Mechanical and Electrical Contractors Market Report - UK 2015-2019 Analysis
Published: 10/07/2015 / Number of Pages: 90 / Price: £745.00
Introduction and Overview
The 3rd edition of the report 'Mechanical and Electrical Contractors Market Report - UK 2015-2019 Analysis' incorporates original input and primary research, and represents an up-to-date and perceptive review of the market and its development. The report focuses on market size and trends, leading companies, key end-user sectors and regional differences. It is comprehensive, informative and will facilitate operational and strategic decision making processes.
Key content covered:
- Market activity levels - with forecasts to 2019.
- Key influences - including analysis of construction market performance with regional analysis, review of government spending and PFI/PPP.
- Market structure and analysis of the leading M&E contractors.
- Product development and key growth areas.
- Key end use sectors - including education, offices, infrastructure, entertainment & leisure, healthcare, retail and industrial.
Key areas of insight include:
- The impact of energy efficiency and renewable energy incentives and product development as a result of this.
- Review of leading contractors and market shares.
- Key trends in the sector, with a focus on key end use markets.
- The impact of legislation and standards on the market.
Some of the companies included:
Arthur McKay, Balfour Beatty Engineering Services, Bancroft, Boulting Group, Bouygues Energies and Services, Briggs and Forrester, Carillion, Cofeley GDF Suez, Crown House Technologies, Dodd Group, EIC, Emcor Group (UK), Enterprise Group, FES, Gratte Brothers, GSH Group, Halsall Electrical, Haydon Mechanical & Electrical, Imtech Technical Services (ITS), Integral UK, Interserve, ISS Facilities Services, Lorne Stewart, Michael Lonsdale Group, MITIE, MJ Quinn, NG Bailey, Norland Managed Services, P. H. Jones, Phoenix Electrical, Shepherd Engineering Services (SES), Skanska Rashleigh, Weatherfoil, Space Engineering Services, SPIE Matthew Hall, SSE Contracting, T Clarke, UK Power Network Services (Commercial), VINCI Facilities, VolkerWessels, Wates.
Mechanical & Electrical Contractors Market
- Market size in value terms from 2009 with forecasts through to 2019.
- Market trends, background, changes, opportunities.
- Review of key market influences - economic factors, construction and housebuilding, renewable energy products, Government spending etc.
- Review of the impact of legislation and standards.
- Future prospects for the market with implications for suppliers and distributors.
- Market Mix - by value 2014 in terms of new build, major refurbishment and RMI and by service type.
Key end use Sectors
- Construction output by value, with historical trends and forecasts.
- Construction output analysis by end use sector.
- Value of M&E market in each main sector and market mix by end-use sector.
- Key market drivers, influences and future prospects.
- Important issues for M&E contractors in each main end user market.
- Structure of the M&E Contracting market - number of businesses, size of businesses, types of business, geographical coverage including regional analysis.
- Leading M&E contracting companies - market shares, M&E turnover and origins.
- M&E Contractor company profiles - turnover and profit data, characteristics, ownership, major strengths and weaknesses, key sectors and capabilities.
- Key trends - Pre-fabrication, consolidation, integration and diversification.
- Profitability Analysis - profit margin and historical trends.
- Mergers & acquisitions within the M&E contracting Industry.
Key market trends and influences
- Review of the performance of the construction industry - including regional analysis of output.
- Information about the legislation and standards affecting the market.
- Analysis of government spending.
- Outline of carbon reduction and green energy requirements.
- Information about product development and growth markets.
The market for mechanical and electrical (M&E) contracting was estimated to be valued at around £16bn in 2014, following strong growth of around 7% during the year. The market is forecast to continue to increase, albeit at a more modest rate, until the end of the forecast period. However, the market remains some 13% below its 2008 peak. While demand was sustained to some extent by work in the transport and leisure sectors in connection to the Olympics and ongoing work in the health and education sectors throughout 2010 and 2011, public sector cuts and poor construction in retail coupled with declining business confidence, led to construction levels and demand for M&E services falling, resulting in a market decline in 2012.
A return to growth in 2013 driven by improvements in office and leisure sectors in particular and private construction output in general. This growth continued into 2014, with industrial and education output also supporting improvement. A key area of growth has been installations aimed at improving energy efficiency and reducing carbon emissions, driven by increasingly stringent legislation and regulations, but also given impetus by the long-term cost savings that can be made by installing such systems, driven by underlying, increasing fuel costs.
As market conditions improve, M&E contractors are starting to experience the benefits of restructuring and streamlining exercises through improved margins. Consolidation activity amongst suppliers continues to be high within the market and this has led to a number of major players increasing in size. The growth in strategic acquisitions is also in response to the growing focus on integrated services within the sector with contractors widening the range of services offered.
