Table of Contents
Executive Summary
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- The market
- New civil engineering construction output up by an estimated 21% in 2015
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- Figure 1: New civil engineering construction output in Great Britain, 2011-15
- Electricity infrastructure investment drives overall civil engineering construction output
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- Figure 2: New civil engineering construction output in Great Britain, by sector, 2011-15
- Civil engineering sector set for further strong growth over the next five years
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- Figure 3: Forecast new civil engineering construction output in Great Britain, 2016-20
- Market factors
- Government’s renewed focus on infrastructure investment to provide a positive impetus for the sector
- Strategic road enhancement spending set to treble between 2013 and 2020
- Further significant investment required in electricity sector to ensure future security of supply
- Prospects for civil engineering output in water and sewerage sector are expected to be limited
- Plans for Northern Powerhouse to provide a positive impetus for civil engineering sector in the north of England
- Companies
- Trend towards long-term alliances and closer, integrated relationships in the utilities sector
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- Figure 4: Analysis of the civil engineering industry, by type of activity, number of companies & % of total, 2014
- What we think
Key Insights
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- What does the adoption of a new regulatory framework in the water and sewerage industry mean for the supply chain, including civil engineering contractors?
- How will civil engineering contractors benefit from the reform of the Highways Agency?
- The electricity sector continues to be a key driver of civil engineering sector growth, but have any uncertainties in its outlook started to emerge?
UK Economy
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- Overview
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- Figure 6: UK GDP quarterly development, 2003-15
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- Figure 7: UK GDP in economic downturns and recoveries since 1979
- Inflation
- Interest rates
- Manufacturing
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- Figure 8: UK output, by industry, 2008-15
- Business investment
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- Figure 9: UK GFCF 2003-15
Market Factors
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- Water and sewerage
- Industry regulation
- Legislative environment
- European Water Framework Directive (WFD)
- Urban Waste Water Treatment Directive (UWWTD)
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- Figure 10: Sewerage treatment enhancement expenditure driven by UWWTD in England & Wales, 1990-15
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- Figure 11: Sewerage treatment enhancement expenditure driven by UWWTD in England & Wales graph, 1990-15
- The Drinking Water Directive
- Revised Bathing Water Directive
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- Figure 12: UK coastal bathing water compliance with Bathing Water Directive for mandatory coliform standards, as of 2014
- Transfer of private sewers in England and Wales
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- Figure 13: Capital expenditure on private sewers in England & Wales, by water and sewerage company, 2012-15
- The Flood and Water Management Act 2010
- Gas and electricity
- Price controls
- Environmental and legislative factors
- The UK’s increased reliance on gas imports
- Potential for shale gas extraction
- Airports
- Communications
- Railways
- Ports and harbours
- Roads
- Reform of Highways Agency
Market Size and Segmentation
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- Key points
- Market size
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- Figure 14: Civil engineering construction output in Great Britain, 2011-15
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- Figure 15: Civil engineering construction output in Great Britain graph, 2011-15
- Market segmentation
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- Figure 16: Civil engineering construction output in Great Britain, by sector, 2011-15
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- Figure 17: Civil engineering construction output in Great Britain, by sector, 2011 and 2015
Water and Sewerage Sector
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- Key points
- Water and sewerage capital expenditure
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- Figure 18: Total capital expenditure by water and sewerage companies in England & Wales, 2005-10 and 2010-15
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- Figure 19: Total capital expenditure by water-only companies in England & Wales, 2005-10 and 2010-15
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- Figure 20: Actual UK capital expenditure on water and sewerage services, 2009/10-2014/15
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- Figure 21: UK capital expenditure on water and sewerage services, 2009/10-2014/15
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- Figure 22: UK capital expenditure on water and sewerage services graph, 2010/11-2014/15
- Sewerage-related capital expenditure
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- Figure 23: Analysis of sewerage-related capital expenditure in England and Wales, by company, 2008/09-2013/14
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- Figure 24: Analysis of sewerage capital expenditure in England and Wales by water and sewerage companies, by type, 2011/12-2013/14
- Water-related capital expenditure
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- Figure 25: Analysis of water related capital expenditure, by water and sewerage companies in England and Wales, 2008/09-2013/14
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- Figure 26: Analysis of water capital expenditure in England and Wales, by water and sewerage companies, by type, 2011/12-2013/14
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- Figure 27: Analysis of water capital expenditure in England and Wales, by water-only companies, by type, 2011/12-2013/14
- Water civil engineering construction output
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- Figure 28: Civil engineering construction output for the potable water industry in Great Britain, 2011-15
- Sewerage civil engineering construction output
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- Figure 29: Civil engineering construction output for the sewerage industry in Great Britain, 2011-15
Electricity Sector
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- Key points
