Construction Downturn: Infrastructure
- Published: 08 September 2008 12:45
- Last Updated: 09 September 2008 15:53
Infrastructure, more than other sectors, relies on major project spending.
The sector has enjoyed a surge in such projects during the first seven months of 2008.
The flow of new infrastructure projects is expected to remain firm during the closing months of 2008. While Glenigan anticipates a 2 per cent decline in projects of less than £100 million during the year as a whole, this will be more than offset by the increase in major projects.
Infrastructure has seen the underlying value of planning approvals fall significantly.
Approvals are down 28 per cent compared to the same period last year. But the prospects for civil engineering in 2009 vary significantly across different subsectors.
Both water and electricity utilities are pressing on with strong investment programmes.
Also improvements to London's transport infrastructure ahead of the 2012 Olympics will stimulate activity.
Major projects that started earlier this year will continue to make strong contributions to sector activity. The fall in underlying planning approvals is a worry but the outlook for civil engineering in 2009 remains positive.
