West Midlands gets £1.72 billion of HS2 contracts

A dozen UK regions have shared £7.9 billion of contracts from the high speed rail project, with £1.72bn going to the West Midlands.

More than 2,000 UK-based businesses have benefitted, with £3.6bn going to small and medium-sized firms, which represent 73 per cent of HS2’s UK supply chain.

Greater London had the biggest overall slice of £1.74bn.

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.”

HS2’s supply chain is working at pace to provide a vast range of services including groundworks, archaeology, technology systems and the manufacturing of parts, components and personal protective equipment. Many suppliers have gone on to win repeat business.

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.”

Karen Woolley, the development manager at the Federation of Small Businesses, added: “Procurement is an essential lever through which to support small business growth and innovation and, therefore, to enhance the productivity and the wider competitiveness of the economy. It is encouraging to see in black and white HS2’s level of spend with SMEs, which demonstrates the much-needed levelling of the playing field that the FSB has been calling for.

“At a time when trading conditions are quite possibly at the most challenging they have been for many years, smaller firms having the opportunity of accessing contracts with such an important infrastructure project as HS2 can provide that much needed boost to a company’s economic productivity."

Mark Pickard, managing director of Walsall-based Altrad RMD Kwikform, said: “Working on HS2 has given our business a timely boost, allowing us to rebound from the Covid-19 pandemic and giving us the impetus to invest in our people and hire more staff.

“We’ve worked on various parts of the project, securing multiple contracts over the last few years on sites in London, the Colne Valley and now in Birmingham, where we’re helping to construct the viaduct that will bring high speed trains into the city centre. With years of construction still to go, we’re confident that our work on HS2 will continue to bring stability, prosperity and growth to the business.”

The Government’s announcement on March 9 confirmed that all phases of HS2 from Manchester to London Euston will go ahead. The first operational phase of HS2, between Old Oak Common and Birmingham Curzon Street, has been prioritised.