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Interior Refurbishment and Fit-Out Market Report - UK 2016-2020 Analysis

Published: 22/06/2016 / Number of Pages: 73 / Price: £795.00

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Introduction and Overview

This is the 6th edition of AMA Research's report on the UK interior refurbishment and fit-out market, which provides a detailed insight into this market, including a review of important trends and influences in the industry. In this edition, the report has been expanded to include more tables and charts, while also offering more detailed coverage of the key end use sectors and an extended review of the major contractors.

Key content covered:

  • Review of the overall fit-out and interior refurbishment market - market size, trends 2010 -2015, including construction output and other influencing factors.
  • Market forecasts for 2016 -2020.
  • Reviews of key end use sectors - offices, retail, education, leisure and healthcare.
  • Expanded contractors review - review of leading contractors; trends within the supply sector; profiles of leading companies.
  • New section on procurement - within the office, retail, schools and higher education sectors.

Key areas of insight include:

  • Review of key trends in fit-out & interior refurbishment - recent developments and market prospects up to 2020.
  • Shift from new build to refurbishment - in offices, education, healthcare, grocery sector etc.
  • Review of key market sectors - development pipelines, current trends, RMI work, prospects and key drivers.
  • Market structure - specialists, general contractors, regional players etc. - changes in 2012/13, framework agreements etc.

Some of the companies included:

8Build, Alan Nuttall Partnership, Barnwood, Beacons Business Interiors, Beck Interiors, Bridgford Interiors, Byrne Group, BW Interiors, Carter Interiors, Claremont Group Interiors, Collins Construction, Como Interiors, EE Smith Contracts, Fit Out UK, Fourfront Group, Gilbert-Ash, George Sharkey & Sons, Graham Interiors, Harvey Shopfitters, Havelock Europa, Hutton Group, ISG, ITC Concepts, Kier I & R, Key Property Solutions, Mac-Interiors, Maris Interiors, McLaren Interiors, Modus Workspace, Morgan Sindall, Morris & Spottiswood, Oktra, Overbury, Paragon Interiors, Parkeray, Peldon Rose Group, Portview Fit Out, Powell's Group, Railston, Simpson, Structuretone UK, Styles & Wood, Thomas Johnstone, VINCI, Wates Smartspace, Willmott Dixon Interiors.

Market Overview

  • Market size by value at main contractors' prices 2011 -2015. Forecasts for 2016 - 2020. Summary overview of key trends.
  • Key market issues including; impact of reduced capital budgets among corporate and public sector organisations, shortages of Grade A office space, impact growth of online shopping & changes in consumer behaviour on store formats, emergence of discount/budget operators (in the retail, hotel and leisure sectors), shortages in trade skills, Building Information Modelling.
  • End use market mix for 2015 and forecast for 2020; offices, education, retail, leisure, healthcare and other.

Key End Use Sector Review

  • Offices - focus on corporate sector; overview of UK office stock by area and regions, with a key focus on Central London; Review of fit-out & interior refurbishment activity including market sizes 2010, 2015 & 2020; general office construction activity; key market divers e.g. shortage of Grade A space, renewed speculative development; market prospects including London development pipeline
  • Retail - review of fit-out & interior refurbishment activity including market sizes 2010, 2015 & 2020; general retail; general construction activity; key market drivers e.g. growth of online retail, convenience, discount grocery & variety stores; decline in superstore & hypermarket formats; trend among multiple operator to creating 'leisure' experiences.
  • Education - overview of schools estate; review of fit-out & interior refurbishment activity including market sizes 2010, 2015 & 2020; general retail; general construction activity; key market drivers e.g. impact of development of academies & free schools and of reduced budgets; Priority School Building Programme; university campus re-development programmes; ageing building stock; shortage of university student accommodation.
  • Hotels, foodservice & leisure - general overview of fit-out & interior refurbishment activity including market sizes 2010, 2015 & 2020; reviews of trends in key sub-sectors i.e. hotels, food & drinks service, fitness & leisure and other including betting & gaming; key market drivers e.g. refurbishment cycles and the needs to refresh or rebrand; growth in budget hotel multiples; expansion in discount fitness/gym chains.
  • Healthcare - general overview of fit-out & interior refurbishment activity including market sizes 2010, 2015 & 2020; key market drivers e.g. reduced capital budgets; shift in construction activity from large hospitals to regional & local facilities.

