HS2 has today published new data on the value of contracts it has awarded to UK to support the high-speed line's construction.
The latest quarterly data show over £11.5bn worth of tier-two contracts awarded by the firms involved in HS2's construction to businesses of all sizes in every UK region.
HS2 argues that the figures “underline the extent to which investment in the high-speed line continues to flow back into the UK economy, helping to create new jobs even in regions not directly on the line of the new railway”. However, the amount of money involved may also lend weight to the arguments of those who contend that HS2 is an expensive project.
Since 2016, HS2 has awarded contracts to Midlands firms worth £2.68bn, and contracts to Greater-London-based firms worth £3.16bn. South East firms have been awarded contracts worth over £1.9bn, and firms in the north have received a combined share of £1.69bn.
However, other regions, including Wales, Scotland, Northern Ireland and North West England has received much lower sums, measured in millions rather than billions of pounds.
HS2 expects to continue awarding construction contracts for at least five more years, which will be awarded to some of the three thousand UK-based suppliers already providing goods and services, and possibly some new suppliers.
HS2 has already awarded major civil engineering contracts for its ‘flagship' stations in Old Oak Common, Solihull and Birmingham, but expects that new opportunities will arise as these stations are furnished and equipped. Over the next year, HS2's focus will shift away from works dominated by civil engineering and towards planning for the integration of rail systems. It expects that this will open more opportunities for companies in the tech, digital and rail sectors.
Small and medium sized enterprises (SMEs – companies with 250 or fewer employees) have secured £4.5bn worth of work.
Firms will also have new opportunities to make money from HS2 as Hitachi/Alstom steps up its search for suppliers for fitting out the interior of HS2's fleet of high-speed trains. Manufacturing and maintenance already set to bring new jobs to County Durham, Derby and Crewe, and Hitachi / Alstom are encouraging suppliers across the country to register now for the opportunities to come.
Companies can register their interest in winning work with HS2 and its contractors by registering their details on CompeteFor. Information and advice about becoming an HS2 supplier can be found in HS2's Supplier Guide.
The full regional breakdown of the value of tier two contract awards to July 2023 is as follows:
- West Midlands: £2.043bn
- East Midlands: £0.643bn
- Midlands: £2.687bn
- North East: £827m
- Yorkshire and Humberside: £411m
- North West: £459m
- North: £1.698bn
- Greater London: £3.165bn
- South East: £1.920bn
- South West: £266m
- East of England: £1.332bn
- Wales: £179m
- Scotland: £137m
- Northern Ireland: £140m
- UK-wide: £11.5bn
Neil Alger, Managing Director of Suffolk-based Regal Tanks, said: “For a small company like ours to be selected as the main industrial storage tank supplier for HS2 is huge. And it's not only boosted our business, our supply chain is reaping the benefits too.
“One of our manufacturers' entire production line is now filled with HS2 orders for the next year. It's a challenge, but everyone has stepped up, as we all want to play a part in HS2.“
Andrew Cubitt, HS2's Procurement and Supply Chain Director said: “High speed rail is well established across Europe, but there's untapped potential here in the UK. Successful businesses diversify, and that's exactly what we need companies on our doorstep to do.
“A broader scope of contracts is coming down the line, so this is the time for firms in the rail, tech and digital sectors to start engaging with HS2.”
Imagine if this public money were awarded to Councils in these regions for Council house building, not only would jobs be created but people could have homes to live in.
And again please note Greater London gets more than anyone else.