Wales’ Construction Industry Booms

Posted by Glenigan on 13th September 2024 -

Construction in Wales is booming with a 10% rise in project starts, with local players providing strong competition for national companies.

This rise in the underlying value of starts (schemes valued up to £100 million) over the three months to July 2024 is compared to the previous three months and was driven by a 21% rise in health sector project starts.

There is also a healthy pipeline of work coming up with 1,178 projects with planning permission that are due to begin construction in the next 12 months according to Glenigan’s industry research.

Civils strength

The infrastructure sector has the largest number of approved projects due to commence construction in the next 12 months.

Big schemes in the pipeline include the £78 million A487 Dorglwyd Comins Coch Safer Road scheme in Dyfed, where work is due to begin in November (Project ID: 23057151).

Other major infrastructure schemes coming up in Wales include Panasonic’s £56 million Hydrogen Fuel Cells & Battery Energy development in Cardiff (Project ID: 23378645).

Private residential plans

The next strongest sector is private residential with 378 schemes due to start in the next year. This includes schemes such as the £25.7 million Scott Harbour development of 101 flats at Bute Place in Cardiff (pictured), where client Rightacres secured planning permission in July (Project ID: 23115023).

Welsh housebuilders are also active. Castle Green Homes from Pontyclun has permission to build 70 homes at the Bluebell Field development in Wrexham and should start work early next year (Project ID: 18093168).

Pontyclun-based Llanmoor Homes also has planning permission to build 67 homes at Bedwellty Road in Bargoed, Mid Glamorgan and is expected to begin construction next spring (Project ID: 21109762).

Top Welsh contractors

The strength of the Welsh construction industry is clear in Glenigan’s ranking of the Top 10 contractors by work won in the 12 months to the end of July 2024.

National contractors are evident, such as first-placed Willmott Dixon, whose £334.4 million order book includes the £135 million second phase of the Copr Bay residential and commercial development in Swansea, where work is due to begin work late next year (Project ID: 16190588).

Half of the contractors in the Top 10 are Welsh companies, such as Swansea-based Andrew Scott, which is ranked second with £170.7 million worth of work, including a £12 million infrastructure scheme in Neath due to start this in September (Project ID: 22429809).

Wales – Top 10 contractors August 2023 to July 2024

Contractor	Number of Projects	Civil (£m)	Building (£m)	Total (£m)
Willmott Dixon	7	0.0	334.4	334.4
Andrew Scott	7	12.0	158.7	170.7
Morgan Sindall	7	0.0	106.1	106.1
Royal BAM	4	31.6	55.4	87.0
Kier	6	14.4	51.2	65.6
Tarmac	6	60.3	2.6	62.8
Jones Bros (Henllan)	4	0.0	59.6	59.6
C Wynne	5	0.0	59.5	59.5
Read	6	0.0	50.7	50.7
Intelle	3	0.0	46.0	46.0

Source: Glenigan

Four other Welsh-based firms make up the bottom four places of the Top 10 with Jones Bros (Henllan) in seventh with a £59.6 million order book, including a £21.4 million residential scheme in Swansea for Pobl Group due to start in October (Project ID: 18201364)

C Wynne, which expects turnover to hit £100 million this year, is in eighth with £59.5 million worth of awards over the last year. This includes a £29.4 million Orthopaedic Theatre at Llandudno Hospital, where work commences next month (October) (Project ID: 23234447).

Brymbo-based Read has £50.7 million worth of work in Wales including a £20 million education scheme in Bangor (Project ID: 20517680), while Intelle from Pontypridd edges into the Top 10 with a £46 million annual order book boosted by a £16 million extra care residential scheme in Porth (Project ID: 21371878)

Welsh future

With a healthy pipeline of work and local contractors able to compete with national players, the Welsh construction industry looks strong.