Construction Update: 24th April 2020
Keeping you up to date
I am the Chief Economist at Barbour ABI and AMA Research, providing analysis and economic insight for the construction industry. This is the fifth of our weekly briefings on the developments of Coronavirus and the impact on our industry.
Tom Hall, Chief Economist
COVID-19 Construction Update #5
We want to ensure that our clients have the most up to date information available to them and as such this is the fifth in a weekly series of briefings on the impacts of the Coronavirus pandemic on the construction industry. As part of your subscription, each week we will be providing:
- • A view of what's happening on the ground and what we can see from future planning
- • Help and support you may find useful during this difficult time
As you can imagine the situation is changing on a daily basis. We will do our best to support you with timely and accurate information to allow you to effectively manage your business at this difficult and unprecedented time.
To access the full report please click here
Construction Industry & Project Activity
This week we have seen a decrease in the overall number and value of delayed projects. Hopefully the scale of delays has now reached a peak and is starting to decrease as sites reopen. Total delayed project value is currently £69.3bn, a reduction of £1.4bn from the previous week.
We have seen a large increase in projects confirmed as remaining open, from 378 projects at a value of £3.5bn last week, to 508 projects with a value of £13.5bn currently (excluding the Hinkley Point project).
Our survey responses continue to pick up acute materials shortages and supply chain issues across the whole range of construction products. Around 50% of respondents are reporting significantly increased lead times getting materials to site.
However, there is now more information that some manufacturers are returning to production, with brick producers, for example, recommencing activity next week. More builders' merchants are also reopening. Impact by sector and region Across the different construction sectors, Education saw the largest change with a reduction of 11% in delays.
Delayed projects in the East of England reduced by 7%. The North West reported reductions of 5% and in London 4%. The reduction in London delays amount to a significant £800m.
Our Chief Economist, Tom Hall, has recorded another video update with a summary of the findings within this week's report. Watch it here.