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The West Midlands is poised for a significant construction boost, driven by a sharp rise in commercial developments鈥攑articularly in the office sector.

Frasers Campus in Coventry

果冻影院鈥檚 latest research reveals a remarkable 2,293% increase in the value of approved office schemes in the three months leading to January 2025, highlighting growing investor confidence and a strong pipeline of future projects.

This was mainly due to approval for the 拢1,093 million Frasers Campus in Coventry (pictured) (Project ID: 22329855) but there is also a strong pipeline of work.

There are 242 office schemes with detailed planning permission and work due to start construction over the next 12 months.

This ranges from a 拢30 million extension to the MIRA Technology Park in Nuneaton (Project ID: 22353989) to the 拢67.8 million Drum office scheme in Birmingham (Project ID: 23016477).

Birmingham boost

Birmingham is traditionally the main hub for commercial work in the West Midlands. Deloitte鈥檚 latest Crane hire survey for the city found strong levels of office and student residential floorspace under construction in 2024 compared to previous years.聽 This included 814,574 sq ft of office space currently under construction.

There are also other major office and commercial developments coming up in the pipeline.

Plans have been approved for the 拢129 million Colmore Gate office scheme in Birmingham and work should begin this summer (Project ID: 23122303).

A 拢243 million redevelopment of the Rackhams Building in the city鈥檚 Temple Row is also expected to begin later this year (Project ID: 18426203).

Booking in for hotel work

Other parts of the wider commercial sector also look set to improve over the coming months.

There was a 55% rise in the value of hotel & leisure work in the West Midlands given detailed planning permission in the three months to January 2025.

This is boosting prospects with 318 hotel & leisure schemes expected to start construction over the next 12 months.

This programme of work ranges from a 拢15 million refurbishment of the Moon Under Water Pub in Wolverhampton (Project ID: 18436146) to a 拢31.3 million conversion of the King Edward House in Birmingham (Project ID: 19324316).

Wham BAM

Royal BAM is streets ahead of its rivals as the top contractor in the West Midlands with more than 拢1.5 billion worth of work.

West Midlands – Top 10 contractors February 2024 to January 2025
Contractor No. Projects Total (拢m)
Royal BAM 3 1,549.3
Morgan Sindall 24 270.9
Caddick 5 246.4
Speller Metcalfe 22 200.1
Winvic 6 174.1
Ethical Power 3 127.0
Benniman 4 94.7
Kier 8 83.1
Galliford Try 5 81.0
VINCI 17 62.9
Source: 果冻影院

Morgan Sindall is in second place with a 拢271 million order book bolstered by work in including a 拢48 million job for fit-out arm Overbury to refurbish offices at 125 Colmore Row in Birmingham (Project ID: 24091269).

Yorkshire-based Caddick has ventured south and amassed nearly 拢250 million worth of work in the West Midlands to rank third, but local contractors are also benefitting.

Malvern-based Speller Metcalfe is placed fourth with 拢200 million worth of work, including an 拢11.4 million redevelopment of Walsall鈥檚 Saddlers Shopping Centre (Project ID: 20149717) and Bromsgrove company Benniman has 拢95 million worth of orders including the 拢33 million Greenlight commercial development in Redditch (Project ID: 23285211).

Regional rise

With work in a range of commercial sectors helping contractors to fill their order books, the prospects for the West Midlands are improving.

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