Engineering Consultants Market Report - Focus on Sector Capability & Strategy - UK 2011-2015 Analysis
Published: 30/11/2011 / Number of Pages: 90 / Price:
Introduction and Overview
AMA Research are pleased to announce the publication of the 1st Edition of a new report on the UK Building and Construction Consultants Market, entitled - "Engineering Consultants Market Report - Focus on Sector Capability and Strategy - UK 2011-2015 Analysis". The report should be of particular interest to clients and supply chain members including manufacturers, consulting engineers, architects & designers, contractors, suppliers, and construction professionals, providing a comprehensive review of the engineering consultancy market.
Key areas in the report:
- Structure and size of the UK engineering consultancy sector.
- Analysis of key market sectors within the consulting industry.
- Analysis of the key market strengths/experience of the top 20 Tier 1 and top 20 Tier 2 consultants, Top 20 Architects and Top 20 Quantity Surveyors operating in the UK.
- Analysis of the performance of the consulting industry including structure, size, market segmentation and market strengths.
- Key market trends and the impact of the economic downturn on consultants' focus and sector strategy.
- Market forecast for the Building and Construction Industry over the next few years.
With competition for construction work now stronger than ever, consultants are chasing growth prospects in other sectors such as environmental and energy, driven by developments in low carbon and growth in the renewables market. As market growth is driven by the evolving climate change agenda and the shift to a low carbon economy we discuss key consultants' activity in this sector. Detailed market data and insight on the engineering consultants market by AMA Research, a leading UK provider of construction market intelligence.
Areas of particular interest include:
- A detailed review of leading consultants and their consortia in 10 key market sectors including healthcare and education - covering review of the sector, key consultants within, their main experience and consortia membership.
- Key market trends and the impact of government spending cuts on sector projects and capital programmes.
- Analysis of change and diversification within the consulting industry as firms address the impact of the downturn on workloads and order books.
- Analysis of the performance of construction output over the past five years for 10 leading non-domestic market sectors and forecasts to 2015.
Some of the Companies Included:
Aecom, Arup, Atkins, BDP, Capita Symonds, CH2M Hill, Halcrow, Hyder, Jacobs, Mott MacDonald Group, Mouchel, Parsons Brinckerhoff, Turner & Townsend, URS Scott Wilson, WSP Group, WYG,DP, Aedas, Devereux Architects, EPR Architects, Foster + Partners, Grimshaw Architects, HLM Architects, Pascall & Watson, Penoyre & Prasad, PRP, Stanton Williams, Wilkinson Eyre Architects.
Consultants Review by Sector
- Structure of the UK Engineering Consultancy Industry.
- Change and diversification within the consulting industry.
- Overview and consultants' strengths.
- Consortia in the consulting industry.
- End use sector analysis - consultants' capability by sector.
- The performance of leading consultants is reviewed over the past five years, through 10 non-domestic market sectors together with forecasts for construction activity over the next few years.
- The report reviews the continued expansion of many consultants into overseas markets, as UK workloads fall, by tapping into high growth markets such as Asia and covers the recent increase in takeover activity of UK consultants by larger overseas firms. Both Scott Wilson and Davis Langdon were acquired by large American engineers URS and Aecom respectively in 2010.
UK Construction Market/Contractors' Output
- Total Construction Output - value of output: Construction new work
- Construction output in 2011 and beyond
- Construction output by sector, including the following data:
- Value from 2008, with forecasts to 2015.
- Key points and trends.
- Key capital commitments and building programmes.
- This information presented for the following key non-domestic sectors:
- Education, University, Healthcare, Transport, Defence, Utilities, Industrial/Retail warehousing, Commercial Office, Retail, Hotel/Leisure.
The Economic Environment in the UK
- GDP, Sterling, Inflation and Interest Rates
- Employment Rates in the UK
- Household Consumption
- Housing & Construction
- UK Population Profile
The consulting industry has been undergoing a period of considerable change in response to the current economic downturn and has identified the need diversify as a result. Since the first indications of the credit crunch in 2007, firms have had to reshape their businesses to cope as the UK moved from growth into recession.
Not every sector has been affected in the same way. Consultants with a significant proportion of workload tied into framework agreements will be partially insulated from the downturn in the construction industry, at least until these frameworks are due for renewal.
