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Mechanical and Electrical Engineering - UK - December 2015

Mechanical and Electrical Engineering - UK - December 2015

“The M&E sector has suffered for a prolonged period, with the recession reducing demand significantly, and the subsequent flat economy failing to rectify the situation. This led to severe price competition and the low cost price legacy is proving hard to shift even as the new construction sector has returned to buoyancy. For this reason, many facilities management operators have continued maintenance activity while strategically moving away from new construction activity.”

– Terry Leggett, Senior Analyst

This report addresses the following key questions facing M&E contractors:
Can M&E margins be increased again after the extreme price pressure of the past few years?
Will the market grow in excess of average UK economic activity?
Will growth arise from new construction or repair and maintenance?
Which end use sectors offer the best prospects?
Will continued public spending restrictions be more than offset by the buoyancy of the private sector?


EXECUTIVE SUMMARY
The market
Figure 1: M&E market in Great Britain, 2010-14 actual and 2015-2019 forecast
Figure 2: Segmentation of M&E market in Great Britain, 2010-14 actual and 2015-2019 forecast
Figure 3: Segmentation of mechanical contracting market in Great Britain, 2015
Figure 4: Segmentation of electrical contracting market in Great Britain, 2015
Market factors
Figure 5: New construction activity, 2009-14 actual and 2015-19 forecast
Figure 6: Civil engineering activity, 2009-14 actual and 2015-19 forecast
Figure 7: Development of Ad hoc and contract work in the R&M M&E market in Great Britain, 2009-13
actual and 2014-2019 forecast
Companies
Figure 8: Analysis of the changes in the structure of the plumbing, heating and air conditioning sector
and the electrical installation sector, 2011-15
What we think
KEY ISSUES
What is the link between M&E and the facilities management sector?
Have M&E prices started to rise again?
So are the prospects now brighter?
INTRODUCTION
Definitions
Methodology
Abbreviations
Issues in the market
Market factors
Construction industry
Legislation
Government initiatives
UK ECONOMY
Overview
Figure 9: UK GDP quarterly development, 2003-15
Figure 10: UK GDP in economic downturns and recoveries since 1979
Inflation
Interest rates
House prices
Consumer spending
Manufacturing
Figure 11: UK output by industry, 2008-15
Business investment
Figure 12: UK GFCF 2003-15
Imports
Exports
MARKET SIZE AND TRENDS
Chapter summary
Market size
Figure 13: M&E contracting output in Great Britain, 2010-14
Market segmentation and trends
Figure 14: Segmentation of M&E contracting in Great Britain, by type, 2010-14
Mechanical contracting
Overview
Figure 15: Mechanical contracting output in Great Britain, 2010-14
Figure 16: Analysis of mechanical contracting output in Great Britain, by type of work, 2010-14
New construction work
Figure 17: Segmentation of mechanical contracting output for new construction projects in Great Britain,
by type, 2010-14
Repair & maintenance work
Figure 18: Segmentation of mechanical contracting output for repair & maintenance projects in Great
Britain, by type, 2010-14
Electrical contracting
Overview
Figure 19: Electrical contracting output in Great Britain, 2010-14
Figure 20: Analysis of electrical contracting output in Great Britain, by type of work, 2010-14
New construction work
Figure 21: Segmentation of electrical contracting output for new construction projects in Great Britain, by
type, 2010-14
Repair & maintenance work
Figure 22: Segmentation of electrical contracting output for repair & maintenance projects in Great
Britain, by type, 2010-14
Seasonality of output
Figure 23: Seasonality of private housing output, 2010-14
Figure 24: Seasonality of public housing output, 2010-14
Figure 25: Seasonality of public non-residential construction output, 2010-14
Figure 26: Seasonality of private industrial construction output, 2010-14
Figure 27: Seasonality of private commercial construction output, 2010-14
Figure 28: Seasonality of public housing repair & maintenance output, 2010-14
Figure 29: Seasonality of private housing repair & maintenance output, 2010-14
Regional sales
Figure 30: Regional private housing construction output, 2010-14
Figure 31: Regional public housing construction output, 2010-14
Figure 32: Regional public non-residential construction output, 2010-14
Figure 33: Regional private industrial construction output, 2010-14
Figure 34: Regional private commercial construction output, 2010-14
Figure 35: Regional housing repair & maintenance output, 2010-14
CONSTRUCTION MARKET BACKGROUND
Chapter summary
Housing
Figure 36: Housing completions in the UK, 1970-2015
Figure 37: Analysis of private housing construction output in Great Britain, 2010-14
Figure 38: Private new housing starts and completions in England, 2010-15
Figure 39: Analysis of new public housing construction output in Great Britain, 2010-14
Figure 40: Public housing starts and completions in England, 2010-15
Figure 41: Trends in the gross supply of affordable housing in England, by tenure 2010-15
Figure 42: Forecast private housing output in Great Britain, 2015-19
Figure 43: Forecast public housing output in Great Britain, 2015-19
Public non-residential construction
Figure 44: Long term trend in public non-residential construction activity in Great Britain, 1970-2014
Figure 45: Analysis of public sector non-residential construction output in Great Britain, 2010-14
Figure 46: Analysis of public sector non-residential construction in Great Britain, by type, 2010-14
Health
Education
“Other” sector
Figure 47: Forecast public non-residential construction output in Great Britain, 2015-19
