Construction Projects Being Put on Hold Owing to Recession
The 2009 Birmingham Crane Survey conducted by Drivers Jonas, shows that the economic recession is having an adverse effect on the development and construction sector. Since the publication of the 2009 survey, only three projects out of six, which were slated to begin this year, will continue as planned. These are the renovation of New Street Station, the Library of Birmingham, and the Jewellery Quarter public square.
Only six new construction projects commenced within the last 12 months, as compared to 21 projects that were initiated in 2008. However, three construction projects that remain are significant ventures that many hope to see gain momentum by 2010 or 2011, and could help bring some steadiness and business back to the construction sector.
The three projects that have been put on hold are the second phase of Masshouse hotel work and the Snowhill residential accommodations, and the second phase of
Notably, the demand for office space has also fallen by about 1 million square feet this year, as compared to 2008, which explains why the survey reported only two new projects for shared office space.
In addition, many important construction firms have closed, some of them being Chase Midlands, Regal Executive Homes, Wrekin, and William Ashley, though even small firms have suffered. The economic recession is to be blamed for the downward spiral of events, as the 2009 credit crunch brought the sector to its knees, resulting in property prices falling. Awaiting better economic condition, many developers have put their projects on hold for now.
