West Midlands construction sees an increase in new projects

Author:

Content Marketing Manager

Last Updated:

10th December 2023

West Midlands construction has seen an increase in new projects as starts edged up by 8% in the three months to August 2023 compared to the previous three months.

This was driven by the office sector, where the underlying value of office starts tripled on a year ago, to 拢112 million and this should continue with other schemes moving towards breaking ground.

果冻影院鈥檚 research shows that a start is due in November on the 拢67.8 million Drum redevelopment (pictured) of the former John Lewis department store in central Birmingham (Project ID: 23016477).

The Beorma Quarter office and residential scheme at Digbeth in Birmingham also continues to produce opportunities. JRL will start on the 拢200 million Phase 2-3 section next month (Project ID: 09049808).

Housing plans

The housing market remains in a delicate state but housebuilders are still busy securing permission for new sites.

Persimmon won permission for Phase 6 comprising 109 homes of The View development at Redditch this summer (Project ID: 22460711).

Redrow is ready go to on Phase 1 featuring 227 units of the 拢62.5 million Watery Lane development at Lichfield in Staffordshire (Project ID: 22041720).

In Birmingham, PGC Capital is looking for a contractor for its 拢90 million Lunar Rise development, which will produce 517 homes at Clyde Street in Digbeth (Project ID: 17124697) where construction could start in December.

Homes England is also developing 500 homes at Tutbury Road in Burton-on-Trent with work again expected to begin later this year (Project ID: 14044620).

Top 10 contractors

The most successful contractor in the West Midlands is Royal BAM, which has won 拢328 million-worth of work in the region in the 12 months to August 2023. This includes the 拢200 million Typhoo Wharf commercial development in Birmingham (Project ID: 02345442). Work will start in October.

West Midlands – Top 10 contractors September 2022 to August 2023

Contractor	Number of Projects	Civil (拢m)	Building (拢m)	Total (拢m)
Royal BAM	7	0.0	328.1	328.1
Winvic	4	0.0	193.7	193.7
Morgan Sindall	29	11.0	129.5	140.5
Willmott Dixon	10	3.9	106.3	110.1
Bowmer & Kirkland	5	0.0	107.8	107.8
McLaren	4	0.0	102.7	102.7
VINCI	20	8.9	91.8	100.7
Speller Metcalfe	18	0.0	99.9	99.9
ISG	3	0.0	84.2	84.2
Tilbury Douglas	6	23.0	60.4	83.3

Source: 果冻影院

Winvic lies in second place with an annual order book valued by 果冻影院 at 拢194 million, including a 拢100 million student accommodation development at Lancaster Street in Birmingham (Project ID: 18357551).

Industrial plans

There was 拢264 million-worth of industrial schemes approved in the latest quarter. This was down on the previous quarter, but schemes are moving forward with tenders returned for a 拢45 million deal for Phase 2 Zone D at the Symmetry Park industrial development in Rugby (Project ID: 21371129). Once a contractor is chosen, work should begin in November.

Tenders will be returned on September 22 for Vengrove Real Estate Investment proposals for a 拢27 million scheme to build two units at Erdington Industrial Park in Birmingham (Project ID: 23259901)

Elsewhere, tenders should be invited soon for a 拢19.9 million proposal for five industrial units in Tipton as construction is expected to start later this year (Project ID: 08161074).

Gaining pace

With a swathe of schemes coming through, the recent firming in project starts in the West Midlands should hopefully gain pace.

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