Skip navigation

Mechanical and Electrical Contractors Market Report - UK 2017-2021 Analysis

Published: 16/06/2017 / Number of Pages: 82 / Price: £795.00

Order Now

A PDF is included in report price, all other options also include a PDF file. For further details on purchase options, please click here.

A single user licence is included in report price, but we offer a range of licences to suit your needs. For further details, please click here.

Total Price: £795.00

Order/Delivery FAQ

Other Questions?

Call us on
01242 235724
Or email us

Download Brochure

Introduction and Overview

The 4th edition of the 'Mechanical and Electrical Contractors Market Report - UK 2017-2021 Analysis' report addresses the market for mechanical and electrical contracting, covering new installations, major refurbishment and RMI work in non-domestic applications with a focus on multi-service M&E contracting companies. The report provides up to date information on recent trends and issues that are likely to impact on the market going forward over the next 5 years.

Key issues covered in the report:

  • Detailed analysis and insight - key trends and demand for M&E services.
  • Key influences including analysis of construction trends and regional analysis.
  • Market structure and analysis of the leading M&E contractors.
  • Product development and growth areas.
  • Customers and key end-use sectors.
  • Forecasts of market developments up to 2021 - market size and factors impacting on the market.

Areas of particular interest include:

  • Market performance review and forecasts to 2021.
  • Factors affecting the market and analysis of key market characteristics. Impact of energy efficiency and renewable energy incentives and resulting product developments.
  • Review of leading contractors and market shares.
  • Review of key trends - with a focus on key end use markets.
  • Impact of legislation and standards on the market.
  • Detailed market data and insight on the mechanical and electrical contractors market by AMA Research, a leading UK provider of construction market intelligence.

Some of the companies included:

Amey, Arthur McKay, Balfour Beatty Group, Bancroft, Boulting Group, Bouygues Energies & Services, Briggs and Forrester, Carillion, CBRE Managed Services, Crown House Technologies, Dodd Group, Emcor Group (UK), The FES Group, GDF Suez Group, Gratte Brothers, Halsall, Haydon Mechanical & Electrical, HF Group, Integral UK, Interserve, ISS Technical, LJJ, Lorne Stewart, McGill & Co, Michael Lonsdale Group, MITIE, MJ Quinn, NG Bailey, P. H. Jones, Phoenix ME, PIP Electrics, SES Engineering Services (SES), Skanska Rashleigh Weatherfoil, SPIE UK, SSE Contracting, Space Engineering Services, T Clarke, UK Power Networks Services, VINCI Facilities, VolkerWessels, Wessex Group.


Mechanical & Electrical Contractors' Market Review

  • Market size and value 2012-2016 and prospects to 2021 - market structure.
  • Market trends, background, changes, opportunities.
  • Key influencing factors - economic factors, construction and housebuilding, renewable energy products, government spending etc.
  • Review of the impact of legislation and standards.
  • Prospects for the market with implications for suppliers and distributors.
  • Market mix by value 2016 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 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 has increased by almost 25% since the 2012 low. The market entered a period of sustained growth in 2013 driven by a buoyant new build market, with rising output in the office and infrastructure sectors in particular. This growth continued in 2016, with health and education output also supporting improvement, despite constrained public sector capital spending.

Factors supporting market growth include developments of higher specification, more complex products, changing legislation requiring specification of higher value products as well as greater use of controls and energy efficient products, continued strength in data centre construction and greater levels of outsourcing of M&E services. Factors negatively impacting on the market include public sector budget constraints, uncertainty over the impacts of Brexit and greater use of off-site manufactured panels and modules.

The M&E market is fragmented, with the majority of market value accounted for by smaller operators with turnover of under £20 million, though consolidation activity amongst suppliers continues. There have been further strategic acquisitions in response to the growing focus on integrated services within the sector with contractors widening the range of services offered and examples of strategic joint ventures to secure work on very large-scale projects.

A key area of growth has been installations aimed at improving energy efficiency and reducing carbon emissions, driven by legislative requirements and building regulations. There has been a rapid expansion in the range of LED lighting and increasingly sophisticated control systems for heating, lighting, and energy management. The market value in 2017 is forecast to remain stable, with overall construction output estimated to be more subdued, while output within offices and education is expected to decline.


