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Construction Contractors Market Report - Focus on Sector Capability and Strategy - UK 2015-2019 Analysis

Published: 04/06/2015 / Number of Pages: 102 / Price: £745.00

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Introduction and Overview

AMA Research have published the 2nd edition of the report 'Construction Contractors Market Report - Focus on Sector Capability and Strategy - UK 2015-2019 Analysis'. This report provides a comprehensive review of the UK contracting sector should be of particular interest to contractors and other supply chain members, including; suppliers, product manufacturers, consulting engineers, architects & designers and construction professionals.

Key areas covered:

  • Structure and size of the UK contracting industry.
  • Analysis of key market sectors within the industry.
  • Analysis of key market strengths/experience of the top 30 Tier 1 and top 20 Tier 2 contractors.
  • Analysis of the performance of the contracting industry including structure, size, market segmentation and market strengths.
  • Key market trends and the impact of the economic recovery on contractor focus and sector strategy.
  • Market forecast for construction activity to 2019.

The report represents a comprehensive review of leading construction contractors and their activity in different end use sectors, and provides forecasts through to 2019 for each of the key construction sectors.

Key areas of insight include:

  • Detailed review of leading contractors and consortia by market sectors including healthcare and education.
  • Analysis of change and diversification within the contracting industry.
  • Construction output over the past five years for 10 leading non-domestic market sectors and forecasts to 2019 - prospects following the May 2015 election.
  • Review of construction pipelines - national, regional and private company frameworks.
  • Supply chain review - Top 30 Tier 1 and Top 20 Tier 2 contractors. - Key players, sector strengths.

Some of the companies included:

Balfour Beatty, BAM Construct UK, Bowmer & Kirkland, Carillion, Costain, Galliford Try, Interserve, ISG, Kier, Laing O'Rourke, Lend Lease, Morgan Sindall, Sisk UK, Wates, Willmott Dixon.

Construction Market Overview

  • Total Construction Output - value of output - 2010-19: Construction new work/RMI - overview by sector 2012-19.
  • Construction output by sector for - Education, University, Healthcare, Transport, Defence, Utilities, Industrial/Retail, Commercial Office, Retail, Hotel/Leisure construction output - key summary data, major projects, procurement programmes, capital spending, prospects.
  • Construction Frameworks - by sector (education, health etc), value, key programmes & appointed contractors.
  • Government forward pipeline - by sector, number of schemes, project values - 2015-2019.
  • National Infrastructure pipeline 2014-2020 - transport, energy, waste etc.

Contractors Review by End Use Sector

  • Sectors covered include the following: Education, University, Healthcare, Transport, Defence, Utilities, Industrial/Retail, Commercial Office, Retail, Hotel/Leisure.
  • Structure of the UK Contracting Industry.
  • Top 30 UK Tier 1 Contractors by Revenue (£m), Contracts Won and Sector Strengths.
  • Top 30 UK Tier 2 Contractors by Revenue (£m), Contracts Won and Sector Strengths.
  • Key trends and factors promoting change in the industry, e.g. change in contract size.
  • Overview and contractor strengths.
  • Consortia in the contracting industry. Overview of specification & the supply chain - Major Consortia and Supply Chain/Framework Partners in the Health & Education Sectors.
  • Analysis of National Frameworks, Regional frameworks - Social Infrastructure Development, ID, SCAPE, National Facilities Management Contract, EMPA etc.
  • Regional concentration of contractors - Leading Contractors by Region: Value of Contracts Won 2014-15 (£m) key.
  • Regional frameworks - Regional Construction Frameworks - Main Contractor Frameworks - Framework Scope, Value & Duration etc. (Yorbuild, North West Construction Hub etc).
  • Regional Government Construction Pipeline 2014-2020: Allocated Spend by Region, Pipeline Contract Values, Key Projects.
  • Construction sector reviews - Top Contractors by Value of Projects (£m) 2014-15 in Schools, Universities, Health, Transport, Defence, Utilities, Industrial & Warehousing, Offices, Retail, Hotel & Leisure etc.

Contractor Profiles

  • Contractors covered in the report include the following: Balfour Beatty, BAM Construct UK, Bowmer & Kirkland, Carillion, Costain, Galliford Try, Interserve, ISG, Kier, Laing O'Rourke, Lend Lease, Morgan Sindall, Sisk UK, Wates, Willmott Dixon, plus Tier 2 contractors and a number of others where relevant to individual end use sectors.
  • End use sector analysis - contractor capability by sector.

Report Summary

The contracting industry has undergone a period of considerable change and construction was one of the hardest hit sectors in the UK economic downturn as output and activity started to decelerate in 2008. As a result, many contractors have undergone a reshaping of their business as the UK moved from growth into recession and the economy saw a substantial rise in public sector debt, with significant tightening of spending from April 2011 affecting many sectors. However in 2014, contractors saw construction demand pick up and remain strong throughout the year, with positive growth rates for new work recorded in each successive month. Total non-domestic construction output in 2014 is estimated to have reached around £79.1bn, an increase of around 5% on the previous year.

