New report reveals region’s construction sector remains among the UK’s most active despite national slowdown

The West Midlands has reaffirmed its position as one of the UK’s most important construction markets even as the national pipeline hits a seven-year low, an industry report revealed today.

The inaugural Construction Marketplace Health Index from Once For All tracks more than 10,000 projects together worth more than £219 billion annually.

It shows the West Midlands recorded 2,664 construction projects since 2018-19, second only to London. 

Despite having almost 1,000 fewer projects than the North West, the region’s total project value of more than £42 billion was around £2 billion higher, demonstrating the economic importance of the West Midlands.

Andy Preston, head of marketplace at Once For All, said: “What the data shows in the West Midlands construction market is continued relative strength within a tightening national pipeline. 

“Fewer projects are coming forward, yet the scale and complexity of the work being funded remains high.”

Capital flowing into fewer, larger schemes

Nationally, high-value projects, such as new builds have seen average values increase by 16.75% in the last two financial years, while extension projects fell sharply by 29.29%. 

Energy, industrial and air transport categories have seen the strongest growth, signalling where specialist subcontractors should focus.

Andrew Spencer, group supply chain and procurement director at Galliford Try, said: “There is still a significant pipeline of work in the UK, but getting schemes started and funded is increasingly complex. 

“Long-term visibility and strong alignment across the supply chain are critical if we are to deliver high-quality outcomes.”

Despite the slowdown, 63% of subcontractors surveyed said they remain optimistic about the year ahead, though 34% cited visibility as the biggest barrier to winning work.