offic es £18.8m - - Milton Park plots 141-143 fit-out Offic es £18m Jun 17 - Lloyds Court development, Milton Keynes Offic es £18m Aug 17 Feb 19 Chilcomb Park, Winchester Offic es £17.5m - - Oxford Science Park, plot 12 Offic es £15m Feb 17 Feb 19 St Michael's Retail Park, Basingstoke Retail £15m Jan 18 Nov 18 Source: Barbour ABI, CPA Project Units Value Start Finish Charter Square, Staines - £120m - - Sandleford Park, Newbury 1,000 £103m - - Former Gas Works, High Wycombe - £75m May 17 May 19 North Stoneham Park, Eastleigh 564 £56.4m Jul 17 Jul 21 Botley Centre redevelopment phase 1 - £52.3m Jun 17 Aug 19 Bloxham Road, Banbury 321 £32.1m Aug 17 - Conningbrook Lakes, Ashford 300 £31.5m Sep 17 - Sun Park, Minley Road, Camberley 323 £31.4m Jul 17 Jul 22 Land north east of Hook 300 £30m Oct 17 - Leigh Court, Wycombe 230 £30m Jan 18 Jul 21 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…SOUTHEAST 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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FOCUSON… SouthWest GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% South West 23,548 20.1% 7.2% 3.3 9,309 8.7% 15.5% Bristol, City of 31,014 22.8% 5.3% 4.2 741 13.0% 1.3% Bath and NE Somerset, N Somerset and S Gloucestershire 27,683 19.8% 7.6% 3.5 1,416 12.7% 56.0% Gloucestershire 25,921 20.4% 6.8% 2.8 1,095 10.2% -10.0% Swindon 31,986 16.8% 6.2% 5.3 434 10.4% -26.5% Wiltshire 22,260 19.8% 7.0% 3.5 765 2.0% 6.3% Bournemouth and Poole 24,519 23.6% 5.7% 3.5 488 4.9% 69.0% Dorset CC 19,898 14.4% 8.2% 2.4 689 -0.7% 2.8% Somerset 21,152 20.4% 7.4% 3.4 862 6.0% 88.5% Cornwall and Isles of Scilly 18,231 21.5% 8.6% 2.7 874 11.6% 9.3% Plymouth 20,058 14.5% 6.2% 5.4 329 6.8% -36.5% Torbay 15,690 8.7% 7.4% 4.1 155 6.2% -36.4% Devon CC 21,719 23.4% 8.6% 1.9 1,460 11.5% 12.4% Source: Barbour ABI, CPA , ONS The South West region accounts for 7.4% of total UK GVA and key sectors of economic activity in the region are distribution and transport, public administration and business services.

Construction accounted for 7.2% of regional gross value added in 2016 and registered an increase of 8.7% in that year. The value of contracts awarded in the region totalled £4.9 billion in 2017, an increase of 15.5% from the previous year. In terms of overall contract awards, hotspots were in the City of Bristol and Somerset.

Somerset had the largest growth in contracts awarded in 2017, increasing by 88.5% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology South West About the CPA

PLYMOUTH PLYMOUTH EXETER EXETER EXETER SALISBURY SALISBURY SALISBURY TRURO TRURO TRURO BRISTOL BRISTOL BRISTOL GLOUCESTER GLOUCESTER GLOUCESTER BATH BATH BATH WELLS WELLS WELLS PLYMOUTH Contract awards for infrastructure projects in the South West totalled £1.1 billion in 2017, which was double the value awarded in 2016.

The City of Bristol, Bournemouth and Poole, and Somerset were hotspots, reflecting the award of two large projects. The first was the £460 million mechanical and electricals package for Hinkley Point C. The other large contract in 2017 was also in the energy sub-sector: a £252 million waste to energy plant in Avonmouth, Bristol.

Commercial contract awards totalled £581 million in 2017, 60.0% higher than in 2016. Hotspots for commercial activity were Devon CC, Dorset CC, Swindon, Wiltshire, and Bath and North East Somerset, North Somerset and South Gloucestershire. Four of the top ten largest projects were for offices at business parks around Bristol, ranging in value from £17.1 million to £58.4 million. Offices on the Woolsbridge Industrial Estate in East Dorset accounted for a £50.1 million contract award. £1.9 billion worth of residential contracts were awarded in the South West region in 2017, 3.4% higher than the value awarded in 2016.

