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Construction in the UK Market 2019 Key Trends and Opportunities to 2022

In real terms, the UK construction industry posted positive growth during the review period (2013-2017). Despite experiencing a slowdown in growth during 2016, owing to weak business confidence as a result of the Brexit referendum, the industry was supported by the government’s ongoing large-scale investments in transport, residential, energy and institutional construction projects.

Over the forecast period (2018-2022), the industry is expected to expand at a slow pace due to the ongoing uncertainty over the country’s future relationship with the European Union (EU) and its subsequent impact on investor confidence. Though the industry is expected to post slow growth during 2018, it is expected to gradually regain some momentum over the latter part of the forecast period, supported by the government’s efforts to boost economic growth through the development of the country’s overall infrastructure.

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The industry’s output value in real terms recorded a compound annual growth rate (CAGR) of 5.73% during the review period, and is expected to post a forecast-period CAGR of 2.20%.

GlobalData’s Construction in the UK – Key Trends and Opportunities to 2022 report provides detailed market analysis, information and insights into the UK construction industry, including – 

– The UK construction industry’s growth prospects by market, project type and construction activity
– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the UK construction industry
– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Key Highlights

– GlobalData expects the residential construction market to retain its leading position over the forecast period, with a share of 44.6% of the industry’s total value in 2022. Under the Autumn Budget 2017, the government announced plans to invest GBP15.3 billion (US$19.7 billion) until 2022 to construct new housing units in the country.
– Under the National Infrastructure Delivery Plan which was launched in March 2016, the government is investing GBP64.2 billion (US$86.7 billion) until 2021 to implement various transport infrastructure projects across the country. Of the total investment, the government allocated GBP46.2 billion (US$62.4 billion) for rail infrastructure projects, GBP12.6 billion (US$17.0 billion) for road infrastructure projects and GBP5.4 billion (US$7.3 billion) for airport and port infrastructure projects.
– In March 2017, the government launched the Digital Strategy, under which it aims to provide high speed internet networks, including 4G, 5G and fiber optic networks across the country by 2020; this is expected to drive public and private sector investment in broadband infrastructure projects.
– In May 2018, the government announced plans to invest GBP680.0 million (US$878.2 million) until 2021 to construct 40,000 new primary and secondary schools across the country. Additionally, the government plans to spend GBP50.0 million (US$64.6 million) to build new schools for disabled children by 2021.
– The total construction project pipeline in the UK – as tracked by the Construction Intelligence Center (CIC) and including all mega projects with a value above US$25 million – stands at GBP814.5 billion (US$1.0 trillion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage projects, with 65.8% of the pipeline value being projects in the pre-execution and execution stages as of June 2018.

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This report provides a comprehensive analysis of the construction industry in the UK. It provides –
– Historical (2013-2017) and forecast (2018-2022) valuations of the construction industry in the UK, featuring details of key growth drivers.
– Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
– Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
– Listings of major projects, in addition to details of leading contractors and consultants.

Reasons to buy

– Identify and evaluate market opportunities using GlobalData’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 GlobalData’s critical and actionable insight.
– Assess business risks, including cost, regulatory and competitive pressures.
– Evaluate competitive risk and success factors.

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