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Construction in the UK – Key Trends and Opportunities to 2021

Construction in the UK – Key Trends and Opportunities to 2021

Synopsis

In real terms, the UK’s construction industry registered positive growth during the review period (2012–2016). Despite a slowdown in growth during 2016 due to the impact of the Brexit referendum, in which the UK voted to leave the European Union (EU), the industry registered a modest performance, supported by public sector investments in infrastructure and residential construction projects, coupled with improvements in industrial activity.

Over the forecast period (2017–2021), the industry is expected to be supported by government efforts to promote economic growth over the forecast period, implementing a huge pipeline of construction projects until 2021.

Despite these growth prospects, the unstable political scenario following the June 2017 general election is expected to hamper the effective implementation of the government’s infrastructure plan.

The industry’s output value in real terms recorded a compound annual growth rate (CAGR) of 4.02% during the review period and is expected to post a CAGR of 2.67% over the forecast period.

Summary

Timetric’s Construction in the UK – Key Trends and Opportunities to 2021 report provides detailed market analysis, information and insights into the UK's construction industry, including:

  • The UK construction industry's growth prospects by market, project type and construction activity
  • Analysis of equipment, material and service costs for each project type in the UK
  • Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the UK's construction industry
  • Profiles of the leading operators in the UK's construction industry
Scope

This report provides a comprehensive analysis of the construction industry in the UK. It provides:
  • Historical (2012-2016) and forecast (2017-2021) valuations of the construction industry in the UK using construction output and value-add methods
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type
  • Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)
  • Analysis of key construction industry issues, including regulation, cost management, funding and pricing
  • Detailed profiles of the leading construction companies in the UK
Reasons To Buy
  • Identify and evaluate market opportunities using Timetric's standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using Timetric's critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.
Key Highlights
  • In a bid to boost the post-Brexit economy, in January 2017 the government launched an industrial strategy under which it plans to develop various projects in key sectors such as manufacturing, infrastructure, energy and research. Under the strategy, the government announced plans to invest GBP556.0 million (US$713.4 million) to promote economic growth in Northern England.
  • According to the ONS, the seasonally adjusted average new orders volume index for housing rose by 5.2%, going from 75.7 in 2015 to 79.6 in 2016. This was preceded by an annual contraction of 4.3% in 2015. An increase in new housing construction activity could be attributed to the government’s efforts to overcome the country’s housing shortage.
  • With an aim to provide access to efficient internet connectivity to businesses and homes across the UK, in November 2016 the government announced plans to invest GBP1.0 billion (US$1.3 billion) to develop the broadband infrastructure until 2021. Under this initiative, the government will deploy full-fiber optic networks and future 5G communication networks in the country.
  • In March 2016, Manchester City Council granted approval for the renovation of Manchester airport. The project includes the expansion of Terminal 2, self-service check-in facilities and the construction of a security hall. The upgraded airport is expected to handle over 55.0 million passengers per annum by 2050 – up from 23.0 million in 2016.
  • Despite growth prospects, the UK construction industry is expected to face various challenges over the forecast period. On its formal exit from the EU, the UK would no longer be subject to EU funding in the coming years. Additionally, a weakened investor confidence after Brexit could also weigh on the inflow of investments into industrial, commercial and housing projects in the coming years, as investors would prefer to delay their investments until getting a clear picture of the country’s future relationship with the EU.