There was one hotspot in Wiltshire and three regions registered as coldspots: Swindon, Torbay, and Cornwall and Isles of Scilly. The two largest contract awards in the region were for accommodation on the Army Basing Programme, including £96.9 million for The Packway in Larkhill and £60.7 million for homes as part of Project Allenby Connaught in Bulford. InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Hinkley Point C M&E package £460m Jan 19 Jan 23 Avonmouth waste to energy plant £252m Apr 17 Apr 20 Bristol Temple Quarter infrastructure works £28m Jul 17 Jul 19 Hinkley Point C Williton park & ride £20m Jul 17 Sep 18 Colley Lane southern access road £20m Apr 18 Sep 19 Yeovil western corridor highway improvements £17m Sep 17 Mar 19 C & D class roads improvements cluster, Dorset £14m Jul 17 Jul 20 Indian Queens industrial estate expansion £12.5m - - Dunsland Cross wind farm £12m - - BristolInternationalAirport,multi-storeycarpark £12m Oct 17 Jan 19 Source: Barbour ABI, CPA Project Type Value Start Finish Project Henley, Bristol Business Park Offic es £58.4m Oct 17 Oct 19 Woolsbridge Industrial Estate Offic es £50.1m - - Horizon 38 Business Park, Bristol Offic es £40m - - IKEA Exeter Retail £28m Apr 17 Apr 18 Temple Way Glassfields Scheme Offic es £22m Sep 17 Sep 19 Hayle Rugby Club Retail £20m Jul 17 Jan 19 Dyson HQ expansion Offic es £19m May 17 - Access 18 Business Park, Bristol Offic es £17.1m - - Honeybourne Place, Cheltenham Offic es £15m Sep 17 Feb 19 Huntworth Roundabout multi-use project Offic es £15m Sep 17 Sep 19 Source: Barbour ABI, CPA Project Units Value Start Finish The Packway, Larkhill 444 £96.9m Sep 17 Sep 19 Project Allenby, Bulford - £60.7m - - Hengrove Park, Bristol 260 £50m - - Hunters Moon, Wiltshire 450 £45m Jan 19 Jan 24 Derrys Building, Plymouth - £43.8m May 17 Jan 19 Belgrave Road, Exeter, student housing - £40m Jul 17 Jul 19 Veneti apartment, Poole - £32m Nov 17 Nov 19 Wheatpieces phase 1A, Tewkesbury 261 £29.5m Jun 17 Jun 21 Project Allenby, Larkhill Garrison - £29.2m - - University of Bath student accommodation - £27.5m - - Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…SOUTHWEST 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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FOCUSON… Wales GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% Wales 19,200 18.8% 6.4% 4.8 3,814 11.2% -29.0% Isle of Anglesey 13,844 10.7% 7.8% 3.1 75 4.2% -93.2% Gwynedd 19,436 16.5% 6.7% 2.4 161 11.0% 71.2% Conwy and Denbighshire 16,719 18.1% 7.1% 3.6 250 -0.4% -42.5% South West Wales 16,721 17.5% 7.7% 4.6 496 14.0% 17.5% Central Valleys 16,730 24.9% 7.4% 5.7 370 12.8% -12.2% Gwent Valleys 14,758 19.0% 6.7% 5.7 337 12.3% 253.0% Bridgend and Neath Port Talbot 18,565 21.3% 6.9% 6 367 13.6% -16.4% Swansea 19,204 16.6% 6.6% 4.6 311 16.9% 16.6% Monmouthshire and Newport 21,967 13.4% 6.0% 4.1 318 14.8% -40.1% Cardiff and Vale of Glamorgan 24,583 19.1% 5.2% 6 622 8.0% 20.2% Flintshire and Wrexham 23,274 22.9% 4.6% 3.5 315 13.3% -71.2% Powys 17,412 15.6% 8.3% 2.5 191 7.9% -81.2% Source: Barbour ABI, CPA , ONS Wales accounts for 3.4% of total UK GVA and has the lowest GVA per head in the UK.

Key sectors of economic activity in the region are industrial production and manufacturing, distribution and transport, public administration and real estate activities. Construction accounted for 6.4% of regional GVA in 2016 and increased 11.2% in that year.

