2023
9
UK Construction Market Report 2023
2023-05-26T12:52:12+01:00
OX1156127
1495
163535
[{"name":"Construction","url":"https:\/\/store.mintel.com\/industries\/business-industrial\/construction"}]
Report
en_GB
“The construction sector regularly exaggerates GDP changes, and with recent substantial macroeconomic movements relating to Brexit, the pandemic and now inflation/higher interest rates, market movements have been significant as have…

UK Construction Market Report 2023

£ 1,495 (Excl.Tax)

Description

Stay ahead of the curve and future-proof your business with Mintel’s UK Construction Market Report 2023. Our full report is packed with consumer-led market intelligence, the latest trends and industry analysis. Get a 360° view of the UK construction market including market size, segmentation and forecasted growth to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • How the different construction sectors have fared during a succession of major macroeconomic events, including Brexit and the pandemic and now high inflation/interest rates.
  • How structural changes within the highly varied different end-use markets are impacting demand.
  • Why the challenge of meeting net zero targets requires substantial retrofit and improvement activity as well as changing new construction techniques and materials.
  • How the housing RMI reacted post-pandemic but is now challenged by surging inflation as well as the implications of mortgage availability/affordability.
  • Why the industry structure is so unusual in the construction sector with significant SME activity.

UK Construction Market Overview

The UK construction market demonstrated strong growth in 2021, and this growth has further accelerated in 2022. Mintel’s industry experts forecast a difficult 2023 as economic uncertainty impacts the construction sector. However, when economic conditions return to normal, improved business confidence will drive growth.

  • UK construction market size: The market increased by 16.3% in 2022. 
  • UK construction market segmentation: New construction represented 62% of the total market. Housebuilding accounted for almost half of that.
  • UK RMI sector market segmentation: In the repairs, maintenance and investment sector, half the market is accounted for by private housing.

UK Construction Market Trends

The housing market is highly important to the total construction market. This market is far more exposed to consumer confidence, so is the most vulnerable to the ongoing cost-of-living crisis. Consumer spending power will be curbed and this will impact the housing construction and RMI markets.

In the short term, the industry as a whole continues to face supply chain issues and skills shortages. One of the biggest long-term challenges to the construction sector is its role in helping meet the government’s net zero targets set for 2050.

UK Construction Companies Profiled in this Report

Barratt Developments, Galliford Try, Kier Group, Morgan Sindall Group, Persimmon, Taylor Wimpey.

Additional Features Included with Your Purchase

  • Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as Word and Excel.
  • Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trend pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.

To learn how to connect with your audience, purchase our full UK Construction Market Report 2023. Discover lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Expert Insights from a Construction Industry Analyst

This report, written by Terry Leggett, a leading industrial analyst, delivers in-depth commentary and analysis to highlight current trends in the UK construction market and add expert context to the numbers.

The construction sector regularly exaggerates GDP changes, and with recent substantial macroeconomic movements relating to Brexit, the pandemic and now inflation/higher interest rates, market movements have been significant as have supply chain and skill availability issues. It also serves vastly different sectors of the economy, all of which have very different reactions to the economic changes and display different structural considerations. Importantly, construction has a high reliance on business and consumer confidence levels, which is why large elements of the sector can be volatile. The industry now also faces significant challenges with propelling the UK towards net zero targets by 2050. Given that 85% of the building stock that will exist in 2050 has already been built, there are major retrofit and improvement opportunities arising.

Terry Leggett - Senior AnalystTerry Leggett
Principal Analyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • Products covered in this Report
  2. Executive Summary

    • A difficult 2023, before recovery
      • Figure 1: Category outlook, 2023-27
    • The market
    • Market size and forecast
      • Figure 2: Market size for construction, 2017-27 (£ billion)
    • New construction segmentation and drivers
      • Figure 3: Market for new construction, 2017-27 (£ billion)
      • Figure 4: Segmentation of new construction activity, 2022 (£ billion)
    • RMI segmentation and drivers
      • Figure 5: Segmentation of RMI construction activity, 2022 (£ billion)
      • Figure 6: Segmentation of the RMI construction activity, 2022 (£ billion)
    • Companies and brands
      • Figure 7: Number of companies active in construction, 2016-21
      • Figure 8: Revenue structure in construction, by size of company, 2022
    • Main trade composition
      • Figure 9: Composition of main trades contractors, 2021 (number of companies)
      • Figure 10: Segmentation of major specialist construction trades, 2021 (number of companies)
  3. Issues and Insights

