Manchester construction surge driven by education and health

Sustained investment in education, research, and health development is helping the construction industry in Manchester.

Deloitte’s latest Crane Hire Survey for the city found 458,000 square feet of floorspace currently under construction in the education, research, and health services sectors. After a small dip next year, the pipeline for floorspace under construction in the education sector alone is expected to grow to 328,000 square feet in 2028.

Glenigan’s construction industry data has identified 86 education schemes in the Greater Manchester area with detailed planning permission and due to start on site over the next 12 months.

All these schemes are at an underlying level, valued below £100 million. Examples range from the £5.7 million extension to Thorn Grove Primary School in Cheadle starting in May (Project ID: 22267331) to an £11.2 million development at Redby Street Independent School in Openshaw, where work is expected to begin in May (Project ID: 23008555).

Healthy appetite

The medical sector is also set to serve up plenty of opportunities for the industry.

There are 59 approved healthcare schemes due to start in the Greater Manchester area over the next year.

Virtually all these schemes are also at an underlying level and include a £6.8 million care centre in Bolton (Project ID: 24299999) to a £13.2 million inpatient ward at Stepping Hill Hospital in Stockport, where a start is set for this summer (Project ID: 23327864).

Leisure work

The strength of the economy in Manchester is helping drive a ‘substantial investment in hospitality and leisure’ according to Deloitte, and Glenigan data has identified many of these schemes.

There are 182 hotel & leisure schemes with approval and due to start in the next 12 months in Greater Manchester.

Hotel work includes an £11.1 million extension to the Gardens Hotel in Piccadilly (Project ID: 22117146) and a £13.7 million conversion of offices on Norfolk Street into a hotel (Project ID: 25569012).

Regional growth

Across the wider North West region, including Greater Manchester, Glenigan’s construction data has identified more than 4,700 approved schemes with a start due over the next 12 months.

Out of this total, 2,000 are at an underlying level and include a £40.2 million distribution centre at Prescott, with bids due back April 18 (Project ID: 24106020), to a swathe of utilities work, such as a new treatment works at Dukinfield (Project ID: 26005756).

Utilities dominance

The utilities sector dominates workload at many of the Top 10 contractors in the North West, according to Glenigan data, as United Utilities presses on with its £13.7 billion AMP8 Capital Projects programme (Project ID: 22358009).

STRABAG is in first place with nearly £3 billion-worth of work booked in. This is due to the UK arm of the Austrian giant taking the lead role on the £2.9 billion Haweswater Aqueduct Resilience Programme for United Utilities (Project ID: 19384153). Work on the programme is being undertaken in packages and will run until 2035.

North West – Top 10 contractors March 2025 to February 2026

Graham is placed second, courtesy mainly of the £286 million Cambridge Halls student accommodation development in Manchester (pictured), where work is expected to commence in November (Project ID: 24273061).

Kier, Murphy, and VolkerWessels all make the North West Top 10 courtesy of their role, along with Mott MacDonald subsidiary JN Bentley, on another major United Utilities scheme costing £525 million to deliver new wastewater treatment works at Eccles (Project ID: 26089872) and Salford (Project ID: 26046004). Work on both jobs is due to commence in early 2027.

Regional gains

With a strong regional economy in Manchester, the city and the North West have plenty of prospects.