Commercial and Industrial Doors and Shutters Market Report - Key Facts

Did you know that...

1. The sector had a difficult period in 2009-12 but has shown recovery in 2013/14 and is worth around £400m.
2. Fire Safety regulations influencing investment in replacement and refurbishment doors in recent years.
3. High-speed doors represent the largest and the highest added value sub-sector followed closely by sectional overhead doors.
4. Recovery in construction activity in the industrial/warehousing sector has aided market growth.
5. Outlook for industrial doors for 2015 is for steady and moderate growth in demand.

These facts have been extracted from AMA Research's report 'Commercial and Industrial Doors and Shutters Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Pump market to benefit from investment in the UK power generation sector

The UK pump market has experienced good growth during 2013 and 2014, influenced by the recovery in the manufacturing and construction sectors, and further growth of 2% is forecast for 2015. The pump market has also received a boost in the past two years by the growth of capital investment in the power generation sector, as older plants have been replaced by new generation ones.

Aftermarket sales of parts and service make up a substantial proportion of the revenues of UK pump suppliers, which provides suppliers with some degree of stability, even during periods of recession. This is due to the relatively high installed base of pumps in the UK market. The pump market can be divided into two core product sectors, centrifugal pumps and positive displacement pumps, with centrifugal pumps accounting for around 60% of the total market.

Key factors underpinning future market growth include the replacement of ageing infrastructure in the power generation sector, the need to boost housebuilding, and the impact of climatic change leading to a need to improve flood defences. Other key market influences include the growth of the pump hire sector. Offsetting these are the fall in investment in the oil & gas sector resulting from the collapse of oil prices. In addition, the uncertainties regarding future capital investment in the water and wastewater sector created by the change in the way budgets are set under the new Asset Management Plan (AMP6) may also affect demand.

“Current forecasts indicate that the UK pump market is likely to show a reasonable level of growth of around 2-3% per annum up to 2019, reflecting growth in construction, together with continuing significant investment in the power generation sector, which should be a key driver of growth in the UK pumps market” said Keith Taylor, Director of AMA Research. “This is initially via investment in new generation gas-fuelled power stations, and in the longer term, from new nuclear build.”

Other long term development opportunities include new technologies such as carbon capture and storage and tidal lagoons. In the water and wastewater sector, however, there is likely to be more emphasis on repair and maintenance rather than new capital expenditure compared with previous asset management programmes, though investment in flood defence programmes may increase demand for pumps such as submersible pumps and puddle pumps.

The ‘Pump Market Report – UK 2015-2019 Analysis’ is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Plumbing Contractors Market Report - Key Facts

Did you know that...

1. Indications for 2015 are positive for plumbing contractors and it is hoped the market will achieve value growth of around 6% during the year.
2. London & the South East represents the largest market for plumbing contracting services, accounting for 28% of all installations by value.
3. The majority of revenue at 65% is generated by small local and regional companies. The largest contractors account for an estimates 10% of the total market.
4. Significant plumbing contractor business in the South West include Robert Heath Heating and ALHCO Group. F.P Hurley & Sons, APO Chant Plumbing & Heating and Shackleton & Wintle.
5. The volume of plumbing contractor businesses has dropped in Northern Ireland over the last 3 years, the only region to have experienced a fall in this period.

These facts have been extracted from AMA Research's report 'Plumbing Contractors Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Non-Domestic Catering Equipment Market Report - Key Facts

Did you know that...

1. The market for non-domestic catering equipment is worth over £750 million.
2. Cooking equipment is the largest sector accounting for over 50% of the market.
3. Refrigeration, steel fabrication and warewashing are all key sectors.
4. Hospitality is the largest sector, but health and education account for a combined share of around 20% of sales of catering equipment.
5. The market is fragmented with the top 5 suppliers only accounting for 35-40%.

These facts have been extracted from AMA Research's report 'Non-Domestic Catering Equipment Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Health and Safety Products Market - Key Facts

Did you know that...

1. Health and safety products (non-domestic) are worth over £750 million.
2. Hygiene products account for around 40% of the market.
3. General purpose first aid kits account for an estimated 45% of the first aid products market.
4. The sector is fragmented with the top 5 suppliers having a combined share of 30-55%.
5. Distribution is also fragmented and industrial distributors account for over 30% of the market, with Arco a major player.

