A Snapshot of Construction within the Industrial Market during Lockdown – April 2020

Following the unprecedented decision to enforce a UK wide lockdown in March, we thought it may be useful to share some key learnings from the market intelligence we have been collecting. Contrary to many opinions we have found the majority of industrial contractors are managing to keep their sites open albeit with reduced labour levels. In recent days those labour levels have been increasing steadily and this trend is expected to continue as acceptable methods of working are agreed. However, hotel accommodation and working on sites that are significantly distant from the workforce will remain a challenge until restrictions are lifted on hotels.

There was capacity within the market for tendering projects with all of the contractors we have spoken with. Furthermore half would accept a tender with no notice at all, however there was a feeling that tendering might take a little longer than usual. Therefore it would be reasonable to allow a longer period for tendering and we are currently recommending a 7 to 8 week period is planned for. In saying this, it is our expectation that tendering sooner rather than later would result in competitive returns due to this brief hiatus in contractor enquiries.

At Goodrich, as I’m sure everyone has, we have felt a slowing in completions and the formalising of funding agreements since mid-March. However, there is still a cautious commitment to progress which is reflected in the 6 new projects we have started on site in April. We are also seeing a steady influx of due diligence and bid support work with over 4 million sq ft of proposals passing over our desks since mid-March.

We will continue to keep a close eye on developments over the coming weeks and will update accordingly.