The publisher estimates that the UK construction industry expanded by 13.1% in real terms in 2021 but given the severity of the decline in 2020 (of 15%), output in 2021 was still 3.8% below the 2019 level. The recovery in construction output thus far has been driven by a surge in spending on infrastructure and housing. According to the Office for National Statistics (ONS), in the first three quarters of 2021, new infrastructure construction was up by 36.2% year on year (YoY), followed by repair and maintenance of housing (22.8%) and new housing construction (20.4%). However, given the ongoing weakness in key services sectors, output of new private commercial construction was down by 2.4% YoY, while weakness in investor confidence has also prevented a recovery in new private industrial construction, which contracted by 4.1% YoY in January-September 2021.
The industry is expected to return to pre-pandemic levels in 2022, with an expansion of 6.5%. However, the project delivery will continue to be hampered by high materials prices and shortages, and a downside risk to investments in the short term is the emergence of the Omicron variant of the virus. This is expected to weigh on investor and consumer confidence, potentially holding back investments, notably in the leisure and hospitality and retail markets. Nevertheless, output growth will continue to be underpinned by investments in transport, electricity, housing, and manufacturing. In October 2021, the Ministry of Finance announced the Autumn Budget and Spending Review 2021 (SR21), which outlines spending plans for the central government departments from FY (Financial Year) 2022/2023 (April 2022 to March 2023) to FY2024/2025. As part of the SR21, the government announced an allocation of GBP59.9 billion (US$83.2 billion) for the Department for Transport (DfT) over the next three financial years.
Over the long term, the industry’s output will be supported by a strong pipeline of infrastructure construction projects. In September 2021, the UK government published its National Infrastructure and Construction Pipeline, which outlines GBP548.3 billion (US$762 billion) of investment in infrastructure projects over the next 10 years. Projects in the transport sector account for the largest share of the investment plan, followed by projects in the energy and utilities sector. Some of the major projects in the pipeline include the HS2, the Lower Thames Crossing road tunnel projects and the Hinkley Point C nuclear power plant project.
The publisher’s Construction in the UK - Key Trends and Opportunities to 2025 (Q4 2021) report provides detailed market analysis, information, and insights into the UK construction industry, including:
This report provides a comprehensive analysis of the construction industry in the UK. It provides:
The industry is expected to return to pre-pandemic levels in 2022, with an expansion of 6.5%. However, the project delivery will continue to be hampered by high materials prices and shortages, and a downside risk to investments in the short term is the emergence of the Omicron variant of the virus. This is expected to weigh on investor and consumer confidence, potentially holding back investments, notably in the leisure and hospitality and retail markets. Nevertheless, output growth will continue to be underpinned by investments in transport, electricity, housing, and manufacturing. In October 2021, the Ministry of Finance announced the Autumn Budget and Spending Review 2021 (SR21), which outlines spending plans for the central government departments from FY (Financial Year) 2022/2023 (April 2022 to March 2023) to FY2024/2025. As part of the SR21, the government announced an allocation of GBP59.9 billion (US$83.2 billion) for the Department for Transport (DfT) over the next three financial years.
Over the long term, the industry’s output will be supported by a strong pipeline of infrastructure construction projects. In September 2021, the UK government published its National Infrastructure and Construction Pipeline, which outlines GBP548.3 billion (US$762 billion) of investment in infrastructure projects over the next 10 years. Projects in the transport sector account for the largest share of the investment plan, followed by projects in the energy and utilities sector. Some of the major projects in the pipeline include the HS2, the Lower Thames Crossing road tunnel projects and the Hinkley Point C nuclear power plant project.
The publisher’s Construction in the UK - Key Trends and Opportunities to 2025 (Q4 2021) 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.
Scope
This report provides a comprehensive analysis of the construction industry in the UK. It provides:
- Historical (2016-2020) and forecast (2021-2025) 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 the publisher'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 the publisher's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