- Electricity distribution capital expenditure
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- Figure 30: UK gross capital expenditure by electricity distribution network operators, 2010/11-2014/15
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- Figure 31: UK gross capital expenditure by the electricity distribution network operators, 2010/11-2014/15
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- Figure 32: UK gross capital expenditure by the electricity distribution network operators, by company, 2010/11-2014/15
- Electricity transmission capital expenditure
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- Figure 33: Size of electricity transmission network in Great Britain, 2015
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- Figure 34: Capital expenditure by the electricity transmission industry in Great Britain, 2010/11-2014/15
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- Figure 35: Capital expenditure by the electricity transmission industry in Great Britain graph, 2010/11-2014/15
- The electricity generation mix
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- Figure 36: Analysis of electricity supplied in the UK, by type of fuel used in generation, 2010-14
- Renewables generation
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- Figure 37: Renewable electricity generation in the UK, 2010-14
- Coal generation
- Nuclear generation
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- Figure 38: UK nuclear sites planned closure dates, as of September 2015
- Distributed generation
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- Figure 39: Existing and planned interconnectors, as of November 2014
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- Figure 40: Civil engineering construction output for the electricity industry in Great Britain, 2011-15
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- Figure 41: Civil engineering construction output for the electricity industry in Great Britain graph, 2011-15
Gas Sector
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- Key points
- Industry overview
- Gas capital expenditure
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- Figure 42: Total gas transmission and distribution capital expenditure, 2010/11-2014/15
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- Figure 43: Total gas transmission capital expenditure, 2010/11-2014/15
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- Figure 44: Total gas distribution capital expenditure, 2010/11-2014/15
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- Figure 45: Total gas transmission and distribution capital expenditure, 2010/11-2014/15
- Replacement expenditure (Repex)
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- Figure 46: Length of gas mains replaced, by distribution network operator, 2009-13
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- Figure 47: Cumulative replacement expenditure during GDPRC1 2008-13, by GDN and type
- Civil engineering construction output
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- Figure 48: Civil engineering construction output for the gas industry in Great Britain, 2011-15
Airports Sector
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- Key points
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- Figure 49: 10 largest airports in the UK, 2009-14
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- Figure 50: Civil engineering construction output for the air transport industry in Great Britain, 2011-15
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- Figure 51: Civil engineering construction output for the air transport industry in Great Britain graph, 2011-15
Communications Sector
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- Key points
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- Figure 52: Key market developments in the telecoms sector, 2010-14
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- Figure 53: Number of BT Exchanges FTTC-enabled, 2011-14
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- Figure 54: Civil engineering construction output for the communications industry in Great Britain, 2011-15
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- Figure 55: Civil engineering construction output for the communications industry in Great Britain graph, 2011-15
Railways Sector
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- Key points
- Capital expenditure
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- Figure 56: Renewal expenditure, by asset, 2014 and 2015
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- Figure 57: Private sector investment in track and signalling, 2011-15
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- Figure 58: Private sector investment in stations, 2010-14
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- Figure 59: Analysis of enhancement expenditure in England and Wales, by type, 2010-14
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- Figure 60: Analysis of enhancement expenditure on non-PR08 funded schemes, by type, 2010-14
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- Figure 61: Analysis of enhancement expenditure in Scotland, by type, 2010-14
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- Figure 62: Analysis of enhancement expenditure in Great Britain, by type, 2015
- Railways civil engineering output
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- Figure 63: Civil engineering construction output for the rail transport sector in Great Britain, 2011-15
Harbours Sector
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- Key points
- Overview
- Recent port expansion projects
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- Figure 64: Civil engineering construction output for the harbours and waterways sectors in Great Britain, 2011-15
Roads Sector
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- Key points
- Overview
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- Figure 65: Road network in Great Britain, by type, 2014
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- Figure 66: Road network expenditure in England, by activity and road type, 2010/11-2013/14
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- Figure 67: New construction and improvements of roads, motorways and all purpose trunk roads, in England, 2009/10-2013/14
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- Figure 68: Civil engineering new road construction output in Great Britain, 2011-15
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- Figure 69: Civil engineering new road construction output in Great Britain graph, 2011-15
Seasonality of Civil Engineering Construction Output
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- Overall
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- Figure 70: Seasonality of civil engineering, 2010-14
- Water