However, with an upturn in the market, there is now a shortage of skilled trades working in the sector, such as carpentry, joinery, glazing and building services. Market consolidation has now led to a shortage of smaller, specialist firms, with a number of companies entering receivership during the recession. Despite seeing an overall increase in average operating profit margins during 2014, pressure on contractors still remains, as workloads have grown and contractor margins remain under pressure.

The recession has had a far reaching impact on construction in the UK, with a decline in the supply of contracts forcing many contractors to reduce the size of their businesses, cut costs and consider smaller sized contracts, with lower margins. With larger contractors bidding for smaller-scale and lower value work in order to maintain their pipelines, there is now intense competition with smaller, regional companies who have struggled to compete, leading to increased insolvencies among SMEs and their supply chains. As the market picks up, contractors are also under pressure to find the human and material resources to take on larger-size contracts.

Those firms that have done well are all highly diversified and have large FM operations. Companies with a particular focus on the utilities sector have also done comparatively well, as have smaller, regional companies with a particular focus on sectors such as housing.Going forward, the outlook for non-residential construction output remains relatively positive into the short-medium term, with indications of a steady recovery for key sectors such as offices, industrial and retail, though balanced by more muted performance from key public sectors such as health and education.


List of Report Contents

  1. Contents Listing
  2. 1. INTRODUCTION 7
  3. 2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 8
  4. 3. UK CONSTRUCTION MARKET - CONTRACTORS OUTPUT 11
  5. 3.1 TOTAL CONSTRUCTION OUTPUT 11
  6. 3.1.1 Construction New Work - Value of Non-Domestic Output to 2019 11
  7. 3.2 CONSTRUCTION OUTPUT BY SECTOR 12
  8. 3.2.1 Education Construction Output: Key Summary Data 16
  9. 3.2.2 University Construction Output: Key Summary Data 17
  10. 3.2.3 Healthcare Construction Output: Key Summary Data 18
  11. 3.2.4 Transport Construction Output: Key Summary Data 19
  12. 3.2.5 Defence Construction Output:Key Summary Data 20
  13. 3.2.6 Utilities Construction Output: Key Summary Data 21
  14. 3.2.7 Industrial Warehousing Construction Output: Key Summary Data 22
  15. 3.2.8 Commercial Office Construction Output: Key Summary Data 23
  16. 3.2.9 Retail Construction Output: Key Summary Data 24
  17. 3.2.10 Hotel & Leisure Construction Output: Key Summary Data 25
  18. 3.2.11 2015 Budget - Construction Industry 27
  19. 4. CONTRACTORS REVIEW BY SECTOR 30
  20. 4.1 STRUCTURE OF THE CONTRACTING SECTOR 30
  21. 4.2 CHANGE AND DIVERSIFICATION WITHIN THE CONTRACTING INDUSTRY 31
  22. 4.2.1 Change in Contract Size 32
  23. 4.2.2 Merger and Acquisition Activity 33
  24. 4.2.3 Skilled Trades 36
  25. 4.3 OVERVIEW AND CONTRACTOR STRENGTHS 38
  26. 4.4 CONSORTIA 41
  27. 4.5 SPECIFICATION/SUPPLY CHAIN 44
  28. 4.6 NATIONAL FRAMEWORKS 45
  29. 4.6.1 National Contractor Framework - Social Infrastructure Development (SID) Framework 45
  30. 4.6.2 SCAPE 46
  31. 4.7 REGIONAL FRAMEWORKS 48
  32. 4.8 REGIONAL CONSTRUCTION DATA 51
  33. 4.8.1 Government Construction Pipeline - Regional Projects 51
  34. 4.8.2 Regional Concentration of Contractors 53
  35. 4.9 END USE SECTOR ANALYSIS 56
  36. 4.9.1 Schools 56
  37. 4.9.2 Universities 59