    • Housing impacted by current economic conditions
      • Figure 11: UK house price index, 2006-22 (annual % change)
      • Figure 12: Average UK house prices, 2006-222 (£s)
      • Figure 13: UK housing transactions, 2006-23
    • Net zero buildings – a target lacking a system
  4. Market Size and Performance

    • Strong growth
      • Figure 14: Market size for construction, 2017-22 (£ billion)
      • Figure 15: Market size for construction at 2017 prices, 2017-22 (£ billion)
    • New construction
      • Figure 16: The new construction market, 2017-22 (£ million and indexed against 2017)
    • RMI
      • Figure 17: The RMI construction market, 2017-22 (£ million and indexed against 2017)
  5. Market Forecast

    • A difficult 2023, before recovery
      • Figure 18: Category outlook, 2023-27
    • Continued contradiction of GDP
      • Figure 19: Market forecast for construction, 2022-27 (£ billion)
      • Figure 20: Market forecast for new construction, 2022-27 (£ billion)
      • Figure 21: Market forecast for RMI construction activity, 2025-27 (£ billion)
    • Learnings from the last income squeeze
  6. Market Segmentation

    • A diverse market
      • Figure 22: Segmentation of new construction activity, 2022 (£ billion)
      • Figure 23: Segmentation of the RMI construction activity, 2022 (£ billion)
  7. Segmentation: New Housing

    • The context
      • Figure 24: Housing completions in England, by sector, 1962-2022 (number)
    • Recent activity
      • Figure 25: The new housebuilding market, 2017-22 (£ million and indexed against 2017)
    • Segmentation
      • Figure 26: Segmentation of the new housebuilding market, 2017-22 (£ million)
    • Outlook
      • Figure 27: Forecast for new housebuilding market, 2022-27 (£ million)
  8. Segmentation: New Private Commercial

    • A sensitive sector
      • Figure 28: Long-term development of commercial construction, 1970-2022 (£ million)
    • Recent activity
      • Figure 29: The new commercial construction market, 2017-22 (£ million and indexed against 2017)
    • Segmentation
      • Figure 30: Segmentation of the commercial construction market, 2017-22 (£ million)
    • Outlook
      • Figure 31: Forecast for commercial construction market, 2022-27 (£ million)
  9. Segmentation – New Private Industrial

    • A changing sector
      • Figure 32: Long-term development of industrial construction, 1970-2022 (£ million)
    • Recent activity
      • Figure 33: The new industrial construction market, 2017-22 (£ million and indexed against 2017)
    • Segmentation
      • Figure 34: Segmentation of the industrial construction market, 2017-22 (£ million)
    • Outlook
      • Figure 35: Forecast for industrial construction market, 2022-27 (£ million)
  10. Segmentation – Public Non-residential

    • Government policy determines trends
      • Figure 36: Long-term development of public non-residential construction, 1970-2022 (£ million)
    • Recent activity
      • Figure 37: The new public non-residential construction market, 2017-22 (£ million and indexed against 2017)
    • Segmentation
      • Figure 38: Segmentation of the public non-residential construction market, 2017-22 (£ million)
      • Figure 39: Department of Health and Social Care spending, 2015-25
    • Outlook
      • Figure 40: Forecast for public non-residential construction market, 2022-27 (£ million)
  11. Segmentation – RMI Housing

    • Context
    • Public housing
      • Figure 41: RMI expenditure on public housing, 2017-22 (£ million)
      • Figure 42: Forecast RMI expenditure on public housing, 2022-27 (£ million)
    • Private housing
      • Figure 43: RMI expenditure on private housing, 2017-22 (£ million)
      • Figure 44: Forecast RMI expenditure on private housing, 2022-27 (£ million)
  12. Segmentation – RMI Private non-residential

    • Context
    • Recent activity
      • Figure 45: RMI expenditure on private non-residential buildings, 2017-22 (£ million)
      • Figure 46: Forecast RMI expenditure on public non-residential construction, 2022-27 (£ million)
  13. Segmentation – RMI Public Non-residential

    • Context
    • Recent activity
      • Figure 47: RMI expenditure on public non-residential buildings, 2017-22 (£ million)
      • Figure 48: Forecast RMI expenditure on public non-residential construction, 2022-27 (£ million)
  14. Market Drivers

