Knowledge & Insight

Reviewing the Government´s Construction and Infrastructure Pipeline

Mon 2 November 2015

To provide suppliers, investors and contractors with a clear view of scheduled activity, the Government publishes a detailed programme of planned construction and infrastructure projects. These are referred to as the Infrastructure Pipeline and Construction Pipeline. The purpose of the exercise is to allow the Government’s strategic partners and other suppliers to direct investment and expand their capabilities in the areas they will be needed most. Although most of the projects have a start date within the next 5 years, the  Pipelines look beyond 2020 to provide a transparent long-term view.

Distribution of investment across sectors

The Pipeline covers 16 sectors, with 96% of the investment value allocated to projects in Transport, Energy, Education, Ministry of Defence, Health, Police Forces and Flood. The remaining 4% of project value is allocated to projects in Coal Authority, Culture, Media and Sport, Education, FCO Embassies, Further Education, Home Office, Housing and Regeneration, Science and Research, and Waste.

Whilst the Government is keen to point out that publication of the Pipeline should not be taken as a commitment to proceed with all of the projects listed, the publicly funded elements represent “announced projects”. Where projects require private sector funding, the final decision to proceed may be influenced by external market factors.

Changes since 2014

There has been a significant fall in the total number of planned projects since the previous version of the Pipeline was published in December 2014. This is due in part to the removal of data relating to projects which have been successfully completed. Yet it has been suggested that much of the drop in value can be attributed to decisions made by Government as part of the July Spending Review. The reduction in planned investments relates chiefly to the Transport and Housing and Regeneration sectors.

Challenges ahead

Whilst the UK economy remains buoyant, the Government’s desire to “balance the books” will necessarily place restrictions on the scope and extent of publicly funded infrastructure projects for the foreseeable future. Faced with a potential reduction in the volume and value of major infrastructure and construction projects, firms with significant interests in affected sectors are likely to face tough challenges. And they must respond by devising new ways to provide greater value, drive greater innovation and deliver further operational efficiencies.

Infrastructure executive recruitment

To meet the challenges ahead, firms require talented leaders with the vision to fully exploit the opportunities that remain. Identifying and attracting such individuals increasingly requires the services of specialist infrastructure executive head hunters. Stone Executive has a wealth of experience in infrastructure executive recruitment, and our team of infrastructure executive headhunters boast a professional network that spans the UK and beyond, making them ideally placed to fulfil even the most challenging of assignments.

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