The value of contracts awarded in the region totalled £2.1 billion in 2017, a decrease of 29.0% from the previous year. In terms of overall contract awards, hotspots were in South West Wales and Cardiff and Vale of Glamorgan. Gwent Valleys had the largest growth in contracts awarded in 2017, increasing by 253% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology Wales About the CPA

ST ASAPH NEWPORT BANGOR SWANSEA ST DAVIDS CARDIFF ST ASAPH NEWPORT BANGOR SWANSEA ST DAVIDS CARDIFF ST ASAPH NEWPORT BANGOR SWANSEA ST DAVIDS CARDIFF Contract awards for infrastructure projects in Wales totalled £439 million in 2017, which was 68.4% lower than the value awarded in 2016. Hotspots were recorded in the Central Valleys and Swansea, reflecting large energy and utilities projects. This includes a £60 million contract for work on the Carmarthenshire Dock outfall pipe under Ofwat’s AMP6 regulated period, the £55.5 million Brenig wind farm in Denbighshire, and the £55 million road improvements work on the A40 between Llanddewi Valfrey and Penblewin in Pembrokeshire.

Commercial contract awards totalled £172 million in 2017, 12.5% lower than in 2016. Hotspots for commercial activity were in Bridgend and Neath Port Talbot, Gwynedd, Isle of Anglesey and Powys. Cardiff and Vale of Glamorgan was a coldspot. Nevertheless, the largest contract awards for Wales were for projects in Cardiff, including £47.4 million for plots 6 & 7 at Cardiff Central, a 12-storey office building for HMRC, the £34.3 million No 1 John Street and the fit-out of the BBC Wales HQ (£12 million).

£439 million worth of residential contracts were awarded in Wales in 2017, 22.3% lower than the value awarded in 2016.

Powys was the only hotspot with coldspots in Cardiff and Vale of Glamorgan, Conwy and Denbighshire, and Flintshire and Wrexham. Nevertheless, three student accommodation projects in Cardiff were in the top ten largest contracts: £38 million for Glossop Road, £28 million for the Capital Quarter and £20 million for Custom House. InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Carmarthenshire Dock outfall pipe (AMP6) £60m - - Brenig wind farm £55.5m Jun 17 Aug 18 A40 Llanddewi Valfrey to Penblewin £55m Jan 18 Jan 20 Mynydd y Gwair wind farm £49m Dec 17 Dec 19 Swansea Bay Tidal Lagoon – ancillary works £25m - - A4226 improvements £20m Apr 18 Apr 19 Llwyn Onn water treatment works, Wrexham £14m - - Nant Llesg surface mine £10m Jul 17 Jul 31 Maes-Yr-Haf Lane flexible generation facility £9.6m May 17 Oct 17 Mountain Ash cross valley link scheme £8m Apr 18 Apr 19 Source: Barbour ABI, CPA Project Type Value Start Finish Cardiff Central plots 6 & 7 Offices £47.4m Oct 17 Dec 19 No 1 John Street, Cardiff Offices £34.3m - - BBC Wales HQ – fit-out Offices £12m Sep 16 Apr 18 Morrisons, Abergavenny Retail £10m Jul 17 Feb 18 Ocean Plaza phase 2, Rhyl Retail £9m Jan 17 Oct 17 ONS Data Campus, Newport Offices £5m - - Lidl, Penylan Retail £3.8m Apr 17 Jan 18 Lidl, Porthmadog Retail £3.4m - - Cwm Cynon Business Park Offices £3.2m Nov 17 - RoyalBritishLegionredevelopment,Swansea Retail £3m Jan 18 Jul 19 Source: Barbour ABI, CPA Project Units Value Start Finish Glossop Road student accommodation - £38m Jul 17 Jul 19 Capital Quarter student accommodation - £28m Apr 17 Oct 18 St Cyres, Powys 215 £21.5m Mar 18 Mar 22 Custom House student accommodation - £20m Jan 18 Nov 19 Swanbridge Road, Vale of Glamorgan 190 £19m - - Caradog House redevelopment, Cardiff - £19m May 17 Aug 18 Barry Dock, South Quay Waterside 153 £15m Nov 17 Nov 20 Glan Llyn phase 2B, Newport 146 £14.6m Oct 17 Oct 20 St Ederyns Village, phase 4, Cardiff - £13m Jul 17 Jul 19 Tyddyn Bach, Anglesey 123 £12m - - Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…WALES 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