  • Executive Summary
  • Industry Outlook
    • Commercial Construction
    • Industrial Construction
    • Infrastructure Construction
    • Energy and Utilities
    • Institutional Construction
    • Residential Construction
  • Key Issues and Developments
  • Market Data Analysis
    • Construction Output and Value Add
      • Construction output by project type
        • Table UK Construction Output by Project Type (GBP Million), 2012-2016
        • Table UK Construction Output by Project Type (GBP Million), 2016-2021
      • Construction output by cost type
        • Table UK Construction Output by Cost Type (GBP Million), 2012-2016
        • Table UK Construction Output by Cost Type (GBP Million), 2016-2021
      • Construction output by activity type
        • Table UK Construction Output by Activity Type (GBP Million), 2012-2016
        • Table UK Construction Output by Activity Type (GBP Million), 2016-2021
      • Construction value add by project type
        • Table UK Construction Value Add by Project Type (GBP Million), 2012-2016
        • Table UK Construction Value Add by Project Type (GBP Million), 2016-2021
    • Commercial Construction
      • Commercial construction output by project type
        • Table UK Commercial Construction Output by Project Type (GBP Million), 2012-2016
        • Table UK Commercial Construction Output by Project Type (GBP Million), 2016-2021
      • Commercial construction output by cost type
        • Table UK Commercial Construction Output by Cost Type (GBP Million), 2012-2016
        • Table UK Commercial Construction Output by Cost Type (GBP Million), 2016-2021
      • Commercial construction output by activity type
        • Table UK Commercial Construction Output by Activity Type (GBP Million), 2012-2016
        • Table UK Commercial Construction Output by Activity Type (GBP Million), 2016-2021
      • Commercial construction value add by project type
        • Table UK Commercial Construction Value Add by Project Type (GBP Million), 2012-2016
        • Table UK Commercial Construction Value Add by Project Type (GBP Million), 2016-2021
    • Industrial Construction
      • Industrial construction output by project type
        • Table UK Industrial Construction Output by Project Type (GBP Million), 2012-2016
        • Table UK Industrial Construction Output by Project Type (GBP Million), 2016-2021
      • Industrial construction output by cost type
        • Table UK Industrial Construction Output by Cost Type (GBP Million), 2012-2016
        • Table UK Industrial Construction Output by Cost Type (GBP Million), 2016-2021
      • Industrial construction output by activity type
        • Table UK Industrial Construction Output by Activity Type (GBP Million), 2012-2016
        • Table UK Industrial Construction Output by Activity Type (GBP Million), 2016-2021
      • Industrial construction value add by project type
        • Table UK Industrial Construction Value Add by Project Type (GBP Million), 2012-2016
        • Table UK Industrial Construction Value Add by Project Type (GBP Million), 2016-2021
    • Infrastructure Construction
      • Infrastructure construction output by project type
        • Table UK Infrastructure Construction Output by Project Type (GBP Million), 2012-2016
        • Table UK Infrastructure Construction Output by Project Type (GBP Million), 2016-2021
      • Infrastructure construction output by cost type
        • Table UK Infrastructure Construction Output by Cost Type (GBP Million), 2012-2016
        • Table UK Infrastructure Construction Output by Cost Type (GBP Million), 2016-2021
      • Infrastructure construction output by activity type
        • Table UK Infrastructure Construction Output by Activity Type (GBP Million), 2012-2016
        • Table UK Infrastructure Construction Output by Activity Type (GBP Million), 2016-2021
      • Infrastructure construction value add by project type
        • Table UK Infrastructure Construction Value Add by Project Type (GBP Million), 2012-2016
        • Table UK Infrastructure Construction Value Add by Project Type (GBP Million), 2016-2021
    • Energy and Utilities Construction
      • Energy and utilities construction output by project type
        • Table UK Energy and Utilities Construction Output by Project Type (GBP Million), 2012-2016
        • Table UK Energy and Utilities Construction Output by Project Type (GBP Million), 2016-2021
      • Energy and utilities construction output by cost type
        • Table UK Energy and Utilities Construction Output by Cost Type (GBP Million), 2012-2016
        • Table UK Energy and Utilities Construction Output by Cost Type (GBP Million), 2016-2021
      • Energy and utilities construction output by activity type
        • Table UK Energy and Utilities Construction Output by Activity Type (GBP Million), 2012-2016
        • Table UK Energy and Utilities Construction Output by Activity Type (GBP Million), 2016-2021