These facts have been extracted from AMA Research's report 'Health and Safety Products Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Growth of up to 9% Forecast in the UK Prefabricated Plant Rooms Market

The prefabricated plant rooms market is a developing sector and as such, has seen significant growth in recent years. Growth in 2015 is forecast to reach 7% compared with 2014. However, the sector’s performance is highly dependent on the performance of the wider manufacturing industry, the M&E engineering market and the overall construction industry. Following a significant fall in 2012, the market grew strongly in 2013 as a result of the improving economic climate and continuing growth in key end use construction markets.

Prefabrication within the plant room market remains a growing concept and penetration across many end use sectors is low, offering potential for continued good levels of growth. Some sectors, such as retail and leisure, have embraced this type of technology but there remains an ever widening number of end user markets into which this technology is being placed. The underlying trend towards increasing levels of off-site manufacturing in order to achieve cost savings and health & safety benefits has continued to support the market. One particular area of growth in recent years has been in the area of biomass, which has been driven in part by the introduction of the Renewable Heat Incentive subsidy.

Health and education represent the largest end use sectors, accounting for 34% of the market by value, with projects in this sector likely to be both complex and of high value. Leisure also accounts for a significant share, followed by the retail and domestic end use markets. Industrial sectors such as manufacturing and warehousing represent a further 5% with the remaining market made up of other sectors such as corporate offices, public sector buildings and agriculture. The leisure and agriculture markets are expected to continue producing opportunities for prefabricated plant rooms over the next few years, with hotels in particular, anticipated to exhibit good growth. However, penetration in these areas is higher, which may limit growth to some extent.

In terms of supply, the market remains split between smaller, specialist manufacturers and large M&E contractors for whom this activity is a small part of their overall portfolio. The number of new entrants continues to grow in this market, but there are still relatively few manufacturers currently active in the UK.

The lack of maturity in the prefabricated plant room market means it is likely to continue to experience strong growth rates over the next few years. The upturn in both the wider construction industry and the M&E sector are also driving factors, though the Government are continuing to seek ways of reducing the deficit by cutting public sector spending, which could limit public sector opportunities for M&E contractors in the next few years. That said there are a number of “schemes” whereby private funding is being channelled into public sector projects, such as university expenditure, student accommodation, Free schools / Academy schools etc.

The fact that many businesses are also keen to find cost savings has led to demand for more energy efficient heating, lighting and ventilation systems, with work also stimulated by legislation and guidelines around carbon reduction and renewable energy sources. As a result energy management will become an even more important area of focus for M&E contractors and ‘plant’ providers. The wider use of renewable energy systems is also likely to lead to greater opportunities in terms of integrating the renewable energy applications with building management systems and with other building services.

“Good growth in this market of 7-9% is forecast until 2017, reflecting the gradual return of confidence and greater levels of new build across many commercial, industrial and manufacturing sectors“ said Keith Taylor, Director of AMA Research. “The market is also likely to continue to be stimulated by the increasing emphasis on renewable energy, driven by higher energy costs and tighter legislation. Prefabricated plant rooms can effectively build efficiency into M&E designs from an earlier stage, which should also aid this sector.”

The ‘Prefabricated Plant Rooms Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Warehousing Construction Market - Key Facts.

Did you know that...

1. After a difficult period, warehousing construction output is estimated to have grown by around 10% in 2014.
2. Take-up of space rose by 26% in 2013, with availability falling and driving demand for new developments.
3. More occupiers are focusing on the ‘regional hub’ model rather than centralised distribution centres.
4. Growth in speculative developments is weighted towards the Midlands, South East / East London – the automotive sector is a big driver of demand.
5. A range of developers are looking to expand output over the next 4-5 years.

These facts have been extracted from AMA Research's report 'Warehousing Construction Market Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Product Innovation Drives Growth in the UK Pet Accessories Market

The market for pet accessories is expected to have reached a value of over £800m in 2015. The sector is considered to be relatively resilient to economic downturns and has generally experienced steady levels of growth over recent years - a performance which can be considered good in comparison with many other ‘home product’ markets.

Key influences within the pet accessories market are pet ownership levels, trends in the types of pet owned, a demand for more convenient products and the increasing humanisation of pets, with the latter representing one of the most important reasons for the resilience of the pet accessories market during the difficult economic climate. However, the market for pet accessories remains competitive and fragmented - and lower cost imports are a key feature in some product segments, such as toys.

