{"id":7398,"date":"2025-08-26T08:47:05","date_gmt":"2025-08-26T08:47:05","guid":{"rendered":"https:\/\/cita.co.uk\/news\/?p=7398"},"modified":"2025-08-26T08:47:05","modified_gmt":"2025-08-26T08:47:05","slug":"network-rail-spend-down-as-cp7-shift-bites-contractors","status":"publish","type":"post","link":"https:\/\/cita.co.uk\/news\/network-rail-spend-down-as-cp7-shift-bites-contractors\/","title":{"rendered":"Network Rail spend down as CP7 shift bites contractors"},"content":{"rendered":"

Network Rail\u2019s \u00a38.8bn supplier spend in the first year of Control Period 7 has sparked concern across the civils supply chain as firms warn workloads are thinner and harder to track.<\/p>\n

The rail client\u2019s latest supplier spend report for CP7 shows overall investment in 2024\/25 dropped 5% on the prior year and sits 3% below the CP6 average once inflation is factored in.<\/p>\n

Direct spend with SMEs slumped 11%, even though small firms still make up 70% of suppliers, as more work is channelled through tier one contractors under new delivery models.<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Network Rail\u2019s top 20 suppliers by spend<\/th>\n<\/tr>\n
Rank<\/th>\nSupplier<\/th>\n2024\/25 (\u00a3m)<\/th>\n% YOY change<\/th>\n% All 24\/25 Spend<\/th>\n<\/tr>\n<\/thead>\n
1<\/td>\nEDF Energy Customers<\/td>\n808<\/td>\n19%<\/td>\n9%<\/td>\n<\/tr>\n
2<\/td>\nSiemens Mobility<\/td>\n394<\/td>\n-23%<\/td>\n4%<\/td>\n<\/tr>\n
3<\/td>\nBam Nuttall Group<\/td>\n383<\/td>\n6%<\/td>\n4%<\/td>\n<\/tr>\n
4<\/td>\nColas Rail Group<\/td>\n331<\/td>\n1%<\/td>\n4%<\/td>\n<\/tr>\n
5<\/td>\nJ Murphy & Son<\/td>\n311<\/td>\n-7%<\/td>\n4%<\/td>\n<\/tr>\n
6<\/td>\nVolker Wessels UK<\/td>\n308<\/td>\n17%<\/td>\n3%<\/td>\n<\/tr>\n
7<\/td>\nBalfour Beatty Group<\/td>\n303<\/td>\n-1%<\/td>\n3%<\/td>\n<\/tr>\n
8<\/td>\nAmalgamated Construction<\/td>\n260<\/td>\n-6%<\/td>\n3%<\/td>\n<\/tr>\n
9<\/td>\nAmey Group<\/td>\n231<\/td>\n-13%<\/td>\n3%<\/td>\n<\/tr>\n
10<\/td>\nOctavius Infrastructure<\/td>\n160<\/td>\n-1%<\/td>\n2%<\/td>\n<\/tr>\n
11<\/td>\nStory Contracting<\/td>\n157<\/td>\n-8%<\/td>\n2%<\/td>\n<\/tr>\n
12<\/td>\nAtkinsR\u00e9alis<\/td>\n155<\/td>\n-17%<\/td>\n2%<\/td>\n<\/tr>\n
13<\/td>\nQTS Rail<\/td>\n151<\/td>\n33%<\/td>\n2%<\/td>\n<\/tr>\n
14<\/td>\nNpower<\/td>\n141<\/td>\n4%<\/td>\n2%<\/td>\n<\/tr>\n
15<\/td>\nSPL Powerlines UK<\/td>\n138<\/td>\n-14%<\/td>\n2%<\/td>\n<\/tr>\n
16<\/td>\nAlstom Transport UK<\/td>\n131<\/td>\n-21%<\/td>\n1%<\/td>\n<\/tr>\n
17<\/td>\nMitie FM<\/td>\n108<\/td>\n7%<\/td>\n1%<\/td>\n<\/tr>\n
18<\/td>\nKier Group<\/td>\n101<\/td>\n66%<\/td>\n1%<\/td>\n<\/tr>\n
19<\/td>\nComputacenter (UK)<\/td>\n96<\/td>\n52%<\/td>\n1%<\/td>\n<\/tr>\n
20<\/td>\nAlexander Mann Solutions<\/td>\n93<\/td>\n-9%<\/td>\n1%<\/td>\n<\/tr>\n
Top 20 suppliers subtotal<\/td>\n4,757<\/td>\n+0.4<\/td>\n54%<\/td>\n<\/tr>\n
All other suppliers<\/td>\n4,071<\/td>\n-11%<\/td>\n46%<\/td>\n<\/tr>\n
Total<\/td>\n8,828<\/td>\n-5%<\/td>\n100%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n
\n
<\/a><\/div>\n<\/div>\n

The shift in spend profile is also marked. Less cash is going into full renewals, with budgets reallocated to maintenance, refurbishment and life-extension works.<\/p>\n

General civils spend is down against CP6 levels as Network Rail concentrates on embankments, drainage and weather resilience.<\/p>\n

In the North West & Central region, inflationary pressures prompted a stronger emphasis on design and scoping rather than full delivery, with around a third of capital renewals deferred. Signalling and electrification spend also lagged CP6 as projects remain in early design phases.<\/p>\n

\n
<\/a><\/div>\n<\/div>\n

Contractors said this left some supply chain firms struggling to see visibility of future workloads.<\/p>\n

Lorraine Gregory, director of CECA Midlands, said the report highlights both the scale of future opportunity and the challenges on the ground.<\/p>\n

She said: \u201cThis report shows the scale of opportunity available across the supply chain, but also the challenges facing businesses, as high inflation and reprofiled workbanks place pressure on margins and visibility.<\/p>\n

\n
<\/a><\/div>\n<\/div>\n

\u201cCECA will continue to work closely with Network Rail and Government to ensure contractors of all sizes have the confidence to invest in skills, innovation and delivery capacity.\u201d<\/p>\n

Network Rail defended the figures, stressing that early years of a new control period always show slower delivery as scoping and design dominate.<\/p>\n

It said inflation had reduced the overall purchasing power of CP7 by \u00a31.6bn, forcing a tilt away from steady-state renewals.<\/p>\n

Despite contractor concerns, the report points to major future opportunities, with the Government\u2019s Spending Review confirming more than \u00a310bn for infrastructure improvements alongside long-term projects such as the TransPennine Route Upgrade and East West Rail.<\/p>\n

\n
<\/a><\/div>\n<\/div>\n
\n
<\/a><\/div>\n<\/div>\n

 <\/p>\n

from Construction Enquirer https:\/\/ift.tt\/A0srURf<\/p>\n","protected":false},"excerpt":{"rendered":"

Network Rail\u2019s \u00a38.8bn supplier spend in the first year of Control Period 7 has sparked concern across the civils supply chain as firms warn workloads are thinner and harder to track. The rail client\u2019s latest supplier spend report for CP7 shows overall investment in 2024\/25 dropped 5% on the prior year and sits 3% below […]<\/p>\n","protected":false},"author":1,"featured_media":150,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[9],"class_list":["post-7398","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-construction-enquirer"],"_links":{"self":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/7398","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/comments?post=7398"}],"version-history":[{"count":1,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/7398\/revisions"}],"predecessor-version":[{"id":7399,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/posts\/7398\/revisions\/7399"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media\/155"}],"wp:attachment":[{"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/media?parent=7398"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/categories?post=7398"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cita.co.uk\/news\/wp-json\/wp\/v2\/tags?post=7398"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}