Bridge & Tunnel Construction in the UK Industry Market Research Report Now Updated by IBISWorld

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Revenue in the Bridge & Tunnel Construction industry is expected to record accelerated growth of an annualised 8.2% over the five years through 2012-13 supported by the injection of private sector investment into major rail and sewer tunnel projects and bridge construction on the motorway system. Cutbacks in government spending will negatively affect demand for bridge and tunnel work on the road network over the coming years, but major tunnelling work will continue on rail and sewerage projects which will support modest growth in industry revenue over the five years through 2017-18.

IBISWorld industry market research
Government funding will decline while private investment increases

Road and rail networks play an integral role in the UK economy, and bridge and tunnel construction has enabled transport across rivers, through mountains and under cities. Transport infrastructure can have far-reaching multiplier effects for the local economy and delivers greater efficiency and safety for commuters and freight distribution.

The road system is predominantly funded by the public sector through the Highway Agency in England and comparable agencies in Scotland, Wales and Northern Ireland, and by local authorities. The UK rail infrastructure and network is mainly funded by public-private partnerships, notably Network Rail and Transport for London. In addition, tunnelling companies are involved in the construction of major sewerage tunnels for the capture and transport of waste water and effluent.

The industry is expected to generate revenue of £2.08 billion in 2012-13, up by 3.5% on the previous year. Industry revenue is expected to record accelerated growth of an annualised 8.2% over the five years through 2012-13. According to IBISWorld industry analyst Anthony Kelly, “It will be supported by the injection of private sector investment into major rail and sewer tunnel projects (notably the Crossrail and Lee Tunnel projects), and bridge construction on the motorway system (e.g. bridge widening on the M25 redevelopment)."

Kelly adds, “cutbacks in government spending will negatively affect demand for bridge and tunnel work on the road network over the coming years, but major tunnelling work will continue on rail and sewerage projects." Industry revenue is forecast to climb over the five years through 2017-18 but at a lesser rate than the previous five years.

The Bridge & Tunnel Construction industry has a low level of market share concentration. The industry comprises about 375 contracting firms, most of which are small-scale local contractors, but also includes several medium to large-scale businesses. The six largest companies contribute almost 30% of annual industry revenue and include Morgan Sindall, Balfour Beatty, Bechtel, Costain and Royal BAM Group.
For more information on the Bridge & Tunnel 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 road bridges, tunnels and flyovers primarily used in road and railway transport and also for other applications (e.g. canals, water distribution). 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 bridge and tunnel 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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