Featured Sector: Utilities

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

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Government policies are providing a strong investment incentive in the energy sub-sector. Renewable energy projects have become more common, and have provided an increasing amount of work around the UK. In addition, both the water utilities and several major UK ports are pressing forward with strong investment programmes. That said, capital funding will still be more scarce than the recent past, following the credit crunch and the government’s ‘austerity’ programme.

After a fall in underlying planning approvals in 2008, there was hardly any rebound in the following two years. This depressed level of planning approvals had restricted the value of underlying new work coming through the development pipeline. However the underlying value of planning approvals increased by 14% over 2011, and the value of starts has followed this positive trend.