Whilst HS2 will undoubtedly offer rail passengers across the UK improved journey times and high-speed intercity connections, the construction phase of the project has been helping boost over 2,000 UK businesses, aiding them stay afloat during the ongoing cost of living crisis.
According to the latest figures from HS2, tier two subcontracts totalling £7.9bn have so far been awarded to over 2,000 UK-based companies, seeing SMEs securing £3.6bn worth of orders, equating to a 45% share.
Across the UK, businesses have won a plethora of work contracts supporting HS2’s construction, seeing the East of England, West Midlands, Greater London and the South East each amassing over £1bn worth of contracts.
Medium sized businesses with 50 to 250 employers have amassed over £1.9bn worth of work, small sized businesses with 11 to 49 employees have won contracts worth £677m and micro businesses with 1 to 10 employees have seen just over £1bn.
Rail Minister Huw Merriman said:
“These figures demonstrate the significant opportunities HS2 offers to UK businesses and supply chains. Not only is it transforming services on our railways, but it’s creating new opportunities for growth and supporting thousands of high-skilled jobs right across the country.
“The benefits of HS2 will be felt for generations to come, creating extra capacity on our rail network and providing a sustainable option for travel, while boosting a skilled construction workforce in the process.”
The HS2 supply chain involves a plethora of innovative companies that provide a huge range of skills and services, delivering critical commodities such as groundworks, archaeology, technology systems, and the manufacturing of parts, components and personal protective equipment. A large portion of these suppliers have won repeat business, with many others receiving the opportunity of a lifeline over the coming two decades of works.
Ruth Todd, Chief Commercial Officer at HS2 Ltd, said:
“We’re working with specialist businesses and suppliers from across the UK to deliver Britain’s new high speed, low carbon railway. These firms are providing world-leading consultancy services, engineering solutions and products, with many going on to secure multiple contracts. Given the size and longevity of HS2, we’re able to provide businesses with a lasting pipeline of work, which is boosting confidence and prompting investment despite the challenging economic climate.
“It's fantastic to see the impact partnering with HS2 is having on businesses in our supply chain, supporting and creating thousands of highly-skilled jobs for employees in communities in every corner of the UK.”
The first operational phase of HS2 between Old Oak Common and Birmingham Curzon Street is currently being prioritised for construction, with contract opportunities for construction partners being advertised on the CompeteFor platform and can be found on HS2’s website.
HS2 has published details of over 900 contracts awarded to its Tier 2 suppliers, and businesses are encouraged to reach out directly to discuss the opportunities this could present for them.
|
UK Region |
Sum of awarded Tier 2 contract value |
|
East Midlands |
£331,663,000 |
|
East of England |
£1,092,532,000 |
|
Greater London |
£1,740,174,000 |
|
North East |
£668,366,000 |
|
North West |
£277,749,000 |
|
Northern Ireland |
£38,682,000 |
|
Scotland |
£92,379,000 |
|
South East |
£1,251,311,000 |
|
South West |
£235,712,000 |
|
Wales |
£173,379,000 |
|
West Midlands |
£1,726,497,000 |
|
Yorkshire |
£255,185,000 |
Want to know more about the opportunities to become a key supplier to the UK rail industry? Attend TransCityRail and access an exclusive marketplace of buyers from Network Rail, HS2, Train Operators, Major Contractors, and all other tiers of the supply chain. For more information and to secure your place click here.