Accessories for dogs and cats account for the highest sales, with a combined share of around 65% of the market, while fish & reptiles and small animal products each account for an estimated 12-16% share by value. While the reptile sector has levelled out following a boom period, a sustained market is expected into the longer term. Demand in the smaller dog sector is expected to continue to grow, with manufacturers increasing their ranges in this sector.

Some sectors of the market have performed better than others in recent years. Care products are the largest product sector, with over 40% of sales, and are regarded by most pet owners as essential and have continued to underpin the market. Sales of grooming products have also experienced growth in recent years as a result of rising demand for premium products and higher ownership levels of specialist and cross breeds, which require more regular grooming. The toys sector has become increasingly polarised, with cheaper products offered by some outlets, while demand for better quality and higher value products has also increased, helping to underpin a share of over 30% of the market.

The bedding sector has experienced a similar trend, while aquariums and other vivariums have experienced lower level growth, although demand continues to be buoyant, principally from hobbyists. Collars, leads & utility products represent another low growth market. However, the trend towards smaller dogs has seen most manufacturers introducing collar ranges to address this demand and the sector has also benefited in recent years from an increased demand for dog coats.

In terms of distribution, pet superstores account for the largest share of sales, though DIY/hardware and independent pet stores also represent an important channel with a combined share of around 20%. Sales through grocery multiples and via the internet have gained share in recent years, in line with changing consumer purchasing habits, and the internet/mail order channel is now estimated to account for over 10% of the market.

Future prospects for pet accessories are relatively optimistic and the market is forecast to experience steady growth rates until 2019. Care products are forecast to continue to underpin the market, while toys are expected to remain a key product sector, and growing interest in interactive and multi-functional toys is expected to continue.

“Factors expected to help underpin the market include demand for welfare, convenience, eco-friendliness and aesthetics, as well as product innovation - a key growth area at the moment appears to be products that incorporate technology, such as automatic feeders, toys, pet monitors and pet GPS trackers” said Andrew Hartley, Director of AMA Research.

The ‘Pet Accessories Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Domestic Conservatory & Glazed Extensions Market Report - Key Facts

Did you know that....

1. The conservatory/glazed extensions market experienced good growth in 2014 and is worth over £600m at MSP.
2. Designs are changing rapidly with the growth of garden rooms, orangeries and increasing use of colour.
3. Bifold doors have grown strongly in the last three years.
4. The supply remains very fragmented – no single sales/installation company account for more than 5% of the market.
5. Replacement window companies are the dominant channel, but builders, conservatory specialists and online suppliers now account for over 25% of the market.

These facts have been extracted from AMA Research's report 'Domestic Conservatory and Glazed Extensions Market Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

UK market for commercial glazing forecast to grow by 5% in 2016

Following a difficult period, the commercial glazing market has seen a modest increase in 2013, followed by significant growth in 2014 which appears to have been sustained in 2015. Growth in 2014/15 has been mainly driven by rising demand in the office construction sector and by late-2015 there are signs of growing demand for new Grade A office space in London, as well as other cities, which is likely to stimulate growth for commercial glazing from 2016 onwards.

Construction output in the education sector has also been strong in 2014/15, which is surprising given the public sector capital budget cutbacks. The education sector is also likely to see growing demand with the roll-out of the Priority Schools Building Programme (PSBP) in England as the replacement for BSF, which should deliver £2.5bn worth of new schools to complete by 2017, and the University Technical Colleges programme and similar schemes in Scotland and Wales.

However, not all sectors are performing well. In healthcare, the shift away from building large hospitals towards smaller primary care facilities has meant less demand for curtain wall, roof glazing and windows. The decline in High Street retailing – as well as in retail parks and out-of-town developments - will probably continue, as online shopping continues to penetrate the market. In addition, the grocery multiple sector is also experiencing a major cutback in store development programmes, which will have negative implications for the glazing industry.

In terms of product sectors, commercial windows is the largest sector accounting for over 50% of sector sales, with curtain wall and ground floor treatments both substantial markets. Demand for curtain walling has been particularly buoyant in 2014/15 – growing by around 10% per annum and driven primarily by a recovery in office construction – particularly in London.  Roof glazing accounts for the smallest share at less than 10%, though rooflights are in demand for both commercial and domestic applications. Aluminium is still the dominant frame material in the commercial glazing market, but timber, PVCu, steel and composites all have reasonable shares and sector strengths.

