Infrastructure investment: the supply chain opportunity

Date: 19-05-2015

Tagged as: Infographic


How large-scale projects, such as plans for a new Hinkley Point nuclear power station, can deliver a multi-layered economic boost.

Hinkley PointPublic and private infrastructure investment in the UK has increased in recent years, with more than 2,500 different infrastructure projects completed since 2010 and, according to The National Infrastructure Plan, a pipeline of more than £460bn of planned public and private investment.1

The potential impact of such investment has real depth. It contributes to the Government’s long-term economic plan2 to deliver the efficient infrastructure necessary as the foundations of sustainable growth, and in the short to medium-term it offers huge supply chain opportunities for businesses of all sizes, across the country.

Economic impact

Hinkley Point infographic

According to the CBI, investment in infrastructure will offer significant benefits on both a local and national economic scale. These include:

  • providing large-scale employment opportunities
  • developing skills across the UK workforce
  • opening up access to new, high growth markets
  • reducing £18bn of waste, and saving £5bn in energy and water costs each year
  • delivering a cleaner, more reliable energy supply
  • providing fibre broadband coverage to 90% of the UK
  • catalysing economic growth through supply chains, with 90p in every £1 spent on construction projects staying in the local area.3

The Hinkley Point example

EDF Energy's planned investment in the first of a new generation of nuclear power stations at Hinkley Point in Somerset demonstrates the value of projects of this scale to the national and local economy. Once completed, the project would provide an efficient energy source for five million homes4. The CBI also anticipate that the project will bring:

  • £100m a year of investment into the local economy at the peak of its construction
  • £15m investment in a permanent new engineering centre in Somerset
  • £6m investment in new skills courses in colleges across the region
  • 25,000 jobs created during construction
  • £40m a year injected into Somerset’s economy for 60 years from completion.5

Future growth

A third of the multi-billion pound investment is planned for the nuclear reactor island with the remainder required for construction, civil engineering and business services6. Opportunities for the local economy encompass a range of industries, from high-end advanced manufacturing to site support services, and prospective suppliers can access a dedicated supply chain portal to register interest.

Seizing opportunities

Hinkley Point is just one major project of the many at various stages of concept, development and delivery across the UK, including the expansion and improvement of the A1(M) motorway, High Speed 2 (HS2) railway, Transport for London's £1bn investment in East London and major projects by the National Grid7.

The broad impact of projects of this scale have likely contributed to rising business confidence in a growth environment8 – and businesses would be well advised to monitor potential opportunities to get involved.

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