Procurement

  • Review of general construction procurement approaches in key sectors; commercial offices, retail, schools and universities; identification of general trends and key exceptions.

Market Structure and Supply

  • Overview of industry structure e.g. market polarisation; dynamic structure with low entry levels and high levels of company failures; specialist contractors; participation among large national general contracting groups;
  • Company profiles split by turnover bands - includes the leading players in the interior refurbishment and fit-out markets.

Report Summary

The interior fit-out and refurbishment market, as defined in this report, is estimated to have risen from 2-4% per year over the 2010-2012 with a more substantial 8% growth in 2014 and 2015. During the recession over the 2008 -2013 period, fit-out and refurbishment output increased in successive years as many major clients, particularly in the office and retail sectors, commissioned interior refurbishment works rather than more costly new build projects. This was accompanied by a noticeable increase in estate rationalisation across many areas of commercial sector activity as clients focused on how existing properties could be re-developed and re-branded. However, in 2014 and 2015 increasing confidence among client organisations, in the commercial office sector in particular, has resulted in an increase in speculative new build that in turn has generated growing demand for fit-out. Key to this is the ongoing need to address the shortage of Grade A space, particularly in Central London but also in most other major cities. However, this need has also continued to sustain demand for upgrading ageing Grade B stock. The result of this has been an acceleration in growth in the overall market in 2014 and 2015.

Overall, commercial offices constitute the largest market for interior refurbishment and fit-out with around 27% of output and Central London the largest market, followed by business parks across the Home Counties /South East. Despite renewed growth in speculative development, many client organisations remain cautious, opting to 'stay and refurbish', as an ongoing shortage of affordable Grade A space looks likely to drive up demand for high quality refurbishment. As a result, retrofit refurbishment and remodelling of existing space, especially secondary and tertiary accommodation into Grade A space is providing the main focus for occupiers requiring cost effective space over the short to medium term. In the retail sector, store conversions and interior refurbishments, especially among the grocery multiples, are far more significant areas of activity than new build. The trends towards online shopping, changes in consumer food shopping habits away from large weekly to smaller more regular purchases and the changing composition of the High Street are among factors driving these changes.

Major reductions in government capital spending programmes in education and healthcare have forced a significant shift in development programmes from new build to lower cost remodelling and refurbishment of existing buildings. The conversion of LA supported schools to Academies and Free Schools status, the creation of new primary school places and the Priority Schools Building Programme (PSBP) are key factors driving demand for fit-out and interior refurbishment services. With a large backlog of outstanding improvements to the schools estate, many establishments continue to face significant capital investment needs, while capital budgets remain under pressure. In the higher education sector, there are significant opportunities for fit-out and refurbishment work going forward, as universities remodel their capital programmes to meet revised funding expectations. The main emphasis on construction projects in the higher education sector is now towards refurbishment and upgrade of existing facilities as well as ongoing maintenance and improvements and less towards new build projects. In the healthcare sector, both organisational change and financial constraints in the NHS estate are leading to the focus shifting towards improving and refurbishing the current NHS estate. The outlook for fit-out and refurbishment work in the leisure sector remains mixed with significant expansion plans announced by the budget hotels, food & drinks service and budget fitness club sub-sectors contrasting with less buoyant prospects for sectors such as the betting & gaming industry.

There have been relatively few major entrants into the interior refurbishment and fit-out market in recent years, as much of the turnover generated from leading companies is from repeat business or long term contracts and store roll-out programmes. Clients typically prefer to use contractors from preferred lists. However, an increasing number of large national contractors have diversified into or expanded their operations within the fit-out market, particularly in the commercial office and retail sectors, underpinned by the continuing pressures on new build.


