Civil Engineering - UK

NEW YORK, April 14, 2016 — (PRNewswire) — The recent reform of the Highways Agency, now known as Highways England, should give contractors the confidence they need to recruit and train skilled workers to deliver the growing number of transport projects over the coming years.

Much of the civil engineering market acts independently of economic considerations as many sectors are determined by long-term investment plans undertaken by private companies acting under utility sector regulators or government infrastructure projects. While the construction sector was severely affected by the financial crisis and economic downturn, new civil engineering output continued to demonstrate strong growth between 2009 and 2011, reflecting the independence of utility firms' expenditure to economic considerations and the previous Labour government's policy of bringing forward capital spending to counteract recessionary pressures. Growth in 2010 and 2011 also reflected the time-lag involved in construction and the delayed impact of public spending cuts imposed by the coalition government. Indeed, the road sector did not feel the full brunt of public spending cuts until 2012, with road construction output falling by a considerable 41%, strongly contributing to the 9% decline in total new civil engineering output.

The civil engineering sector returned to growth in 2013, with output up by 9%. This was largely due to a significant 46% increase in the electricity infrastructure sector, reflecting investment in renewables generation. In 2014, new civil engineering construction output rose by just 1%, as finance availability from public and private sources remained constrained despite the coalition government's renewed focus on the sector. However, partial year data for 2015 suggests strong growth of 21% for the year, taking new civil engineering construction output to an estimated £18.4 billion. Growth during the year was driven by buoyant electricity and road infrastructure sectors, with the latter demonstrating particularly strong growth.

This report will explore the following key questions with regard to civil engineering construction in the UK:

-How have the individual sectors of the civil engineering market performed over the last five years?
-What is the impact of legislative and regulatory measures on civil engineering construction activity?
-How have the key players in the industry performed financially in recent years?
-What are the key drivers for growth over the next five years?
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