South: Industrial construction hits the £500m mark, says Barbour ABI

Figures released on February 20 reveal that the industrial construction sector in January increased its total value of contracts by over 38% compared to December, with a number of major projects announced across the month.

The data shows industrial construction in January 2015 rose above the £500 million barrier based on a three-month rolling average, compared to £362m recorded in January 2014. This is an encouraging sign for a sector that has already performed relatively well over the past 12 months having had a 26% increase for year-on-year growth in 2014.

The latest figures from Barbour ABI, which supplies construction data to the Office for National Statistics (ONS), Cabinet Office and Treasury, also revealed the North West was the region with the highest value of industrial activity in January, contributing to 36% of the contracts awarded. This was helped by two major contracts awarded: a £156m Parcel Force distribution centre in Chorley and a £150m storage facility at Sellafield.

Commenting on the findings from the latest Economic Construction Market Review, Michael Dall, lead economist at Barbour ABI, said: “In the three months to January the total value of contracts for industrial construction was £1.2 billion, almost 18% higher than the previous three months. While a large portion of the value is from the two major North West contracts, it is nevertheless encouraging with the sector likely to expand as we move further into 2015.

“The total value of industrial projects reaching the advanced planning stage in 2014 was £6.4b, an increase of over 50% on 2013, indicating a bright future for the sector.”