List of Report Contents

  1. Contents Listing
  2. 1. INTRODUCTION 7
  3. 1.1 BACKGROUND 7
  4. 1.2 SOURCES OF INFORMATION 7
  5. 2. SUMMARY 8
  6. 2.1 BACKGROUND 8
  7. 2.2 PROSPECTS BY SECTOR 9
  8. 3. ECONOMIC ENVIRONMENT 11
  9. 3.1 GDP 11
  10. 3.2 INFLATION & INTEREST RATES 12
  11. 3.3 UNEMPLOYMENT 13
  12. 3.4 HOUSEHOLD CONSUMPTION 13
  13. 3.5 HOUSING & CONSTRUCTION 14
  14. 3.6 STERLING 15
  15. 3.7 POPULATION PROFILE 15
  16. 3.8 CONCLUSIONS 16
  17. 4. OVERVIEW OF FIT-OUT & INTERIOR REFURBISHMENT MARKET 17
  18. 4.1 DEFINITION 17
  19. 4.2 MARKET SIZE, GENERAL TRENDS AND FORECASTS 17
  20. 4.2.1 Market Background and Size 17
  21. 4.2.2 Market Prospects 18
  22. 4.2.3 End Use Sector Mix 19
  23. 4.2.4 Construction Output Per End Use Sector, Impact on Refurbishment 20
  24. 4.3 OTHER SPECIFIC MARKET FACTORS IMPACTING INTERIOR REFURBISHMENT 24
  25. 4.3.1 Building Information Modelling 24
  26. 4.3.2 Shortages in Traditional Construction Skills 24
  27. 4.3.3 Growth in E Commerce 25
  28. 5. COMMERCIAL OFFICES 27
  29. 5.1 INTRODUCTION 27
  30. 5.2 MARKET SIZE, TRENDS AND FORECASTS 28
  31. 5.2.1 Overview of the UK Office Market 28
  32. 5.2.2 Market Size and Recent Trends 31
  33. 5.2.3 Market Prospects 32
  34. 6. RETAIL 35
  35. 6.1 INTRODUCTION 35
  36. 6.2 MARKET SIZE, RECENT TRENDS AND FORECASTS 35
  37. 6.2.1 Market Size and Recent Trends 35
  38. 6.2.2 Market Prospects 38
  39. 7. EDUCATION 39
  40. 7.1 INTRODUCTION 39
  41. 7.1.1 Schools 39
  42. 7.1.2 Higher Education Institutions 41
  43. 7.2 MARKET SIZE, TRENDS AND FORECASTS 41
  44. 7.2.1 Education Interior Refurbishment and Fit Out Market Size 41
  45. 7.2.2 Schools and Colleges 42
  46. 7.2.3 HEIs 44
  47. 8. HOTELS, FOODSERVICE & LEISURE 47
  48. 8.1 INTRODUCTION 47
  49. 8.2 MARKET SIZE, TRENDS AND FORECASTS 48
  50. 8.2.1 Market Size and Trends 48
  51. 8.2.2 Hotels and Similar Accommodation 49
  52. 8.2.3 Food and Drinks Service Industry 51
  53. 8.2.4 Health & Fitness Centres / Leisure Centres 52
  54. 8.2.5 Other 53
  55. 9. HEALTHCARE 54
  56. 9.1 INTRODUCTION 54
  57. 9.2 MARKET SIZE, TRENDS AND FORECASTS 54
  58. 10. PROCUREMENT 58
  59. 10.1 COMMERCIAL OFFICES 58
  60. 10.2 RETAIL 59
  61. 10.3 SCHOOLS AND COLLEGES 60
  62. 10.4 HIGHER EDUCATION 61
  63. 11. MARKET STRUCTURE & SUPPLY 63
  64. 11.1 OVERALL STRUCTURE 63
  65. 11.2 COMPANIES WITH A TOTAL TURNOVER OF £100M PLUS 64
  66. 11.3 COMPANIES WITH TOTAL £50 - 99M TURNOVERS 67
  67. 11.4 COMPANIES WITH TOTAL > £20 - 49M TURNOVER 69
  68. 11.5 COMPANIES WITH TOTAL £10-20M TURNOVER IN 2014/2015 72
  69. 11.6 MAJOR CONSTRUCTION COMPANIES WITH DEDICATED FIT-OUT DIVISIONS OR UNITS 72
  1. Tables & Charts
  2. CHART 1 FIT-OUT & INTERIOR REFURBISHMENT MARKET SIZE AND FORECASTS BY OUTPUT VALUE (£ BILLION AT CURRENT PRICES) 2011 -2020 8
  3. TABLE 2 GDP DATA - 2013-2016 - KEY CONSTITUENT ELEMENTS 11
