The economic landscape in the North East is not just evolving; it’s undergoing a transformative construction-led renaissance. According to the latest insights from Ernst & Young’s Regional Economic Forecast , the economic landscape in the North East is poised for significant growth, with Newcastle leading the way. As we look ahead, strategic construction projects are poised to be the cornerstone of the region’s growth from 2024 to 2026. These projects not only promise economic revitalisation but also create a demand for skilled professionals, making it a pivotal time for the construction sector in the North East.

Newcastle: Pioneering Growth Through Infrastructure

Newcastle, our regional economic frontrunner, is set to champion growth with an anticipated annual average Gross Value Added (GVA) growth of 2% between 2024 and 2026. This growth trajectory places the city just behind the national rate, a testament to the city’s commitment to not only economic expansion but also infrastructural development.

Construction as a Catalyst for Employment

The construction boom in Newcastle is not just about erecting buildings; it’s about building opportunities. Construction projects inherently translate into job creation, offering employment opportunities that extend beyond the construction site to the broader community.

Focused Growth in Urban Construction Hubs

Sunderland, emerging as the region’s second-fastest-growing economy, is not only witnessing economic expansion but also a construction resurgence. With an average annual GVA growth of 1.9% from 2024 to 2026, Sunderland is becoming a construction hub, presenting opportunities for contractors, suppliers, and skilled workers alike.

Urban Renewal: Sunderland’s Construction Renaissance

The rise of Sunderland as an economic powerhouse in the region is intricately linked with a surge in construction activities. Urban renewal projects, from commercial spaces to residential developments, are not just reshaping the city’s skyline but also revitalising its economic core.

Rising Stars in Construction: Darlington and Stockton-on-Tees

As we shift our focus to Darlington, the forecast predicts an average annual GVA growth rate of 1.8%. The town is not only witnessing economic growth but is also emerging as a construction hotspot. Darlington’s construction sector is anticipated to thrive, bringing with it opportunities for contractors and construction professionals.

Stockton-on-Tees, with an average annual GVA growth of 1.6%, is set to outperform regional peers in construction activities. While marginally behind the North East rate, the town’s construction sector is gearing up for growth, presenting investment prospects for stakeholders in the construction industry.

Challenges and Opportunities: Construction’s Role in Economic Recovery

The economic challenges forecasted for the North East in 2023 present a unique opportunity for the construction sector. With a 0.8% contraction in GVA expected, targeted construction projects can serve as a powerful tool for economic recovery.

Construction Projects as Catalysts for Recovery

Investments in construction projects, from infrastructure development to commercial and residential constructions, have the potential to stimulate economic activity, create jobs, and position the North East for a robust recovery.

City Spotlight: Durham’s Construction Prospects

Durham, with its anticipated annual average GVA growth of 1.2%, might have the slowest economic growth in the region, but the construction sector can play a crucial role in accelerating this growth. Targeted construction initiatives in Durham can serve as catalysts for economic rejuvenation, creating a ripple effect across various industries.

Navigating Economic Trends: Construction’s Resilience

The EY Regional Economic Forecast also underscores the broader UK economic landscape. The rising cost of living and weakened consumer spending are anticipated to deepen the economic divide. However, the construction sector remains resilient, with opportunities for growth in less consumer-dependent areas.

Construction: A Pillar of Economic Resilience

In a year where certain sectors face contractions, the construction industry’s resilience stands out. Less consumer-dependent areas, such as administrative and support services and professional services, are expected to see growth, positioning construction as a pillar of economic resilience.

Looking Ahead: Building a Future of Growth

As we navigate the economic landscape of 2023 and beyond, construction projects emerge as a catalyst for growth and economic recovery. Hello Recruitment, attuned to the pulse of the construction industry, is dedicated to construction recruitment and connecting businesses with the skilled talent essential for driving these projects to success.

For the latest updates on construction projects, economic trends, and talent acquisition in the North East stay connected with Hello Recruitment. Together, let’s build a future of growth and prosperity, brick by brick, beam by beam, in the heart of the North East.

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Tom Simpson

Managing Director at Novum Personnel

Tom Simpson is a passionate entrepreneur and the driving force behind Novum Personnel. With a background in commercial law and retail, Tom’s journey into business has been guided by his socialist values and a focus on people's development over monetary gain.

Tom’s commitment to keeping things simple and focusing on the needs of both clients and candidates has been key to his success. He’s not afraid to pivot and adapt, moving into construction and engineering recruitment when the market demands it and later seeing an opening in education recruitment.

In his personal life, Tom is known for his directness and resilience, unafraid to challenge the status quo or stand up for his beliefs. With Tom, what you see is definitely what you get. His goal is not to amass wealth but to create a happy and motivated team and to revolutionise the way we approach work and recruitment.

Tom Simpson is a true champion of business success, putting people and their passions at the heart of everything he does. His story is a testament to the power of simplicity, adaptability, and a people-first approach in business.