Michael Dall, Barbour ABI's lead economist.

Sunny outlook for industrial construction

Published:  04 November, 2013

The industrial sector has performed better than any other in the UK construction industry over the past year, according to Barbour ABI’s new ‘Landscape Report’.

The findings showed that the total value of new industrial construction projects nationwide was calculated to be almost £806m in Q3, a 17% rise on the previous quarter, and an increase of 57% on 2012. While only representing 4% of the total construction market, the segment’s success is contributing to growth in construction.

London saw the largest number of new industrial developments commissioned in Q3, including the £15.5m Tavistock Road Recycling Facility in West Drayton. However, there was also sustained activity in the industrial sector in Scotland, North England and the South West that is forecast to continue into the near future. Only south east England bucked the trend, with the number of new industrial projects in the region declining.

The report found more signs that growth in the residential sector is gathering pace, with the value of new projects expanding 8% in the last quarter and 13% on 2012. South east England has enjoyed significant growth since Q3 2012, which is set to continue into 2014.

Michael Dall, lead economist at Barbour ABI, said: “The performance of individual sectors around the country is still fairly mixed. Big infrastructure projects, such as road and rail, are still few and far between, as are schemes for new hospitals and schools.

“However, the upturn in activity in the industrial sector is further evidence of growing confidence among UK manufacturers, chiming with the findings of a report by the British Chambers of Commerce earlier this month, which said that Britain's factories are experiencing a ‘growth spurt’, with confidence and the pace of job creation at historic highs. All of this points towards a sustained recovery for the construction industry and the British economy. Overall, I think we can expect more good news in 2014.”

The Landscape Report can be downloaded from the Barbour ABI website: http://www.barbour-abi.com/market-intelligence.php.

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