What are the big trends emerging across Transport & Infrastructure?
There has been uncertainty across Transport & Infrastructure in the past few months.
Government decisions and delays have been frustrating.
But despite this there is no shortage of infrastructure work in the pipeline for 2024.
Let’s get the negatives out of the way first…
The cancellation of the mega project has impacted an awful lot of businesses pipelines. The effects of this will be felt across the supply chain.
Politicians will put off difficult decisions if they can and some projects will be impacted by the impending election. Large projects that still require planning approval, have questions over financing or are facing significant environmental lobbying probably won’t see much movement this year.
The likes of Lower Thames Crossing and A303 may need to wait for the next government to form, whichever colour that may be, before any big decisions are taken.
However, there are far more positives…
A much-needed programme that has the backing of all political parties and is well underway.
The proposed spend for AMP8 is £96bn up from £51bn in AMP7. This level of investment is staggering. The water sector will need unprecedented resources to deliver this amount of infrastructure upgrades, particularly in major programmes.
A market that benefits from being largely privately funded so there is less government interference.
Projects are mostly centred around net zero initiatives so there are no environmental blockages to getting things off the ground.
The volume of projects taking shape is huge. Both mega projects and lots of smaller opportunities. Many businesses are investing in “off meter” ways of generating and storing their own energy, which opens up an additional stream of work to the supply chain.
Lots of capital works are taking place across defence. A number of estate and infrastructure programmes are underway – Devonport Dockyard being just one example.
In the past few months there has been a real increase in companies recruiting defence specialists to grow this market.
Passenger numbers have recovered from the pandemic. Programmes that were paused are back on and investment is ramping up.
Alongside this, new legislation around baggage handling has meant that airports are investing lots of money into upgrading baggage handling systems with tight deadlines to meet.
This echoes what we are experience right now. We are actively recruiting in these areas for lots of different businesses.