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FOCUSON… WestMidlands GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% West Midlands 22,144 23.4% 6.5% 5.2 8,299 2.6% 50.1% Herefordshire, County of 20,834 15.4% 7.4% 2.7 291 6.2% 85.8% Worcestershire 22,307 28.6% 6.3% 3.7 817 10.9% -22.5% Warwickshire 30,609 37.0% 6.2% 2.5 1,062 8.0% 118.4% Telford and Wrekin 22,412 17.1% 5.0% 4.8 194 5.4% 95.1% Shropshire CC 19,961 13.5% 8.7% 4.1 545 -0.4% -6.5% Stoke-on-Trent 20,763 21.1% 6.0% 5.8 314 -5.7% -9.1% Staffordshire CC 19,260 17.0% 8.6% 4.1 1,437 4.1% -29.8% Birmingham 23,300 22.1% 5.3% 8.3 1,400 -5.5% 92.8% Solihull 33,777 38.8% 6.0% 3.2 429 8.3% 6.5% Coventry 23,637 36.0% 3.2% 5.3 269 9.8% 30.7% Dudley 16,054 13.4% 8.7% 5.6 446 -1.5% 48.4% Sandwell 18,651 21.6% 7.0% 8.4 424 1.9% 122.8% Walsall 17,430 21.2% 8.4% 5.7 409 2.0% -69.9% Wolverhampton 18,306 5.5% 5.6% 7.8 261 2.8% 27.7% Source: Barbour ABI, CPA , ONS The West Midlands region accounts for 7.4% of UK GVA.

It includes the local authorities in the West Midlands Combined Authority: Birmingham, Coventry, Dudley, Sandwell, Solihull, Walsall and Wolverhampton. Key sectors of regional economic activity are industrial production and manufacturing, public administration and distribution and transport. Construction GVA growth was 2.6% in 2016, below the overall UK rate. Construction accounted for 6.5% of regional GVA. The value of contracts awarded in the region totalled £8.1 billion in 2017, which was 50.1% higher than the value in 2016. In terms of overall contract awards, there were three hotspots: Birmingham, Coventry, and Warwickshire, and two coldspots: Walsall and Staffordshire CC.

Sandwell had the largest growth in contracts awarded in 2017, increasing by 122.8% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales Yorkshire & Humber UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology West Midlands About the CPA

BIRMINGHAM BIRMINGHAM COVENTRY COVENTRY STOKE-ON-TRENT STOKE-ON-TRENT STOKE-ON-TRENT WOLVERHAMPTON WOLVERHAMPTON WOLVERHAMPTON WORCESTER WORCESTER WORCESTER HEREFORD HEREFORD HEREFORD LICHFIELD LICHFIELD LICHFIELD BIRMINGHAM COVENTRY Contract awards for infrastructure projects in the West Midlands region totalled £4.2 billion in 2017, which was four times higher than the value awarded in 2016.

Hotspots of activity were in Birmingham and Warwickshire, which account for three of the six HS2 contracts awarded in 2017, along with Coventry, Sandwell and Stoke-on-Trent. Other than HS2, the remaining top five contracts in the region were for roads: the £100 million M5 Oldbury viaduct and the £70 million A4440 link road.

Commercial contract awards totalled £447 million in 2017, 53.6% lower than the value in 2016. There were no hotspots for commercial activity, with contract awards at similar levels to the long-term average. Walsall was a coldspot, however. Major contracts reflected the ongoing redevelopment of Birmingham city centre and included 3 Arena Central (£65 million), Two Chamberlain Square (£40 million), Eastside Locks (£40 million) and the fit-out of HSBC’s new headquarters (£20 million).

£2.2 billion worth of residential contracts were awarded in the West Midlands region in 2017, 14.6% higher than the value awarded in 2016.

Contract awards were largely in line with long-term averages, although Solihull and Walsall were coldspots. Contracts awarded include the £77 million development on Bristol Street in Birmingham, comprising 772 units, a £50 million redevelopment of the Battery Park site in Selly Oak, Birmingham and £50 million for the Fairfax Street student accommodation development in Coventry. InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project.

