Construction in the United Kingdom (UK) - Key Trends and Opportunities to 2025 (Q3 2021)

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 -

• 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.
• Evaluate competitive risk and success factors.

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
• Contact Us

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), % Change YoY
• Figure 9: The UK, New Orders for Construction (GBP Million, Constant Prices), % Change YoY
• Figure 10: The UK, Employment in the Construction Industry, in Million
• Figure 10: The UK, Construction Output Price Index, 2015=100
• Figure 11: The UK, Construction Projects Momentum Index
• Figure 12: Western Europe, Construction Projects Momentum Index
• Figure 13: The UK, Commercial Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 14: The UK, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 15: The UK: Accommodation and Food Services Value Add (GBP Million, Constant Prices), % Change YoY
• Figure 16: The UK, Average Retail Sales Index (2016=100), % Change YoY
• Figure 17: The UK: New Orders for Private Commercial Construction (GBP Million, Constant Prices), % Change YoY
• Figure 18: The UK, Industrial Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 19: The UK, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 20: The UK, Manufacturing Value Add (GBP Million, Constant Prices), % Change YoY
• Figure 21: The UK, New Orders for Private Industrial Construction (GBP Million, Constant Prices), % Change YoY
• Figure 22: The UK, Total Merchandise Export (GBP Million), % Change YoY
• Figure 23: The UK, Manufacturing Production Index, % Change YoY
• Figure 24: The UK, Infrastructure Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 25: The UK, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 26: The UK, New Orders for Infrastructure Construction (GBP Million, Constant Prices)
• Figure 27: The UK, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 28: The UK, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 29: The UK, Institutional Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 30: The UK, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 31: The UK, Residential Construction Output by Project Type (Real, US$ Million), 2016-2025
• Figure 32: The UK, Residential Construction Projects Pipeline, Value by Stage (US$ Million)
• Figure 33: The UK, Real Estate Value Add (GBP Million, Constant Prices), % Change YoY
• Figure 34: The UK, New Orders for Housing Construction (GBP Million, Constant Prices), % Change YoY
• Figure 34: The UK, Outstanding Value of All Residential Mortgage Loans
• Figure 35: The UK, Gross Mortgage Advances and New Mortgage Commitments
• Figure 36: The UK, Headquarters of Key Contractors (% of Total Project Pipeline)
• Figure 37: The UK, Headquarters of Key Consultants (% of Total Project Pipeline)