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- Figure 71: Seasonality of civil engineering output in the water sector, 2010-14
- Sewerage
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- Figure 72: Seasonality of civil engineering output in the sewerage sector, 2010-14
- Electricity
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- Figure 73: Seasonality of civil engineering output in the electricity sector, 2010-14
- Gas, communications and air transport
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- Figure 74: Seasonality of civil engineering output in the gas, communications and air sector, 2010-14
- Railways
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- Figure 75: Seasonality of civil engineering output in the railways sector, 2010-14
- Harbours
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- Figure 76: Seasonality of civil engineering output in the harbours sector, 2009-13
- Roads
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- Figure 77: Seasonality of civil engineering output in the roads sector, 2009-13
Regional Civil Engineering Construction Output
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- Figure 78: Analysis of civil engineering output, by region, 2010-14
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Industry Structure
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- Key points
- Industry development
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- Figure 79: Analysis of the civil engineering industry, by type of activity and company size, 2014
Company Profiles
AMEC Foster Wheeler
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- Company outlook
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- Figure 80: Financial analysis of AMEC, 2010-14
Amey
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- Company strategy and outlook
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- Figure 81: Financial analysis of Amey UK, 2010-14
Balfour Beatty
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- Figure 82: Financial analysis of Balfour Beatty, 2010-14
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- Figure 83: Turnover analysis of Balfour Beatty, by segment, 2013-14
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Land Lease Construction
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- Company strategy and outlook
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- Figure 84: Financial analysis of lend lease construction (EMEA), 2011-15
The Costain Group
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- Company strategy and performance
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- Figure 85: Financial analysis of Costain Group, 2010-14
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- Figure 86: Turnover analysis of Costain Group, by division, 2010-14
John Laing
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- Company outlook
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- Figure 87: Financial analysis of John Laing, 2010-14
Carillion
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- Company strategy and outlook
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- Figure 88: Financial analysis of Carillion, 2010-14
J Murphy & Sons
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- Company outlook
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- Figure 89: Financial analysis of J Murphy & Sons, 2010-14
BAM Nuttall
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- Company performance and outlook
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- Figure 90: Financial analysis of Bam Nuttall, 2010-14
Interserve
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- Company strategy
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- Figure 91: Financial analysis of Interserve, 2010-14
Skanska UK
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- Company performance and outlook
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- Figure 92: Financial analysis of Skanska UK, 2010-14
McNicholas Construction Holdings
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- Company strategy and performance
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- Figure 93: Financial analysis of McNicholas Construction (Holdings), 2010-14
Galliford Try Infrastructure
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- Company strategy and outlook
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- Figure 94: Financial analysis of Galliford Try Infrastructure, 2010-14
Market Forecast
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- Key points
- Market overview
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- Figure 95: Forecast civil engineering construction output in Great Britain, 2016-20
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- Figure 96: Forecast civil engineering construction output in Great Britain graph, 2016-20
- The national infrastructure plan
- Plans for Northern Powerhouse to provide a positive impetus for civil engineering sector in the North of England
Water and Sewerage Sector Forecast
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- Key points
- Capital expenditure
- England & Wales – AMP6 2015-20
- Move towards long-term alliances and frameworks across industry
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- Figure 97: Total expenditure (Totex) allowance for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
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- Figure 98: Total expenditure (Totex) allowance for AMP6 in England & Wales graph, by water & sewerage company, 2015/16-2019/20
- Figure 99: Forecast capital expenditure for AMP6 in England & Wales, by water & sewerage company, 2015/16-2019/20
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- Figure 100: Forecast capital expenditure for AMP6 in England & Wales graph, by water & sewerage company, 2015/16-2019/20
- Figure 101: Forecast capital expenditure for AMP6 in England & Wales, by water only company, 2015/16-2019/20
- Thames Tideway Tunnel
- Water industry development
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- Figure 102: Forecast civil engineering output for the water sector, 2016-20
- Sewerage industry development
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- Figure 103: Forecast civil engineering output for the sewerage sector, 2016-20
Electricity Sector Forecast
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- Key points
- Electricity distribution capital expenditure
- Maintain reputational incentive for business carbon footprint (BCF)
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- Figure 104: Total expenditure allowance for RIIO-ED1 in Great Britain, by company, 2015/16-2022/23
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- Figure 105: Total expenditure allowance for RIIO-ED1 in Great Britain graph, by company, 2015/16-2022/23