On the supply side, some product sectors have seen relatively little change other than some smaller companies going out of business, and among the systems companies the market has remained fragmented with no truly dominant suppliers.

Andrew Hartley, Director of AMA Research said: “In the aluminium systems supply sector, the market is broadly split, with the 10 largest accounting for around 90% of this market. However, more difficult market conditions in 2012-2013 has led to a significant contraction among fabricators and installers, with several players ceasing trading, though order books have improved in 2015.”

Key to medium-term growth will be continued recovery for the private commercial construction sector, which is forecast to be the main driver for growth into the medium-term - and should more than offset the less positive performance of the public sector. As a result, the market outlook for commercial glazing in key application areas in office construction continues to offer the best areas for growth in the near to medium term future, though the leisure/entertainment construction sector also offers good opportunities.

The commercial glazing market is forecast to have grown by 5% in 2015, with further growth of 4-5% forecast for 2016. Forecasts are for more moderate, but steady, underlying annual growth at 3-4% from 2017-19, and AMA’s report highlights differences between sectors which will have implications for contractors, product and material suppliers in different markets.

The ‘Commercial Glazing Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Merger and acquisition activity to continue in UK health and education FM sectors

The market value for outsourced integrated services and TFM in health and education has fallen during 2015 and is now estimated to be worth around £3.5bn. The potential of facilities management outsourcing in the health and education sectors has been limited since the beginning of the review period, as an increase in outsourcing has been offset by the decline in new large scale projects coming to the market, due to the cancellation of large scale capital expenditure programmes in 2010 and budget cuts introduced in 2012.

However, the underlying trend towards outsourcing an increasing array of services, including a gradual shift towards ‘bundled service’ and TFM contracts, has been a positive influence on growth, adding to contract values. This is likely to continue as efficiencies are sought in order to operate within ever tightening budgets, prompted further by a political focus on private sector involvement and greater levels of co-operation across regions and departments. Healthcare represents the largest sub-sector in this market, while FM outsourcing within the education sector is less well established.

The public health sector has undergone a period of restructuring which has limited the development of the FM market in this sector, and significant changes also came into effect in April 2013. However, the market is thought to have started to normalise from these effects and the scope for increased penetration nevertheless remains a positive influence, supported by the Government’s encouragement of more cross-regional co-operation in procurement. Energy conservation is also likely to remain a key driving factor within the FM market. 

The education sector had been expected to represent one of the most dynamic end use sectors for FM outsourcing, but is now likely to remain limited. The cancellation of Building Schools for the Future (BSF) and concern over the value of some long term PFI service contracts, coupled with the restriction on budgets, has seen new contracts decline and being renegotiated in order to bring down existing costs.

Merger and acquisition activity amongst FM providers has continued and there have also been a number of instances of business failures and market withdrawals. This has been influenced by market maturity, changes in procurement practices and moves by larger providers to expand services and geographic coverage. This trend towards consolidation is likely to continue over the medium term.

Energy conservation is likely to remain a key driving factor within the FM market. Volatile energy costs and legislation relating to carbon emissions and sustainability will encourage organisations to look at reducing consumption through energy management. While energy management already forms part of most FM contracts, the necessity to employ more complex technology and monitoring equipment is likely to enable FM providers to add value, with many providers expanding their provision in this sector.

“The announcement of a compulsory ‘Living Wage’ from 2016 is likely to result in inflationary pressures and resulting market growth as FM contractors pass on these increased labour costs” said Keith Taylor, Director of AMA Research. “Some absorption of the costs and erosion of margin seems likely, though the 36% rise in ‘Living Wage’ up to 2020 will probably be impossible to totally absorb.”

The outlook for the FM outsourcing market within healthcare and education is considered to be modest over the short to medium term, reflecting government focus on private sector involvement balanced by the need to work within restricted budgets. Focus on ‘Value for money’ continues to support the market in terms of outsourcing penetration, although it can limit individual contract values.

The ‘Facilities Management Outsourcing - Health and Education Market Report – UK 2015-2019 Analysis’ is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Electrical Products Distribution Market Report - Key Facts

Did you know...

