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Mechanical and Electrical Contractors Market Report - UK 2015-2019 Analysis

Published: 10/07/2015 / Number of Pages: 90 / Price: £745.00

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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.

Contractor Review

  • 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.

Report Summary

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

  1. Content Listing
  2. 1. INTRODUCTION 8
  3. 1.1 INTRODUCTION 8
  4. 1.2 SOURCES OF INFORMATION 8
  5. 2. EXECUTIVE SUMMARY & FUTURE PROSPECTS 10
  6. 2.1 SUMMARY 10
  7. 2.2 FUTURE PROSPECTS 11
  8. 3. ECONOMIC ENVIRONMENT 12
  9. 3.1 GDP 12
  10. 3.2 INFLATION & INTEREST RATES 13
  11. 3.3 UNEMPLOYMENT 14
  12. 3.4 HOUSEHOLD CONSUMPTION 15
  13. 3.5 HOUSING & CONSTRUCTION 15
  14. 3.6 STERLING 17
  15. 3.7 POPULATION PROFILE 18
  16. 3.8 CONCLUSIONS 18
  17. 4. MECHANICAL & ELECTRICAL CONTRACTING MARKET 20
  18. 4.1 MARKET DEFINITION 20
  19. 4.2 MARKET SIZE & TRENDS 22
  20. 4.3 MARKET MIX 25
  21. 4.3.1 Mix by Project Type (New Build, RMI, Refurbishment) 25
  22. 4.3.2 Mix by Service Type (Electrical, PHVAC, Other) 26
  23. 4.4 KEY MARKET INFLUENCES 27
  24. 4.4.1 Construction Output 27
  25. 4.4.2 Government Spending & PPP/PFI 29
  26. 4.4.3 Legislation and Standards 33
  27. 4.4.4 Outsourcing of Hard FM and M&E Services 36
  28. 4.4.5 Carbon Reduction and Green Energy Requirements 39
  29. 4.4.6 Product Development 40
  30. 5. REGIONAL ANALYSIS 42
  31. 5.1 OVERVIEW 42
  32. 5.2 THE NORTH OF ENGLAND 43
  33. 5.3 THE MIDLANDS 44
  34. 5.4 EAST OF ENGLAND 46
  35. 5.5 LONDON & THE SOUTH EAST 47
  36. 5.6 THE SOUTH WEST 49
  37. 5.7 WALES 50
  38. 5.8 SCOTLAND 52
  39. 5.9 NORTHERN IRELAND 53
  40. 6. KEY END USE SECTORS 54
  41. 6.1 OVERVIEW 54
  42. 6.2 EDUCATION 55
  43. 6.3 OFFICES 57
  44. 6.4 INFRASTRUCTURE 59
  45. 6.5 ENTERTAINMENT & LEISURE 61
  46. 6.6 HEALTHCARE 62
  47. 6.7 RETAIL 64
  48. 6.8 INDUSTRIAL 66
  49. 6.9 OTHER SECTORS 67
  50. 7. CONTRACTOR REVIEW 69
  51. 7.1 MARKET STRUCTURE 69
  52. 7.1.1 Types of M&E Contractors 69
  53. 7.1.2 Types of Work Undertaken 71
  54. 7.1.3 Geographical Coverage 73
  55. 7.2 KEY TRENDS 74
  56. 7.3 PROFITABILITY 75
  57. 7.4 LEADING M&E CONTRACTING COMPANIES 77
  58. 7.5 M&E CONTRACTOR PROFILES 79
  59. 7.5.1 Large M&E Contractors (£100m+ M&E Turnover) 79
  60. 7.5.2 Medium Sized M&E Contractors (£20m+ M&E Turnover) 84
  61. 7.6 PROCUREMENT 89
  1. Tables & Charts
  2. UK MARKET FOR MECHANICAL & ELECTRICAL CONTRACTING 2009 TO 2019 - BY VALUE (£BN) 10
  3. TABLE 2 GDP DATA - 2012-2015 - KEY CONSTITUENT ELEMENTS 12
  4. CHART 3 INTEREST RATES AND INFLATION (CPI) FROM 2000-2019 14
  5. CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2019 15
  6. TABLE 5 EXCHANGE RATE FLUCTUATIONS 2009-2015 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 17
  7. TABLE 6 OVERVIEW OF MEP SERVICES 21
  8. TABLE 7 UK M&E CONTRACTING MARKET 2009 TO 2019 - BY VALUE (£M) 22
  9. CHART 8 MIX BY TYPE OF PROJECT (NEW BUILD, RMI, REFURBISHMENT) - % BY VALUE 2014 25
  10. CHART 9 MIX BY SERVICE TYPE (ELECTRICAL, PHVAC, OTHER) % BY VALUE 2014 26
  11. CHART 10 CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI - CURRENT PRICES (£BN) 2009 -2019 27
  12. CHART 11 CONSTRUCTION NEW WORK BY END-USE SECTOR BY VALUE 2014 - MARKET £84BN. 28
  13. TABLE 12 PUBLIC SECTOR CAPITAL BUDGET -DEPARTMENTAL EXPENDITURE LIMITS & AVERAGE MANAGED EXPENDITURE (£BN) 29
