Railway & Underground Railway Construction in the UK Industry Market Research Report Now Updated by IBISWorld

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The impetus from the landmark rail projects like Crossrail and Thameslink, other publicly funded capacity enhancement initiatives and stable maintenance spending have more than doubled the annual level of railway construction since the mid-2000s with the value of construction expected to climb by an annualised 21.4% over the five years through 2012-13. Over the next five years, the industry is expected to endure a moderate slowdown, reflecting the stage completion on landmark rail projects (notably Crossrail) and consequently, industry revenue is projected to contract over the five years through 2017-18.

IBISWorld industry market research
Revenue has risen due to strong investment in rail projects.

A century ago money was being poured into railway construction to reduce commuting time and open up new trade links. Today, public authorities and private companies are investing in landmark generational projects to increase passenger and freight capacity and boost the economy. London's rail transport system is undergoing the largest transformation in generations, involving the construction of Crossrail (£15.9 billion) and Thameslink (£5.5 billion). According to IBISWorld industry analyst Anthony Kelly, “the impetus from the landmark rail projects, other publicly funded capacity enhancement initiatives and stable maintenance spending have more than doubled the annual level of railway construction since the mid-2000s”. The value of construction is expected to climb by an annualised 21.4% over the five years through 2012-13.

The Railway & Underground Railway Construction industry captures a significant share of the total work in this market, and the balance is performed by professional consultants, trade subcontractors and bridge and tunnelling companies. Industry revenue is expected to climb by an annualised 8.0% over the five years through 2012-13 to total £3.3 billion, up 10% on the previous year. Kelly adds, “over the next five years, the industry is expected to endure a moderate slowdown, reflecting the stage completion on landmark rail projects (notably Crossrail)”. Subsequently, industry revenue is projected to contract over the five years through 2017-18.

The level of market share concentration in the Railway & Underground Railway Construction industry is medium, despite the large number of very small-scale contracting firms. The industry is characterised by its many small-scale, geographically dispersed contractors, principally working on maintenance and repair activities for existing rail infrastructure. Relatively few large-scale, multi-disciplined firms compete for the lead contractor role on major railway construction projects, and the four largest contractors contribute about 27% of annual industry revenue. These are multi-disciplined global construction firms Balfour Beatty, Colas, Morgan Sindall and Babcock International Group.

For more information on the Railway & Underground Railway 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 contractors undertaking work in the construction of railway and underground railway infrastructure, including site preparation, rail track placement, and the construction of associated structures (bridges, tunnels and platforms). Construction activity includes new work, repair, additions and maintenance on existing infrastructure. Portions of the work can be subcontracted out and the firms can operate as construction manager on railway projects.

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
IBISWorld
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