    • The economy
    • Inflation will continue to eat into consumer spending power over the course of 2023
    • Further interest rates increases will hit mortgage-holders
    • High inflation and rising interest rates will compound the impact of the slowing recovery
    • Consumer spending power will be curbed
    • Low unemployment is helping underpin
    • Consumers’ financial wellbeing has fallen from the highs of 2021…
      • Figure 49: Household financial wellbeing index, 2016-23
    • …and most people are feeling the effects of price rises
  15. Industry Structure

    • A substantial industry
      • Figure 50: Number of companies active in construction, 2016-21
    • The industry composition
      • Figure 51: Composition of main trades contractors, 2021 (number of companies)
      • Figure 52: Segmentation of major specialist construction trades, 2021 (number of companies)
    • Analysis by turnover
    • Total construction
      • Figure 53: Revenue structure in construction, by size of company, 2022
    • New construction turnover
    • Public housebuilding
      • Figure 54: Revenue segmentation in new public housebuilding, by size of company, 2022
    • Private housebuilding
      • Figure 55: Revenue segmentation in new private housebuilding, by size of company, 2022
    • Private commercial construction
      • Figure 56: Revenue segmentation in new commercial construction, by size of company, 2022
    • Private industrial construction
      • Figure 57: Revenue segmentation in new industrial construction, by size of company, 2022
    • Public non-residential construction
      • Figure 58: Revenue segmentation in new public non-residential construction, by size of company, 2022
    • Repair, maintenance and improvement turnover
    • Public housing
      • Figure 59: Revenue segmentation in public housing repair, maintenance and improvement activity, by size of company, 2022
    • Private housing
      • Figure 60: Revenue segmentation in private housing repair, maintenance and improvement activity, by size of company, 2022
    • Private non-residential
      • Figure 61: Revenue segmentation in private non-residential repair, maintenance and improvement activity, by size of company, 2022
    • Public non-residential
      • Figure 62: Revenue segmentation in public non-residential repair, maintenance and improvement activity, by size of company, 2022
  16. Company Profiles

    • Barratt Developments
    • Activity
    • Performance
      • Figure 63: Financial performance of Barratt Developments, 2018-22 (£ million)
      • Figure 64: House completions by Barratt Developments, 2020-22 (Number)
      • Figure 65: House completions by Barratt Developments, by unit type, 2021-22 (%)
      • Figure 66: House completions by Barratt Developments, 2021 and 2022 (%)
    • Strategy
    • Galliford Try
    • Activity
    • Performance
      • Figure 67: Financial performance of Galliford Try, 2018-22 (£ million)
      • Figure 68: Segmentation of forward orders for Galliford Try business division, 2021 and 2022 (£ million)
    • Strategy
    • Kier Group
    • Activity
    • Performance
      • Figure 69: Financial performance of Kier Group, 2018-22 (£ million)
    • Strategy
    • Morgan Sindall Group
    • Activity
    • Performance
      • Figure 70: Financial performance of Morgan Sindall Group, 2018-22 (£ million)
      • Figure 71: Revenue segmentation of Morgan Sindall Group, 2022 (£ million)
    • Strategy
    • Persimmon
    • Activity
    • Performance
      • Figure 72: Financial performance of Persimmon, 2018-22 (£ million)
    • Strategy
    • Taylor Wimpey
    • Activity
    • Performance
      • Figure 73: Financial performance of Taylor Wimpey, 2018-22 (£ million)
    • Strategy
  17. Appendix – Data Sources, Abbreviations and Supporting Information

  18. Appendix – Forecast Methodology

    • Market forecast and prediction intervals
      • Figure 74: Forecast market for construction, 2022-27 (£ billion)
    • Market drivers and assumptions
  19. Further Sources and Contacts

    • Trade associations
    • Trade magazines

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

Market

Mintel provides a range of market information, frequently through the category level, including market size and forecasting, complete with market drivers that illustrate the forces that shape a category or market.

Consumer

Mintel’s proprietary consumer research provides our analysts with the attitudinal and behavioral data used to provide valuable insight to topical issues.

Brand/Company

Mintel provides overviews of the top brands and manufacturers, and uses consumer research to explore attitudes and reactions to brands, as well as insight into what will resonate with consumers.

Data

Market reports provide appendices of data to support the research and insight produced. Our databooks* are easily manipulated and downloadable to support your research needs and covers factors from consumer attitudes to market forecasts.

*databooks not available with UK B2B Industry reports.

Below is a sample report, understand what you are buying.

Click to show report
2024 Sample Consumer Cover

Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch