market overview
SPECIAL REPORT
Market overview
As we continue into 2019, this feature explores the current healthcare construction market and the opportunities and challenges it will bring
Looking to the future T
he shift away from the large-scale PFI projects of the past decade, and ongoing uncertainty over
Brexit and the future of NHS capital funding, is expected to impact healthcare construction activity in the next 12 months, experts predict. The Government’s decision to axe PFI
for public-sector projects, and a greater emphasis on improvements to service delivery rather than capital investment, will see the number of projects dwindle slightly over 2019, before an expected improvement in 2020. This is according to figures recently
released by Barbour ABI. Its Economic Construction Market
Review revealed that the total value of contract awards across all sectors declined by 13.1% in 2018, standing at £61.6billion. And the number of contracts awarded
also continued on a downward trend to 10,352 in 2018, a decline of 8.2% on 2017. While residential remained the
10
healthcaredm.co.uk
indications of potential slowing of the global economy, particularly in terms of global trade and investment growth.” Bucking the trend, the medical and
healthcare sector saw a welcome recovery in 2018.
largest market, the industrial sector also saw upward movement, with a 21% increase year on year. The report states: “The UK economy
slowed in the second half of 2018, but with characteristics of an easing off, rather than a sudden stop, as the UK began the final manoeuvrings around the Brexit programme.” And, it predicts: “Growth is forecast
to be more subdued into the first half of 2019 against a background of low inflation, low interest rates, but
A mixed bag But the report warns that the outlook for the next 12 months is mixed. It states: “Following two consecutive
years of decline, medical and health contract award values turned positive in 2018, reaching £2.2billion. This is 64% higher than 2017, bringing values back to around the 2012 level and following a 43% decline between 2015-2017.” Key to maintaining activity over the next 12 months will be the Government’s
Some extra funding schemes have been put in place by the current Government and could provide further impetus for capital injections to extend and improve existing facilities in the medium to longer term
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61
