The civil engineering market comprises both public and private works for water, sewerage, railways, electricity, gas/communication/air, railways, harbours and roads. Each sector is subject to a variety of factors that can affect output, resulting in differing trends.

Prospects for the civil engineering sector remain strong over the next five years, with development exceeding GDP growth. The major projects set to drive output over this period include HS2 (assuming go-ahead), Northern Powerhouse Rail, Hinkley Point C, Thames Tideway Tunnel, major road schemes, Network Rail’s modernisation programme and projects associated with the decarbonisation of the energy system.

However there are considerable uncertainties regarding the timing and delivery of key infrastructure projects, reflecting uncertainty around the HS2 review and delays and cost overruns with Hinkley Point C.

The definitions used in this report for the civil engineering sector are from the Office for National Statistics (ONS), which broadly defines the sector as constituting new infrastructure. A number of areas are defined within this sector, comprising both public and privately financed projects.

The sectors include the following:

Water: The construction of reservoirs, purification plants, dams (except for hydro-electric schemes), aqueducts, wells, conduits, waterworks, pumping stations, water mains, hydraulic works etc.

Sewerage: Sewerage disposal works, the laying of sewers and service drains.

Electricity: Building and civil engineering work for electrical undertakings, such as power stations, dams and other works on hydro-electric schemes, sub stations, laying of cables and the erection of overhead lines.

Gas: Gas works, the laying of gas mains and gas storage facilities.

Communications: Post offices, sorting offices, telephone exchanges, switching centres, cables etc.

Air: Air terminals, runways, hangars, reception halls, radar installations, perimeter fencing etc for use in connection with airfields.

Railways: Permanent way, tunnels, bridges, cuttings, stations, engine sheds, etc, and the electrification of both surface and underground railways.

Harbours (including waterways): All works and buildings directly connected with harbours, wharves, docks, piers, jetties (including oil jetties), canals and water ways, dredging, sea walls, embankments and water defences.

Roads: Roads, pavements, bridges, footpaths, lighting, tunnels, flyovers and fencing etc.

Public Work: Work on any public authority, such as government departments, public utilities, nationalised industries, universities, the Post Office, new town corporations and housing associations etc.

Private Work: Work done for a private owner, organisation or developer, including work carried out by firms on their own initiative, and work where the private sector carries the majority of risk/gain. For example, in principle, all PFI contracts are considered private.

All values quoted in this report are at current prices unless otherwise specified.