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New - the 39 key suppliers to government, unpacked
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2018 was a huge year for engineering contracts from public sector buyers, with nearly £12bn awarded across more than 2000 contracts. Here at Tussell we've examined the state of the public sector procurement of engineering services in 2018, including the top suppliers winning contracts and the top buyers awarding contracts.
Key findings:
The public sector awarded nearly £12bn in engineering contracts in 2018.
By far the largest contract was a £5bn award to a joint venture between Keolis and Amey to design and manage the Welsh Borders rail franchise
Despite the growth in value in the sector, the volume of contracts awarded decreased for the second year running, down to 2060 from a high of over 3000 in 2016.
Despite the considerable increase in the value of engineering contracts - mostly driven by a few particularly large awards - the number of contracts awarded has decreased considerably in the past two years, down from a high of more than 3000 in 2016 to just over 2000 in 2018. This could show that there is a trend towards procuring these services in larger packages of work.
This is also reflected in the dominance of the top suppliers in this sector, who last year were awarded more than three quarters of the total value of contract awards - over £9bn. Smaller organisations hoping to break into this sector might do well to focus on subcontracting opportunities.
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