UK Construction News: Top 10 Contractors Leading a Sector in GrowthLast Updated: May 1, 2019
UK contractors remain positive about the future, with the most recent data confirming a construction industry that is comfortably above that of early 2015.
ACCORDING to the UK Construction News publication the leading contracting firms in the UK have returned to growth, despite an early January 2016 deals total value that was 41.9 percent lower than that of 12 months earlier.
However, this has been attributed to the finalisation during January 2015 of the deal for phase two of the redevelopment of Battersea Power Station, which brought the monthly league table of the top 50 contractors to a four-year high.
The most recent data—for February 2016—confirms the top 10 contractors in the UK having completed a total of 83 deals, with a combined value of £1.35bn. This is slightly down on the figures for the previous month—when a greater number of deals, 87, yielded a total worth of £1.44bn.
However, the UK construction news for 2016 is positive, with year-on-year figures for each month paint a picture of growth, with figures for the top 10 contractors in the 12 months to January 2016 (997 deals worth a total of £18.83bn), having increased to 1,015 deals with a total value of £19.48bn by the end of February.
According to industry experts Glenigan, and its first BuildUK ‘State of Trade’ survey , the outlook for UK contractors is a “positive but stabilising picture”.
This picture of stability is reflected in the data for the top 10 contractors for the 12 months to January and February, which show a reshuffling of the league table positions, rather than any new entries. This is not only positive news for UK Contractors but also for associated industries that provide materials to these contractors from building supplies to generator units.
Top 10 UK Contractors for 12 months to January 2016
Top 10 UK Contractors for 12 months to February 2016
According to research specialists, Leading Edge, total construction output is expected to reach an all time high in Great Britain this year.
The firm’s director, Mel Budd, told The Construction Index portal that GB construction output is expected to grow by 3.3 percent this year, taking total output to £135.3bn, beating the previous all-time high of £133.7bn that was reached in 2007.
“Total new orders for 2015, a good indicator of what will happen in output in 2016 and 17, showed a 2.8 percent year on year increase. Although there were sharp falls in public housing and non housing, this was expected, while infrastructure and industrial saw strong growth,” Mr Budd said.
He added: “Although the Office of Budget Responsibility has just downgraded its GDP forecasts, the UK economy is still relatively healthy and one of the fastest growing western economies which will help grow output in the construction sector.”
Although the UK construction news is largely positive, one concern within the industry identified by Glenigan is that three quarters of contractors are operating at over 75 percent capacity, and almost half at over 90 percent.
The strain on capacity is more marked on labour than on material, with management skills, professional/technical staff and supervisors having been pinpointed as the pressure areas.