The market for M&E contracting in the UK is heavily dependent on the performance of the construction industry. Non-domestic construction output is set to increase during 2015 and remain positive through to 2019. The fact that businesses within both the public and private sectors urgently need to find cost savings has led to demand for more energy efficient heating, lighting and ventilation systems, both the simple extract types and the mechanical extract and heat recovery types. In addition, this type of work will also be stimulated by legislation and guidelines around carbon reduction and renewable energy sources and as a result energy management will become an even more important area of focus for M&E contractors.
List of Report Contents
- Content Listing
- 1. INTRODUCTION 8
- 1.1 INTRODUCTION 8
- 1.2 SOURCES OF INFORMATION 8
- 2. EXECUTIVE SUMMARY & FUTURE PROSPECTS 10
- 2.1 SUMMARY 10
- 2.2 FUTURE PROSPECTS 11
- 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 15
- 3.6 STERLING 17
- 3.7 POPULATION PROFILE 18
- 3.8 CONCLUSIONS 18
- 4. MECHANICAL & ELECTRICAL CONTRACTING MARKET 20
- 4.1 MARKET DEFINITION 20
- 4.2 MARKET SIZE & TRENDS 22
- 4.3 MARKET MIX 25
- 4.3.1 Mix by Project Type (New Build, RMI, Refurbishment) 25
- 4.3.2 Mix by Service Type (Electrical, PHVAC, Other) 26
- 4.4 KEY MARKET INFLUENCES 27
- 4.4.1 Construction Output 27
- 4.4.2 Government Spending & PPP/PFI 29
- 4.4.3 Legislation and Standards 33
- 4.4.4 Outsourcing of Hard FM and M&E Services 36
- 4.4.5 Carbon Reduction and Green Energy Requirements 39
- 4.4.6 Product Development 40
- 5. REGIONAL ANALYSIS 42
- 5.1 OVERVIEW 42
- 5.2 THE NORTH OF ENGLAND 43
- 5.3 THE MIDLANDS 44
- 5.4 EAST OF ENGLAND 46
- 5.5 LONDON & THE SOUTH EAST 47
- 5.6 THE SOUTH WEST 49
- 5.7 WALES 50
- 5.8 SCOTLAND 52
- 5.9 NORTHERN IRELAND 53
- 6. KEY END USE SECTORS 54
- 6.1 OVERVIEW 54
- 6.2 EDUCATION 55
- 6.3 OFFICES 57
- 6.4 INFRASTRUCTURE 59
- 6.5 ENTERTAINMENT & LEISURE 61
- 6.6 HEALTHCARE 62
- 6.7 RETAIL 64
- 6.8 INDUSTRIAL 66
- 6.9 OTHER SECTORS 67
- 7. CONTRACTOR REVIEW 69
- 7.1 MARKET STRUCTURE 69
- 7.1.1 Types of M&E Contractors 69
- 7.1.2 Types of Work Undertaken 71
- 7.1.3 Geographical Coverage 73
- 7.2 KEY TRENDS 74
- 7.3 PROFITABILITY 75
- 7.4 LEADING M&E CONTRACTING COMPANIES 77
- 7.5 M&E CONTRACTOR PROFILES 79
- 7.5.1 Large M&E Contractors (£100m+ M&E Turnover) 79
- 7.5.2 Medium Sized M&E Contractors (£20m+ M&E Turnover) 84
- 7.6 PROCUREMENT 89
- Tables & Charts
- UK MARKET FOR MECHANICAL & ELECTRICAL CONTRACTING 2009 TO 2019 - BY VALUE (£BN) 10
- TABLE 2 GDP DATA - 2012-2015 - KEY CONSTITUENT ELEMENTS 12
- CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 2000-2019 14
- CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2019 15
- TABLE 5 EXCHANGE RATE FLUCTUATIONS 2009-2015 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 17
- TABLE 6 OVERVIEW OF MEP SERVICES 21
- TABLE 7 UK M&E CONTRACTING MARKET 2009 TO 2019 - BY VALUE (£M) 22
- CHART 8 MIX BY TYPE OF PROJECT (NEW BUILD, RMI, REFURBISHMENT) - % BY VALUE 2014 25
- CHART 9 MIX BY SERVICE TYPE (ELECTRICAL, PHVAC, OTHER) % BY VALUE 2014 26
- CHART 10 CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI - CURRENT PRICES (£BN) 2009 -2019 27
- CHART 11 CONSTRUCTION NEW WORK BY END-USE SECTOR BY VALUE 2014 - MARKET £84BN. 28
- TABLE 12 PUBLIC SECTOR CAPITAL BUDGET -DEPARTMENTAL EXPENDITURE LIMITS & AVERAGE MANAGED EXPENDITURE (£BN) 29
