Construction industry thrives on education
Over £9 billion will be spent on education construction projects this year, according to a new report from MTW Research.
The report also revealed that the growing demand for schools, along with a serious repair backlog will keep construction businesses delivering to the education sector strong state for the medium term.
MTW also point to the need for an additional 350 new primary schools each year and this will increase demand for building products and provide healthy stimulus for the UK construction industry as a whole.
The Government has increased education spending by more than 20 per cent in the last six years and despite the chilly current economic conditions it’s promised year on-year funding will continue to rise until 2015. This means Government expenditure on schools will increase by more than £2 billion in the next four years.
The research estimated that the 60 largest contractors active in the UK education new build and RMI sector have achieved a combined turnover of more than £30 billion in 2011.
This is in part due to the increased tuition fees in universities, which have been a stimulus to new build and new build activity in the higher education sector.