1. The electrical products market was estimated to be valued at around £13.9bn in 2014.
2. Over half the electrical product market is distributed via electrical wholesalers and direct sales.
3. The national sector is estimated to account for around 81% of the electrical wholesale channel by value in 2014.
4. The OEMs, panel builders and system integrators channel is estimated to be responsible for c£750 million of electrical product sales.
5. The market for online distribution of electrical products was estimated to be worth 3% of the total.

These facts have been extracted from AMA Research's report 'Electrical Products Distribution Market Report - Focus on Internet - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

UK shower products market estimated to grow by 4% in 2015

2015, the value of the UK shower equipment market is expected to have increased by around 4% compared to 2014, reflecting continued steady growth in the building and home improvement markets in particular. Between 2010 and 2012, the market for showering products was relatively volatile, but since 2013 there has been a notable increase, with demand picking up as the housing market recovers and consumer confidence levels improve.

The majority of UK households now have at least one shower installation in their property - the level of penetration has climbed significantly since the late 1990’s to reach around 89% in 2014, which is equivalent to roughly 23.8 million UK homes. The growing popularity of showers has been driven by a number of factors such as; smaller average household size, smaller average property size and a rising proportion of houses, flats and apartments that have small bathrooms. In addition, the trend towards multi-generational living has positively impacted on demand for accessible solutions that make bathrooms easier to use and more functional.

Other factors that have impacted the market positively include rising disposable incomes and lifestyle changes, product development focused on quality and design with a trend towards higher value products and contemporary styles. At the luxury end, these products include large rainfall shower heads, steam hydro-massage shower cabins, digital shower controls and minimalist wet room areas. Sustainability and water efficiency has also become a major concern with UK householders and as a result, water saving shower equipment is in greater demand.

Shower controls account for the greatest proportion of the overall shower equipment market, though enclosures, screens and trays account for only moderately less than the shower controls sector. As a result of the maturing shower market and high level of shower usage, replacement products such as shower accessories have grown share to 13%. Many products are now designed specifically for retrofit purposes with ease of installation an important consideration.

Shower products for the domestic and commercial sectors are distributed through a wide range of channels. The main distribution channel continues to be builders and plumbers merchants with the DIY multiples also holding a substantial share. Other retail channels include bathroom specialists, grocery multiples, mail order retailers and department stores. Online retailers are also becoming more important as consumers increasingly use the internet to source the best deals. Manufacturers are also selling spare parts and accessories direct to the consumer online.

“There has been a continued growth in the popularity of showering over the last decade and showers have become an essential fixture in the modern home” said Hayley Thornley, Research Manager at AMA Research. “While showers are now installed as standard in most new build homes, as the market matures it is the replacement market that is likely to hold the most potential for growth. An increasing number of shower products are now designed specifically for retrofit purposes”

The outlook for the UK shower equipment market in 2015 looks positive with good growth of 3-5% per annum anticipated into the medium-longer term. However, pricing pressures are likely to remain intense due to rising levels of imported products and an increasingly competitive distribution market. Future trends include the growth in wetrooms and walk-in shower areas, the increasing popularity of digital showers and forecast growing demand for ‘inclusive’ shower products due to the ageing UK population. Other trends include the growth of water efficient shower controls driven by the introduction of the Water Label on shower products from 2014.

The ‘Shower Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Access Equipment Market Report - Key Facts

Did you know that....

1. Sales of access equipment have grown by over 10% in the last 2 years.
2. Powered access products account for over 55% of the market.
3. Ladders, scaffolding and access towers account for 40% of the market.
4. Scissor lifts are the largest sector of the MEWPs sector, but self-propelled booms also account for 30% of sector sales.
5. The hire market accounts for around 50% of industry sales – but higher in the powered access sector.

These facts have been extracted from AMA Research's report 'Access Equipment Market Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

6% growth forecast for the UK building insulation market in 2015

UK market for building insulation has recovered somewhat in 2014 as housebuilding levels have continued to rise and initiatives such as the Green Deal and ECO have gained some momentum. This followed a significant downturn in 2013, which was due to a fall in government-subsidised retrofitted installation activity, and saw the total market value fall by around 7%.