- Figure 106: Forecast network investment of the electricity distribution network operators in Great Britain, by company, 2015/16-2022/23
- Drivers for future capital investment in electricity transmission nework
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- Figure 107: Renewable energy projects in pipeline, by technology, as of July 2015
- National Grid’s Electricity 10-Year Statement
- Future potential energy supply mix
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- Figure 108: Forecast power generation installed capacity under “slow progression” scenario, by source, 2015-36
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- Figure 108: Forecast power generation installed capacity under “gone green” scenario, by source, 2015-36
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- Figure 108: Forecast power generation installed capacity under “no progression” scenario, by source, 2015-36
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- Figure 108: Forecast power generation installed capacity under “consumer power” scenario, by source, 2015-36
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- Figure 108: Future potential energy mix in 2036, by scenario
- Increased interconnectivity between European countries
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- Figure 109: Existing and planned interconnectors, as of November 2015
- Electricity civil engineering construction forecast
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- Figure 110: Forecast civil engineering output for the electricity sector, 2016-20
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- Figure 111: Forecast civil engineering output for the electricity sector graph, 2016-20
Gas Sector Forecast
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- Key points
- UK gas supply
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- Figure 112: Existing UK gas import infrastructure, as of November 2015
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- Figure 113: Proposed UK import projects, as of November 2015
- Gas distribution & transmission capital expenditure
- Transmission network
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- Figure 114: Annual capital expenditure plans by National Grid Gas under RIIO-T1, by category, 2014-21
- Distribution network
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- Figure 115: Annual capex plans under RIIO-GD1, by GDN, 2014-21
- Civil engineering construction output forecast
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- Figure 116: Forecast civil engineering construction output for the gas sector, 2016-20
Airports Sector Forecast
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- Key points
- Industry development
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- Figure 117: Forecast civil engineering output for the airport transport sector, 2016-20
Communications Sector Forecast
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- Key points
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- Figure 118: Forecast civil engineering output for the communications sector, 2016-20
Railways Sector Forecast
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- Key points
- Capacity constraints driving rail infrastructure investment
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- Figure 119: Rail infrastructure projects pipeline, as of July 2015
- High speed rail network (HS2)
- Other proposed new rail lines
- Crossrail 2
- High Speed 3 (HS3)
- Network Rail misses targets for first year of new control period CP5 2014-19
- Maintenance expenditure in CP5
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- Figure 120: Forecast rail maintenance expenditure for CP5, 2014/15-2018/19
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- Figure 121: Forecast rail maintenance expenditure for CP5 graph, 2014/15-2018/19
- Figure 122: Forecast rail maintenance expenditure for CP5, by activity, 2014/15-2018/19
- Capital expenditure in CP5
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- Figure 123: Forecast capital expenditure for CP5, by type, 2014/15-2018/19
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- Figure 124: Forecast capital expenditure for CP5 graph, by type, 2014/15-2018/19
- Renewals expenditure in CP5
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- Figure 125: Forecast rail renewals expenditure for CP5, by activity, 2014/15-2018/19
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- Figure 126: Forecast rail track renewal activity for CP5, by activity, 2014/15-2018/19 and CP5 total
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- Figure 127: Forecast rail structures renewal for CP5, by activity, 2014/15-2018/19
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- Figure 128: Forecast rail electrification & plant renewal for CP5, by activity, 2014/15-2018/19
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- Figure 129: Forecast building renewal for CP5, by activity, 2014/15-2018/19
- Enhancements expenditure in CP5
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- Figure 130: Cost of enhancement projects during CP5
- Crossrail
- Thameslink Programme
- Electrification schemes
- Other committed schemes
- Other named schemes and CP4 rollover schemes
- HLOS capacity metric schemes
- Edinburgh to Glasgow Improvements Programme (EGIP)
- Borders
- Other Scottish projects
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- Figure 131: Forecast civil engineering construction output for the rail sector, 2016-20
Harbours Sector Forecast
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- Key points
- Growth in off-shore wind farm developments offers opportunities to UK ports
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- Figure 132: Forecast civil engineering construction output for the harbours sector, 2016-20
Roads Sector Forecast
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- Key points
- Government plans to treble spending on strategic road enhancement between 2013 and 2020
- Reform of Highways Agency
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- Figure 133: Forecast civil engineering construction output for the roads sector, 2016-20
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- Figure 134: Forecast civil engineering construction output for the roads sector graph, 2016-20
Further Sources and Contacts
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- Trade associations
- Association of Consulting Engineers
- Civil Engineering Contractors Association
- Institution of Civil Engineers
- Trade magazines
- Building
- Civil Engineering Surveyor
- Construction News
- International Railway Journal
- Modern Railways
- New Civil Engineer
- Plant & Civil Engineer
- Railway Gazette International
- Rail Professional
- Water21
- Water & Sewerage Journal
- Utility Week
- Trade exhibitions
- Traffex 2017
- Railtex 2017
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