West Midlands construction sees an increase in new projects

Author:

Content Marketing Manager

Last Updated:

10th December 2023

West Midlands construction has seen an increase in new projects as starts edged up by 8% in the three months to August 2023 compared to the previous three months.

This was driven by the office sector, where the underlying value of office starts tripled on a year ago, to £112 million and this should continue with other schemes moving towards breaking ground.

Glenigan’s research shows that a start is due in November on the £67.8 million Drum redevelopment (pictured) of the former John Lewis department store in central Birmingham (Project ID: 23016477).

The Beorma Quarter office and residential scheme at Digbeth in Birmingham also continues to produce opportunities. JRL will start on the £200 million Phase 2-3 section next month (Project ID: 09049808).

Housing plans

The housing market remains in a delicate state but housebuilders are still busy securing permission for new sites.

Persimmon won permission for Phase 6 comprising 109 homes of The View development at Redditch this summer (Project ID: 22460711).

Redrow is ready go to on Phase 1 featuring 227 units of the £62.5 million Watery Lane development at Lichfield in Staffordshire (Project ID: 22041720).

In Birmingham, PGC Capital is looking for a contractor for its £90 million Lunar Rise development, which will produce 517 homes at Clyde Street in Digbeth (Project ID: 17124697) where construction could start in December.

Homes England is also developing 500 homes at Tutbury Road in Burton-on-Trent with work again expected to begin later this year (Project ID: 14044620).

Top 10 contractors

The most successful contractor in the West Midlands is Royal BAM, which has won £328 million-worth of work in the region in the 12 months to August 2023. This includes the £200 million Typhoo Wharf commercial development in Birmingham (Project ID: 02345442). Work will start in October.

West Midlands – Top 10 contractors September 2022 to August 2023

Contractor	Number of Projects	Civil (£m)	Building (£m)	Total (£m)
Royal BAM	7	0.0	328.1	328.1
Winvic	4	0.0	193.7	193.7
Morgan Sindall	29	11.0	129.5	140.5
Willmott Dixon	10	3.9	106.3	110.1
Bowmer & Kirkland	5	0.0	107.8	107.8
McLaren	4	0.0	102.7	102.7
VINCI	20	8.9	91.8	100.7
Speller Metcalfe	18	0.0	99.9	99.9
ISG	3	0.0	84.2	84.2
Tilbury Douglas	6	23.0	60.4	83.3

Source: Glenigan

Winvic lies in second place with an annual order book valued by Glenigan at £194 million, including a £100 million student accommodation development at Lancaster Street in Birmingham (Project ID: 18357551).

Industrial plans

There was £264 million-worth of industrial schemes approved in the latest quarter. This was down on the previous quarter, but schemes are moving forward with tenders returned for a £45 million deal for Phase 2 Zone D at the Symmetry Park industrial development in Rugby (Project ID: 21371129). Once a contractor is chosen, work should begin in November.

Tenders will be returned on September 22 for Vengrove Real Estate Investment proposals for a £27 million scheme to build two units at Erdington Industrial Park in Birmingham (Project ID: 23259901)

Elsewhere, tenders should be invited soon for a £19.9 million proposal for five industrial units in Tipton as construction is expected to start later this year (Project ID: 08161074).

Gaining pace

With a swathe of schemes coming through, the recent firming in project starts in the West Midlands should hopefully gain pace.

Glenigan customers can see details of all new construction opportunities in the West Midlands if covered by your subscription.