RMI in the Education Sector Report - UK 2011-2015 Analysis
Published: 21/10/2011 / Number of Pages: 66 / Price:
Introduction and Overview
AMA Research are pleased to announce the publication of the 2nd edition of its overview of the "Repair, Maintenance and Improvement (RMI) in the Education Sector - UK 2011-2015 Analysis". This unique report focuses on key market trends, structure and change within the primary, secondary, further and higher education sectors, and major education RMI contractors.
Although underpinned by a chronic backlog of repairs in education sector buildings, the market - currently valued at around £2 billion - has declined in recent years as government spending cuts impact on non-essential maintenance plans. However, the market will be sustained to some extent by unavoidable essential maintenance.
Key areas in the report:
- Appraisal of state schools sector in each of the 4 home countries - by school type, by estate size, by country and regions - analysis of schools
- condition, repairs backlog and RMI expenditure.
- Assessment of independent schools market for RMI - types of school, regional mix and trends in capital expenditure
- Evaluation of higher and further education RMI markets - condition of buildings, repairs backlog, trends in student numbers, value of RMI output
- National and large regional contractors - including dedicated RMI services companies and FM contractors.
Areas of particular interest:
- Unique review valuing the RMI sector.
- Valuation of education RMI work - trends and forecasts.
- Identification of key product category markets within the Education RMI sector.
- UK education RMI market mixes by types of establishment and country.
- Detailed analysis of RMI investment levels in state schools sector.
- Identification of leading contractors.
- Detailed market data and insight on the repair, maintenance, improvement (RMI) in the education sector by AMA Research, a leading UK provider of construction market intelligence.
Overview of Education RMI Market
- Size of education RMI market by contractors output - 2004/05 -2009/10 with forecasts to 2014/2015.
- Output by work types - M & E services, roofing, glazing etc.
- Overview of market trends.
- Market mix by types of establishment by contractors output.
Public Sector Schools
- Structure of the state education system in England, Scotland, Wales and Northern Ireland including types of schools in operation. Size of the schools estates - total and for each of the 4 home countries. Country & regional breakdowns by school type by number of establishments.
- Schools market for RMI works by revenue expenditure. Trends for England 2003 - 2008.
- Key markets factors for RMI - trends in total education expenditure in each of the 4 home countries; government capital expenditure trends in schools sector; condition of schools estates & repairs backlog by country; local authority capital & revenue expenditure on education RMI.
- Identification of types of RMI works by procurement route i.e. local authority capital budgets and schools revenue budgets. Overview of typical RMI expenditure levels by types of school and identification of key areas of spending. Key areas of RMI spending. Comparison of average RMI costs for different types of school.
- Structure and size of higher education sector in the UK - size of estate in terms of total, student accommodation, teaching & research facilities. Breakdown by age & condition of buildings.
- Analysis of student accommodation by types of premises, assessment of growth trends
- Analysis of key RMI market drivers including RMI backlog & estate condition, growth in student numbers and trends in government and other funding.
- Structure and size of further education sector in the UK - size of estate and breakdown by age of buildings, number of institutions.
- Assessment of market drivers - analysis of RMI backlog and condition of estate.
- Overview of structure of UK independent schools sector. Breakdown by country and English regions.
- Trends in capital expenditure 2004 -2010 - total capex, RMI, also newbuild & refurbishment and other including ICT.
- Identification of leading national and regional contractors offering RMI services to the education sector.
- Contractor profiles - key contractors operating in the education market - including ROK, Integral, Ian Williams, Kier Support Services, Carillion Property Services, Connaught Group, Enterprise Facilities Services, Willmott Dixon Sustain, Crispin & Borst etc.
The level of RMI (Repairs, Maintenance and Improvement) activity within specific end user sectors has always been difficult to quantify due to the fragmented way budgets are managed and controlled. However, AMA Research have recently published a unique review assessing the Education RMI market in terms of overall spend, sector splits, spend programmes, levels of responsibility etc
The total market for building related RMI works in the non-residential sector is estimated at around £20 billion at contractors output levels. Of this, public sector works account for around £8 billion and private sector work for over £12 billion. Education RMI work cuts across both public and private sectors and is currently estimated to be worth around £2 billion. The education RMI market showed good growth in the early part of the decade, although more recently the market has started to decline as the economy faltered and a change in government saw a shift in public sector spending. However, overall demand within RMI will be supported by the need for essential reactive and cyclical RMI, while planned maintenance programmes may be a necessary alternative to newbuild where costs need to be tightly controlled.
Maintained schools constitute the largest area of activity. These schools have a combined estate of around 90 million sq m. in the UK. Primary schools and secondary schools account for most RMI work undertaken, with special schools and nurseries being niche markets. In the state school sector there has been a large-scale devolvement of responsibility for reactive and cyclical maintenance away from local authorities to school governors with most reactive and cyclical maintenance now funded from schools revenue budgets.
