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UK’s construction industry Implementing a Huge Pipeline of Construction Projects (Expected to Reach 2.67% CAGR) Until 2021

08-23-2017 12:17 PM CET | Industry, Real Estate & Construction

Press release from: Construction Market Reports - MRH



Market Research Hub (MRH) added a new research report to its vast database titled “Construction in the UK - Key Trends and Opportunities to 2021” which displays that the construction Industry in United Kingdom 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.

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Over the forecast period (20172021), 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.

Market Research Hub 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

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

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Identify and evaluate market opportunities using MRH’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 MRH’s critical and actionable insight.

Assess business risks, including cost, regulatory and competitive pressures.

Evaluate competitive risk and success factors.

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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.
Table of Content:
1 Executive Summary
2 Industry Outlook
2.1 Commercial Construction
2.2 Industrial Construction
2.3 Infrastructure Construction
2.4 Energy and Utilities Construction
2.5 Institutional Construction
2.6 Residential Construction
3 Key Issues and Developments
4 Market Data Analysis

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About Market Research Hub

Market Research Hub (MRH) is a next-generation reseller of research reports and analysis. MRH’s expansive collection of construction market research reports has been carefully curated to help key personnel and decision makers across industry verticals to clearly visualize their operating environment and take strategic steps.

MRH functions as an integrated platform for the following products and services: Objective and sound market forecasts, qualitative and quantitative analysis, incisive insight into defining industry trends, and market share estimates. Our reputation lies in delivering value and world-class capabilities to our clients and customers.

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