Contractors have raised fresh concerns over workload visibility after Network Rail confirmed £8.8bn of supplier spend in the first year of Control Period 7 (CP7) — down 5% on the prior year and below the CP6 average in real terms.
The rail infrastructure body’s annual figures show a pronounced shift in investment patterns, with renewals giving way to maintenance and life-extension works. General civils allocations have fallen as funding is steered towards embankment stability, drainage and resilience schemes.
SME spend slides despite 70% share of supply base
Direct procurement from small and medium-sized enterprises dropped 11% in 2024/25, even though SMEs still account for seven in ten suppliers. More activity is being routed through tier ones under new delivery structures, reducing smaller firms’ direct exposure to Network Rail frameworks.
Regional pinch points emerging
The North West & Central region saw around a third of capital renewals deferred as inflationary pressure pushed resources towards early design and scoping. Signalling and electrification outlay also trails CP6 as schemes remain at planning stage, prompting warnings from civils specialists over pipeline transparency.
Top-tier suppliers hold steady
Spending with the top 20 suppliers rose slightly to £4.8bn (54% of the total). EDF Energy led the table at £808m, up 19%, while Siemens Mobility fell 23% to £394m. Kier Group (+66%) and QTS Rail (+33%) posted the biggest gains, contrasting with sharp drops for AtkinsRéalis (-17%) and Alstom Transport UK (-21%).
| Network Rail’s top 20 suppliers by spend | ||||
|---|---|---|---|---|
| Rank | Supplier | 2024/25 (£m) | % YOY change | % All 24/25 Spend |
| 1 | EDF Energy Customers | 808 | 19% | 9% |
| 2 | Siemens Mobility | 394 | -23% | 4% |
| 3 | Bam Nuttall Group | 383 | 6% | 4% |
| 4 | Colas Rail Group | 331 | 1% | 4% |
| 5 | J Murphy & Son | 311 | -7% | 4% |
| 6 | Volker Wessels UK | 308 | 17% | 3% |
| 7 | Balfour Beatty Group | 303 | -1% | 3% |
| 8 | Amalgamated Construction | 260 | -6% | 3% |
| 9 | Amey Group | 231 | -13% | 3% |
| 10 | Octavius Infrastructure | 160 | -1% | 2% |
| 11 | Story Contracting | 157 | -8% | 2% |
| 12 | AtkinsRéalis | 155 | -17% | 2% |
| 13 | QTS Rail | 151 | 33% | 2% |
| 14 | Npower | 141 | 4% | 2% |
| 15 | SPL Powerlines UK | 138 | -14% | 2% |
| 16 | Alstom Transport UK | 131 | -21% | 1% |
| 17 | Mitie FM | 108 | 7% | 1% |
| 18 | Kier Group | 101 | 66% | 1% |
| 19 | Computacenter (UK) | 96 | 52% | 1% |
| 20 | Alexander Mann Solutions | 93 | -9% | 1% |
| Top 20 suppliers subtotal | 4,757 | +0.4 | 54% | |
| All other suppliers | 4,071 | -11% | 46% | |
| Total | 8,828 | -5% | 100% | |
As reported in Construction Enquirer, Lorraine Gregory, director of the Civil Engineering Contractors Association (CECA) Midlands, said the report underlined both significant opportunities and immediate challenges.
“This 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.
“CECA 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.”
Despite the downturn, the organisation pointed to the Government’s Spending Review and over £10bn of confirmed rail investment, alongside flagship schemes such as the TransPennine Route Upgrade and East West Rail.
