Featured Region: East Midlands

East Midlands Construction (£ million)

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

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

The construction industry in the East Midlands has had a volatile couple of years. In 2010 the underlying value of project starts increased by 33, easily outperforming most other sections of the UK. However, 2011 brought a decline in the value of starts. The region ended the year 16% below 2010 due to a lack of publicly funded projects.

Business activity has been strong this year in the East Midlands. The region has often seen strong flows of industrial construction, and it seems like this year will be no different. Business output has been increasing recently, while employment is also rising. If the region is to have the positive year that we anticipate, much of the new projects will come from the industrial sector. Another growth area could be private housing, following an increase in planning approvals this year.

Over 2012, we forecast a 10% increase in the underlying value of project starts. This will be followed by more modest growth during 2013.