The cumulative impact of public sector cuts on the UK consulting and engineering sector is expected to be considerable. Larger consultants' reliance on big government-sponsored projects has now made them more vulnerable as public spending cuts begin to take effect. However, relying on the private sector in the short-term to balance the drop off in public sector work will also be unrealistic for many consultants. Having taken measures in the past two years to adjust their cost and workforce structures, consultants are now focusing their attention on their target markets. The fact that energy and nuclear projects are likely to go ahead with private funding is good for those firms with expertise in these sectors and will help to balance the inevitable fall off in health and education sector output.
A number of consultants involved in public sectors are now looking to diversify and focus on strategies to balance the types of public sector work currently undertaken. EC Harris, for example, has stated its intention to position itself as a strategic 'built asset consultancy' rather than simply a QS and project manager - traditional areas, which have been under pressure. As such, the firm is looking to enter higher value areas of consultancy.
With the UK government planning to spend less, consultants are also increasingly looking at overseas markets and diversifying away from their reliance on UK construction, in favour of international operations. Many large consultants are attempting to retain their position in the global marketplace by achieving operations on a global scale and tapping into high growth markets such as Asia. A global outlook is thought to be essential for the future of the consulting profession over the short term as consultancies purely dependent on UK work continue to struggle.
Two years ago, consultancies faced weakening demand from their private sector clients, while public sector demand remained buoyant. Now the balance has shifted. A partial private sector recovery is under way, but the public sector spending squeeze is already affecting the sector. For consultancies dependent on government and council clients, the impact of the cuts are of considerable concern. However, there still remain growth possibilities for consultants with the rebalancing of the public and private sectors giving rise to the outsourcing of many services in the public sector to the private sector.
There are also growth prospects for consultants in environmental and energy sectors, driven by developments in low carbon and growth in energy from waste, anaerobic digestion, biogas and renewable sources of energy. Market growth is expected to be driven by the evolving climate change agenda, the shift to a low carbon economy and the development of associated legislation. The coalition government has set out a programme for energy and environmental issues and there is also a continued aim to do more on waste and sustainability, with pressure for ongoing investment in waste and recycling infrastructure. As a result, many councils look towards more private sector involvement in expanding and improving their waste services.
Consultancy work in infrastructure planning is also expected to stay relatively buoyant driven by continued infrastructure development and work related to the 2012 Olympics, urban transport projects and the development of high-speed rail.
List of Report Contents
- Contents Listing
- 1. INTRODUCTION 6
- 1.1 BACKGROUND 6
- 1.2 SOURCES OF INFORMATION 7
- 2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 8
- 3. ECONOMIC ENVIRONMENT 12
- 3.1 GDP 12
- 3.2 INFLATION & INTEREST RATES 13
- 3.3 UNEMPLOYMENT 14
- 3.4 HOUSEHOLD CONSUMPTION 15
- 3.5 HOUSING & CONSTRUCTION 16
- 3.6 STERLING 17
- 3.7 POPULATION PROFILE 18
- 3.8 CONCLUSIONS 19
- 4. UK CONSTRUCTION MARKET OVERVIEW 21
