Bridge & Tunnel Construction in the UK Industry Market Research Report now updated by IBISWorld

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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 Bridge and Tunnel Construction industry is expected to generate revenue totalling £1.95 billion in 2012-13, up by 2.6% on the previous year, and value added is about £585 million, or 0.05% of UK GDP. The industry is expected to average accelerated revenue growth by an annualised 7.0% 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 in order to rein in the escalating public sector debt will negatively affect demand for bridge and tunnel construction services over the next five years”. Industry revenue is forecast to decline slightly over the five years through 2017-18. For these reasons, industry research firm IBISWorld has updated its report on the Bridge & Tunnel Construction industry.

IBISWorld Market Research

IBISWorld Market Research

The injection of private sector investment is supporting accelerated revenue growth

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 Bridge and Tunnel Construction industry is expected to generate revenue totalling £1.95 billion in 2012-13, up by 2.6% on the previous year, and value added is about £585 million, or 0.05% of UK GDP. According to IBISWorld industry analyst Anthony Kelly, “the industry is expected to average accelerated revenue growth by an annualised 7.0% 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”. The industry directly employs about 8,500 people in 550 establishments in 2012-13, including permanent and part-time employees, working proprietors and partners. The total industry workforce with the inclusion of subcontracted labour and professional services numbers about 20,000 people.
Kelly adds, “cutbacks in government spending in order to rein in the escalating public sector debt will negatively affect demand for bridge and tunnel construction services over the next five years”. Industry revenue is forecast to decline slightly over the five years through 2017-18.
The Bridge & Tunnel Construction industry has a low level of market concentration of ownership compared with the general economy, but is less fragmented than most of the construction sector. Although the four largest players together account for about 22% of annual industry revenue, a relatively high proportion of total work done in this market is undertaken by a relatively small proportion of participants. Major companies include Morgan Sindall, Bechtel, Balfour Beatty, 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
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