Construction in the United Kingdom
Added on 2021-07-13
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© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1MarketLine Industry ProfileConstruction in the United Kingdom September 2020 Reference Code: 0183-0793 Publication Date: September 2020 WWW.MARKETLINE.COMMARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
Construction in the United KingdomIndustry Profiles © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 21. Executive Summary 1.1. Market value The United Kingdom construction industry grew by 2.3% in 2019 to reach a value of $393.8 billion. 1.2. Market value forecast In 2024, the United Kingdom construction industry is forecast to have a value of $396.9 billion, an increase of 0.8% since 2019. 1.3. Category segmentation Non-residential is the largest segment of the construction industry in the United Kingdom, accounting for 56% of the industry's total value. 1.4. Geography segmentation The United Kingdom accounts for 14.5% of the European construction industry value. 1.5. Market rivalry Rivalry in the construction industry tends to be accumulated in segments and niche markets in which players’ operations are similar. The industry is mainly fragmented in the residential construction segment, while a few large players dominate in the non-residential segment. 1.6. Competitive Landscape The United Kingdom construction industry has experienced slow growth in 2019. The industry consists of two leaders which are The Berkeley Group Holdings Plc and Barratt Developments Plc. The industry leaders are based in the UK, which demonstrates the strong presence of UK players in the industry. The COVID-19 outbreak in late 2019 and 2020 had a big impact on the industry. With quarantine measures and travel restrictions being imposed across many major economies, the supply shock of the virus is expected to dampen economic activity, and construction is being hit directly already. In cities and regions facing complete lockdowns, major construction projects are now being halted. Even in areas where travel is not restricted, construction works are being disrupted by limited supplies of key materials and equipment. More generally, the construction industry will be heavily affected by the expected widespread disruption to economic activity and a likely drop in investment. Planned projects, particularly in the commercial and industrial buildings sectors, are being delayed or cancelled as firms review their expansion plans.
Construction in the United KingdomIndustry Profiles © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 3
Construction in the United KingdomIndustry Profiles © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 4TABLE OF CONTENTS 1.Executive Summary21.1.Market value ........................................................................................................................... 21.2.Market value forecast ............................................................................................................. 21.3.Category segmentation ........................................................................................................... 21.4.Geography segmentation........................................................................................................ 21.5.Market rivalry .......................................................................................................................... 21.6.Competitive Landscape .......................................................................................................... 22.Market Overview82.1.Market definition ..................................................................................................................... 82.2.Market analysis ...................................................................................................................... 93.Market Data103.1.Market value ......................................................................................................................... 104.Market Segmentation114.1.Category segmentation ......................................................................................................... 114.2.Geography segmentation...................................................................................................... 125.Market Outlook135.1.Market value forecast ........................................................................................................... 136.Five Forces Analysis146.1.Summary .............................................................................................................................. 146.2.Buyer power ......................................................................................................................... 156.3.Supplier power ..................................................................................................................... 176.4.New entrants ........................................................................................................................ 196.5.Threat of substitutes ............................................................................................................. 216.6.Degree of rivalry ................................................................................................................... 227.Competitive Landscape247.1.Who are the leading players? ............................................................................................... 24
Construction in the United KingdomIndustry Profiles © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 57.2.What strategies do the leading players follow? ...................................................................... 247.3.What is the rationale for the recent M&A activity? ................................................................. 257.4.Have any regulations or government schemes been having an impact on the industry? ........ 257.5.How is the UK leading emerging construction markets? ........................................................ 258.Company Profiles278.1.The Berkeley Group Holdings Plc ......................................................................................... 278.2.Barratt Developments Plc ..................................................................................................... 309.Macroeconomic Indicators329.1.Country data ......................................................................................................................... 32Appendix 34Methodology ...................................................................................................................................... 349.2.Industry associations ............................................................................................................ 359.3.Related MarketLine research ................................................................................................ 35About MarketLine ............................................................................................................................... 37