- 4.1 TOTAL CONSTRUCTION OUTPUT 21
- 4.1.1 Value of Output - Construction New Work (Non-Domestic) 21
- 4.2 CONSTRUCTION OUTPUT IN 2011 AND BEYOND 22
- 4.3 CONSTRUCTION OUTPUT BY SECTOR 23
- 4.3.1 Education Construction Output - Key Summary Data 25
- 4.3.2 University Construction Output - Key Summary Data 25
- 4.3.3 Healthcare Construction Output - Key Summary Data 26
- 4.3.4 Transport Construction Output - Key Summary Data 27
- 4.3.5 Defence Construction Output - Key Summary Data 28
- 4.3.6 Utilities Construction Output - Key Summary Data 28
- 4.3.7 Industrial Warehousing Construction Output - Key Summary Data 29
- 4.3.8 Commercial Office Construction Output - Key Summary Data 30
- 4.3.9 Retail Construction Output - Key Summary Data 31
- 4.3.10 Hotel & Leisure Construction Output - Key Summary Data 32
- 5. CONSULTANTS REVIEW BY SECTOR 34
- 5.1 STRUCTURE AND VALUE OF THE CONSULTANTS' MARKET 34
- 5.2 CHANGE AND DIVERSIFICATION WITHIN THE CONSULTING INDUSTRY 34
- 5.3 OVERVIEW AND CONSULTANT STRENGTHS 37
- 5.4 ARCHITECTS 40
- 5.5 SURVEYORS 42
- 5.6 CONSORTIA 44
- 5.7 END USE SECTOR ANALYSIS 46
- 5.7.1 Schools 46
- 5.7.2 Universities 49
- 5.7.3 Healthcare 52
- 5.7.4 Transport 56
- 5.7.5 Defence 61
- 5.7.6 Utilities 64
- 5.7.7 Industrial & Warehousing 66
- 5.7.8 Commercial Office 68
- 5.7.9 Retail Sector 70
- 5.7.10 Leisure Sector 72
- 6. CONSULTANTS PROFILES 74
- 6.1 MAJOR CONSULTING ENGINEERS - KEY PROFILES 74
- 6.1.1 Aecom 74
- 6.1.2 Arup 74
- 6.1.3 Atkins 75
- 6.1.4 BDP 76
- 6.1.5 Capita Symonds 77
- 6.1.6 Halcrow 78
- 6.1.7 Hyder 78
- 6.1.8 Jacobs 79
- 6.1.9 Mott MacDonald 79
- 6.1.10 Mouchel 80
- 6.1.11 Parsons Brinckerhoff 81
- 6.1.12 Turner & Townsend 82
- 6.1.13 URS Scott Wilson 83
- 6.1.14 WSP 83
- 6.1.15 WYG 84
- 6.2 MAJOR ARCHITECTS - KEY PROFILES 84
- Tables & Charts
- TABLE 1 TOP CONSULTANTS BY SECTOR STRENGTH 9
- CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2015 14
- CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2015 16
- TABLE 4 EXCHANGE RATE FLUCTUATIONS 2006-2011 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 18
- CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 ('000) 18
- CHART 6 NON-DOMESTIC CONSTRUCTION OUTPUT (UK) 2005 TO 2015 - BY VALUE (£ BN AT CURRENT PRICES) 21
- TABLE 7 NON-DOMESTIC CONSTRUCTION OUTPUT BY SECTOR 2008 TO 2015 - BY VALUE (£ BILLION CURRENT PRICES) 24
- TABLE 8 TOP 20 UK TIER 1 CONSULTANTS BY REVENUE (£M) AND SECTOR STRENGTHS 38
- TABLE 9 TOP 20 UK TIER 2 CONSULTANTS BY REVENUE (£M) AND SECTOR STRENGTHS 39
- TABLE 10 TOP 20 UK ARCHITECTS BY UK FEES (£M) AND SECTOR STRENGTHS 41
- TABLE 11 TOP 20 UK SURVEYORS BY UK FEES (£M) AND SECTOR STRENGTHS 43
- TABLE 12 LEADING CONSULTANTS AND PRINCIPAL PFI/FRAMEWORK CONSORTIA 45
- TABLE 13 SCHOOLS SECTOR ANALYSIS - TOP CONSULTANTS BY PROJECT EXPERIENCE 48
- TABLE 14 UNIVERSITIES SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT EXPERIENCE 51
- TABLE 15 HEALTH SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT EXPERIENCE 54
- TABLE 16 TRANSPORT SECTOR ANALYSIS (ROAD, RAIL, AIRPORTS, PORTS) - TOP CONSULTANTS BY VALUE OF PROJECTS (£M) 2010 59
- TABLE 17 DEFENCE SECTOR ANALYSIS - TOP CONSULTANTS BY VALUE OF PROJECTS (£M) 2010 63
- TABLE 18 AMP WATER FRAMEWORKS 2010-15 - UTILITY COMPANY AND FRAMEWORK CONSULTANTS 64
- TABLE 19 UTILITIES SECTOR ANALYSIS (TELECOMS, WATER, ENERGY) - TOP CONSULTANTS BY VALUE OF PROJECTS (£M) 2010 65
- TABLE 20 INDUSTRIAL SECTOR ANALYSIS - TOP CONSULTANTS BY VALUE OF PROJECTS (£M) 2010 67
- TABLE 21 COMMERCIAL OFFICE SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT EXPERIENCE 69
- TABLE 22 RETAIL SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT EXPERIENCE 71
- TABLE 23 HOTEL & LEISURE SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT EXPERIENCE 73
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