Schools, Universities and Hospitals - UK - February 2020

OVERVIEW
What you need to know
Covered in this Report
EXECUTIVE SUMMARY
The market
Health segment spending boosts market to positive growth
Figure 1: UK annual construction output on schools, universities and hospitals, non-seasonally adjusted, 2014-18
Figure 2: UK new construction orders by segment and sector, 2014-18
Companies and brands
Companies set to benefit from renewed and reformed public activity
What we think
ISSUES AND INSIGHTS
Unaddressed estate issues will increase maintenance costs
The facts
The implications
Pivot towards public investment offers a chance to normalise new practices
The facts
The implications
THE MARKET – WHAT YOU NEED TO KNOW
Construction orders rebound from a three-year fall
£1 billion health segment bounce-back tips the market back into growth
New hospital commitments will expand health segment market value
MARKET SIZE
Figure 3: UK market for new construction of schools, universities and hospitals, 2014-18
MARKET SEGMENTATION
Health segment’s bounce-back returns market to growth
Figure 4: UK new construction orders by segment and sector, 2014-18
Figure 5: Change in new orders by segment and sector, 2014-18
Education
Figure 6: UK new construction orders, education segment, 2014-18
Schools
Figure 7: Number of schools by nation and type, 2018
Figure 8: Number of UK schools by type, 2014-18
Universities
Figure 9: Number of UK universities by nation, 2017-18
Figure 10: UK university estate features by nation, 2017-18
Health
Figure 11: NHS number of beds and occupancy rates, England Q1 2014-15 – Q2 2019-20
Figure 12: UK new construction orders by sector, health segment, 2014-18
SCHOOLS 
Restricted capital funding has worsened capacity and estate condition
Figure 13: UK pupil to school ratio, 2003-19
Funding in England
Basic Need funding
Figure 14: Regional changes in Basic Need allocation, 2011/12 – 2017/18
School condition funding
Figure 15: English schools’ public capital funding, £ million, 2015/16 – 2019/20
Capital maintenance funding for MATs
Funding in Scotland
Figure 16: Department for Education and Skills’ annual capital budget, 2014/15 – 2018/19
Schools for the Future
Learning Estate Investment Programme
Funding in Wales
Figure 17: Total expenditure on school improvement, Wales, £ million, 2013/14 – 2018/19
21st Century Schools Programme
UNIVERSITIES
2012 funding reforms continue to drive competitiveness
Figure 18: Change in student numbers, top and bottom five universities, 2012/13 – 2017/18
Residential sector
Funding channels
Figure 19: UK universities sector capital expenditure and sources, £, 2015/16 – 2017/18
England
Scotland
Figure 20: SFC capital maintenance funding, 2017/18 – 2019/20
Wales
Figure 21: HEFCW capital expenditure, £ million, 2017/18 – 2019/20
HOSPITALS
Summary of estates
England
Figure 22: NHS England site profile, 2018-19
Scotland
Figure 23: NHS Scotland hospital profile, 2017
Wales
Funding channels
England
Figure 24: DHSC real-term revenue and capital budgets, 2010/11 – 2018/19
Figure 25: Capital investment by type, £ million, 2017/18 and 2018/19
Figure 26: Costs to eradicate backlog maintenance by risk level, £ million 2015/16 – 2018/19
Scotland
Figure 27: Health and Sports departmental capital expenditure, £ million, 2014/15 – 2018/19
Figure 28: NHS Scotland backlog maintenance risk profile, 2017
Wales
Figure 29: Department for Health and Social Services capital expenditure, 2014/15 – 2019/20
Figure 30: NHS Wales capital expenditure, selected categories, £ million, 2016/17 and 2017/18
Figure 31: NHS Wales costs to eradicate maintenance backlogs, by type and board, £ million, 2017
COMPANIES AND BRANDS – WHAT YOU NEED TO KNOW
Sector undeterred by Brexit due to public investment
Capital Frameworks are a source of sustainable growth
INDUSTRY STRUCTURE
Changes in industry structure
Figure 32: Changes in the structure of construction of commercial buildings activities, number of businesses and outlets, 2015-19
Structure by employment
Figure 33: Changes in employment structure for construction of commercial buildings activities, number of outlets by employment level, 2018 and 2019
Structure by turnover
Figure 34: Changes in financial structure for construction of commercial buildings activities, number of businesses by turnover band, 2018 and 2019
COMPANY PROFILES
Balfour Beatty
Recent company activity
Financial information
Figure 35: Financial analysis of Balfour Beatty, 2014-18
Galliford Try
Recent company activity
Financial information
Figure 36: Financial analysis of Galliford Try, 2015-19
Interserve
Recent company activity
Financial information
Figure 37: Financial analysis of Interserve, 2014-18
Skanska UK
Recent company activity
Financial information
Figure 38: Financial analysis of Skanska UK, 2014-18
Willmott Dixon Construction
Recent company activity
Financial information
Figure 39: Financial analysis of Willmott Dixon Construction, 2014-18
APPENDIX – DATA SOURCES, ABBREVIATIONS AND SUPPORTING INFORMATION
Abbreviations
Methodology
FURTHER SOURCES AND CONTACTS
Trade associations
British Constructional Steelwork Association
Chartered Institute of Building
Confederation of Construction Specialists
Construction Confederation
Construction Industry Council
Construction Industry Research & Information Association
Institution of Planning Supervisors
Major Projects Association
National Federation of Builders
Association of Building Component Manufacturers
The Building Centre
Trade magazines
The Builder (Monthly)
Builder & Engineer (Monthly)
Building (Weekly)
Building & Construction (Quarterly)
Building News (Alt-Months)
Building Research & Information (Bi-Monthly)
Construction Europe (Monthly)
Construction Forum (Alternate Months)
Construction Magazine (Monthly)
Construction Manager (10 issues per year)
Construction News (Weekly)
Constructor (Monthly)
Contract Journal (Weekly)
ESI Building Products (Annual)
International Construction (Monthly)
Premier Construction (Monthly)
Professional Builder (11 issues per year)
Public Sector Building (six issues per year)
QS Week
Trade events
100% Detail
Futurebuild
London Build 2020
National Construction Expo
UK Construction Week