      • Energy and utilities construction value add by project type
        • Table UK Energy and Utilities Construction Value Add by Project Type (GBP Million), 2012-2016
        • Table UK Energy and Utilities Construction Value Add by Project Type (GBP Million), 2016-2021
    • Institutional Construction
      • Institutional construction output by project type
        • Table UK Institutional Construction Output by Project Type (GBP Million), 2012-2016
        • Table UK Institutional Construction Output by Project Type (GBP Million), 2016-2021
      • Institutional construction output by cost type
        • Table UK Institutional Construction Output by Cost Type (GBP Million), 2012-2016
        • Table UK Institutional Construction Output by Cost Type (GBP Million), 2016-2021
      • Institutional construction output by activity type
        • Table UK Institutional Construction Output by Activity Type (GBP Million), 2012-2016
        • Table UK Institutional Construction Output by Activity Type (GBP Million), 2016-2021
      • Institutional construction value add by project type
        • Table UK Institutional Construction Value Add by Project Type (GBP Million), 2012-2016
        • Table UK Institutional Construction Value Add by Project Type (GBP Million), 2016-2021
    • Residential Construction
      • Residential construction output by project type
        • Table UK Residential Construction Output by Project Type (GBP Million), 2012-2016
        • Table UK Residential Construction Output by Project Type (GBP Million), 2016-2021
      • Residential construction output by cost type
        • Table UK Residential Construction Output by Cost Type (GBP Million), 2012-2016
        • Table UK Residential Construction Output by Cost Type (GBP Million), 2016-2021
      • Residential construction output by activity type
        • Table UK Residential Construction Output by Activity Type (GBP Million), 2012-2016
        • Table UK Residential Construction Output by Activity Type (GBP Million), 2016-2021
      • Residential construction value add by project type
        • Table UK Residential Construction Value Add by Project Type (GBP Million), 2012-2016
        • Table UK Residential Construction Value Add by Project Type (GBP Million), 2016-2021
  • Company Profile: Balfour Beatty PLC
    • Balfour Beatty PLC - Company Overview
      • Table Balfour Beatty PLC, Key Facts
    • Balfour Beatty PLC - Main Services
      • Table Balfour Beatty PLC, Main Services
    • Balfour Beatty PLC - History
      • Table Balfour Beatty PLC, History
    • Balfour Beatty PLC - Company Information
      • Balfour Beatty PLC - key competitors
      • Balfour Beatty PLC - key employees
        • Table Balfour Beatty PLC, Key Employees
  • Company Profile: Network Rail Ltd
    • Network Rail Ltd - Company Overview
      • Table Network Rail Ltd, Key Facts
    • Network Rail Ltd - Main Services
      • Table Network Rail Ltd, Main Services
    • Network Rail Ltd - History
      • Table Network Rail Ltd, History
    • Network Rail Ltd - Company Information
      • Network Rail Ltd - key competitors
      • Network Rail Ltd - key employees
        • Table Network Rail Ltd, Key Employees
  • Company Profile: Kier Group PLC
    • Kier Group PLC - Company Overview
      • Table Kier Group PLC, Key Facts
    • Kier Group PLC - Main Services
      • Table Kier Group PLC, Main Services
    • Kier Group PLC - History
      • Table Kier Group PLC, History
    • Kier Group PLC - Company Information
      • Kier Group PLC - key competitors
      • Kier Group PLC - key employees
        • Table Kier Group PLC, Key Employees
  • Company Profile: Barratt Developments PLC
    • Barratt Developments PLC - Company Overview
      • Table Barratt Developments PLC, Key Facts
    • Barratt Developments PLC - Main Services
      • Table Barratt Developments PLC, Main Services
    • Barratt Developments PLC - History
      • Table Barratt Developments PLC, History
    • Barratt Developments PLC - Company Information
      • Barratt Developments PLC - key competitors
      • Barratt Developments PLC - key employees
        • Table Barratt Developments PLC, Key Employees
  • Company Profile: Taylor Wimpey PLC
    • Taylor Wimpey PLC - Company Overview
      • Table Taylor Wimpey PLC, Key Facts
    • Taylor Wimpey PLC - Main Products and Services
      • Table Taylor Wimpey PLC, Main Products and Services
    • Taylor Wimpey PLC - History
      • Table Taylor Wimpey PLC, History
    • Taylor Wimpey PLC - Company Information
      • Taylor Wimpey PLC - key competitors
      • Taylor Wimpey PLC - key employees
        • Table Taylor Wimpey PLC, Key Employees
  • Appendix
    • What is this Report About?
    • Definitions
      • Table Timetric Construction Market Definitions
    • Methodology
    • Contact Timetric
    • About Timetric
    • Timetric's Services
    • Disclaimer

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