Featured Region: East Midlands

Underlying value of construction projects starting on site. (Excludes individual projects of more than £100 million and framework agreements).

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The East Midlands consists of the following Counties: Derbyshire, Leicestershire, Lincolnshire, Northamptonshire, Nottinghamshire.

After a reduced flow of new work over 2008 and 2009, the East Midlands got off to strong start in 2010 as the value of underlying starts on site grew by more than 50% over the first six months. Although starts slowed down in the final six months of 2010, they were still up 33% for the year. Indeed, all sectors showed increases in underlying starts in 2010 with the exception of a sharp 19% drop in infrastructure. Infrastructure starts have decreased every year from 2007.

2011 was a different story all together. There has been a lack of activity from key private sectors such as retail, offices and hotel & leisure. There has been continued expansion of industrial project starts, but that is from a low base. In addition, government cuts are biting for education and, more acutely, health construction. There were almost no health projects of note last year, and starts have halved over the year.

Overall, we expect growth in 2012 following the sluggishness seen over the past fifteen months. The private sector is expected to lead the way. On the other hand, social housing and education should see sharp declines owing to cuts spelled out in October’s Comprehensive Spending. A lack of large projects in civil engineering will be a further drag on the region.