Market Research Report
Interior Refurbishment and Fit-Out Market Report - UK 2016-2020 Analysis
|Published by||AMA Research||Product code||124097|
|Published||Content info||73 Pages
Delivery time: 1-2 business days
|Interior Refurbishment and Fit-Out Market Report - UK 2016-2020 Analysis|
|Published: June 22, 2016||Content info: 73 Pages||
This is the 6th edition of AMA Research's report on the UK interior refurbishment and fit-out market, which provides a detailed insight into this market, including a review of important trends and influences in the industry. In this edition, the report has been expanded to include more tables and charts, while also offering more detailed coverage of the key end use sectors and an extended review of the major contractors.
8Build, Alan Nuttall Partnership, Barnwood, Beacons Business Interiors, Beck Interiors, Bridgford Interiors, Byrne Group, BW Interiors, Carter Interiors, Claremont Group Interiors, Collins Construction, Como Interiors, EE Smith Contracts, Fit Out UK, Fourfront Group, Gilbert-Ash, George Sharkey & Sons, Graham Interiors, Harvey Shopfitters, Havelock Europa, Hutton Group, ISG, ITC Concepts, Kier I & R, Key Property Solutions, Mac-Interiors, Maris Interiors, McLaren Interiors, Modus Workspace, Morgan Sindall, Morris & Spottiswood, Oktra, Overbury, Paragon Interiors, Parkeray, Peldon Rose Group, Portview Fit Out, Powell's Group, Railston, Simpson, Structuretone UK, Styles & Wood, Thomas Johnstone, VINCI, Wates Smartspace, Willmott Dixon Interiors.
The interior fit-out and refurbishment market, as defined in this report, is estimated to have risen from 2-4% per year over the 2010-2012 with a more substantial 8% growth in 2014 and 2015. During the recession over the 2008 -2013 period, fit-out and refurbishment output increased in successive years as many major clients, particularly in the office and retail sectors, commissioned interior refurbishment works rather than more costly new build projects. This was accompanied by a noticeable increase in estate rationalisation across many areas of commercial sector activity as clients focused on how existing properties could be re-developed and re-branded. However, in 2014 and 2015 increasing confidence among client organisations, in the commercial office sector in particular, has resulted in an increase in speculative new build that in turn has generated growing demand for fit-out. Key to this is the ongoing need to address the shortage of Grade A space, particularly in Central London but also in most other major cities. However, this need has also continued to sustain demand for upgrading ageing Grade B stock. The result of this has been an acceleration in growth in the overall market in 2014 and 2015.
Overall, commercial offices constitute the largest market for interior refurbishment and fit-out with around 27% of output and Central London the largest market, followed by business parks across the Home Counties /South East. Despite renewed growth in speculative development, many client organisations remain cautious, opting to 'stay and refurbish', as an ongoing shortage of affordable Grade A space looks likely to drive up demand for high quality refurbishment. As a result, retrofit refurbishment and remodelling of existing space, especially secondary and tertiary accommodation into Grade A space is providing the main focus for occupiers requiring cost effective space over the short to medium term. In the retail sector, store conversions and interior refurbishments, especially among the grocery multiples, are far more significant areas of activity than new build. The trends towards online shopping, changes in consumer food shopping habits away from large weekly to smaller more regular purchases and the changing composition of the High Street are among factors driving these changes.
Major reductions in government capital spending programmes in education and healthcare have forced a significant shift in development programmes from new build to lower cost remodelling and refurbishment of existing buildings. The conversion of LA supported schools to Academies and Free Schools status, the creation of new primary school places and the Priority Schools Building Programme (PSBP) are key factors driving demand for fit-out and interior refurbishment services. With a large backlog of outstanding improvements to the schools estate, many establishments continue to face significant capital investment needs, while capital budgets remain under pressure. In the higher education sector, there are significant opportunities for fit-out and refurbishment work going forward, as universities remodel their capital programmes to meet revised funding expectations. The main emphasis on construction projects in the higher education sector is now towards refurbishment and upgrade of existing facilities as well as ongoing maintenance and improvements and less towards new build projects. In the healthcare sector, both organisational change and financial constraints in the NHS estate are leading to the focus shifting towards improving and refurbishing the current NHS estate. The outlook for fit-out and refurbishment work in the leisure sector remains mixed with significant expansion plans announced by the budget hotels, food & drinks service and budget fitness club sub-sectors contrasting with less buoyant prospects for sectors such as the betting & gaming industry.
There have been relatively few major entrants into the interior refurbishment and fit-out market in recent years, as much of the turnover generated from leading companies is from repeat business or long term contracts and store roll-out programmes. Clients typically prefer to use contractors from preferred lists. However, an increasing number of large national contractors have diversified into or expanded their operations within the fit-out market, particularly in the commercial office and retail sectors, underpinned by the continuing pressures on new build.