  38. 4.9.3 Healthcare 62
  39. 4.9.4 Transport 66
  40. 4.9.5 Defence 72
  41. 4.9.6 Utilities 75
  42. 4.9.7 Industrial & Retail Warehousing 78
  43. 4.9.8 Commercial Office 80
  44. 4.9.9 Retail Sector 83
  45. 4.9.10 Leisure Sector 87
  46. 5. CONTRACTOR PROFILES 90
  47. 5.1 KEY CONTRACTORS PROFILES. 90
  48. 5.1.1 Balfour Beatty 90
  49. 5.1.2 BAM Construct 91
  50. 5.1.3 Bowmer & Kirkland 92
  51. 5.1.4 Carillion 92
  52. 5.1.5 Costain 93
  53. 5.1.6 Galliford Try 94
  54. 5.1.7 Interserve 95
  55. 5.1.8 ISG 96
  56. 5.1.9 Kier 96
  57. 5.1.10 Laing O'Rourke 97
  58. 5.1.11 Lend Lease 98
  59. 5.1.12 Morgan Sindall 99
  60. 5.1.13 Sisk UK 100
  61. 5.1.14 Wates 100
  62. 5.1.15 Willmott Dixon 101
  1. Tables & Charts
  2. TABLE 1 OVERVIEW OF MAIN CONSTRUCTION FRAMEWORKS BY CONSTRUCTION SECTOR, REGION AND BY APPOINTED CONTRACTORS 9
  3. CHART 2 VALUE OF NON-DOMESTIC CONSTRUCTION OUTPUT 2009 - 2019 BY VALUE (£BN AT CURRENT PRICES) 11
  4. TABLE 3 NON-RESIDENTIAL CONSTRUCTION OUTPUT SECTOR ANALYSIS 2012 TO 2019 - BY VALUE (£ BILLION AT CURRENT PRICES) 13
  5. TABLE 4 GOVERNMENT FORWARD CONSTRUCTION PIPELINE 2014-2020 AND BEYOND: PUBLICLY-FUNDED PROJECTS BY SECTOR, NO. OF SCHEMES, VALUE 14
  6. TABLE 5 GOVERNMENT NATIONAL INFRASTRUCTURE PIPELINE 2014-2021: PUBLIC/PRIVATE PROJECTS BY SECTOR, SCHEMES & VALUE 15
  7. TABLE 6 MAIN PRIVATE CONTRACTORS - BY NUMBER OF EMPLOYEES 2013 30
  8. TABLE 7 EMPLOYMENT IN THE CONSTRUCTION INDUSTRY 1984 - 2014 31
  9. CHART 8 CONSTRUCTION INDUSTRY - COMPANY ADMINISTRATIONS 2009-2014 34
  10. TABLE 9 CONSTRUCTION SECTOR: COMPANY ADMINISTRATIONS/MERGER & ACQUISITION ACTIVITY 2014-15 35
  11. TABLE 10 CONSTRUCTION SECTOR: ANNUAL RECRUITMENT REQUIREMENTS TO 2019 BY TRADE 37
  12. TABLE 11 TOP 30 UK TIER 1 CONTRACTORS BY REVENUE (£M), CONTRACTS WON AND SECTOR STRENGTHS 39
  13. TABLE 12 TOP 30 UK TIER 2 CONTRACTORS BY REVENUE (£M), CONTRACTS WON AND SECTOR STRENGTHS 40
  14. TABLE 13 MAJOR CONSORTIA AND SUPPLY CHAIN/FRAMEWORK PARTNERS IN THE HEALTH & EDUCATION SECTORS 42
  15. TABLE 14 REGIONAL CONSTRUCTION FRAMEWORKS - MAIN CONTRACTOR FRAMEWORKS - FRAMEWORK SCOPE, VALUE & DURATION, 49
  16. TABLE 15 GOVERNMENT CONSTRUCTION PIPELINE 2014-2020: ALLOCATED SPEND BY REGION, PIPELINE CONTRACT VALUES, KEY PROJECTS 52
  17. TABLE 16 LEADING CONTRACTORS BY REGION: VALUE OF CONTRACTS WON 2014-15 (£M) 55
  18. TABLE 17 SCHOOLS SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-15 58
  19. TABLE 18 UNIVERSITIES SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-15 - KEY FRAMEWORKS, STUDENT ACCOMMODATION DEVELOPERS 61
  20. TABLE 19 HEALTH SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-5 - KEY FRAMEWORKS, CONSORTIA, PROJECTS, HEALTHCARE DEVELOPERS/INVESTORS 64
  21. TABLE 20 TRANSPORT SECTOR ANALYSIS (ROAD, RAIL, AIRPORTS, PORTS) - TOP CONTRACTORS BY VALUE OF PROJECTS (£M), FRAMEWORK CONTRACTORS - 2014-15 70
  22. TABLE 21 DEFENCE SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2010 74
  23. TABLE 22 AMP WATER FRAMEWORKS 2015-20 - BY UTILITY COMPANY AND FRAMEWORK CONTRACTORS 75
  24. TABLE 23 UTILITIES SECTOR ANALYSIS (TELECOMS, WATER, ENERGY) - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-15 76
  25. TABLE 24 INDUSTRIAL & WAREHOUSING SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-15 79
  26. TABLE 25 COMMERCIAL OFFICE SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-15 81
  27. TABLE 26 RETAIL SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-15 86
  28. TABLE 27 HOTEL & LEISURE SECTOR ANALYSIS - TOP CONTRACTORS BY VALUE OF PROJECTS (£M) 2014-15 89

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