Project Value Start Finish Birmingham Spur (HS2) £1.5b Dec 18 Dec 23 Delta Junction (HS2) £1.3b Dec 18 Dec 23 Long Itchington Wood Tunnel (HS2) £900m Dec 18 Dec 23 M5 Oldbury Viaduct £100m May 17 May 19 A4440 southern link road £70m Jan 19 Jan 21 Wolverhampton train station interchange project £40m Jul 17 Jul 18 Whitley South – Tollbar Island junctions £40m May 17 Sep 18 HMP Rye Hill house block £30m Jul 17 Jul 19 Strongford thermal hydrolysis plant £24m Jan 18 Jan 19 Marina Quay, Wyre Forest £23m Apr 18 Oct 19 Source: Barbour ABI, CPA Project Type Value Start Finish 3 Arena Central, Birmingham Offic es £65m Jan 18 Jan 20 Paradise Circus, Two Chamberlain Square Offic es £40m Sep 17 Oct 19 Eastside Locks, Building 5, Birmingham Offic es £40m Apr 18 Apr 20 Arena Central – HSBC fit-out Offic es £20m Jul 17 Jul 18 Sainsbury's Selly Oak Retail £15m Aug 17 Aug 18 Jaguar Land Rover – south design studio Offic es £15m Dec 17 Feb 19 102 New Street, Birmingham Offic es £13m Jun 17 - Telford shopping centre, northern quarter Retail £10m Jun 17 - Selly Oak redevelopment, retail terrace Retail £10m Sep 17 Jan 19 Telford shopping centre extension Retail £10m Nov 17 Nov 18 Source: Barbour ABI, CPA Project Units Value Start Finish Bristol Street, Birmingham 772 £77m Aug 17 Aug 25 Fairfax Street student accommodation - £50m Jun 17 Jun 19 Selly Oak redevelopment, Birmingham - £50m Oct 17 Oct 19 Deanslade Park project, Lichfield 475 £47.5m Apr 18 - University of Warwick, Cryfield Village - £45m Dec 17 Dec 20 Castle Farm Way, Telford 409 £41m Apr 18 - International House, student acc.

- £38m Jan 17 Aug 18 Leadon Way, Herefordshire 321 £32.1m - - Streethay phase 2, Lichfield 322 £32.1m Jun 18 - Friars Road student accommodation - £32m Nov 17 Nov 19 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…WESTMIDLANDS 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales Yorkshire & Humber UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology West Midlands About the CPA

FOCUSON… Yorkshire&Humber GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% Yorkshire and the Humber 21,285 16.0% 6.5% 5.0 7,532 7.4% 77.1% Kingston upon Hull, City of 21,497 15.5% 6.5% 7.9 364 11.7% -38.2% East Riding of Yorkshire 18,822 16.3% 6.4% 3.3 404 10.1% -10.3% North and North East Lincolnshire 22,326 10.2% 6.8% 5.3 498 4.2% -13.6% York 24,006 8.6% 5.8% 2.9 289 1.8% 39.7% North Yorkshire CC 22,588 12.6% 6.2% 4.2 845 4.6% -8.2% Barnsley, Doncaster and Rotherham 17,213 21.8% 9.4% 5.6 1,307 9.8% 209.0% Sheffield 20,774 14.3% 5.4% 6.4 647 3.9% 5.1% Bradford 18,810 18.8% 5.0% 5.9 506 3.7% 114.2% Leeds 28,597 16.6% 6.2% 4.3 1,387 9.1% 374.2% Calderdale and Kirklees 18,752 16.5% 6.7% 3.7 817 9.7% 16.1% Wakefield 21,035 19.5% 6.6% 6.0 470 9.3% -72.2% Source: Barbour ABI, CPA , ONS The Yorkshire and Humber region accounts for 6.6% of total UK GVA.

Key sectors of regional economic activity are industrial production and manufacturing, distribution and transport and public administration. Construction grew 7.4% in 2016, above the overall UK growth rate of 6.0% and accounted for 6.5% of regional GVA in 2016.

The value of contracts awarded totalled £6.7 billion in 2017, an increase of 77.1% from the previous year. In terms of overall contract awards, Leeds and Barnsley, Doncaster and Rotherham were hotspots, but contract awards in Wakefield were below the long-term average value. Leeds dominated the growth in contracts awarded in 2017, increasing by 374.2% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology Yorkshire & Humber About the CPA

BRADFORD KINGSTON UPON HULL LEEDS RIPON SHEFFIELD WAKEFIELD YORK BRADFORD LEEDS RIPON SHEFFIELD WAKEFIELD YORK BRADFORD KINGSTON UPON HULL KINGSTON UPON HULL LEEDS RIPON SHEFFIELD WAKEFIELD YORK Contract awards for infrastructure projects in the Yorkshire and Humber region totalled £2.8 billion in 2017, four times larger than the 2016 value. This was due to the country’s largest contract in 2017, the £2.25 billion upgrade of the Transpennine rail line west of Leeds. Not surprisingly, Leeds was an infrastructure hotspot. Contract awards were also above the long-term average in Bradford. The £120 million Keighley energy from waste facility was the second-largest contract award in the region.

