Road and Motorway Construction in the UK Industry Market Research Report Now Updated by IBISWorld

Share Article

The construction of motorways and trunk roads has far-reaching multipliers for the local economy and delivers greater efficiency and safety for commuters and freight distribution. The industry is expected to a decline at an annualised 2.0% over the five years through 2012-13, reflecting the collapse in demand for the construction of streets, curbs and pavements on new housing subdivisions during the late 2000s and the winding back of government spending on maintenance of existing infrastructure but demand for road construction will be sufficient enough over the five years to 2017-18 to return the industry to modest growth.

IBISWorld industry market research
The industry's performance will improve due to private investment

Roads are an integral part of the UK economy and society. The construction of motorways and trunk roads has far-reaching multipliers for the local economy and delivers greater efficiency and safety for commuters and freight distribution. In addition, governments can use investment into transport infrastructure to stimulate economic activity and open up new areas for residential or industrial development.

The Road and Motorway Construction industry will generate revenue of £5.07 billion in 2012-13 (down 5.5% on 2011-12). According to IBISWorld industry analyst Anthony Kelly, “The industry is expected to decline at an annualised 2.0% over the five years through 2012-13, reflecting the collapse in demand for the construction of streets, curbs and pavements on new housing subdivisions during the late 2000s and the winding back of government spending on maintenance of existing infrastructure”.

Kelly adds, “Demand for road construction services is forecast to remain constrained over the next few years but recover from 2015-16 onwards to support modest industry revenue growth over the five years through 2017-18, however the industry's performance will lag behind the annualised 2.0% growth in UK GDP”.

The Road and Motorway Construction industry has a low concentration of ownership, despite containing several very large-scale construction firms. Most road construction firms are small operations servicing relatively narrow regional markets. The four largest players account for less than 25% of industry revenue. Major companies include Balfour Beatty, Carillion, Costain Group, Morgan Sindall, Amey, Tarmac and Newarthill.
For more information on the Road and Motorway Construction industry, including latest industry trends, statistics, analysis and market share information, purchase the full report from IBISWorld, the nation’s largest publisher of industry research.

IBISWorld industry Report Key Topics

This industry comprises contractors undertaking new work, repair, additions and alterations of motorways, streets, roads, airfield runways, and other vehicular and pedestrian ways. This work can be carried out on the operator’s own account or on a fee or contract basis. Portions of the work, or even all the practical work, can be subcontracted out.
Industry Performance
Executive Summary
Key External Drivers
Current Performance
Industry Outlook
Industry Life Cycle
Products & Markets
Supply Chain
Products & Services
Major Markets
Globalisation & Trade
Business Locations
Competitive Landscape
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
Major Companies
Operating Conditions
Capital Intensity
Key Statistics
Industry Data
Annual Change
Key Ratios

About IBISWorld
Recognised as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on many UK industries. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in London, IBISWorld serves a range of business, professional service and government organisations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.co.uk or call (020) 3008 6568.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Gavin Smith
IBISWorld
310 866 5042
Email >
Visit website