Commercial Building Construction in the UK Industry Market Research Report now updated by IBISWorld

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Constructing everything from hospitals to hotels, offices to fast-food restaurants, and sporting stadiums to schools, the Commercial Building Construction industry plays a vital role in the UK economy. The industry's performance fluctuates in response to trends in the business cycle (e.g. company profitability and employment), and spending by households and governments. The industry is forecast to generate revenue of £25.8 billion in 2012-13, down by 4.4% on the previous year, and representing a decline by an annualised 8.1% over the past five years, greatly exceeding the decline in GDP (0.5% annualised). Industry revenue has been driven down by the cyclical contraction of private investment into the industrial and commercial building markets, and the cutbacks in funding of educational buildings under the government's fiscal austerity measures. The building market will continue to endure adverse conditions over the coming year as the UK economy continues to weather the current cyclical slowdown, before a cyclical improvement emerges from 2014-15 onwards. The upswing of investment into the commercial building markets will support an upward trend in industry revenue over the next five years to 2017-18. The pace of expansion will exceed the growth in UK GDP, underpinned by growth of investment into new non-residential building activity. For these reasons, industry research firm IBISWorld has updated its report on the Commercial Building Construction industry.

IBISWorld Market Research

IBISWorld Market Research

Lower investment has damaged revenue growth, but recovery is in sight

Constructing everything from hospitals to hotels, offices to fast-food restaurants, and sporting stadiums to schools, the Commercial Building Construction industry plays a vital role in the UK economy. The industry's performance fluctuates in response to trends in the business cycle (e.g. company profitability and employment), and spending by households and governments.
The industry is forecast to generate revenue of £25.8 billion in 2012-13, down by 4.4% on the previous year, and representing a decline by an annualised 8.1% over the past five years, greatly exceeding the decline in GDP (0.5% annualised). According to IBISWorld industry analyst Anthony Kelly, “industry revenue has been driven down by the cyclical contraction of private investment into the industrial and commercial building markets, and the cutbacks in funding of educational buildings under the government's fiscal austerity measures”. The building market will continue to endure adverse conditions over the coming year as the UK economy continues to weather the current cyclical slowdown, before a cyclical improvement emerges from 2014-15 onwards. The upswing of investment into the commercial building markets will support an upward trend in industry revenue over the next five years to 2017-18. The pace of expansion will exceed the growth in UK GDP, underpinned by growth of investment into new non-residential building activity.
The Commercial Building Construction industry has a low level of market share concentration, with the four largest contractors generating about 15% of annual industry revenue. However, relatively few firms are capable of constructing large-scale landmark projects, such as sporting stadiums and multi-storey office complexes, and work on these projects tends to have a disproportionate effect on general market trends. Therefore, despite a low concentration of ownership, a few large firms exercise some degree of influence over market trends. The leading players in the industry are multi-establishment companies, with locations spread across the United Kingdom and occasionally in foreign markets. These include Balfour Beatty, Kier Group, Laing O’Rourke, Carillion, Skanska, Galliford Try and Newarthill.
For more information on the Commercial Building 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 includes firms that construct complete non-residential buildings on their own account for sale or on a fee or contract basis. This includes the construction of all types of non-residential buildings (offices, schools, hospitals and factories) and the assembly and erection of prefabricated non-residential constructions on the site. It may also involve the outsourcing of parts or even the whole construction process.

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.

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Gavin Smith
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