Regional builders step into Carillion shoes

Regional building contractors are taking up market share in most parts of Britain since the collapse of Carillion at the start of this year.

Glenigan’s construction market analysis shows that regional contractors have increased market share in nine of the 11 British regions in the 12 months to Q2 2018.

A year earlier, Carillion had featured amongst the top 10 contractors in seven regions. The contracting giant’s failure in January 2018 opened up space for regional contractors, which have gained construction market share in five of these regions.

Gains in eastern England and Wales

Regional contractors have made the biggest gains in the wake of Carillion’s collapse in the East of England, the North East and Wales.

In the East of England, the construction order book has more than doubled over the last 12 months at RG Carter to £303.6 million, putting the group in second spot in the regional top 10 according to Glenigan’s industry analysis.

A year ago, RG Carter was the only regional construction firm in the top 10 but has now been joined by Winvic, SDC and Readie.

In the North East, Tolent’s order book also doubled in the wake of Carillion’s collapse. The Tyneside-based contractor has shot up the rankings to second in the latest table and is joined in the top 10 by Gus Robinson, Esh and Surgo.

A year ago, Carillion was the third biggest contractor in Wales with a £145 million order book and their disappearance has seen a swathe of new entrants into the principality’s top 10. Abergavenny-based Alun Griffiths has been taken over by CRH-subsidiary Tarmac but Dawnus, JG Hale, Andrew Scott and WRW are now all in the latest top 10.

Other regional gains

A surge in orders has taken Middlesex-based Henry Construction into the top 10 for both London and the South East. Domis and Forrest are in the top 10 in the North West, where Carillion’s annual order was £176.2 million this time last year.

Carillion had a tiny order book in Scotland but CCG has joined Robertson in the top 10. Work High Speed 2 rail project has favoured major national contractors in the West Midlands but A&H and Bromsgrove-based Benniman have edged into the top 10.

Nationals reign in South West and Yorkshire

The only regions where regional contractors have not gained market share over the past year are the South West and in Yorkshire. Carillion was ranked among the top 10 in both regions, but Bristol-based Midas is now the only regional player in the South West.

In Yorkshire, regional contractors appear to have lost market share in the wake of Carillion’s collapse. Caddick, Clugston and GMI all featured in the regional top 10 a year ago but the latest table is now dominated by national players.

Overall, Glenigan’s construction data shows that the top 10 tables for the 11 British regions feature 24 contractors that can be classified as regional. A year ago, that total was just 14, illustrating the scale of gains by smaller players since Carillion’s demise.