Market Research Report
Construction in the United Kingdom (UK) - Key Trends and Opportunities to 2025 (Q3 2021)
|Construction in the United Kingdom (UK) - Key Trends and Opportunities to 2025 (Q3 2021)|
Published: September 30, 2021
Content info: 53 Pages
Delivery time: 1-2 business days
The UK construction industry has recorded a better-than-expected recovery in the first half of 2021, with data from the Office for National Statistics (ONS) indicating that the construction industry expanded by 20.4% year on year (YoY) in the first half of 2021. This was driven by a sharp 53.3% growth in the second quarter, largely driven by base effects following the steep contraction (of 36.2% YoY) during the corresponding period in 2020, when most of the country's economy including construction sites were affected by the lockdown measures. GlobalData expects the industry to continue recovering in the remaining part of 2021, and grow by 13.5% - up from the previous forecast of 10.6%, supported by the resumption of major infrastructure construction projects and house building. However, the surge in demand for materials amid global supply chain disruptions has resulted in shortages of key materials and a sharp rise in prices, which is greatly impacting the delivery of projects across all sectors.
Over the remainder of the forecast period, the industry is expected to record an annual average growth of 4.1% between 2022 and 2025. The industry's output will be supported by improving investor confidence and investments in transport, renewable energy and residential projects. Commercial construction will also recover steadily; in January 2021, 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 have been impacted by the lockdown measures.
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. The largest share of the investment plan has been earmarked for the transport sector, which includes flagship projects such as HS2 and the Lower Thames Crossing road tunnel. The energy and utilities sector will receive GBP50.4 billion (US$70 billion) between 2021 and 2025, the second largest share of the investment package, and includes major projects such as the Hinkley Point C nuclear power plant. The project pipeline is also expected to support 425,000 jobs between 2021 and 2025.
GlobalData's Construction in the UK - Key Trends and Opportunities to 2025 (Q3 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 -