Urban Space associate Glenigan has reported on the state of construction in the healthcare sector in the next 12 months - and unfortunately it doesn’t make happy reading.
The report, Construction Prospects for 2011, has stated that, with investment falling by nearly a fifth, it is unlikely there will be room for any new-build projects for the next three years, meaning hospitals will have to come up with their own, small-scale renovations that will stay within budget.
Funding in the sector has been plagued with difficulties in in the last 12 months, most shockingly by the £65bn bill left by private finance initiatives (PFIs). Glenigan notes that the value of contracts fell by 13% in 2010, and expect that 2011 will see them fall on average by a staggering 19%.
This is sure to increase competition for those bidding on existing contracts in the sector, and will have wide-reaching repurcussions for the industry on the whole.
The glenigan report can be viewed here:
http://www.glenigan.com/PDF/Construction_Prospects_for_2011.pdf