RMI expenditure grew steadily within the independent schools sector until 2008/09, when the recession started to impact on this area ahead of other sectors within education which were temporarily sustained by increased government expenditure. The independent schools sector comprises over 2,500 establishments, educating over 600,000 children. Preparatory and independent junior schools account for over half these. RMI work in the higher education sector - mostly comprising the 100+ universities- is estimated to account for over 20% of education RMI output. The total estate size is approximately a quarter the size of the public sector schools estate, but Universities include a wide range of student accommodation, research, sports and leisure facilities.
The further education sector educates students at over 400 institutions, though RMI expenditure levels are much lower due to more limited facilities. Combined, the FE estate is around a third the size of the higher education estate. RMI spending is expected to decrease over the longer term as budget cuts see reduced funding. Supply of RMI services is highly fragmented and localised due in part to the wide range of services provided. In the state schools sector, however, at newer schools (re)built under long-term DBFO contracts, RMI services are typically provided under 25+ year concessions by large facilities management companies as Balfour Beatty Workspace, Carillion FM and Interserve Facilities Services, seeing some consolidation within the market, while other sectors adopt a wide range of service provision arrangements.
List of Report Contents
- Contents Listing
- 1. INTRODUCTION 5
- 1.1 INTRODUCTION 5
- 1.2 SOURCES 5
- 2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 7
- 3. ECONOMIC ENVIRONMENT 10
- 3.1 GDP 10
- 3.2 INFLATION & INTEREST RATES 11
- 3.3 UNEMPLOYMENT 12
- 3.4 HOUSEHOLD CONSUMPTION 13
- 3.5 HOUSING & CONSTRUCTION 14
- 3.6 STERLING 15
- 3.7 POPULATION PROFILE 16
- 3.8 CONCLUSIONS 17
- 4. EDUCATION RMI MARKET AND PRODUCTS 18
- 4.1 DEFINITION 18
- 4.2 OVERVIEW OF NON-DOMESTIC RMI OUTPUT 18
- 4.3 EDUCATION RMI MARKET 20
- 4.3.1 Market Size & Trends 20
- 4.3.2 Market Mix by Establishment Types 23
- 4.4 EDUCATION RMI PRODUCT MARKET 24
- 4.4.1 Lighting and Electrical Products 25
- 4.4.2 Other Key Product Areas 29
- 5. SCHOOLS 31
- 5.1 INTRODUCTION - LOCAL AUTHORITY MAINTAINED & SCHOOLS 31
- 5.2 PUBLIC SECTOR SCHOOL ESTATE 33
- 5.3 PUBLIC SECTOR SCHOOLS RMI MARKET FACTORS 35
- 5.3.1 Condition of Estate & Maintenance Backlog 35
- 5.3.2 Capital & Revenue Expenditure in Schools 38
- 5.4 INTRODUCTION - INDEPENDENT SCHOOLS 45
- 5.5 INDEPENDENT SCHOOLS ESTATE 46
- 5.6 INDEPENDENT SCHOOLS CAPITAL EXPENDITURE - NEW BUILD, REFURBISHMENT & RMI 47
- 5.7 SUMMARY OF FUNDING AND EXPENDITURE IN EDUCATION 48
- 6. HIGHER AND FURTHER EDUCATION 50
- 6.1 INTRODUCTION - HIGHER EDUCATION 50
- 6.2 HIGHER EDUCATION ESTATE 52
- 6.3 HIGHER EDUCATION RMI MARKET FACTORS 54
- 6.3.1 Student Numbers 54
- 6.3.2 Condition of Estate & Maintenance Backlog 55
- 6.3.3 Capital & Revenue Expenditure in the Higher Education Sector 57
- 6.4 INTRODUCTION - FURTHER EDUCATION 59
- 6.5 FURTHER EDUCATION ESTATE 59
- 6.6 CONDITION & INFRASTRUCTURE BACKLOG OF FURTHER EDUCATION ESTATE 60
- 7. CONTRACTOR PROFILES 62
- 7.1 INTRODUCTION 62
