insight and intelligence experts, release the October edition of its Construction Index.
Offering a detailed and comprehensive analysis of year-on-year construction data, this proprietary research has been designed with built environment professionals in mind, presenting unique insights from the last year.
This month sees the sector start to overcome some of the challenges faced in the spring and summer from material and skills shortages.
Project-Start Levels Rally
Although overall project-starts saw a steady slowdown in Q.2 and Q.3, after an initial surge in the first quarter, momentum appears to be building once again, with an activity uptick registered in September.
Further, the development pipeline remained robust throughout the year, particularly for some non-residential sectors, including industrial.
Main contract awards have been increasing over the last eighteen months, ever since the first National Lockdown in March 2020 and detailing planning approvals remain consistently high.
Complemented with improved trading conditions as well as an increase in consumer and business confidence, the Glenigan Economics Team predict these combined conditions will lead to project-start growth in the coming months and into 2022.
Business & Industry
Non-residential projects demonstrated considerable strength in Q.3, increasing 44% against the previous year and 7% compared with the same period in 2019. Additionally, the value increased 10% against the preceding quarter.
Industrial was the stand out sector during the period, up 152% against the previous year and 66% on Q.2 2021, standing a massive 101% higher than Q.3 2019.
Project-starts included the £76 million East Midlands Distribution Centre in Castle Donington, the £60 million Ivory Infinity Park also in Derbyshire. Plus, manufacturing projects including the new £82 million wind turbine factory for Siemens on Alexandra Dock, Hull, and the £40 million Advanced Manufacturing Facility for Unilever in Sharnbrook, Bedford.
Office project starts were also strong, increasing 7% against Q.2 and up 43% against the previous year and climbing 9% compared with the third quarter of 2019.
Looking deeper, Healthcare grew during Q.3, comparative to the same period 2020 and 2019. Health projects increased by over a half on 2019 (57%), with starts growing 6% against 2020 and 14% up on Q.2 2021.
Retail starts were up 38% in Q.3 against 2020 levels, with an 8% increase on the same period in 2019. Hotel & Leisure project-starts increased against the previous year but declined heavily compared with the same period in 2019 (-27%).