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Summer 2021 45 The mix of activities has changed significantly pre- and post-first lockdown. Infrastructure and private RMI have driven the resurgence over the second half of 2020 and have recovered (infrastructure) and surpassed (RMI) pre-Covid levels. However other sectors remain significantly below pre-Covid levels. New work in the sectors sensitive to conditions in the wider economy remain significantly depressed: specifically, the commercial and industrial sectors, and to a lesser extent the private housing sector. The public sector also remains depressed. EXPECTATIONS As we report in our contract awards information, the commercially sensitive construction sectors are experiencing a rise in planning activity. The hotel and leisure sector saw a dramatic increase in contract awards in March and April, and the commercial sector has seen a sharp rise in planning approvals. The residential sector is seeing more gradual increasing activity across both contract awards and planning approvals. Assuming the economic recovery progresses, we can assume these sectors will see a bounce in output over the coming months. However, there is a large gap in lost output. We estimate there is a 25% gap in contract awards since March 2020. The current pipeline is weak and needs to be filled. One would expect a bow-wave of activity as previously non-progressed projects are brought forward. Howmuch of this lost activity will be recovered remains unclear. As we mention above, the level of infrastructure projects coming through the planning system has been weak over the last six months. We await further details over the coming months of what will fill the pipeline. Meanwhile while expectations are now very positive, there remain many risks of the economic recovery being blown off course, setting back further recovery in construction. << Construction is currently underway to create A new Multi storey car park comprising of 1053 spaces at the Baltic Business Quarter in Gateshead. The project is worth £23 million and due for completion in January 2022. Major infrastructure works are to be build just off junction 15 of the M1 in order to support the new Northampton Gateway project. This project has a value of £107.5 million and is expected to take just over two years to complete. A mixture of houses and flats for a new residential development in Gravesend, Kent. The site will take six years to complete and has an estimated project value of £53.2 million. Refurbishment and construction works are underway at Telford Central Fire Station and Training Centre. The project is valued at £10 million and is due to be completed in May 2023 after 24 months of construction work. Construction work on the proposed trauma and vascular hybrid theatres plus in‑Patient ward space at the University Hospital of Wales is due to begin in May 2022. The project is worth an approximate £10 million and is due to last 24 months.

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