- TABLE 13 CURRENT PFI PROJECTS ACROSS GOVERNMENT BY DEPARTMENT 2014 30
- CHART 14 NUMBER AND COMBINED CAPITAL VALUE OF PFI PROJECTS SIGNED ANNUALLY 2000 TO MARCH 2014 31
- TABLE 15 PROJECTED SERVICE PAYMENTS UNDER PFI CONTRACTS - 2008/2009 TO 2029/2030 32
- CHART 16 UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES 2009-2019 (£BN) 37
- CHART 17 UK M&E CONTRACTING REGIONAL SHARES BY VALUE - 2014 42
- CHART 18 CONSTRUCTION OUTPUT - REGIONAL SHARES BY VALUE - 2014 43
- CHART 19 CONSTRUCTION OUTPUT 2009 - 2014 - NORTH OF ENGLAND - BY CONSTRUCTION TYPE (£M) 43
- TABLE 20 NORTH OF ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 44
- CHART 21 CONSTRUCTION OUTPUT 2009 - 2014 IN THE MIDLANDS - BY CONSTRUCTION TYPE (£M) 45
- TABLE 22 THE MIDLANDS - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 46
- CHART 23 CONSTRUCTION OUTPUT 2009 - 2014 IN THE EAST OF ENGLAND - BY CONSTRUCTION TYPE (£M) 46
- TABLE 24 EAST OF ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 47
- CHART 25 CONSTRUCTION OUTPUT 2009 - 2014 IN LONDON & THE SOUTH EAST - BY CONSTRUCTION TYPE (£M) 48
- TABLE 26 LONDON AND SOUTH EAST ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 49
- CHART 27 CONSTRUCTION OUTPUT 2009 - 2014 IN THE SOUTH WEST OF ENGLAND - BY CONSTRUCTION TYPE (£M) 49
- TABLE 28 SOUTH WEST ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 50
- CHART 29 CONSTRUCTION OUTPUT 2009-2014 IN WALES BY CONSTRUCTION TYPE (£M) 51
- TABLE 30 WALES - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 52
- CHART 31 CONSTRUCTION OUTPUT 2009-2014 IN SCOTLAND - BY CONSTRUCTION TYPE (£M) 52
- TABLE 32 SCOTLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 53
- TABLE 33 NORTHERN IRELAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 53
- CHART 34 UK M&E MARKET SECTOR SHARES BY VALUE - 2014 54
- TABLE 35 EDUCATION SECTOR NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009 - 2014 (£M) 55
- TABLE 36 OFFICES NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 58
- TABLE 37 INFRASTRUCTURE NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 59
- CHART 38 UK INFRASTRUCTURE CONSTRUCTION BY TYPE - 2014 (%) 60
- TABLE 39 ENTERTAINMENT & LEISURE NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 61
- TABLE 40 HEALTHCARE SECTOR NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE - 2009-2014 (£M) 63
- TABLE 41 RETAIL NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 64
- TABLE 42 INDUSTRIAL NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 66
- TABLE 43 ENTERPRISES INVOLVED IN M&E ACTIVITIES REGISTERED FOR VAT BY TURNOVER BAND (%) 2009-2014 69
- TABLE 44 M&E CONTRACTORS WITH ORIGINS IN POWER/ENERGY 70
- TABLE 45 M&E CONTRACTORS WITH ORIGINS IN CONSTRUCTION/CIVILS 71
- TABLE 46 M&E CONTRACTORS WITH ORIGINS IN SUPPORT SERVICES/FM 71
- TABLE 47 UK ENTERPRISES INVOLVED IN MEP ACTIVITIES REGISTERED FOR VAT BY EMPLOYMENT SIZE BAND - 2014 72
- CHART 48 MIX OF VAT REGISTERED BUSINESSES WITH MORE THAN 20 EMPLOYEES BY PRIMARY ACTIVITY 2014 73
- CHART 49 VAT REGISTERED BUSINESSES INVOLVED IN MEP SERVICE PROVISION BY REGION (%) - 2014 74
- CHART 50 M&E CONTRACTORS' PROFIT MARGINS 2009-2014 - AVERAGE AND BY M&E TURNOVER SIZE (%) 76
- CHART 51 MARKET SHARES BY M&E CONTRACTING TURNOVER 2014 77
- TABLE 52 TOP 30 M&E CONTRACTORS IN THE UK MARKET TURNOVER 78
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