UK Building more bridges: The Constrcution industry will continue to grow as new projects start
This bridge & tunnel construction industry in the UK 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.
Road and rail networks have played an integral role in the UK economy, and bridge and tunnel construction has enabled transport across rivers, through mountains and under cities. The construction of transport infrastructure can have far-reaching multiplier effects for the local economy and delivers greater efficiency and safety for commuters and freight distribution. Governments are increasingly opting to construct and maintain road, rail, bridge and tunnel infrastructure through public-private partnerships (PPPs) or private finance initiatives (PFIs), which involves private sector equity and operation of the infrastructure. As transport infrastructure generally has a long life span, much of the focus of the industry is on the repair, maintenance and renovation of existing bridges and tunnels.
The Bridge and Tunnel construction industry mainly comprises private contractors, ranging from small independent operators to global engineering giants, although public road and traffic authorities continue to manage construction, maintenance and repair activities.
The UK 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. However, PFI arrangements are increasing. The UK rail infrastructure and network is predominantly funded by the PPPs with independent corporations responsible for the maintenance and development of Britain's railway network (Network Rail), and the London Underground (Transport for London).
Industry revenue currently totals £2.45 billion, 10.1% higher than 2009-10, including value added of £1.10 billion, or less than 0.1% of UK GDP. The industry has recorded robust revenue growth averaging 6.5% annually over the five years through 2010-11. This strong growth has been supported by the injection of private sector investment into major tunnel projects (notably rail and sewer developments) and bridge construction associated with the expansion of the motorway system (e.g. bridge widening on the M25 redevelopment). The industry has also derived significant stimulus from central government and local authority funding of maintenance activity on existing infrastructure and more recently from the funding of repair work on bridges in the aftermath of major floods.
International trade represents a minor share of industry activity, with import penetration by foreign-based contractors currently accounting for about £60 million or 2.5% of domestic demand in 2010-11, while the industry's export performance has deteriorated in recent years as recessionary conditions dampen construction in North America and Europe, and export earnings currently represent about £45 million or 2.0% of industry revenue.
The industry currently employs approximately 12,000 people in 750 establishments, including permanent and part-time employees, working proprietors and partners. The total industry workforce, which includes subcontracted labour, numbers about 27,500 full-time equivalent people in 2010-11.
The industry comprises many small-to-medium scale firms contracting on infrastructure projects within narrow regional markets. The firms undertake small scale projects as prime contractors or joint contractors and also function as subcontractors for discrete portions of projects on major bridge and tunnel developments. The largest half dozen bridge and tunnel contractors contribute much less than 25% of the annual industry revenue and include: Bechtel Group; Balfour Beatty; Costain Group; Morgan Sindall (Morgan Est); Royal BAM Group (Bam Nuttall); and Cleveland Bridge.
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 by an average 0.6% per annum over the next five years through 2015-16 to £2.37, while the UK GDP is projected to maintain subdued cyclical growth by 1.4% per annum. Increased private investment into infrastructure through private finance initiatives (PFIs) will partly offset the decline of public sector investment into transport infrastructure.
Download the full market research report on Construction industry statistics in the UK from IBISWorld
Road and rail networks have played an integral role in the UK economy, and bridge and tunnel construction has enabled transport across rivers, through mountains and under cities. The construction of transport infrastructure can have far-reaching multiplier effects for the local economy and delivers greater efficiency and safety for commuters and freight distribution. Governments are increasingly opting to construct and maintain road, rail, bridge and tunnel infrastructure through public-private partnerships (PPPs) or private finance initiatives (PFIs), which involves private sector equity and operation of the infrastructure. As transport infrastructure generally has a long life span, much of the focus of the industry is on the repair, maintenance and renovation of existing bridges and tunnels.
The Bridge and Tunnel construction industry mainly comprises private contractors, ranging from small independent operators to global engineering giants, although public road and traffic authorities continue to manage construction, maintenance and repair activities.
The UK 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. However, PFI arrangements are increasing. The UK rail infrastructure and network is predominantly funded by the PPPs with independent corporations responsible for the maintenance and development of Britain's railway network (Network Rail), and the London Underground (Transport for London).
Industry revenue currently totals £2.45 billion, 10.1% higher than 2009-10, including value added of £1.10 billion, or less than 0.1% of UK GDP. The industry has recorded robust revenue growth averaging 6.5% annually over the five years through 2010-11. This strong growth has been supported by the injection of private sector investment into major tunnel projects (notably rail and sewer developments) and bridge construction associated with the expansion of the motorway system (e.g. bridge widening on the M25 redevelopment). The industry has also derived significant stimulus from central government and local authority funding of maintenance activity on existing infrastructure and more recently from the funding of repair work on bridges in the aftermath of major floods.
International trade represents a minor share of industry activity, with import penetration by foreign-based contractors currently accounting for about £60 million or 2.5% of domestic demand in 2010-11, while the industry's export performance has deteriorated in recent years as recessionary conditions dampen construction in North America and Europe, and export earnings currently represent about £45 million or 2.0% of industry revenue.
The industry currently employs approximately 12,000 people in 750 establishments, including permanent and part-time employees, working proprietors and partners. The total industry workforce, which includes subcontracted labour, numbers about 27,500 full-time equivalent people in 2010-11.
The industry comprises many small-to-medium scale firms contracting on infrastructure projects within narrow regional markets. The firms undertake small scale projects as prime contractors or joint contractors and also function as subcontractors for discrete portions of projects on major bridge and tunnel developments. The largest half dozen bridge and tunnel contractors contribute much less than 25% of the annual industry revenue and include: Bechtel Group; Balfour Beatty; Costain Group; Morgan Sindall (Morgan Est); Royal BAM Group (Bam Nuttall); and Cleveland Bridge.
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 by an average 0.6% per annum over the next five years through 2015-16 to £2.37, while the UK GDP is projected to maintain subdued cyclical growth by 1.4% per annum. Increased private investment into infrastructure through private finance initiatives (PFIs) will partly offset the decline of public sector investment into transport infrastructure.
Download the full market research report on Construction industry statistics in the UK from IBISWorld
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