  4. CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 2000-2020 13
  5. CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2020 14
  6. TABLE 5 EXCHANGE RATE FLUCTUATIONS 2012-2018 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 15
  7. TABLE 6 UK FIT OUT & INTERIOR REFURBISHMENT MARKET SIZE AND FORECASTS £M 2011 -2020 17
  8. CHART 7 UK INTERIOR FIT-OUT & REFURBISHMENT MARKET BY END USE SECTOR (OFFICES, RETAIL, EDUCATION, HEALTHCARE, LEISURE ETC) BY VALUE 2015 & 2020 20
  9. CHART 8 NON-HOUSING CONSTRUCTION NEW WORK OUTPUT IN KEY MARKETS BY VALUE (£MILLION AT CURRENT PRICES) 2011-2015 & FORECASTS 2016-2020 21
  10. CHART 9 UK OFFICE STOCK BY REGIONAL BY GIFA 28
  11. CHART 10 CENTRAL LONDON OFFICE STOCK BY AREA BY FLOOR SPACE 2015 29
  12. CHART 11 CITY OF LONDON OFFICE STOCK BY AGE / REFURBISHMENT DATE BY FLOOR SPACE 29
  13. CHART 12 CITY OF LONDON OFFICE STOCK BY AGE / REFURBISHMENT DATE BY NUMBERS OF BUILDINGS 30
  14. CHART 13 OFFICES INTERIOR REFURBISHMENT AND FIT OUT BY VALUE (£ MILLION) 2010 -2020 31
  15. TABLE 14 VALUE OF CONTRACTORS OUTPUT IN THE OFFICE SECTOR £M 2011-2020 32
  16. CHART 15 LONDON OFFICE DEVELOPMENT PIPELINE - CITY, WEST END & DOCKLANDS - (MILLION F2) 2015 - 2018 33
  17. CHART 16 RETAIL INTERIOR REFURBISHMENT AND FIT OUT BY VALUE (£ MILLION) 2010 -2020 35
  18. CHART 17 RETAIL NEW WORK OUTPUT BY VALUE (£ BILLION AT CURRENT PRICES) 2011 -2020 36
  19. TABLE 18 UK GROCERY MARKET SECTOR ANALYSIS (TURNOVER SIZE AND MARKET SHARE) BY VALUE (£BN) AND % 2014-15 AND FORECAST 2019-20 37
  20. TABLE 19 UK EDUCATIONAL ESTABLISHMENTS BY NUMBERS AND HEADCOUNTS 39
  21. TABLE 20 EDUCATION CONTRACTORS NEW WORK OUTPUT (£M)2011-2020 41
  22. CHART 21 EDUCATION INTERIOR REFURBISHMENT AND FIT OUT BY VALUE (£ MILLION) 2010 -2020 42
  23. CHART 22 AGE OF NON-RESIDENTIAL UNIVERSITY ESTATE 2014-2015 46
  24. CHART 23 UK ENTERTAINMENT MARKET - SHARE OF REVENUE BY SECTOR - FOOD SERVICE, HOTELS, PUBS, HEALTH CLUBS ETC. 47
  25. CHART 24 LEISURE INTERIOR REFURBISHMENT AND FIT OUT BY VALUE (£ MILLION) 2010 -2020 48
  26. CHART 25 LEISURE AND ENTERTAINMENT CONSTRUCTION NEW WORK OUTPUT BY VALUE (£ BILLION AT CURRENT PRICES) 2011 TO 2020 49
  27. TABLE 26 UK HOTEL SECTOR - NUMBER OF STAR RATED HOTELS 2014 AND 2016 50
  28. TABLE 27 TOP UK FOODSERVICE GROUPS BY OUTLET NUMBERS 2015 51
  29. CHART 28 HEALTHCARE INTERIOR REFURBISHMENT AND FIT OUT BY VALUE (£ MILLION) 2010 -2020 55
  30. CHART 29 HEALTHCARE CONSTRUCTION NEW WORK OUTPUT BY VALUE (£ BILLION AT CURRENT PRICES) 2011 TO 2020 55
  31. TABLE 30 MAIN PRIVATE LANDLORD-DEVELOPERS ESTATES SIZES AND SUB-REGIONS 58
  32. CHART 31 FIT-OUT & INTERIOR REFURBISHMENT CONTRACTORS MIX 2015 63

The 'Interior Refurbishment and Fit-Out Market Report - UK 2016-2020 Analysis' costs £795+VAT (if applicable) for a PDF version.

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