London, United Kingdom (PRWEB) February 04, 2013
The Infrastructure Maintenance Services industry has performed well over the past five years considering the poor conditions stemming from the financial crisis and subsequent credit crunch. According to IBISWorld industry analyst Jeremy Edwards, “consumer and business confidence plummeted over the past five years; however, the industry was resilient as infrastructure maintenance requirements remained important for businesses and government”. Investment slowed, which limited the potential of the industry; however, increased government expenditure, particularly due to increased expenditure in response to the crisis and during the last two years due to the hosting of the London Olympic Games in 2012, helped the industry. Areas such as electricity and telecommunications exhibited strong growth as the UK power system required improvements to infrastructure. As a result, the industry grew by a compound annual rate of 1.3% over the five years though 2012-13. Growth is expected to be slightly slower in 2012-13 than in the previous years due to major improvements to infrastructure over the Olympic Games. The industry is projected to grow 1.0% to be worth £7.59 billion.
Over the next five years, the industry is expected to improve slightly. Edwards adds, “overall construction is expected to improve slowly over the period and assist the industry and large investment in electricity and transport services, such as railways and airports, should provide additional demand”. Some slow-down is expected towards the end of the five-year period as business expenditure slows and the demand for maintenance takes a slight fall.
The Infrastructure Maintenance Services industry's ownership concentration is considered medium, despite the large number of very small-scale contracting firms. Relatively few large-scale, multi-disciplined firms compete for the lead contractor role on major projects, and the four largest contractors contribute about 40.3% of annual industry revenue. These are multi-disciplined global construction firms Balfour Beatty, Enterprise, Carillion and Amey.
For more information on the Infrastructure Maintenance Services 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
Operators in this industry conduct preventive and reactive maintenance and alterations to existing infrastructure. Additional activities include major plant shutdown maintenance and sustaining capital works.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalisation & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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