List of Report Contents

  1. Contents Listing
  2. 1. INTRODUCTION 6
  3. 1.1 INTRODUCTION 7
  4. 1.2 SOURCES OF INFORMATION 7
  5. 2. EXECUTIVE SUMMARY & FUTURE PROSPECTS 9
  6. 2.1 SUMMARY 9
  7. 2.2 MARKET PROSPECTS 10
  8. 3. ECONOMIC ENVIRONMENT 12
  9. 3.1 GDP 12
  10. 3.2 INFLATION & INTEREST RATES 14
  11. 3.3 UNEMPLOYMENT 15
  12. 3.4 HOUSEHOLD CONSUMPTION 16
  13. 3.5 HOUSING & CONSTRUCTION 16
  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 21
  20. 4.3 MARKET MIX 23
  21. 4.3.1 Mix by Project Type (New Build, RMI, Refurbishment) 23
  22. 4.3.2 Mix by Service Type (Electrical, PHVAC, Other) 24
  23. 4.4 KEY MARKET INFLUENCES 25
  24. 4.4.1 Construction Output 25
  25. 4.4.2 Government Spending & PPP/PFI 27
  26. 4.4.3 Legislation and Standards 30
  27. 4.4.4 Outsourcing of Hard FM and M&E Services 33
  28. 4.4.5 Carbon Reduction and Green Energy Requirements 35
  29. 4.4.6 Product Development 37
  30. 5. REGIONAL ANALYSIS 40
  31. 5.1 OVERVIEW 40
  32. 5.2 THE NORTH OF ENGLAND 41
  33. 5.3 THE MIDLANDS 43
  34. 5.4 EAST OF ENGLAND 44
  35. 5.5 LONDON & THE SOUTH EAST 45
  36. 5.6 THE SOUTH WEST 46
  37. 5.7 WALES 47
  38. 5.8 SCOTLAND 48
  39. 5.9 NORTHERN IRELAND 49
  40. 6. KEY END USE SECTORS 50
  41. 6.1 OVERVIEW 50
  42. 6.2 EDUCATION 50
  43. 6.3 OFFICES 52
  44. 6.4 INFRASTRUCTURE 54
  45. 6.5 ENTERTAINMENT & LEISURE 56
  46. 6.6 HEALTHCARE 57
  47. 6.7 RETAIL 58
  48. 6.8 INDUSTRIAL 59
  49. 6.9 OTHER SECTORS 61
  50. 7. CONTRACTOR REVIEW 62
  51. 7.1 MARKET STRUCTURE 62
  52. 7.1.1 Types of M&E Contractors 62
  53. 7.1.2 Types of Work Undertaken 64
  54. 7.1.3 Geographical Coverage 65
  55. 7.2 KEY TRENDS 66
  56. 7.3 PROFITABILITY 68
  57. 7.4 LEADING M&E CONTRACTING COMPANIES 69
  58. 7.5 M&E CONTRACTOR PROFILES 71
  59. 7.5.1 Large M&E Contractors (£100m+ M&E Turnover) 71
  60. 7.5.2 Medium Sized M&E Contractors (£20m+ M&E Turnover) 77
  61. 7.6 PROCUREMENT 81
  1. Tables & Charts
  2. CHART 1: UK MARKET FOR MECHANICAL & ELECTRICAL CONTRACTING 2012 TO 2021 - BY VALUE (£BN) 9
  3. TABLE 2: GDP DATA - 2013-2017 - KEY CONSTITUENT ELEMENTS 13
  4. CHART 3: INTEREST RATES AND INFLATION (CPI) FROM 2000-2021 15
  5. CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES 2000-2021 16
  6. TABLE 5: EXCHANGE RATE FLUCTUATIONS 2012-2019 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 18
  7. TABLE 6: OVERVIEW OF MEP SERVICES 20
  8. TABLE 7: UK M&E CONTRACTING MARKET 2012 TO 2021 - BY VALUE (£M) 21
  9. CHART 8: MIX BY TYPE OF PROJECT (NEW BUILD, RMI, REFURBISHMENT) - % BY VALUE 2016 23
  10. CHART 9: MIX BY SERVICE TYPE (ELECTRICAL, PHVAC, OTHER) % BY VALUE 2016 24
  11. CHART 10: CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI -CURRENT PRICES (£BN) 2012 -2021 25
  12. CHART 11: CONSTRUCTION NEW WORK BY END-USE SECTOR BY VALUE 2016 - MARKET £100BN. 26
  13. TABLE 12: PUBLIC SECTOR CAPITAL BUDGET -DEPARTMENTAL EXPENDITURE LIMITS & AVERAGE MANAGED EXPENDITURE (£BN) 27
  14. TABLE 13: CURRENT PFI PROJECTS ACROSS GOVERNMENT BY DEPARTMENT 2016 28
  15. CHART 14: NUMBER AND COMBINED CAPITAL VALUE OF PFI PROJECTS SIGNED ANNUALLY 2005 TO 2015 29
  16. TABLE 15: PROJECTED SERVICE PAYMENTS UNDER PFI CONTRACTS - 2008/2009 TO 2029/2030 30
  17. CHART 16: UK BUNDLED FM OUTSOURCING MARKET AT CURRENT PRICES 2012-2021 (£BN) 34
  18. CHART 17: UK M&E CONTRACTING REGIONAL SHARES BY VALUE - 2016 40
