North West

Overview

While project-starts, main contract awards and detailed planning approvals all weakened against the previous year and preceding quarter, the value of detailed planning approvals increased significantly against both time periods.

At £2.202bn, work starting on-site in the North West during the quarter to March fell 9 per cent against the preceding quarter and 22 per cent compared with a year ago. Major (£100m or more in value) projects at £730m decreased 38 per cent against the preceding quarter but increased 40 per cent against last year’s levels. Underlying (less than £100m) project-starts performed poorly, falling 20 per cent against the preceding quarter on a seasonally adjusted (SA) basis to stand 36 per cent lower than a year ago.

Totalling £2.068bn, main contract awards in the North West slipped back 16 per cent against the preceding quarter to stand 28 per cent down compared with last year’s levels. Underlying contract awards at £1.493bn increased 11 per cent (SA) against the preceding quarter to stand 34 per cent lower than last year’s levels. Major project contract awards performed poorly having decreased 36 per cent against the preceding quarter and 10 per cent compared with a year ago to total £575m.

Adding up to £3.173bn, detailed planning approvals increased 16 per cent compared with the preceding quarter and increased 51 per cent on the previous year. Major projects at £985m experienced a strong period, increasing 4 per cent against the preceding quarter and 353 per cent against the previous year. Underlying approvals increased 19 per cent (SA) against the preceding quarter and 61 per cent compared with last year’s levels to total £2.188bn.

Sector Analysis – Project-Starts

Private housing accounted for the greatest share (38 per cent) of work starting on-site in the North West during the quarter to March, despite the value falling 31 per cent against the previous year. Private housing construction-starts added up to £841m and included the £130m “Affinity Living” development in Manchester (Project ID: 21509552). Industrial work starting on-site in the North West decreased 56 per cent compared with the previous year to total £115m. The sector accounted 5 per cent of the total value.

Utilities was the second most active sector, with the value of project-starts increasing four-digits against the previous year to total £326m. The sector accounted for 15 per cent of the total value.  Hotel & Leisure also accounted for a 15 per cent share, the sector also experienced a relatively strong period, with the value of project starts increasing 73 per cent against 2022 levels to total £333m.

Value of Project-Starts in the North West during the quarter to March 2023 by Sector

Sector Analysis – Detailed Planning Approvals

As with project-starts, private housing was the dominant sector, accounting for 39 per cent of the total value, with the sector having experienced a 13 per cent increase on the previous year. Private housing consents added up to £1.228bn and included a £142m development of 746 residential units in Manchester (Project ID: 19271976). Education also performed well, with approvals rising 246 per cent against the previous year to total £172m , a 5 per cent share of the total.

Industrial was the joint second most active sector for detailed planning approvals, accounting for 11 per cent of the total value, with the value of approvals increasing 4 per cent against the previous year. Industrial approvals added up to £347m during the period. Utilities experienced the sharpest increase, with the value of project approvals increasing by four-digits against the previous year. The value of approvals totalled £335m during the period, also accounting for a 11 per cent share of the total value.

Value of Project Approvals in the North West during the quarter to March 2023 by Sector

Forecast Construction-Starts for the North West

Note: Underlying projects are schemes with a construction value of £250,000 to £100 million.  Forecast updated in April 2023 p – provisional, f – forecast.
Source: Glenigan