Commercial contract awards totalled £781 million in 2017, 58.1% higher than in 2016. Barnsley, Doncaster and Rotherham was a commercial hotspot in 2017, reflecting the awards of contracts for the regeneration of Barnsley: phase 1 at £120 million, phase 2 at £70 million and Barnsley Markets phase 1 at £23 million. The £121 million offices development at 7 & 8 Wellington Place in Leeds was the region’s largest contract award. The City of Kingston upon Hull was a commercial coldspot during 2017.

£1.7 billion worth of residential contracts were awarded in the Yorkshire and Humber in 2017, an increase of 19.3% compared to the value awarded in 2016.

There were no residential hotspots, with Wakefield and North and North East Lincolnshire registering as coldspots. The West Campus student accommodation scheme in Hull, at a value of £130 million, was in the top ten largest residential contracts in Great Britain in 2017, whilst work on the £67.7 million Germany Beck development in York will be phased in until completion in 2027. InfrastructureContracts The top 10 infrastructure contracts by value of project. CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project.

Project Value Start Finish Transpennine rail upgrade £2.25b Oct 18 Oct 27 Keighley energy from waste facility, Bradford £120m Sep 17 Mar 20 M1-A1 link road £36m Sep 17 Mar 26 Magnox nuclear waste containers, Sheffield £20m Apr 17 Apr 21 Lundwood waste water treatement works upgrade £20m Oct 17 Apr 20 M181 termination junction £19m May 17 May 19 Irton water treatment works modernisation £17m Jul 17 Jan 19 South Bank custody suite, Grimsby £15.5m Nov 17 Mar 19 Redcote Lane battery storage facility £15m - - Five Towns park, highways work £10m Oct 17 Dec 18 Source: Barbour ABI, CPA Project Type Value Start Finish 7&8WellingtonPlace,Leeds Offic es £121m Sep 17 Sep 20 Barnsley Regeneration Phase 1 Retail £120m - - Barnsley Regeneration Phase 2 Retail £70m Aug 18 Apr 20 Latitude Purple, Leeds Offic es £40.4m - - Project Cavendish, Sheffield Offic es £40m Apr 17 Jun 18 Sheffield New Retail Quarter Retail £30m Apr 17 Apr 19 Barnsley Markets phase 1 Retail £23m Jul 17 Jul 18 A-Safe offices, Calderdale Offic es £20m Oct 17 Dec 17 St James Retail Park, Sheffield Retail £19m Mar 17 Mar 18 Majestic Building redevelopment, Leeds Offic es £19m Nov 17 May 19 Source: Barbour ABI, CPA Project Units Value Start Finish West Campus, Hull, student acc.

- £130m May 17 Dec 19 Germany Beck, York 677 £67.7m Jun 17 Jun 27 Hollis Croft, Sheffield, student housing - £63m Jun 17 Aug 19 Doncaster Monk Bridge 307 £45m Jul 17 Jul 20 Wawne Road phase 1 (Keepmoat) 285 £30m Jun 17 Jun 22 Mustard Wharf, Leeds 250 £30m Jan 18 Jan 20 Wawne Road phase 1 (Strata Homes) 265 £27m Jul 17 - Kentmere Approach, site G, Leeds 250 £25m Jul 18 Jul 25 New Era Square Sheffield, phase 2 - £25m Jul 17 Jul 19 Beacon Road/Napier Crescent, Scarborough 241 £25m Jul 17 Jul 22 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential FOCUSON…YORKSHIRE&HUMBER 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology Yorkshire & Humber About the CPA