  19. CHART 18: CONSTRUCTION OUTPUT - REGIONAL SHARES BY VALUE - 2016 41
  20. CHART 19: CONSTRUCTION OUTPUT 2012 - 2016 - NORTH OF ENGLAND - BY CONSTRUCTION TYPE (£M) 41
  21. TABLE 20: NORTH OF ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 42
  22. CHART 21: CONSTRUCTION OUTPUT 2012 - 2016 IN THE MIDLANDS - BY CONSTRUCTION TYPE (£M) 43
  23. TABLE 22: THE MIDLANDS - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 43
  24. CHART 23: CONSTRUCTION OUTPUT 2012 - 2016 IN THE EAST OF ENGLAND - BY CONSTRUCTION TYPE (£M) 44
  25. TABLE 24: EAST OF ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 44
  26. CHART 25: CONSTRUCTION OUTPUT 2012 - 2016 IN LONDON & THE SOUTH EAST - BY CONSTRUCTION TYPE (£M) 45
  27. TABLE 26: LONDON AND SOUTH EAST ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 45
  28. CHART 27: CONSTRUCTION OUTPUT 2012 - 2016 IN THE SOUTH WEST OF ENGLAND - BY CONSTRUCTION TYPE (£M) 46
  29. TABLE 28: SOUTH WEST ENGLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 47
  30. CHART 29: CONSTRUCTION OUTPUT 2012-2016 IN WALES BY CONSTRUCTION TYPE (£M) 47
  31. TABLE 30: WALES - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 48
  32. CHART 31: CONSTRUCTION OUTPUT 2012-2016 IN SCOTLAND - BY CONSTRUCTION TYPE (£M) 48
  33. TABLE 32: SCOTLAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 49
  34. TABLE 33: NORTHERN IRELAND - VOLUME OF M&E CONTRACTING ENTERPRISES 2012 & 2016 49
  35. CHART 34: UK M&E MARKET SECTOR SHARES BY VALUE - 2016 50
  36. TABLE 35: EDUCATION SECTOR NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2012 - 2016 (£M) 51
  37. TABLE 36: OFFICES NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE)BY VALUE 2012-2016 (£M) 53
  38. TABLE 37: INFRASTRUCTURE NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2012-2016 (£M) 54
  39. CHART 38: UK INFRASTRUCTURE CONSTRUCTION BY TYPE - 2016 (%) 55
  40. TABLE 39: ENTERTAINMENT & LEISURE NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2012-2016 (£M) 56
  41. TABLE 40: HEALTHCARE SECTOR NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE - 2012-2016 (£M) 58
  42. TABLE 41: RETAIL NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2012-2016 (£M) 59
  43. TABLE 42: INDUSTRIAL NEW CONSTRUCTION OUTPUT (PUBLIC/PRIVATE) BY VALUE 2012-2016 (£M) 60
  44. TABLE 43: ENTERPRISES INVOLVED IN M&E ACTIVITIES REGISTERED FOR VAT BY TURNOVER BAND (%) 2012-2016 62
  45. TABLE 44: M&E CONTRACTORS WITH ORIGINS IN POWER/ENERGY 63
  46. TABLE 45: M&E CONTRACTORS WITH ORIGINS IN CONSTRUCTION/CIVILS 63
  47. TABLE 46: M&E CONTRACTORS WITH ORIGINS IN SUPPORT SERVICES/FM 64
  48. TABLE 47: UK ENTERPRISES INVOLVED IN MEP ACTIVITIES REGISTERED FOR VAT BY EMPLOYMENT SIZE BAND - 2016 64
  49. CHART 48: MIX OF VAT REGISTERED BUSINESSES WITH MORE THAN 20 EMPLOYEES BY PRIMARY ACTIVITY 2016 65
  50. CHART 49: VAT REGISTERED BUSINESSES INVOLVED IN MEP SERVICE PROVISION BY REGION (%) - 2016 66
  51. CHART 50: M&E CONTRACTORS' PROFIT MARGINS 2012-2016 - AVERAGE AND BY M&E TURNOVER SIZE (%) 68
  52. CHART 51: MARKET SHARES BY M&E CONTRACTING TURNOVER 2016 69
  53. TABLE 52: TOP 30 M&E CONTRACTORS IN THE UK MARKET TURNOVER 70

The 'Mechanical & Electrical Contractors Market Report - UK 2017-2021 Analysis' costs £795+VAT (if applicable) for a PDF version.

Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here.