Featured Region: Yorkshire and the Humber

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

Yorkshire and Humber consists of the following Counties: Humberside, North Yorkshire, South Yorkshire, West Yorkshire.

The construction industry in Yorkshire and the Humber was among those initially hit hardest by the credit crunch, as the region suffered sharp declines in both 2008 and 2009. Despite a recovery over 2010, further decline meant that the value of underlying construction starts in 2011 was 35% below the level seen in 2007.

Underlying starts on site fell by 4% in 2011 with weak performances in both public and private sectors. Though retail and hotel & leisure building continued to grow over 2011 after increases the year before, sectors such as private housing and office saw a return to decline.

Although civil engineering suffered a 33% drop in underlying starts on site in 2010 it has been the strongest sector in 2011 thanks to funding for projects earmarked in 2010’s Comprehensive Spending Review and a consequent jump in planning approvals.

A lack of publicly funded construction and private investment in building has weighed on the region over the past year. Residential starts have been sluggish, education and health building after a strong two years and the private commercial sectors are failing to pick up the slack.