Construction in the United KingdomIndustry Profiles © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 6LIST OF TABLES Table 1: United Kingdom construction industry value: $ billion, 2015–19 10Table 2: United Kingdom construction industry category segmentation: $ billion, 2019 11Table 3: United Kingdom construction industry geography segmentation: $ billion, 2019 12Table 4: United Kingdom construction industry value forecast: $ billion, 2019–24 13Table 5: The Berkeley Group Holdings Plc: key facts27Table 6: The Berkeley Group Holdings Plc: Key Employees 29Table 7: Barratt Developments Plc: key facts30Table 8: Barratt Developments Plc: Key Employees 31Table 9: United Kingdom size of population (million), 2015–19 32Table 10: United Kingdom gdp (constant 2005 prices, $ billion), 2015–19 32Table 11: United Kingdom gdp (current prices, $ billion), 2015–19 32Table 12: United Kingdom inflation, 2015–19 32Table 13: United Kingdom consumer price index (absolute), 2015–19 33Table 14: United Kingdom exchange rate, 2015–19 33
Construction in the United KingdomIndustry Profiles © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 7LIST OF FIGURES Figure 1: United Kingdom construction industry value: $ billion, 2015–19 10Figure 2: United Kingdom construction industry category segmentation: % share, by value, 2019 11Figure 3: United Kingdom construction industry geography segmentation: % share, by value, 2019 12Figure 4: United Kingdom construction industry value forecast: $ billion, 2019–24 13Figure 5: Forces driving competition in the construction industry in the United Kingdom, 2019 14Figure 6: Drivers of buyer power in the construction industry in the United Kingdom, 2019 15Figure 7: Drivers of supplier power in the construction industry in the United Kingdom, 2019 17Figure 8: Factors influencing the likelihood of new entrants in the construction industry in the United Kingdom, 2019 19Figure 9: Factors influencing the threat of substitutes in the construction industry in the United Kingdom, 2019 21Figure 10: Drivers of degree of rivalry in the construction industry in the United Kingdom, 2019 22
Construction in the United KingdomIndustry Profiles © MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 82. Market Overview 2.1. Market definition The construction market is defined as the value of work put in place annual for both residential and non-residential construction. The residential construction market is defined as the value of work put in place annually for residential buildings. This includes apartments and apartment blocks, houses, and similar buildings, but not hotels and other forms of commercial, temporary accommodation, and includes both single- and multi-family housing. The non-residential construction market is defined as the value of work put in place annually for non-residential buildings. The five included segments are commercial construction, industrial construction, infrastructure construction, energy and utilities construction and institutional construction. Further details of these segments can be provided upon request. Market value is defined in general as the total value of construction activity in any given time period, including costs related to construction materials, equipment and services, new construction, refurbishment, repair and maintenance and demolition. It is synonymous with measures such as construction value put in place or value of construction work done. All currency conversions were calculated at constant average annual 2019 exchange rates. Figures presented in this report are calculated applying the "middle path" scenario - this is based on the current situation in countries where the epidemic burst first, like China as a model countries and the announcements made by governments, stating that the abnormal situation may last up to six months. The assumption has been made that after this time the economy will gradually go back to the levels recorded before the pandemics by the end of the year. It is also assumed that there is no widespread economic crisis as seen back in 2008 due to announced pay-outs across countries. At the moment of preparation of this report in April 2020 the economic implications of the lock downs of many economics are still very difficult to predict as there is no indication how long the pandemics could last, the number of sectors forced to stay closed and the scale of the governmental' aid involved. At the same time the weight of the pandemic seriousness is applied on the individual countries in this report based on death to population ratio recorded in countries. Majority of the industries will see the decline in volume of the goods and services offered by companies. Usually the lower demand would cause the decrease the prices level. However, amid many governments’ ordered for many industries to lock down and so the supply chain is distorted that in great pictures mitigate the results of lower demand. Applied scenarios differ depending on the individual sector, however generally sectors which involves intensive manual labor and face to face interaction seem to be hit the most by present situation. On the other hand the internet based businesses as well as the producers of the vital, subsisted products and services seems to take advantages of the current events. For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific, Middle East, South Africa and Nigeria. North America consists of Canada, Mexico, and the United States. South America comprises Argentina, Brazil, Chile, Colombia, and Peru. Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom. Scandinavia comprises Denmark, Finland, Norway, and Sweden. Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand, Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
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