Covid-19 Impact Report – September Edition

The Covid-19 Impact report provides a regularly refreshed view of how all sectors of the construction market are fairing under the current circumstances created by the Covid-19 pandemic.

Produced using up-to-the-minute Barbour-ABI data, each monthly instalment of the Covid-19 Impact Report enables you to monitor the unfolding situation and understand the key concerns and adjustments being made across construction.

The first three editions (May, June and July 2020) focused on tracking on-site activity and monitoring delayed work along with the factors influencing this.

The fourth and fifth editions (August and September 2020) take the story on now most sites are back to work by looking ahead at the future pipeline of work and how this is being affected by Covid-19 related issues.

Key sections covered:

• Contract awards – the changing levels of awards month by month through 2020 with comparisons to previous year.
• Influencing factors – the situations and factors that necessitate and enable work to continue on site.
• Key concerns – the main issues impacting businesses across the construction sectors.
• Regional impact – sub sectors examined on a regional basis, highlighting the most significant contract awards

Key areas of insight include:

• Construction sector response to Covid-19: In this fifth edition, based on January to August 2020 contract awards data, see the impact of Covid-19 on the construction sector pipeline of work.
• Sector analysis: Gain insight on the construction sectors that are prospering or contracting as a result of Covid-19
• Project prioritisation: See where priorities are being placed and the projects that are going ahead and being planned.
• Impact on critical resources: Understand the key difficulties that are being faced on site with regard to materials and labour.

Some of the contractors included:

Anvil Construction, Amey Limited, Balfour Beatty, BAM, Barratt & David Wilson Homes, Bellway Homes, Bouygues, Breedon, Cemex, Costain, Countryside Properties, Crest Nicholson Plc, Galliford Try, Ibstock, ISGLM JV, Fusion JV, Keepmoat Homes, Kier, Laing O’Rourke, Lendlease, Lovell, Mace, McLaren, Miller Homes, Morgan Sindall, Mount, Multiplex, Persimmon, Polypipe, Redrow Homes, Renaker Build Ltd Russels Construction, Siemens PLC, Sir Robert McAlpine Ltd, Taylor Wimpey, Travis Perkins, Vistry Group, Volker Fitzpatrick, Wates, Wilmott Dixon, Winvic,

Analysis in the report draws on the contract award data gathered by the Barbour-ABI research team. Hundreds of daily calls enable us to provide a regularly updated picture of what’s happening at construction sites across the UK.

Tables and Charts

There are 19 tables and charts included in this report.

Covid-19 had an immediate impact on Construction through the closure of sites and application of social distancing rules.The ongoing impact concerns both the practical implications affecting materials, labour and timing and the pipeline implications of demand for construction work.

Editions of this Covid-19 Impact Report monitor these over time to provide an up-to-date view of the construction market. In this report we consider:

• Work ongoing, delayed or stopped as a result of Covid-19
• Evidence of how construction work is being managed, key concerns and approaches being adopted
• The differing impact on each of the main construction sectors

As thoughts start to turn to easing movement restrictions, such assumptions are looking unlikely, and a longer period of social distancing and a partial easing is the most likely path until a vaccine is available. The recovery is therefore likely to be more protracted than previous expectations.

CONTENTS

1. INTRODUCTION 2
2. ECONOMY 3-7
3. CONSTRUCTION 8-10
4. RESIDENTIAL 11-15
5. NON-RESIDENTIAL
i. COMMERCIAL 17-19
ii. HEALTH 20-21
iii. EDUCATION 22-23
iv. INFRASTRUCTURE 24-26
v. INDUSTRY 27-28

TABLES AND CHARTS

TABLE 1: GDP Path Scenarios
CHART 2: GDP Growth 2019 Q4 to 2022 Q4
TABLE 3: GDP Growth 2020 Q1 to 2022 Q4
TABLE 4: Key economic variables 2019 to 2022
CHART 5: Trends in Residential Contract Awards by Value and Number of Projects Jan 2019 to August 2020
CHART 6: Trends in Residential Contract Awards by Number of Projects and by Region Feb 2020 to August 2020
CHART 7: Trends in Residential Contract Awards by Aggregate Value by Region Feb 2020 to August 2020
CHART 8: Trends in Private Commercial Contract Awards by Value and Number of Projects Jan 2019 to August 2020
TABLE 9: Commercial Contract Awards Year on Year by value
TABLE 10: Commercial Contract Awards Year on Year by number
CHART 11: Offices Contract Awards, by number, by region August 2020
CHART 12: Trends in Health sector Contract Awards by Value and Number of Projects Jan 2019 to August 2020
CHART 13: Trends in Health Sector Contract Awards by Number of projects by region Jan 2019 to August 2020
CHART 14: Trends in Education sector Contract Awards by Value and Number of Projects Jan 2019 to August 2020
TABLE 15: Education Sector Value of contract awards for key sub sectors June, July and August 2020 by value
CHART 16: Trends in Infrastructure sector Contract Awards by Value and Number of Projects Jan 2019 to August 2020
TABLE 17: Infrastructure sector regional analysis of contract awards June and August 2020 – by value and percentage.
CHART 18: Trends in Industry sector Contract Awards by Value and Number of Projects Jan 2019 to August 2020
TABLE 19: Industry sub-sector contract awards June, July and August 2020 by value