  14. TABLE 13 CURRENT PFI PROJECTS ACROSS GOVERNMENT BY DEPARTMENT 2014 30
  15. CHART 14 NUMBER AND COMBINED CAPITAL VALUE OF PFI PROJECTS SIGNED ANNUALLY 2000 TO MARCH 2014 31
  16. TABLE 15 PROJECTED SERVICE PAYMENTS UNDER PFI CONTRACTS - 2008/2009 TO 2029/2030 32
  17. CHART 16 UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES 2009-2019 (£BN) 37
  18. CHART 17 UK M&E CONTRACTING REGIONAL SHARES BY VALUE - 2014 42
  19. CHART 18 CONSTRUCTION OUTPUT - REGIONAL SHARES BY VALUE - 2014 43
  20. CHART 19 CONSTRUCTION OUTPUT 2009 - 2014 - NORTH OF ENGLAND - BY CONSTRUCTION TYPE (£M) 43
  21. TABLE 20 NORTH OF ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 44
  22. CHART 21 CONSTRUCTION OUTPUT 2009 - 2014 IN THE MIDLANDS - BY CONSTRUCTION TYPE (£M) 45
  23. TABLE 22 THE MIDLANDS - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 46
  24. CHART 23 CONSTRUCTION OUTPUT 2009 - 2014 IN THE EAST OF ENGLAND - BY CONSTRUCTION TYPE (£M) 46
  25. TABLE 24 EAST OF ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 47
  26. CHART 25 CONSTRUCTION OUTPUT 2009 - 2014 IN LONDON & THE SOUTH EAST - BY CONSTRUCTION TYPE (£M) 48
  27. TABLE 26 LONDON AND SOUTH EAST ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 49
  28. CHART 27 CONSTRUCTION OUTPUT 2009 - 2014 IN THE SOUTH WEST OF ENGLAND - BY CONSTRUCTION TYPE (£M) 49
  29. TABLE 28 SOUTH WEST ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 50
  30. CHART 29 CONSTRUCTION OUTPUT 2009-2014 IN WALES BY CONSTRUCTION TYPE (£M) 51
  31. TABLE 30 WALES - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 52
  32. CHART 31 CONSTRUCTION OUTPUT 2009-2014 IN SCOTLAND - BY CONSTRUCTION TYPE (£M) 52
  33. TABLE 32 SCOTLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 53
  34. TABLE 33 NORTHERN IRELAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2009 & 2014 53
  35. CHART 34 UK M&E MARKET SECTOR SHARES BY VALUE - 2014 54
  36. TABLE 35 EDUCATION SECTOR NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009 - 2014 (£M) 55
  37. TABLE 36 OFFICES NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 58
  38. TABLE 37 INFRASTRUCTURE NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 59
  39. CHART 38 UK INFRASTRUCTURE CONSTRUCTION BY TYPE - 2014 (%) 60
  40. TABLE 39 ENTERTAINMENT & LEISURE NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 61
  41. TABLE 40 HEALTHCARE SECTOR NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE - 2009-2014 (£M) 63
  42. TABLE 41 RETAIL NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 64
  43. TABLE 42 INDUSTRIAL NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2009-2014 (£M) 66
  44. TABLE 43 ENTERPRISES INVOLVED IN M&E ACTIVITIES REGISTERED FOR VAT BY TURNOVER BAND (%) 2009-2014 69
  45. TABLE 44 M&E CONTRACTORS WITH ORIGINS IN POWER/ENERGY 70
  46. TABLE 45 M&E CONTRACTORS WITH ORIGINS IN CONSTRUCTION/CIVILS 71
  47. TABLE 46 M&E CONTRACTORS WITH ORIGINS IN SUPPORT SERVICES/FM 71
  48. TABLE 47 UK ENTERPRISES INVOLVED IN MEP ACTIVITIES REGISTERED FOR VAT BY EMPLOYMENT SIZE BAND - 2014 72
  49. CHART 48 MIX OF VAT REGISTERED BUSINESSES WITH MORE THAN 20 EMPLOYEES BY PRIMARY ACTIVITY 2014 73
  50. CHART 49 VAT REGISTERED BUSINESSES INVOLVED IN MEP SERVICE PROVISION BY REGION (%) - 2014 74
  51. CHART 50 M&E CONTRACTORS' PROFIT MARGINS 2009-2014 - AVERAGE AND BY M&E TURNOVER SIZE (%) 76
  52. CHART 51 MARKET SHARES BY M&E CONTRACTING TURNOVER 2014 77
  53. TABLE 52 TOP 30 M&E CONTRACTORS IN THE UK MARKET TURNOVER 78

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