Although there has been growth in demand for insulation products from increasing levels of new housebuilding and in non-domestic building, the Green Deal and Energy Company Obligation (ECO) have so far only generated a fraction of the levels of domestic installation activity of previous government initiatives such as CERT and CESP, which ended in 2012. Other key market influences include changes to Building Regulations and energy prices changes. Although crude oil and gas prices have fallen recently, energy prices are forecast to rise over the longer-term, which is likely to result in higher end-product prices for insulation products.

PUR / PIR products now have the largest market share of insulation products, accounting for ~40% by value in 2014. The market value of mineral wool products has fallen due to the fall in demand for such products under the Green Deal and ECO, but they still account for a third of the total market in the UK. With retrofit the most important market, the key areas of demand by application have been cavity walls and lofts. The share held by solid walls was just 10%, although this is around 10 times higher than under CERT/CESP.

By end-use sector, despite the dramatic fall in demand under the Green Deal and ECO, the most important market remains domestic retrofit, which accounts for ~40% by area installed and the key areas of demand by application have been cavity walls and lofts. The non-domestic market is also significant and mainly consists of insulation for flat roofs and site-built metal cladding and roofing systems. The share for new housebuilding is higher than in recent years due to steadily rising numbers of housing completions.

The key supply route for insulation products are the specialist (interiors) distributors. Builders’ merchants account for approximately 15% of the market, the remainder being split between direct sales to installers, direct sales to external wall insulation systems companies, converters and DIY stores. The installation market is polarised between a small number of national companies and many regional and local independent firms. The leading contractors typically provide other energy efficiency services as well as insulation work.

“Although the non-residential and new house building sectors are forecast to continue to show reasonable growth over the next five years, we expect retrofit installations in the residential sector to lag behind in terms of growth” said Keith Taylor, Director of AMA Research. “Growth in this sector has been driven by Government funded initiatives in recent years to subsidise the retrofitting of insulation, but due to the end of Green Deal funding and also the uncertainty over the longer-term future of the ECO, this suggests that growth in this sector may be more modest.”

The market for insulation products is forecast to grow by 6% in 2015, after which growth will gradually slow down to reach a level of around 3% per annum in 2019.

The ‘Building Insulation Products Market Report – UK 2015-2019 Analysis’ is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Strong growth continues in the UK education construction sector

Following exceptional growth in 2014, which brought output back to the same level as 2010 prior to the scrapping of the BSF programme, education output is thought to have grown by another 5% in 2015. Increased output rates are being driven by ongoing investment in key building programmes including the PSBP and programmes to deliver new and refurbished facilities for the primary and secondary schools estate such as the Academies Programme.

Overall current, or day-to-day, school spending in England has been relatively protected over the past 5 years, compared with other areas of public service spending and other areas of education spending, and current spending on schools increased by 3% in real terms 2010-15. However, across the education sector, capital spending has been cut by over one third in real terms which has had a negative impact on construction output in the sector.

The pupil population is expanding rapidly and overall pupil numbers are expected to grow by 7% 2016-20. This growth in pupil numbers will place additional pressures on both resource and capital budgets, which is expected to be more keenly felt in London and the South East. In addition, recently announced cuts of £900m to the DfE and BIS budgets announced in the 2015 Budget are likely to impact higher education and further education spending and the administration of arms lengths bodies in the DfE.

University construction work decreased steadily 2008-12, primarily as a result of budget cuts taking effect. However, in 2014, the value of public sector university work to contractors saw a 45% increase on 2013 and reached its highest ever level. In addition, further education has also benefited from improvements and new facilities for FE colleges whilst the University Technical Colleges programme is likely to boost output growth into the medium-term. However, universities are expected to remain a small market in terms of construction.

“The key to the future of education output remains the rate of procurement and funding of key national building programmes and the continued use of PF2 to fund the programme” said Jane Tarver of AMA Research. “In the new build sector, the Government’s Priority Schools Building Programme (PSBP) is expected to generate increased workloads in 2016 along with other major programmes in the schools sector, while investment is also increasing among UK universities as competition to attract overseas students intensifies.”

Going into 2016 and beyond, the outlook for the student accommodation sector also remains positive, with student numbers expected to increase with the removal of the cap on student numbers, and the acute undersupply in many of the major university towns across the UK. As such, the student accommodation sector will continue to be characterised by acute undersupply in many of the major university towns across the UK ensuring that the pipeline of new developments will remain buoyant over the coming years.

The ‘Education Construction Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.