UK (Parliament Politic Magazine) – Several UK businesses have secured contracts to aid in the development of the HS2 project. Recently, Prime Minister Rishi Sunak declared the cancellation of the northern leg of the HS2 scheme from Birmingham to Manchester. The allocated funds will now be directed towards numerous smaller transportation initiatives.
Since 2016, HS2’s construction partners have granted over £11.5 billion in tier two contracts to businesses across the entire UK, of varying sizes. The Midlands has received contracts worth £2.68 billion, second only to Greater London, which hosts numerous company headquarters, with a total of £3.16 billion.
Midlands Firms Secure £2.68 Billion in HS2 Contracts Since 2016
Anticipated to persist for at least another five years, contracts associated with the construction of the high-speed network between London and Birmingham are poised to generate fresh opportunities for the existing pool of 3,000 UK-based suppliers offering goods and services, with the potential for additional enterprises to join their ranks.
While significant civil contracts for key stations in Old Oak Common, Solihull, and Birmingham have already been assigned, the upcoming year will introduce new prospects stemming from comprehensive fit-out programs.
This period is also expected to witness a transition from HS2’s emphasis on civil contracts to a focus on planning for the seamless integration of rail systems, presenting numerous work packages for companies in the technology, digital, and rail sectors.
Andrew Cubitt, Director of Procurement and Supply Chain at HS2, expressed, “High-speed rail has a well-established presence in Europe, yet there’s untapped potential here in the UK. Successful businesses embrace diversification, and that’s precisely what we encourage companies in our vicinity to pursue.
“As a more extensive array of contracts is on the horizon, now is the opportune moment for companies in the rail, tech, and digital sectors to initiate engagement with HS2.”
HS2 Procurement Director Encourages Engagement from Rail, Tech, and Digital Sectors
The statistics underscore the ongoing impact of high-speed line investment on the UK economy, fostering job creation even in regions not directly along the new railway route. Since 2016, the Midlands has secured contracts totaling £2.68 billion, second only to Greater London, where numerous company headquarters are situated, with a total of £3.16 billion. Businesses in the south-east have won over £1.9 billion in contracts, and those in the north collectively received £1.69 billion.
Contracts related to the construction of the high-speed network are expected to persist for at least another five years, providing new business opportunities for the existing pool of 3,000 UK-based suppliers offering goods and services, with the potential for more to join their ranks.
HS2 Investment Boosts Small and Medium-sized Enterprises (SMEs) by £4.5 Billion
While major civil contracts for flagship stations in Old Oak Common, Solihull, and Birmingham have already been granted, upcoming opportunities will arise from extensive fit-out programs.
The coming year will also witness a shift from HS2’s emphasis on civil works to the planning phase for the integration of rail systems, presenting a range of work packages for companies in the tech, digital, and rail sectors.
Small and medium-sized enterprises (SMEs), defined as companies with 250 or fewer employees, have swiftly seized the growth opportunities presented by HS2, securing contracts totaling £4.5 billion.
HS2 Procurement Director Urges UK Firms to Capitalize on High-Speed Rail Potential
In the East of England, Regal Tanks, a Suffolk-based SME, stands as one of the suppliers that has reaped the rewards, claiming a portion of the £1.3 billion in awarded contracts.
According to Andrew Cubitt, HS2’s Director of Procurement and Supply Chain:
“High-speed rail has a strong foothold in Europe, but there’s untapped potential right here in the UK. Flourishing businesses embrace diversification, and that’s precisely what we encourage local companies to explore.
“A more extensive range of contracts is on the horizon, making it the opportune moment for firms in the rail, tech, and digital sectors to initiate collaboration with HS2.”
Additional business prospects are on the horizon as Hitachi/Alstom intensifies its quest for suppliers to contribute to the interior fit-out of HS2’s high-speed train fleet. The expansion of manufacturing and maintenance operations is expected to generate new employment opportunities in County Durham, Derby, and Crewe. Companies of all sizes throughout the UK are invited to express their interest in securing contracts with HS2 and its contractors by registering details on CompeteFor.