According to recently released figures, infrastructure and construction contracts attained unprecedented levels last March, reaching £1.6 billion in total value.
The number of infrastructure construction contracts went up by 90 percent compared to the year before. Industrial construction contacts also increased by 104.7 percent, representing a major growth surge.
Economists predict that the combined strength of these two sectors will provide support to the continued growth of the construction industry.
The growing number of industrial and infrastructure works will create a needed diversion from the current focus on private housing.
The Government’s investment in road infrastructure is finally happening, as evidenced by the award of two major contracts in March: the M4 Corridor project around Newport and the Dunstable A5-M1 Link. These two projects have a collective value of £967 million.
The industrial sector also showed a solid performance, with March contract values valued at £627 million, which is a 104.7 percent increase over the totals reported in March 2014.
Rising demand for manufacturing and warehousing has driven the increase in industrial activity, with the North West receiving £70 million worth of contracts for a BAE Logistics facility in Barrow-in-Furness and Project Perch at Wirral Waters. 36 percent of all contract types awarded in March were for warehouse and storage projects.
The £1.633 billion value of the contracts awarded in both sectors represents an important boost to the construction sector, whose activity levels receded during the first quarter of this year.