CASESTUDY… HS2Hubs GVA per head GVA growth 2011-2016 Construction % of GVA Unemployment rate Construction GVA (2016) Construction Growth (2016) Contracts Awards Growth (2017) UK Average 26,584 19.8% 6.2% 4.4 108,124 6.0% 4.3% Haringey and Islington 46,295 20.6% 4.4% 5.6 1,031 5.0% 178.5% Hounslow and Richmond upon Thames 41,089 50.9% 4.2% 6.2 805 13.5% 147.5% Birmingham 23,300 22.1% 5.3% 8.3 1,400 -5.5% 92.8% Warwickshire 30,609 37.0% 6.2% 2.5 1,062 8.0% 118.4% West Northamptonshire 25,936 21.2% 8.2% 6.4 847 10.9% 197.9% Source: Barbour ABI, CPA , ONS Phase 1 of the £55.7 billion HS2 project will construct 230 km of high-speed rail between London and the West Midlands, including four new or redeveloped stations at London Euston, Old Oak Common, Birmingham Interchange and Birmingham Curzon Street.

Six contracts for HS2 work were awarded in the third quarter of 2017, at a total value of £7.2 billion. The regions these contracts have been assigned to are Haringey and Islington, Hounslow and Richmond upon Thames, Birmingham, Warwickshire and West Northamptonshire, notwithstanding that tunnelling projects will span multiple regions. New station sites have been used as a tool to unlock development for housing and commercial projects, and falls particularly in line with government’s strategic plans in the Housing White Paper to densify housing provision around key transport hubs.

West Northamptonshire had the largest growth in contracts awarded in 2017, increasing by 197.9% CONTINUED BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section. Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 CASE STUDY… Methodology HS2 Hubs About the CPA

COVENTRY EALING BIRMINGHAM LEICESTER BUCKINGHAMSHIRE COVENTRY EALING BIRMINGHAM LEICESTER BUCKINGHAMSHIRE COVENTRY EALING BIRMINGHAM LEICESTER BUCKINGHAMSHIRE The HS2 contracts awarded to the five regions in 2017 totalled £7.2 billion, not surprisingly producing infrastructure hotspots in each.

Two projects will take place in Birmingham – the £1.5 billion Birmingham spur to link the mainline to the planned new Curzon Street station in the city centre, and the £1.3 billion Delta Junction. The £50 million replacement of Hampstead Road Bridge is also linked to HS2 work around London Euston station.

Outside of HS2, contracts awards included the £36 million M1-A1 link road in Leeds. Commercial contracts did not yield any hotspots in the HS2 hubs in 2017. In part, this reflects the high volume and value of contract awards in Birmingham in 2016, which had five of the top 30 largest commercial contracts awarded in 2016 as part of its city centre regeneration. Later phases of key offices developments at Arena Central and Paradise Circus were awarded contracts in 2017, however. A £30 million contract was awarded for Four Waterside in Northampton, which forms part of the region’s new enterprise zone.

Haringey and Islington and Hounslow and Richmond upon Thames were residential hotspots in 2017. The largest contracts awarded were the £100 million first phase of Lionel Road, the housing element of Brentford FC’s new stadium development in Kew Bridge and the £76.5 million Lampton Road development in Hounslow. Birmingham was a residential hotspot in 2016 and contract awards in 2017 show that the city centre regeneration continues, with £77 million and £50millionhousing developments at Bristol Street and Selly Oak, respectively. InfrastructureContracts The top 10 infrastructure contracts by value of project.

