SUMMARY OF REPORT CONTENTS
Contractors
Output -
Fit-Out and Interior
Refurbishment at current prices (£m).
The interior fit-out and refurbishment market, as
defined in this report, is estimated to be worth approximately
£7.1bn in 2009, having experienced significant decline in the last 2
years, as shown in the chart left:
Up to 2008,
market performance had been very buoyant for the sector, with growth
in most key application areas. Offices, retail, leisure and the
public sector all experienced growth in new build and refurbishment
as companies and organisations upgraded existing facilities in a
buoyant economy.
However,
performance has been very difficult in most end use sectors in
2008-09, reflecting the general decline in construction output and
RMI. Decline has been strongest in the private sector, with offices
and retail both experiencing major downturns in new build which
inevitably feeds into major refurbishment projects.
The speed
and timing of recovery will be dependent on a number of factors
including the extent of decline in public sector spending, the
timing and speed of recovery in the private sector in key end use
markets such as offices and retail, and the resulting effect on
consumer confidence and spending.
Taking a
wider perspective over the 2008-2012 period, the market will have
experienced extremely volatile conditions with significant
variations at sector level over this period. Initially, the decline
in 2008/09 was primarily driven by the downturn in the private
sector, with the public sector remaining buoyant. However,
performance in 2010 – and progressively into 2011/2012 – will see a
reversal of this trend as the public sector experiences cutbacks
with prospects in the fit-out market increasingly dependent on a
recovery in the private sector.
As a
result, overall forecasts for 2010-12 are difficult to make at this
stage, but short term prospects will remain difficult. There have
been some tentative signs of optimism in the private sector, but
spending plans for the public sector will emerge slowly through the
Emergency Budget in June to be followed by the Autumn Spending
Review when more detailed departmental budgets are developed.
Individual
company performances have already been very variable and will
contine to do so over the next 3-4 years, reflecting specific
areas/sectors of expertise.
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