Concerns for plant hire sector

A major Scottish plant hire company has expressed fears that the sector across the UK will be hit by a lack of significant infrastructure projects.

Grangemouth-based Jarvie Plant Group has cited data published by construction sector intelligence specialist Barbour ABI finding that UK infrastructure projects in July hit a six-year low.

According to the study, the sector accounted for £784 million of construction contract values totalling £5.4 billion based on a three-month rolling average, awarded across all regions of the UK in the month. Furthermore, the drop marked a 97 per cent annual decrease, its worst-performing month for more than six years.

David Jarvie, business development director at the plant hire group, said: “We have recently witnessed the completion of the Queensferry Crossing, Scotland’s biggest infrastructure project in a generation, which produced work for thousands of people over a decade.

“The dualling of the A9, A96 and the Aberdeen Western Peripheral Route are ongoing but there is little sign of them being replaced.”

Jarvie Plant has nine depots, and in May opened a £1m site in Manchester in a bid to supply equipment to HS2 and other large civil engineering and construction projects. The firm also said it was optimistic about areas such as housebuilding, with contract values for that sector reaching £2.5bn in July.

Jarvie said: “For businesses such as ourselves… these figures are very encouraging.” He was also confident about the impact on the firm of Brexit, predicting “a whole host of opportunities” for the plant hire industry, which is estimated to be worth £4 billion to the UK economy.