CommercialContracts The top 10 commercial contracts by value of project. ResidentialContracts The top 10 residential contracts by value of project. Project Value Start Finish Birmingham Spur (HS2) £1.5b Dec 18 Dec 23 Delta Junction (HS2) £1.3b Dec 18 Dec 23 Chiltern Tunnels (HS2) £1.3b Dec 18 Dec 23 North Portal of the Chiltern Tunnel (HS2) £1.3b Dec 18 Dec 23 Euston Tunnels and Approaches (HS2) £900m Dec 18 Dec 23 Long Itchington Wood Tunnel (HS2) £900m Dec 18 Dec 23 Hampstead Road Bridge Replacement £50m - - White Hart Lane Railway Station – station entrance, ticket hall & facilities £15m Sep 17 Sep 18 Chiswick Park Footbridge £5m Apr 17 Apr 18 Southall Lane – waste depot £4.6m Jan 17 Nov 17 Source: Barbour ABI, CPA Project Type Value Start Finish 207OldStreet–TheTower Offices £73m Oct 17 Jun 18 3 Arena Central, Birmingham Offices £65m Jan 18 Jan 20 Paradise Circus, Two Chamberlain Square Offices £40m Sep 17 Oct 19 Eastside Locks, Building 5, Birmingham Offices £40m Apr 18 Apr 20 Four Waterside, Northampton Offices £30m Jan 17 Jan 19 Arena Central – HSBC fit-out Offices £20m Jul 17 Jul 18 Sainsbury's Selly Oak Retail £15m Aug 17 Aug 18 Jaguar Land Rover – south design studio Offices £15m Dec 17 Feb 19 131 Finsbury Pavement, 9th Floor Extension Offices £14m Oct 17 Oct 18 102 New Street, Birmingham Offices £13m Jun 17 - Off/Ret = Offices/Retail Source: Barbour ABI, CPA Project Units Value Start Finish Lionel Road, Kew Bridge phase 1 648 £100m Feb 18 Feb 21 Bristol Street, Birmingham 772 £77m Aug 17 Aug 25 Lampton Road, Hounslow 762 £76.5m Aug 17 - Selly Oak redevelopment, Birmingham - £50m Oct 17 Oct 19 University of Warwick, Cryfield Village - £45m Dec 17 Dec 20 International House, Birmingham - £38m Jan 17 Aug 18 Sherborne Street, Birmingham 148 £30m Jul 17 Jul 19 Newhall Square, Charlotte Street 217 £30m Oct 17 Oct 19 Gilders Yard, 11-21 Great Hampton Street 147 £28m Jan 18 Jul 19 Lancaster Circus - £27m Jan 18 Jan 20 Source: Barbour ABI, CPA TOP 10 TOP 10 TOP 10 Infrastructure Commercial Residential CASESTUDY…HS2HUBS 5 4 3 2 1 -1 -2 -3 -4 -5 HEATSCALE BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 CASE STUDY… Methodology HS2 Hubs About the CPA

The ONS releases construction output data for Great Britain on a monthly and quarterly basis, and a regional breakdown of construction activity is reported three months following the end of the reference quarter. This regional data is only available on a non-seasonally adjusted basis and in current prices, making analysis more difficult than for national output data, which is available in constant price terms to indicate volumes of work.

Given the lags in reporting actual volumes of construction work completed, and the difficulties in measuring activity on a regional basis, this research seeks to identify regional ‘hotspots’ – where the value of construction contracts awarded in 2017 is above its historical average. This forward-looking approach aims to signpost areas of strength for construction over the next 12 months.

Methodology The hotspots are calculated using Barbour ABI data on contract awards, based on actual contract values, which have not been adjusted for inflation or deflation. The measure of heat indicates how the value of contracts awarded in 2017 compares with the long-term annual average, on a scale of –5 to +5: -5 being ‘very cold’, or significantly below the long-term average; +5 being ‘very hot’, or significantly above the long-term average. Regional breakdown Regions in Great Britain have been broken down based on the Nomenclature of Territorial Units for Statistics (NUTS) level 3 groupings.

This is one level above local authority-level data and is the EU and Eurostat standard for the subdivision of countries for statistical purposes. There are 174 NUTS3 regions in the UK, although the regions in this report cover the 168 regions in Great Britain only, to match the geographical coverage of construction output data from the ONS. Sector breakdown The analysis is broken down to show contract awards in the three largest construction sectors: residential, commercial and infrastructure. Residential: housing (private developments), student accommodation, new build, conversions and change of use Commercial: offices, retail, supermarkets Infrastructure: railways and stations, roads, bridges, ports, harbours and waterways, energy and utilities METHODOLOGY… Calculatingahotspotorcoldspot Regions in Great Britain have been broken down based on the Nomenclature of Territorial Units for Statistics (NUTS) level 3 groupings, covering 168 regions in Great Britain BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology About the CPA

Helping you see the Risks and Opportunities Authoritative, in-depth, insight and analysis of output, drivers and orders in all major sectors – housing, public non-housing, commercial, industrial and infrastructure. For information - or if you are not a CPA member and wish to purchase a copy - please call 020 7323 3770.

Also available A range of publications are available to members and non-members. Visit: www.constructionproducts.org.uk or call 020 7323 3770 BROUGHT TO YOU BY To navigate just click on buttons below and they will take you directly to your chosen section.

Home Overview Key regional hotspots Key regional coldspots East of England REGION FOCUS… East Midlands London North East North West Scotland South East South West Wales Yorkshire & Humber West Midlands UKConstruction Hotspots REPORT 2018 HS2 Hubs CASE STUDY… Methodology About the CPA