The construction landscape in North West England presented significant shifts in April 2024, marked by varying activity levels across sectors.
- Total project starts in the region declined by three per cent over the past three months and saw a 27 per cent decrease from last year.
- There was a substantial drop in major project initiations, yet detailed planning approvals witnessed growth compared to previous quarters.
- Private housing remained a significant contributor, albeit with reduced figures, while industrial and health sectors showed unexpected growth.
- Infrastructure contracts struggled considerably, whereas office developments surged with increasing approvals.
The North West of England’s construction sector experienced notable changes in April 2024. Total work commencement valued at £1.74 billion represented a decrease of three per cent over the previous quarter and a significant 27 per cent reduction from the previous year. Particularly affected were major projects — those valued at £100 million or more — which saw a sharp decrease of 47 per cent from the previous quarter and an overwhelming 81 per cent year-on-year plunge. However, on a slightly positive note, underlying project starts less than £100 million edged up by two per cent from the preceding quarter, despite being one per cent down from a year ago, amounting to £1.59 billion.
Main contract awards totalled £1.66 billion in the region, marking a steep 36 per cent decline from the previous quarter and a 39 per cent drop compared to the previous year, reflecting a lack of major contracts. The absence of significant awards underscores the broader downward trajectory, with underlying contract awards falling by 22 per cent on a seasonally adjusted basis compared to the previous quarter, culminating in a 20 per cent year-on-year decrease.
Conversely, detailed planning approvals reached £3.45 billion, indicating a one per cent increase from the preceding quarter and a more robust three per cent year-on-year rise. Major planning approvals soared by 29 per cent over the last quarter and were 32 per cent higher than last year at £1.15 billion. Nevertheless, underlying approvals posted a decline of seven per cent from both the previous quarter and last year’s levels.
Within the sectorial breakdown, private housing was the most active despite its 36 per cent reduction in value year-on-year, contributing £624 million or 36 per cent to the total. Infrastructure efforts, contrastingly, faced a significant 53 per cent yearly decrease, settling at £150 million and accounting for nine per cent of total values. The industrial sector, driven by the £151 million Pharmaron Liverpool project, saw a five per cent year-on-year increase, amounting to £258 million, taking a 15 per cent slice of the total. Health sector spending also improved markedly, up by 72 per cent year-on-year to £134 million, comprising eight per cent of total starts.
A closer look at project approvals reveals private housing as the largest approval sector at £1.49 billion despite a five per cent decline compared to the last year. Office projects witnessed a dramatic 316 per cent rise, totalling £547 million and thus accounting for 16 per cent of all consents in the region. Infrastructure approvals, amounting to £296 million, also saw a sharp rise, nearly tripling from the previous year and taking up nine per cent of the total. Conversely, sectors like Hotel & Leisure and Utilities witnessed considerable downturns in approval values, reflecting broader market fluctuations.
The North West’s construction sector in April 2024 displayed challenges but also areas of growth, particularly in detailed planning approvals.
