Table of Contents
Executive Summary
-
- Impact of COVID-19 on civil engineering construction
-
- Figure 1: Short-, medium- and long-term impact of COVID-19 on civil engineering, 20 January 2021
- The market
- Civil engineering construction activity down by 6% in 2020, largely due to disruption caused by COVID-19
-
- Figure 2: New civil engineering construction output in Great Britain, 2016-20
- Rail transport accounts for a third of civil engineering construction activity in 2020
- Electricity sector represents second largest sector for civil engineering construction output
- Civil engineering construction output in the roads sector down by an estimated 5% in 2020
-
- Figure 3: Civil engineering construction output in Great Britain, by sector, 2020, (% of total)
- UK civil engineering sector set for good recovery
-
- Figure 4: Forecast new civil engineering construction output in Great Britain, 2021-25
- Companies and brands
- Major civil engineering contractors report losses due to COVID-19 impact
- Trend towards long-term partnerships and alliances, especially in utilities sector
Issues and Insights
-
- Major civil engineering contractors take financial hit from COVID-19 but remain upbeat about prospects
- Long-awaited National Infrastructure Strategy provides much needed clarity for civil engineering sector
The Market – Key Takeaways
-
- Investment in transport infrastructure drives recent growth in civil engineering construction output, but COVID-19 causes disruption
- Long-awaited National Infrastructure Strategy provides much needed clarity for civil engineering sector
- UK civil engineering sector set for good recovery
- Skills shortages likely to remain an issue
Market Size and Segmentation
-
- Short-, medium- and long-term impact of COVID-19 on the civil engineering sector
-
- Figure 5: Short-, medium- and long-term impact of COVID-19 on civil engineering, 20 January 2021
- Lockdown
- Re-emergence
- Recovery
- Market overview
-
- Figure 6: Civil engineering construction output in Great Britain, 2016-20
-
- Figure 7: Civil engineering construction output in Great Britain, 2016-20
- Figure 8: Total new construction and civil engineering output in Great Britain, 2016-20
- Market segmentation
-
- Figure 9: Civil engineering construction output in Great Britain, by sector, 2016-20
- Figure 10: Civil engineering construction output in Great Britain, by sector, 2016-20
- Regional civil engineering construction output
-
- Figure 11: Analysis of civil engineering output, by region, 2017-19
Water & Sewerage Sector
-
- Water & sewerage capital expenditure
-
- Figure 12: UK capital expenditure on water and sewerage services, 2015/16-2019/20
- Move towards totex in AMP6 and beyond set to reduce bias towards capital spending
- Move towards long-term alliances and frameworks across industry
- Water civil engineering construction output
-
- Figure 13: Civil engineering construction output for the potable water industry in Great Britain, 2016-20
- Sewerage civil engineering construction output
-
- Figure 14: Civil engineering construction output for the sewerage industry in Great Britain, 2016-20
Electricity Sector
-
- Electricity distribution capital expenditure
-
- Figure 15: UK gross capital expenditure by electricity distribution network operators, 2015/16-2019/20
- Figure 16: UK gross capital expenditure by electricity distribution network operators, 2014/15-2019/20
- Smart grid development to support low-carbon economy and aid transition to a more flexible energy system
- Rise in distributed generation
- Growth in decentralised and renewable electricity generation will increase the complexity of operating a secure and cost-effective energy system
- Electricity transmission capital expenditure
-
- Figure 17: Size of electricity transmission network in Great Britain, 2020
-
- Figure 18: Capital expenditure by the electricity transmission industry in Great Britain, 2015/16-2019/20
- Figure 19: Capital expenditure by the electricity transmission industry in Great Britain, 2015/16-2019/20
- The electricity generation mix
-
- Figure 20: Analysis of electricity generation in the UK, by type of fuel used, 2015-19
- Figure 21: Proportional importance of fuel source in UK electricity generation, 2015 and 2019
- Electricity civil engineering construction output
-
- Figure 22: Civil engineering construction output for the electricity industry in Great Britain, 2016-20
-
- Figure 23: Civil engineering construction output for the electricity industry in Great Britain, 2016-20
Gas Sector
-
- Industry Overview
- Gas capital expenditure
-
- Figure 24: Total gas transmission and distribution capital expenditure, 2015/16-2019/20
-
- Figure 25: Total gas transmission capital expenditure, 2015/16-2019/20
-
- Figure 26: Total gas distribution capital expenditure, 2015/16-2019/20
