Featured Region: West Midlands

The recovery in project starts in the West Midlands stalled last year, after two years of growth. The previous double digit rises seen during 2010 and 2011 had been largely driven by increases in private sector starts and a strong utilities sector. However, the positive performance was also fuelled by an increase in health and education funding.

In contrast last year saw a retrenchment in the non-residential sectors dominated by public sector funding; community & amenity, health and education have all suffered sharp declines in the value of underlying projects starts. The value of office projects starts also dropped back while industrial project starts plateaued. In contrast private and social housing were both important growth sectors together with increases in retail and utilities work.

Looking ahead, a continued private sector recovery is expected to push starts higher during 2013; we are forecasting a 4% rise in starts after last year’s dip.

The West Midlands consists of the following Counties: Hereford & Worcester, Shropshire, Staffordshire, Warwickshire, West Midlands.