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Construction market provides hope for the future
Find out why the next few years will spell fresh opportunities for healthcare construction D
espite a slowing of the market in recent months, experts predict billions will be spent on
healthcare construction over the next five years, providing a wealth of opportunities for designers, builders and product developers. The Government’s National
Infrastructure and Construction Pipeline, published in December, details more than £460bn of planned public and private infrastructure investment, with a total projection of around £600bn over the next 10 years.
A total of £3.5bn will be made available for the estate between now and 2020
Investment in ‘social infrastructure’,
which includes hospitals and other health and care facilities, lists 184 separate projects with a total value of £43bn. Of those projects, five are healthcare related and worth £8.5bn to 2020/2021.
Another £3bn worth of projects are expected beyond 2021, making a total pipeline worth in the region of £11.5bn. It states: “The NHS estate needs to
be fit for the future and suitable for modern methods of care. “This means making best use of the
existing estate, as many small-scale projects up and down the country have been doing. “However, where needed, or where it
represents better value for money, there will also be wholly-new facilities.”
In the pipeline And, in his autumn budget, the Chancellor announced a £10bn investment in existing NHS buildings, new facilities and the modernisation of patient care. A total of £3.5bn will be made
available for the estate between now and 2020, with the extra £6.5bn coming from sale of surplus assets to developers for much-needed housing. There is also a lot of interest in the
new ProCure22 framework, which will see a £4bn investment in the NHS estate between now and 2020. Already £202m worth of projects have
been registered under the framework, including new mental health and eating disorder facilities at Barnet Enfield &
Haringey Mental Health NHS Trust; the first phase of the Evelina redevelopment by Guy’s and St Thomas’ NHS Foundation Trust; and a new cardiac intensive care unit, cath lab and CT scanning department at Great Ormond Street Hospital. Research from construction industry
analyst, Barbour ABI, shows opportunities particularly in the South East of England and Wales, with primary and social care expected to be key markets moving forwards. And, despite ongoing concern over
the impact of Brexit on the construction industry as a whole, and an overall reduction in capital schemes starting on site; the long-term opportunities within the healthcare sector are expected to improve. According to Barbour ABI’s most-
recent Economic & Construction Market Review, across the construction industry as a whole, the value of building contracts awarded in February 2018 was £4.9bn, with London topping the regions with 24.8% of activity. And, while the overall value of
contract awards was down by 9.1%, following an unturn in January; the actual number of projects increased by 3.1% and was 3.4% ahead of February 2017. While medical and health projects
made up only 3% of overall activity; the number of contract awards increased
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