Posted on June 24, 2014 by Mark Devon
The Russell Group of Universities are made up of the top 24 universities within the country and are world re-owned for their academic prowess. However, since the development of overseas universities over the past decade, they have been forced to invest a large amount of financial capital on their own resources. This has led to the UK higher education sector becoming a far more attractive sector for construction companies to start developing in, as the universities look to expand further.
The Russell Group recently pledged to inject over £9billion in capital investment in the development in their facilities from 2012-2017.
This is even more then the £8.9 billion that was spent on hosting the London Olympics (which is crazy when you think the 2012 London Olympics Games was a quite a lot over the original budget!).
This bold investment shows the extent to which the group are willing to go, in order to develop their students experience’s, as well as keeping overseas competitors at bay. This will enable the most prestigious UK Universities to attract the best and brightest students from all over the world.
Economically, it is also likely to have a positive effect on the UK, as it likely to generate over 98,500 positions within the job market as well it generating over £44.3 billion for the economy over the next 25 years.
This positive effect is likely to filter down to the construction industry and it is anticipated to generate over 11,680 new construction jobs over the next 5 years as well generating over £2.9 billion for the industry. This shows that companies that are able to secure projects within the Higher Education sector are likely to improve financially, as well as benefiting from repeat business within the intended university.
However from experience, I have found that the most active area for capital investment is located between Oxford, Cambridge and London area (This is formally known as the ‘The Golden Triangle’). This is mainly due to the fact that the most prestigious universities in the country are located in these areas such as Cambridge, Oxford, Imperial, Kings, UCL and LSE.
In my overall opinion I believe that the large capital investment that the high-status Russell Group have put into the development of their facilities has led to a huge benefit to the booming construction industry (which is seen as a huge component in the success of the UK economy). Also with the potential growth in the University sector over the coming year, it will mean that business partnership between construction companies and their clients will become increasingly far more important.
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