Extracting Insights from Procurement Data

A text mining approach for social housing retrofits in the West Midlands

Authors

Annum Rafique
City-REDI, University of Birmingham

Pei-Yu Yuan
Alliance Manchester Business School

Other publications

Publication

Mobilising the Power of Local Spending – East Birmingham Inclusive Growth Strategy

The city of Birmingham is using public procurement to address its socioeconomic challenges and make its local economy more equitable.

Understanding trends in public sector spending, supplier engagement, and funding allocation effectiveness is crucial in building trust in the government. A comprehensive understanding of procurement contracts enhances accountability and provides actionable intelligence for policymakers and stakeholders, enabling them to assess the effectiveness of procurement strategies and monitor progress toward sustainability goals.

 This research brief explores the methodological approach of text mining and using it for procurement contract analysis. The approach focuses on keyword-based filtering and data extraction to identify relevant contracts, providing a practical approach for researchers, policymakers, and stakeholders without specialised expertise in natural language processing (NLP) or machine learning.

Using the methodology, we analysed structured data from Tussell database for the year 2022, examining social housing retrofitting contracts in the West Midlands. To gain a deeper understanding of the procurement landscape in the West Midlands Combined Authority (WMCA) area, a subregion within the broader West Midlands, refer to the IPEC publication: “Retrofitting Social Housing in the West Midlands Combined Authority (WMCA) Area”. This report by Annum Rafique (2025) provides valuable insights into procurement challenges, supply chain dynamics, and policy considerations specific to the region.

Applying the text mining methodology to Tussell’s procurement data provided several key insights:

  • Single-Supplier Contracts: Most procurement contracts involved only one supplier, limiting multi-supplier collaborations.
  • Short-Term Contracts: The majority of contracts had a duration of one year or less, which is a challenge for long-term retrofitting projects.
  • Regional Supplier Distribution: Many contracts were awarded to suppliers outside the West Midlands, indicating potential gaps in local supplier capacity.
  • SME Participation: 65% of suppliers were SMEs, showing a positive trend toward engaging smaller firms in retrofitting projects.

These findings provide a data-driven foundation for improving procurement strategies, enabling policymakers to extend contract durations, support regional supplier development, and enhance SME participation. The insights derived from this methodology support evidence-based decision-making and reinforce procurement as a strategic tool for driving innovation, economic resilience, and the transition to a low-carbon economy.

Extracting Insights from Procurement Data

File Type: pdf

File Size: 0.44 MB