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Liverpool is the new Manchester. At least, that’s what some in the industry say. It isn’t the whole story, but they do have a point. With most bomb-damage repair work now complete in the old Manchester, its recent rush of projects is cooling slightly. The city remains the engine of the North-west, but the biggest potential for growth in the next 18 months lies in Liverpool.

Several factors have driven this: the business-friendly political climate, European Union funding and the setting up of regeneration group Vision 2000, whose masterplan to transform parts of the city centre is due out in April. This is expected to encourage large amounts of speculative commercial work in a bid to get businesses to return to the city, and to decide that hotel and residential work has enough momentum to need less grant support.

But Manchester still has more than its fair share of work. The area around the Commonwealth Stadium is being redeveloped, and the re-facaded Arndale Centre is set for a £90m-100m overhaul.

The rush of work means it is harder to recruit skilled professionals. Hiring skilled tradesmen in Manchester is easier than two years ago, but there are reports of a dearth of plasterers and joiners in Liverpool. Tender prices are rising, but most people are confident that they are sustainable. Contractors still complain of tight margins, and many are pushing for more negotiated jobs.