The August edition of the Glenigan Construction Review shows that the construction industry is growing overall in comparison to 2023
Glenigan have released their August edition of the Glenigan Construction Review, and it paints a promising picture.
Starts on-site are up 8%, with major projects – projects costing over £100m – experiencing a 42% increase in value compared to the May-July period in 2023. However, compared to the 2024 February-April period, this is a decrease in 20%.
The decrease on the last three month period is likely due to the expected summer and post-election slump.
An all-around rise on the previous year
Main contract awards averaged a little over £9m per month, again a decrease (9%) on the previous three month period, but an increase (3%) on a yearly basis.
There is also a large difference with major project contract awards, seeing a 2% decrease on the previous months, but an impressive 30% increase on the same period in 2023, at £3,828m per month.
Perhaps the most telling difference, however, is that of major project starts, defined as projects of £100m or more in value. These averaged £4,684m per month, meaning a decrease against the last three months of 20%, but an increase of 42% on the last year.
The Glenigan Construction Review reveals signs of recovery
Although most figures show a decrease on the previous three months, the truly important figures are those that show an increase from 2023.
The slump of the last few years is showing signs of letting up as construction projects are on the rise.
The decrease on the previous months is typical of the time of year and election, and most of those surveyed said they have a positive outlook following the end of the election and a focus on construction.
Glenigan economic director, Allan Wilén, said: “Construction activity is showing encouraging signs of recovery, with starts on site up 8% compared to last year and main contract awards reflecting a steady 3% year-on-year growth. This momentum indicates a cautiously optimistic outlook within the industry, particularly as the new government’s planning reforms begin to take shape.”
