Welsh construction is in a strong place at the moment. So, it is worth keeping an eye on the data. The latest Construction Skills Network report from CITB predicts strong growth, as UK construction is expected to grow by 2.5% every year for five years. Leading this growth is the Welsh construction industry forecast to grow 7.1% each year for the next five years. Compare this to the Office of National Statistics’ data on construction output. The ONS states output increased by 1.5% in December 2015 compared to November 2015, due to new work increasing by 2.6% and being offset by a decrease of 0.5% in repair and maintenance. In Q4 2015 output was estimated to have decreased by 0.4% compared to Q3 2015, yet overall annual output for 2015 increased by 3.4% compared to the overall data for 2014. 

If we add in the CPA’s latest State of the Trade Survey that shows Q4 2015 construction activity rose for the 11th consecutive quarter, the whole industry is looking good.

But what about work in the Welsh public sector – still the construction industry’s biggest customer in Wales? 

This latest update of the pan-Wales local authority pipeline provides details of a £4bn capital programme across the four years 2015/2016-2018/19. This mid-year update sees a £1bn increase in this 4-year programme published in August last year, with an extra £500m in Housing and £300m in Education. 

This is where the real important numbers are found. Local authorities are now much more willing to share information about projects than a few years ago. We always had good data for year one, but less for year two and even less again for the remaining years of a four-year cycle. Now, we can plan with more confidence. Yes, output in Wales looks good according to data – but we know that the critical area for spend is education and housing. 

If you want all of the details, then contact CEW or go to the link for the Local Local Authority Pipeline document where you can see the data set out in an Excel spreadsheet for the first time as well as in the standard Word document.