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UK healthcare construction prospects brighter than for some years

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Health sector construction output increased by 7% in 2016 to reach £3.1bn, followed by a 6% increase in 2015. Prior to this, the sector had experienced four years of declining output between 2011 and 2014. Into the medium-term, AMA Research expects steady, if moderate, growth in healthcare construction output, with annual rates of growth of 3-5% currently forecast to 2021 as work on small hospital projects is boosted by privately-funded projects under PF2.

“The key construction opportunities in the healthcare sector are likely to be in the primary care sector and this may entail further opportunities for the development of hub facilities and integrated GP premises, while in the acute and secondary sector, much of the medium-term is expected to lie in refurbishment and extensions. Contractors will also be interested to see how new procurement routes and private finance initiatives, including P22, will be used to procure work in the health sector in 2017/18 and beyond, with the expiration of the Express LIFT framework and future options for health PPPs being explored.”

The paragraphs above relate to the report ‘Healthcare Construction Market Report – UK 2017-2021 Analysis’, which has recently been published by AMA Research. The full press release is attached as a PDF file. If you require any further information, or would like to receive the press release in MS Word format or the chart as a separate image, please don’t hesitate to get in touch.

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BDC 316 : May 2024