- Figure 27: Total gas transmission and distribution capital expenditure, 2015/16-2019/20
- Replacement expenditure dominated by Iron Mains Replacement Programme
-
- Figure 28: Length of iron gas mains replaced, by distribution network operator, 2014-19
- Gas civil engineering construction output
-
- Figure 29: Civil engineering construction output for the gas industry in Great Britain, 2016-20
Airports Sector
-
-
- Figure 30: 10 largest airports in the UK, by air transport movements, 2015-19
-
- Figure 31: Civil engineering construction output for the air transport industry in Great Britain, 2016-20
-
Communications Sector
-
- Overview
-
- Figure 32: Key market developments in the telecoms sector, 2014-19, (millions)
- Mobile networks
- Broadband networks
-
- Figure 33: Civil engineering construction output for the communications industry in Great Britain, 2016-20
- Figure 34: Civil engineering construction output for the communications industry in Great Britain, 2016-20
Railways Sector
-
- Network Rail’s major rail modernisation programme
- Network Rail’s enhancements budget for CP6 (2019-24) cut by £1 billion
-
- Figure 35: Renewal expenditure by asset, 2018-20
- Railways civil engineering output
-
- Figure 36: Civil engineering construction output for the rail transport sector in Great Britain, 2016-20
Harbours Sector
-
- Overview
- Recent port expansion projects
-
- Figure 37: Civil engineering construction output for the harbours and waterways sectors in Great Britain, 2016-20
Roads Sector
-
- Overview
-
- Figure 38: Road network in Great Britain, by type, 2019
-
- Figure 39: New construction and improvements of roads, motorways and all purpose trunk roads, in England, 2014/15-2018/19, (kilometres)
- Road Investment Strategy
- Civil engineering construction output
-
- Figure 40: Civil engineering new road construction output in Great Britain, 2016-20
-
- Figure 41: Civil engineering new road construction output in Great Britain, 2016-20
Market Forecast
-
- Market drivers and assumptions
-
- Figure 42: Key drivers affecting Mintel’s market forecast, 2015-2025 (prepared on 19 January 2021)
- Long-awaited National Infrastructure Strategy provides much needed clarity for civil engineering sector
- New National Infrastructure Bank to be in place by Spring 2021
- National Infrastructure and Construction Pipeline
-
- Figure 43: National Infrastructure and Construction Procurement Pipeline, by sector, as of Summer 2020
-
- Figure 44: Estimated maximum contract value of procurements in the pipeline, by sector, as of Summer 2020 (£ million)
- Civil engineering construction forecast
-
- Figure 45: Forecast civil engineering construction output in Great Britain, 2020-24
- Figure 46: Forecast new civil engineering construction output in Great Britain, 2021-25
Water & Sewerage Sector Forecast
-
- Water companies to spend a record £51 billion in AMP7 (2020-25)
- Government calls on water companies to accelerate investment as part of the country’s green economic recovery from COVID-19
- Forecast civil engineering construction in the water sector
-
- Figure 47: Forecast civil engineering output for the water sector, 2021-25
- Forecast civil engineering construction in sewerage sector
-
- Figure 48: Forecast civil engineering output for the sewerage sector, 2021-25
Electricity Sector Forecast
-
- Renewables capacity development pipeline
-
- Figure 49: Renewable energy projects in pipeline, by technology, as of June 2020
- Civil engineering construction forecast in the electricity sector
-
- Figure 50: Forecast civil engineering output for the electricity sector, 2021-25
-
- Figure 51: Forecast civil engineering output for the electricity sector, 2021-25
Gas Sector Forecast
-
-
- Figure 52: Forecast civil engineering output for the gas sector, 2021-25
-
Airport Sector Forecast
-
-
- Figure 53: Forecast civil engineering output for the airports sector, 2021-25
-
Communications Sector Forecast
-
-
- Figure 54: Forecast civil engineering output for the communications sector, 2021-25
-
Railways Sector Forecast
-
- National Rail’s enhancements budget for CP6 cut by £1 billion
- HS2 set to dominate rail infrastructure spending
- Northern Powerhouse Rail
- Civil engineering construction forecast in the rail sector
-
- Figure 55: Forecast civil engineering output for the rail sector, 2021-25
Harbours Sector Forecast
-
-
- Figure 56: Forecast civil engineering output for the harbours sector, 2021-25
-
Roads Sector Forecast
-
- Government confirms further increase in road investment for period 2020-25
- Highways England adopts new delivery models
- New routes to market
- The Regional Delivery Partnership Framework
- The Smart Motorways Alliance
- Civil engineering construction forecast in the roads sector
-
- Figure 57: Forecast civil engineering output for the roads sector, 2021-25
