United Kingdom Infrastructure Report

Published 21 January 2015

  • 146 pages
  • Instant access to your report online and PDF format through your account library
  • Includes 3 free updated quarterly reports
 
$1,295.00
United Kingdom Infrastructure Report

BMI View : We are maintaining our forecasts for construction industry value real growth in the UK at 3.5% for 2015, cementing the UK as one of the fastest growing developed market s for infrastructure and construction in Europe . The UK has one of the strongest infrastructure project pipelines in Western Europe, although we note that the danger of delays to its realisation owing to the upcoming general election.

Key Trends And D evelopments

  • We expect momentum in the residential sector to continue to be robust in 2015, buoyed further by reforms to stamp duty, which will further energise the market. 2014 was a strong year for the sector however, so we expect growth to moderate to more sustainable levels, especially with the expected interest rate increase.

  • We expect there to be a delay in decisions on major infrastructure projects until after the 2015 general election. In particular we highlight that new power generation infrastructure will be delayed owing to various political party policies, which would raise questions among major utilities over investing in new capacity. That said, the first capacity auction run by National Grid reached the goal of maintaining and adding 49GW of capacity until 2018/19, including 2GW of new gas-fired capacity.

  • Insurance group Legal & General wants to build five new towns across the UK over the next 10 years at a cost of up to GBP5bn (USD8.22bn).

  • In December 2013, although no project specifics were announced, Prudential, Aviva, Standard Life, Friends Life and Lloyds Banking Group unit Scottish Widows all committed to investing GBP25bn in UK transport and energy infrastructure over the next five years. This should be a major supporting factor for our forecasts, as well as for numerous projects that currently face financing risks.

  • Following the passage of vital legislation, we have included HS2 into our forecasts, which further contribute to the rail sector's outperformance. With major...

Table of Contents

BMI Industry View
7
SWOT
8
Infrastructure SWOT
8
Industry Forecast
10
Construction And Infrastructure Forecast Scenario
10
Table: Construction And Infrastructure Industry Data (United Kingdom 2012-2017)
10
Table: Construction And Infrastructure Industry Data (United Kingdom 2018-2023)
11
Transport Infrastructure - Outlook And Overview
17
Table: Transport Infrastructure Industry Data (United Kingdom 2012-2017)
17
Table: Transport Infrastructure Industry Data (United Kingdom 2018-2023)
18
Table: Major Projects - Transport
29
Energy And Utilities Infrastructure - Outlook And Overview
48
Table: Energy And Utilities Infrastructure Data (United Kingdom 2012-2017)
48
Table: Energy And Utilities Infrastructure Data (United Kingdom 2018-2023)
50
Table: Major Projects - Energy & Utilities
62
Residential/Non-Residential Construction - Outlook And Overview
71
Table: Residential and Non-Residential Building Industry Data (United Kingdom 2012-2017)
71
Table: Residential and Non-Residential Building Industry Data (United Kingdom 2018-2023)
71
Table: Building Order Volumes*, GBPmn
72
Table: Major Projects - Residential/Non-Residential Construction & Social Infrastructure
79
Industry Risk Reward Ratings
99
United Kingdom - Infrastructure Risk/Reward Ratings
99
Rewards
99
Risks
100
North America and Western Europe - Infrastructure Risk/Reward Ratings
100
Table: Infrastructure Risk/Reward Ratings
107
Market Overview
108
Competitive Landscape
108
Table: Key Players - Financial Data
108
Company Profile
111
Carillion Plc
111
Balfour Beatty
114
Global Industry Overview
118
Global Infrastructure Overview
118
Methodology
124
Industry Forecast Methodology
124
Sector-Specific Methodology
125
Risk/Reward Rating Methodology
129
Sector-Specific Methodology
130
Table: Infrastructure Risk/Reward Rating Indicators
130
Table: Weighting Of Indicators
131

The United Kingdom Infrastructure Report features BMI Research's market assessment and forecasts covering public procurement and spending on all major infrastructure and construction projects, including transportation and logistics by land, sea and air; power plants and utilities, and commercial construction and property development. The report analyses the impact of regulatory changes and the macroeconomic outlook and features competitive intelligence on contractors and suppliers.

BMI's United Kingdom Infrastructure Report provides industry professionals and strategists, sector analysts, investors, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the British infrastructure and construction industry.

Key Benefits

  • Benchmark BMI's independent infrastructure industry forecasts for United Kingdom to test other views - a key input for successful budgetary and planning in the British infrastructure market.
  • Target business opportunities and risks in the British infrastructure sector through our reviews of latest industry trends, regulatory changes and major deals, projects and investments in United Kingdom.
  • Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. SWOTs, KPIs and latest activity).

Coverage

BMI Industry View

Summary of BMI’s key industry forecasts, views and trend analysis covering infrastructure and construction, regulatory changes, major investments and projects and significant national and multinational company developments. These are broken down into construction (social, commercial and residential), transport (roads, railways, ports, airports, etc), and energy & utilities (powerplants, pipelines and so on).

Industry SWOT Analysis

Analysis of the major strengths, weaknesses, opportunities and threats within the infrastructure and construction sectors and within the broader political, economic and business environment.

BMI Industry Forecasts

Historic data series (up to 2012) and forecasts to end-2024 for all key industry indicators, supported by explicit assumptions, plus analysis of key developments in the market and risks to the main forecasts. Indicators include:

Construction: Industry value (USDbn); contribution to GDP (%); total capital investment (USDbn); real growth (%).

Construction industry real growth forecasts (%) and industry value (USDbn) forecasts for industry sectors are split into Residential and Non-residential and Infrastructure sectors. Where the data is available for particular countries the infrastructure is further broken down into indicators for the transport subsectors of roads, railways, airports and ports and the energy and utilities sub-sectors of power plants and transmission grids, oil & gas pipelines and water infrastructure. This dataset is unique to the market.

The reports also include analysis of latest projects across the infrastructure sectors (transport, utilities, commercial construction).

BMI’s Infrastructure Risk Reward Index

BMI’s Risk Reward Index provides investors (construction companies, suppliers and partners) looking for opportunities in the region with a clear country-comparative assessment of a market’s risks and potential rewards. Each of the country markets are scored using a sophisticated model that includes more than 40 industry, economic and  demographic data points. These provide indices of highest to lowest appeal to investors, with each position explained.

Market Overview

An assessment of the competitive landscape and key challenges to entering the market. Details of the largest companies active in the sector across the sub-segments of the industry, including the key financial figures from some of the largest players in the sector.

Company Profiles*

Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI’s industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape to generate company SWOT analyses. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.

Sources

The Infrastructure reports draw on an extensive network of primary sources, such as multilateral organisations, government departments, industry associations, chambers and company reports.

*Company profiles are not available for every country. Those reports instead contain information on the current activities of prominent companies operating in the market.

secure
Benefit from discounts when you add multiple products to your basket
2 Products SAVE 10%
3 Products SAVE 15%
4 Products SAVE 20%
5 Products SAVE 25%
6 Products SAVE 30%
7 - 20 Products SAVE 35%
21 Products or more SAVE 40%

Testimonials

'An essential, multi-faceted research tool. BMI’s thorough understanding of the major market players enables an informed – and informative – review of the sector’s actual performance, together with useful insights into current industry issues, which are topped-off with detailed and invaluable forecasts of industry and macroeconomic trends.’

Senior Research Analyst, ABC International Bank plc