Construction in the United Kingdom (UK) – Key Trends and Opportunities to 2025 (Q2 2021)

The UK construction industry was severely impacted in 2020, due to the disruptions caused by the Coronavirus (COVID-19) outbreak and the subsequent lockdown measures. The industry contracted by 14% in real terms last year, following growth of 1.8% in 2019. According to the Office for National Statistics (ONS), the construction industry contracted by 1.2% year on year (YoY) in the first quarter of 2021, following year-on-year (Y-o-Y) declines of 5.9% in Q4, 10% in Q3 and 36.2% in Q1 2020.

GlobalData expects the country’s construction industry to grow by 10.6% in 2021, and record an average growth of 3% between 2022 and 2025. The industry’s output will be supported by improving investor confidence and investments in transport, renewable energy, residential and commercial infrastructure projects. In January 2021, the Chancellor Rishi Sunak announced a spending package worth GBP4.6 billion (US$5.5 billion), under which businesses in the retail, hospitality and leisure sectors can claim grants if they’ve been impacted by the lockdown measures. The government is also focusing on the development of renewable energy projects, with an aim to produce offshore wind power capacity of 40GW by 2030, up from the present 10GW, which would help the country in meeting its zero-carbon emissions target by 2050.

Over the remainder of the forecast period, the industry’s output will be supported by investments in infrastructure, residential and renewable energy projects. The projects include: the GBP40 billion (US$47.8 billion) investment program of Ofgem, the country’s energy regulator, to transform Britain's gas and electricity transmission network over the next five years; Highways England’s Road Investment Strategy 2 (RIS2), which started operating from April 2020, and will run until March 2025 with a total budget of GBP27.4 billion (US$32.7 billion); the GBP21 billion (US$30 billion) offshore wind project in the North Atlantic; and the GBP95 million (US$113.2 million) High Speed2 (HS2) rail project.

This 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 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.

Table of Contents

Table of Contents

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 COVID-19 Status

3.5 Risk Profile

4 Construction Outlook

4.1 All Construction

– Outlook

– Latest news and developments

– Construction Projects Momentum Index

4.2 Commercial Construction

– Outlook

– Project analytics

– Latest news and developments

4.3 Industrial Construction

– Outlook

– Project analytics

– Latest news and developments

4.4 Infrastructure Construction

– Outlook

– Project analytics

– Latest news and developments

4.5 Energy and Utilities Construction

– Outlook

– Project analytics

– Latest news and developments

4.6 Institutional Construction

– Outlook

– Project analytics

– Latest news and developments

4.7 Residential Construction

– Outlook

– Project analytics

– Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

7.4 GlobalData Construction

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List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: The UK, Key Economic Indicators

Table 3: The UK, Commercial Construction Output by Project Type (Real % Change), 2016-2025

Table 4: The UK, Top Commercial Construction Projects by Value

Table 5: The UK, Industrial Construction Output by Project Type (Real % Change), 2016-2025

Table 6: The UK, Top Industrial Construction Projects by Value

Table 7: The UK, Infrastructure Construction Output by Project Type (Real % Change), 2016-2025

Table 8: The UK, Top Infrastructure Construction Projects by Value

Table 9: The UK, Energy and Utilities Construction Output by Project Type (Real % change), 2016-2025

Table 10: The UK, Top Energy and Utilities Construction Projects by Value

Table 11: The UK, Institutional Construction Output by Project Type (Real % Change), 2016-2025

Table 12: The UK, Top Institutional Construction Projects by Value

Table 13: The UK, Residential Construction Output by Project Type (Real % Change), 2016-2025

Table 14: The UK, Top Residential Construction Projects by Value

Table 15: The UK, Key Contractors

Table 16: The UK, Key Consultants

Table 17: The UK, Construction Output Value (Real, US$ Million)

Table 18: The UK, Construction Output Value (Nominal, GBP Million)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

List of Figures

List of Figures

Figure 1: Western Europe, Construction Output (Real % Change), 2020 and 2021

Figure 2: The UK, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: The UK, COVID-19 Confirmed Cases

Figure 4: The UK, Risk Summary

Figure 5: The UK, Risk Regional Comparison

Figure 6: The UK, Construction Output Value (Real, US$ Billion, 2017 Prices and Exchange Rate), 2016-2025

Figure 7: The UK, Construction Output Value, by Sector (Real, US$ Million), 2016-2025

Figure 8: The UK, Construction Value-Add (GBP Million, Constant Prices)

Figure 9: The UK, New Orders for Construction (GBP Million, Constant Prices)

Figure 10: The UK, Gross Fixed Capital Formation (GBP Million, Current Prices)

Figure 11: The UK, Construction Projects Momentum Index

Figure 12: The UK, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 13: The UK, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 14: The UK: Accommodation and Food Services Value-Add (GBP Million, Constant Prices)

Figure 15: The UK: New Orders for Private Commercial Construction (GBP Million, Constant Prices)

Figure 16: The UK, Average Retail Sales Index (2016=100)

Figure 17: The UK, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 18: The UK, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 19: The UK, Manufacturing Value-Add (GBP Million, Constant Prices), % Change YoY

Figure 20: The UK, New Orders for Private Industrial Construction (GBP Million, Constant Prices), % Change YoY

Figure 21: The UK, Total Merchandise Export (GBP Million), % Change YoY

Figure 22: The UK, Manufacturing Production Index, % Change YoY

Figure 23: The UK, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 24: The UK, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 25: The UK, New Orders for Infrastructure Construction (GBP Million, Constant Prices)

Figure 26: The UK, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 27: The UK, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 28: The UK, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 29: The UK, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 30: The UK, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025

Figure 31: The UK, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 32: The UK, Real Estate Value-Add (GBP Million, Constant Prices), % Change YoY

Figure 33: The UK, New Orders for Housing Construction (GBP Million, Constant Prices), % Change YoY

Figure 34: The UK, House Price Index (2015=100)

Figure 35: The UK, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 36: The UK, Headquarters of Key Consultants (% of Total Project Pipeline)

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