- Figure 58: Forecast civil engineering output for the roads sector, 2021-25
Market Drivers – Water & Sewerage Sector
-
- Future challenges facing the water and sewerage sector
-
- Figure 59: Population projections for England, by region, 2016-36
- Industry regulation
- Legislative environment
- Implications of Brexit on the UK water and sewerage sector
- Environment Bill
- Water infrastructure and flood resilience play key roles in government’s National Infrastructure Strategy
- Thames Tideway Tunnel
-
- Figure 60: Estimated cost of Thames Tideway Tunnel, 2016/17-2021/22+
Market Drivers – Gas & Electricity Sectors
-
- Price Controls
- The Climate Change Act 2008
- UK commits to 2050 net-zero target
- UK makes good progress in reducing CO2 emissions to date, but steeper reduction required to progress towards net zero
- Government sets out commitments to ensure offshore wind will power every home by 2030
- Government outlines shift to clean energy in long-awaited Energy White Paper
- Support mechanisms and policies to decarbonise electricity
- Renewables Obligation
- Feed-in Tariffs
- Carbon Price Floor
- Contracts for Difference
- Capacity Market
Market Drivers – Airports Sector
-
- Third runway at Heathrow Airport gets go-ahead but obstacles remain
Market Drivers – Communications Sector
-
- Government committed to roll-out of full fibre and 5G networks
Market Drivers – Railways Sector
-
- Drivers of investment in rail industry
- Impact of COVID-19
- Rail network funding and regulation
- Government’s strategic vision for rail
- Williams Review of the rail industry
- Network Rail intends to spend £42 billion on rail improvements in CP6 (2019-24)
Market Drivers – Ports & Harbours Sector
-
- UK port demand set to increase
Market Drivers – Roads Sector
-
- Government commits to biggest programme of road investment since the 1970s
- Government confirms further increase in road investment for period 2020-25
Companies and Brands – Key Takeaways
-
- Financial impact of COVID-19 on civil engineering contractors
- Trend towards long-term partnerships and alliances, especially in utilities sector
- Civil engineering companies are required to develop a wider set of skills and competencies
Industry Structure
-
- Trend towards long-term partnerships and alliances, especially in utilities sector
- Civil engineering companies are required to develop a wider set of skills and competencies
- Major civils contractors launch transformation programmes as low-margin bidding and project delays lead to financial difficulties
- Financial impact of COVID-19 on civil engineering contractors
- Industry development
-
- Figure 61: Analysis of the civil engineering industry by type of activity and company size, 2020, (number of employees and number of companies)
- Figure 62: Analysis of the civil engineering industry by type of activity, number of companies and % of total, 2020
Company Profiles
-
- Introduction
- Balfour Beatty
- Balfour Beatty has simplified and refocused operations through its Build to Last programme
- Impact of COVID-19
- Balfour Beatty order book boosted by HS2 contract
- Financial performance
-
- Figure 63: Financial analysis of Balfour Beatty, 2015-19, (£ million)
-
- Figure 64: Turnover analysis of Balfour Beatty, by segment, 2017-19
- Costain Group
- “Leading Edge” strategy
- Financial performance and outlook
-
- Figure 65: Financial analysis of Costain Group, 2015-19
-
- Figure 66: Turnover analysis of Costain Group, by segment, 2018-19
- J Murphy & Sons
- Group strategy
- Financial performance
-
- Figure 67: Financial analysis of J Murphy & Sons, 2015-19
- Bam Nuttall
- Company performance and outlook
-
- Figure 68: Financial analysis of Bam Nuttall, 2015-19
- Skanska UK
- Skanska’s Profit with Purpose business plan
- Skanska undergoes restructuring to improve performance and focus on core business
- Skanska agrees sale of its infrastructure services arm
- Financial performance and outlook
-
- Figure 69: Financial analysis of Skanska UK, 2015-19
- Galliford Try Infrastructure
- Corporate restructuring sees company focus on water and highways sectors
- Strategy
- Impact of COVID-19 and outlook
- Financial performance
-
- Figure 70: Financial analysis of Galliford Try Infrastructure, 2015-19
Appendix – Data Sources, Abbreviations and Supporting Information
-
- Abbreviations
- Methodology
Further Sources and Contacts
-
- Trade associations
- Association of Consulting Engineers
- Civil Engineering Contractors Association
- Institution of Civil Engineers
- Trade magazines
- Building
- Civil Engineering Surveyor
- EMAP Publishing Ltd
- International Railway Journal
- Modern Railways
- New Civil Engineer
- Plant & Civil Engineer
- Railway Gazette International
- Rail Professional
- Water & Sewerage Journal
- Utility Week
- Trade events
- Railtex/Infrarail 2021
- Traffex 2021
Back to top