Review of 2014: Fairy tale endings

Economic recovery

The UK economy is off the sick bed and finally growing strongly. Economists forecast GDP will have grown around 3% this year, up from 1.7% growth in 2013. Whether or not this economic growth is benefitting enough people, or is sufficiently balanced, will be the subject of fierce debate in the run-up to the 2015 general election. But at any rate this was the first year since the 2008 crash that construction firms really felt they were being buoyed by the general economic conditions, rather than dragged down by them.

Specialists recovery

It’s a white-knuckle ride being a specialist contractor. Subcontractors were hit hardest during the recession - with a number of high-profile casualties - but now that times are good they are riding high. This year specialists reported enquiries at their highest level for more than 15 years, with around half reporting an increase in orders, while tender prices also grew. Residual issues remain - including delivering work won during the barren years at rock bottom prices - but there’s little doubt that after years of being kicked around by main contractors, specialists now feel the boot is on the other foot.

Battersea Power Station

This was the year the future of London’s iconic Battersea Power Station was finally secured. In October a historic £1.4bn funding package was sealed between the site’s Malaysian owners, Sime Darby and SP Setia, and a consortium of banks, signed in the building’s stunning art deco control room. The funding package will kick-start development of the second and third phases of the project - the second being the crucial £600m phase of redeveloping the Grade II-listed structure itself via a huge mixed-use scheme, a job secured by Skanska in the autumn. Skanska has taken over on site from Mace, which this year worked to restore the crumbling power station.

Wedding bells

A number of the industry’s biggest firms tied the knot with former rivals this year, following a flurry of merger mania. While Balfour rejected Carillion’s advances (see Grimm Tales), fellow contractor Galliford Try fell for Miller Group’s construction division, acquiring the loss-making division in the summer. As per usual it was the flirty consultants that got around most this year. Aecom bought URS - a deal made in the US, but which will create the UK’s second largest consultant - and frisky Dutch outfit Arcadis acquired historic UK engineer Hyder. But it was the consultancy division of Balfour Beatty, Parsons Brinckerhoff, that was determined to seize the limelight, courting a number of suitors, including Atkins, before opting to walk down the aisle with WSP.