Figure 48: Forecast of public non-residential construction in Great Britain, by type, 2015-19
Private industrial construction
Figure 49: Long term trend in private industrial construction output in Great Britain, 1970-2014
Figure 50: Analysis of private industrial new construction work in Great Britain, by sector 2010-14
Figure 51: Forecast private industrial construction output in Great Britain, 2015-19
Figure 52: Forecast of private industrial new construction work in Great Britain, by sector 2015-19
Private commercial construction
Figure 53: Long term trend in private commercial construction output in Great Britain, 1970-2014
Figure 54: Analysis of private commercial construction in Great Britain, by type, 2010-14
Figure 55: Forecast private commercial construction output in Great Britain, 2015-19
Figure 56: Forecast of private commercial construction in Great Britain, by sector, 2015-19
Repair & maintenance
Figure 57: Segmentation of the R&M activity in Great Britain, 2014
Private housing
Figure 58: Analysis of repair & maintenance output in the private housing sector in Great Britain, 2010-14
Public housing
Figure 59: Analysis of Decent Homes backlog programme allocations, 2012-15
Figure 60: Analysis of repair & maintenance output in the public housing sector in Great Britain, 2010-14
Private non-residential
Figure 61: Analysis of repair & maintenance output in the private non-residential sector in Great Britain,
2010-14
Public non-residential
Figure 62: Analysis of repair & maintenance output in the public non-residential sector in Great Britain,
2010-14
Figure 63: Forecast repair & maintenance construction output in Great Britain, 2015-19
Figure 64: Forecast repair & maintenance construction output in Great Britain, by type, 2015-19
Public housing
Figure 65: Forecast repair & maintenance output in the public housing sector in Great Britain, 2015-19
Private housing
Figure 66: Forecast repair & maintenance output in the private housing sector in Great Britain, 2015-19
Figure 67: Forecast repair & maintenance output in the public non-residential sector in Great Britain,
2015-19
Figure 68: Forecast repair & maintenance output in the private non-residential sector in Great Britain,
2015-19
Civil engineering
Figure 69: Civil engineering construction output in Great Britain, by sector, 2010-14
Figure 70: Forecast civil engineering construction output in Great Britain, 2015-19
INDUSTRY STRUCTURE
Chapter summary
Industry development
Figure 71: Analysis of the changes in the structure of the plumbing, heating and air conditioning sector,
2011-15
Figure 72: Analysis of the changes in the structure of the electrical installation sector, 2011-15
Structure by employment
Figure 73: Analysis of the employment structure of the plumbing, heating and air-conditioning installation
sector, 2014 and 2015
Figure 74: Analysis of the employment structure of the electrical installation sector, 2014 and 2015
Structure by turnover
Figure 75: Analysis of the financial structure of the plumbing, heating and air conditioning sector, 2014
and 2015
Figure 76: Analysis of the financial structure of the electrical installation sector, 2014 and 2015
COMPANY PROFILES
NG BAILEY
Figure 77: Financial analysis of NG Bailey, 2011-15
Company strategy
BALFOUR BEATTY ENGINEERING SERVICES
Figure 78: Financial analysis of Balfour Beatty, 2010-14
Figure 79: Turnover analysis of Balfour Beatty by segment, 2013-14
Figure 80: Balfour Beatty investment portfolio, 2014
Company strategy
TCLARKE
Figure 81: Financial analysis of TClarke, 2010-14
Company strategy
CROWN HOUSE TECHNOLOGIES
Figure 82: Financial analysis of Crown House Technologies, 2011-15
Company strategy
IMTECH
Figure 83: Financial analysis of Imtech UK, 2009-13
Company strategy
MICHAEL J LONSDALE
Figure 84: Financial analysis of Michael J Lonsdale, 2010-14
Company strategy
LORNE STEWART
Figure 85: Financial analysis of Lorne Stewart, 2010-14
Company strategy
SKANSKA RASHLEIGH WEATHERFOIL
Figure 86: Financial analysis of Skanska Rashleigh Weatherfoil, 2010-14
Company strategy
SPIE (FORMERLY SPIE MATTHEW HALL)
Figure 87: Financial analysis of SPIE, 2010-14
Company strategy
SSE CONTRACTING
Figure 88: Financial analysis of SSE Contracting, 2010-14
Company strategy
FORECAST
Chapter summary
Market overview
Figure 89: Forecast M&E contracting output in Great Britain, 2015-19
Market segmentation
Figure 90: Forecast segmentation of M&E contracting in Great Britain, by type, 2015-19
Mechanical contracting
Overview
Figure 91: Forecast mechanical contracting output in Great Britain, 2015-19
Figure 92: Analysis of mechanical contracting output in Great Britain, by type of work, 2015-19
New construction work
Figure 93: Forecast segmentation of mechanical contracting output for new construction projects in
Great Britain, by type, 2015-19
Repair & maintenance work
Figure 94: Forecast segmentation of mechanical contracting output for repair & maintenance activity in
Great Britain, by type, 2015-19
Electrical contracting
Overview
Figure 95: Forecast electrical contracting output in Great Britain, 2015-19
Figure 96: Forecast analysis of electrical contracting output in Great Britain, by type of work, 2015-19
New construction work
Figure 97: Forecast segmentation of electrical contracting output for new construction projects in Great
Britain, by type, 2015-19
Repair & maintenance work
Figure 98: Forecast segmentation of electrical engineering output for repair & maintenance activity in
Great Britain, by type, 2015-19
FURTHER SOURCES & CONTACTS
Trade associations
Trade magazines
Trade exhibitions
UK B2B
Trade research
Informal
Formal
Desk research
Consumer research
Sampling and weighting
Definitions
Qualitative Research
Further Analysis
Statistical forecasting

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