- 7.2 MAJOR RMI CONTRACTORS TO THE EDUCATION SECTOR 62
- Tables & Charts
- CHART 1 EDUCATION RMI MARKET (£M) 2004/05 -2014/15 7
- CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2015 12
- CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2015 13
- TABLE 4 EXCHANGE RATE FLUCTUATIONS 2006-2011 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 15
- CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 ('000) 16
- TABLE 6 CONTRACTORS' OUTPUT OF NON DOMESTIC NEW WORK & PUBLIC, COMMERCIAL RMI 2005 -Q1 2011 (£M) 19
- TABLE 7 CONTRACTORS' OUTPUT BY WORK TYPE (ELECTRICAL, JOINERY, HVAC, ROOFING, GLAZING ETC) 2010 20
- TABLE 8 EDUCATION RMI MARKET (£M) 2004/05 -2014/15 21
- CHART 9 EDUCATION RMI MIX BY TYPE OF ESTABLISHMENT BY VALUE (FE COLLEGES, HE INSTITUTIONS, SECONDARY SCHOOLS, PRIMARY ETC) 2009/10 (%) 24
- CHART 10 EDUCATION RMI PRODUCT MIX BY VALUE 2009/10 (% ELECTRICAL, HARDWARE, DECORATING, HVAC, PLUMBING ETC) 25
- TABLE 11 LIGHTING REQUIREMENTS BY AREA IN EDUCATIONAL BUILDINGS (KEY CONSIDERATIONS, LAMP TYPE, ETC FOR PERFORMANCE, CLASSROOMS, RECEPTION ETC) 27
- TABLE 12 NUMBER OF UK SCHOOLS AND GROSS INTERNAL FLOOR AREA BY DEVOLVED REGION 2011 33
- TABLE 13 MAINTAINED SCHOOLS IN ENGLAND BY TYPE OF SCHOOL 2000-2010 (NURSERIES, PRIMARY, SECONDARY, SPECIAL ETC) 34
- TABLE 14 ENGLAND - CONDITION OF SCHOOLS ESTATE, PERMANENT BUILDINGS (PRE-1919, 1919-46, 1947-66, 1967-76, 1977-96, 1996 -2006) 36
- TABLE 15 SCOTLAND - CONDITION OF SCHOOLS ESTATE 2010 37
- TABLE 16 SCHOOLS MAIN TYPES OF R & M WORKS & ORGANISATIONS RESPONSIBLE FOR FUNDING AND DELIVERY (BUILDING FABRIC, FLAT ROOF, PITCHED, WINDOWS, INTERNAL WALLS, ELECTRICAL, FLOORING ETC) 38
- CHART 17 SCHOOL BUILDINGS CAPITAL EXPENDITURE IN ENGLAND 2010-2015 (£BN) 39
- TABLE 18 PROJECTS RECEIVING £1 MILLION + UNDER ACADEMIES CAPITAL MAINTENANCE PROGRAMME 2011/12 42
- TABLE 19 ENGLAND BMI EXPENDITURE BY SCHOOL TYPE 2004-2010 (£) 44
- CHART 20 INDEPENDENT SECTOR PUPILS BY AGE GROUP (%) 2010 46
- TABLE 21 MIX OF INDEPENDENT SCHOOLS BY NUMBER OF PUPILS 2010 (%) 46
- TABLE 22 INDEPENDENT SCHOOLS COUNCIL MEMBERS CAPITAL EXPENDITURE - NEW BUILD AND RMI 2004-08 (£M) 48
- TABLE 23 SUMMARY INFORMATION - PUBLIC SECTOR SCHOOLS EXPENDITURE AND FUNDING 2009-15 - BY SECTOR, PROGRAMME AND VALUE 49
- TABLE 24 HIGHER EDUCATION INSTITUTIONS AND STUDENTS BY COUNTRY 2009/10 50
- TABLE 25 HIGHER EDUCATION INSTITUTIONS BY NUMBER OF STUDENTS 2008-10 51
- TABLE 26 UK HE TOTAL ESTATE SIZE (MILLION SQ. M.) 2003/04 -2008/09 52
- CHART 27 MIX OF TYPES OF STUDENT ACCOMMODATION IN THE UK - BY VOLUME (% OWN ACCOMMODATION, COMMERCIALLY RUN, PRIVATE RENTED ETC) 2009/2010 53
- TABLE 28 NUMBER OF STUDENTS IN UK HIGHER EDUCATION 2003-2010 54
- TABLE 29 PROPORTION OF BUILDINGS' GROSS INTERNAL AREA CATEGORISED GRADE A OR B 2004-2009 BY REGION 55
- TABLE 30 UNIVERSITY ESTATE CATEGORISED C AND D (MILLION M2) 56
- TABLE 31 MAINTENANCE BACKLOG AFFORDABILITY 2003/04 - 2008/09 57
- TABLE 32 HIGHER EDUCATION SECTOR - TOTAL REVENUE AND R & M COSTS 2003-2009 58
- TABLE 33 MIX OF FURTHER EDUCATION COLLEGES BY TYPE OF INSTITUTION IN ENGLAND 2011 59
- TABLE 34 SIZE OF UK FE ESTATE BY AGE OF BUILDINGS (% MIX - SQ.M) 60
- TABLE 35 MAINTENANCE EXPENDITURE WITHIN FURTHER EDUCATIONAL COLLEGES 61
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