construction 2019

The latest forecast by Glenigan predicts that longer-term construction projects will benefit from increased public sector investment and that new logistics and warehouse construction will grow to meet the demand for distribution space.

Learn more about the latest “Construction Outlook” forecast for 2019 and 2020 below.



Positive online shopping trends mean that warehousing and logistics premises are forecast to remain a growth area.

Glenigan’s Economics Director Allan Wilén commented:

“The warehousing and logistics market has been a long-term growth area… While [project] starts fell back in the immediate aftermath of the EU referendum vote, this decline was temporary. The growth in the sector is being driven by the structural shift online in consumers’ retail habits.”

Internet shopping is not the only catalyst, however. Heathrow Airport’s new third runway is predicted to boost construction tender leads in the industrial sector. The increased volume of air cargo will create extra demand for warehouse space in the area.


Private Sector Investment

Build to Rent projects are set to continue into 2019/2020, meeting the increasing demand from the private rental sector (PRS).

Build to Rent projects accounted for 7% of overall private housing sector starts from January to October 2018, worth £885 million. London, Manchester and Birmingham emerged as favoured locations.


Public Sector Investment

Glenigan’s forecast predicts that increased public sector spending will balance out any fall in private sector investment.

One area for opportunity highlighted by Glenigan is Network Rail’s £47 billion funding package for 2019 to 2024. Glenigan states that it is an “illustration of the Government’s commitment to greater investment in the built environment.”


Construction Tenders

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All subscribers can gain access to construction tenders from the local area of their choice for FREE, with the option to upgrade their plan at any time.

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2019 Procurement Predictions

The Government’s ‘Red Book’ indicates that from 2018-19 to 2023-24, capital spending will grow at an average of 3.4% a year – this increase is set to be evenly spread across departments. Chancellor of the Exchequer, Phillip Hammond, set out details of the Government’s plans in the Budget 2019 announcement.


Funding boosts to public services

The “indicative five-year path” outlined in the ‘Red Book’ sets out a series of funding boosts to public services, including both in-year and longer-term allocations. This could lead to tender opportunities throughout the UK, which may require new suppliers across a range of sectors.


Short-term spending allocations

  • £1bn for the MOD over two years to increase its cyber and anti-submarine welfare capacity and nuclear deterrents
  • £160m for counter-terrorism policing in 2019-20
  • £420m for councils to fix potholes and renew bridges and tunnels
  • £150m to improve local traffic hotspots
  • £400m extra for schools


Long term spending allocations

  • NHS funding to increase by £20bn a year by 2023-24


Supply chain opportunities

During the Autumn Budget announcement, Mr Hammond stated that he was committed to creating public-private partnerships that deliver value for British tax payers. He also confirmed that:

“Half of the UK’s £600 billion infrastructure pipeline will be built and financed by the private sector.”

Since this announcement, the UK government’s centre of expertise for infrastructure and major projects, the Infrastructure and Projects Authority, has released a document detailing estimated levels of investment over the coming decade. By doing so they hope that this will “provide visibility, knowledge, and understanding of where infrastructure investment is being made.”

This is good news for businesses looking for supply chain opportunities – when one private sector business wins contract for a large project and then outsources contracts to smaller subcontractors for aspects of the work – as this pipeline will require many types of goods, works or services.


Cyber security

As procurement is changing, cyber security within your business is something that you should concentrate on in 2019.

Public sector organisations are becoming more and more aware of the risks of hacking and cyber breaches, and understand that a vulnerable supply chain can cause damage and disruption. Make sure your business is not the weak link in the supply chain by obtaining Cyber Essentials certification.

Cyber Essentials is a government-backed, industry-supported initiative, which will enable your organisation to implement a basic level of cyber security into your businesses’ process.

Find out more about how your organisation can gain Cyber Essentials certification here.


Tender opportunities 2019


Each year, the UK public sector spends £242 billion. If your business wants to tap into this spend and find tender opportunities in the UK, start by subscribing to Supply2Gov for free.

New users can gain free access to tender alerts in any UK local area.

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Get ready to tender in 2019

Would you like to make a New Year’s resolution that your business will stick to? This year make a commitment to getting ready to tender with Supply2Gov.

Get started by reading our list of common questions that our experts are often asked around bidding for public sector work.


How do I choose the right public sector tenders for my business?

The first step to public procurement success is choosing a tender that is suited to the goods or services your business supplies.

Make sure that you are being realistic, putting your energy into tenders that lie easily within your grasp. Many suppliers make the mistake of bidding for too many opportunities, putting quantity over quality.

Avoid the scattergun approach when it comes to bidding, as this will only waste your time when you could be putting more effort and focus into tenders that you are more likely to win.


Are low value tenders worth my time?

If you are new to procurement, get started by tendering for smaller contracts. This will help your business to build up a portfolio of public sector references, rather than having one client from a larger scale project.

Lower value contracts can be extremely lucrative as your competitors may have overlooked or dismissed the smaller contracts, meaning that your business will have better odds of winning as there will be less competition around the tender.

Keep in mind that contracts worth less than the public procurement thresholds are NOT carried in the OJEU – this means that your business should be using a tender alerts tool to keep an eye on opportunities at all values.


Should I bid for supply chain opportunities?

Yes, supply chain tenders are an excellent option for businesses that want to cover all bases when it comes to procurement.

Supply chain opportunities work slightly differently from public sector contracts as the buyer is a private sector organisation. Usually, one private sector business will win a large public sector contract and outsource contracts to smaller subcontractors, as they will be unable to supply every aspect of the goods, works or services required.


What should I do first when bid writing?

Make sure you read the tender specification carefully, as this will help you not only to understand exactly what the buyer is looking for but also to gather any important questions you have about the tender document. If any do arise, reach out to the buying organisation to seek clarification on any points that may be confusing.


What questions should I ask when tendering?

Ultimately your business can ask any question that is relevant to the tender exercise.

Make sure that you are asking questions that remove any assumptions from your bid. The clearer you are about the tender specification – the easier it will be for you to focus on what the buyer requires.

Remember that the answers to your questions will be anonymised and made available to everyone bidding for the contract – but you will also be able to see what your competitors are asking.


What’s the best way to find tenders?

Find relevant tenders opportunities using Supply2Gov Tender Alerts.

Our users can optimise their profile and tailor their account so that they only receive tender opportunities and award notices that are relevant.

The best thing about our service is that you can try it for free – starting with the local area of your choice…

Register now to get ready to tender in 2019.