2022
9
UK Schools, Universities and Hospitals Market Report 2022
2022-02-23T03:19:32+00:00
OX1101281
1495
148195
[{"name":"Construction","url":"https:\/\/store.mintel.com\/industries\/business-industrial\/construction"}]
Report
en_GB
“The prospects for the UK market for new construction of schools, universities and health facilities are strong, driven by a significant increase in public capital expenditure on schools and hospitals…

UK Schools, Universities and Hospitals Market Report 2022

£ 1,495 (Excl.Tax)

Description

 

The UK Schools, Universities and Hospitals report identifies consumer attitudes towards estates, capital funding channels, and the education and hospital market in the UK. This market report covers the market size, market forecast, market segmentation and industry trends for the Schools, Universities and Hospitals market in the UK.

Current Market Landscape

In 2021, growth was largely driven by buoyant construction activity in the health sector, driven by a significant increase in public capital expenditure on schools and hospitals as the government started to tackle the condition of both estates by committing to long-term capital investment.

  • There was a 7% rise in construction output in 2021, following an 18% decline in 2020.
  • The public sector accounted for an estimated 60% of construction output in 2021, up from 52% in 2018.

Projects were disrupted by site closures during the initial lockdown, but most contractors operated normally during the second and third national lockdown. There was a stronger retrenchment of activity in the universities segment due to greater private investment involvement and rise in uncertainty, caused both by COVID-19 and Brexit.

Future Market Trends in Schools, Universities and Hospitals

The prospects for the UK market for new construction of schools, universities and health facilities are strong. Key commitments include the 10-year school rebuilding programme and the government’s major hospital building programme, which aims for 40 new hospitals to be built by 2030.

Future build projects will also see a significant focus on sustainability and energy efficiency in order to meet clients’ sustainability targets and support the UK’s progress towards Net Zero by 2050. With the construction industry facing large and persistent skills gaps and shortages, this may hamper its ability to make good on the government’s Net Zero ambitions. Considerable investment will be required across the industry to tackle the skills crisis.

Read on to discover more details or take a look at all of our UK Industrial market research

Quickly understand

  • The impact of COVID-19 on the schools, universities and hospitals construction market.
  • Market sizes and segmentations of the schools, universities and hospitals construction market.
  • Summaries of estates, and funding channels for capital works for schools, universities and hospitals.
  • A review of industry structure and recent company activity, performance and strategy.

Covered in this report

Brands: Balfour Beatty, Galliford Try, Kier Group, Skanska UK, Wilmott Dixon.

Expert analysis from a specialist in the field

This report, written by Claudia Preedy, a leading analyst in the Retail sector, delivers in-depth commentary and analysis to highlight current trends and add expert context to the numbers.

The prospects for the UK market for new construction of schools, universities and health facilities are strong, driven by a significant increase in public capital expenditure on schools and hospitals as the government starts to tackle the condition of both estates by committing to long-term capital investment.
Key commitments include the 10-year school rebuilding programme and the government’s major hospital building programme, which aims for 40 new hospitals to be built by 2030.
Across public build projects there will be a wider adoption of modern methods of construction to reduce on-site disruption, increase efficiencies and speed up the site programme. Future projects will also see a significant focus on sustainability and energy efficiency in order to meet clients’ sustainability targets and support the UK’s progress towards Net Zero by 2050. This will require considerable investment in skills and employment in the construction industry to make the move to Net Zero possible.

Claudia Preedy
Senior B2BAnalyst

Table of Contents

  1. Overview

    • Key issues covered in this Report
    • COVID-19: market context
    • Economic and other assumptions
    • Covered in this Report
  2. Executive Summary

    • Impact of COVID-19 on schools, universities and hospitals
      • Figure 1: Short-, medium- and long-term impact of COVID-19 on the construction of schools, universities and hospitals, 2020-25
    • The market
    • Health sector drives growth in new construction output in 2021
      • Figure 2: UK market for new construction of schools, colleges, universities and health facilities (£bn), 2017-21
    • Public sector accounts for 60% of new construction output
      • Figure 3: UK market for new construction of schools, universities and hospitals, by activity (£bn), 2017-21
    • Education sector
      • Figure 4: UK market for new construction, education segment, by activity (£n), 2017-21
    • Hospitals
    • Companies and brands
    • Industry structure
    • Framework popularity persists
  3. Issues and Insights

    • Wider adoption of modern methods of construction
    • Move to Net Zero will require significant investment in skills and employment across construction industry
  4. Market Size and Performance

    • Pandemic disruption slows activity but enforces commitments to long-term investment
      • Figure 5: Short-, medium- and long-term impact of COVID-19 on the construction of schools, universities and hospitals, 2020-25
    • Health sector drives growth in new construction output in 2021
      • Figure 6: UK market for new construction of schools, colleges, universities and health facilities (£bn), 2017-21
    • Wider adoption of MMC and focus on sustainability in new public build projects
  5. Market Segmentation

    • Decrease in education activity offset by rise in public health spending
      • Figure 7: UK market for new construction of schools, universities and hospitals, by activity (£bn), 2017-21
    • Education
      • Figure 8: UK market for new construction, education segment, by activity (£bn), 2017-21
    • School estate
      • Figure 9: Schools by nation and school type (number of schools), 2020-21
      • Figure 10: UK schools by type (number of schools), 2016/17-2020/21
      • Figure 11: Pupils in UK schools by school type (number of pupils), 2016/17-2020/21
      • Figure 12: UK average number of pupils by school type (number of pupils per school), 2016/17-2020/21
    • University estate
      • Figure 13: UK university estate by nation (units and hectares), 2019-20
    • Health
    • Restrained health funding over past decade has resulted in underinvestment in capital
    • Construction output
      • Figure 14: UK market for new construction, health segment, by activity (£bn), 2017-21
  6. Schools

    • Current outlook
    • English school estate condition
      • Figure 15: English School estate condition need, by education phase, 2019 (Number, M2 and £)
      • Figure 16: English School estate condition need, by region, 2019 (Number, M2 and £)
    • School funding in England
    • Basic need funding
      • Figure 17: Basic need funding allocations, by English region (£m), 2019/20 and 2020/21
    • School condition funding
      • Figure 18: English schools capital funding (£m), 2016/17-2021/22
    • School condition allocation spending outcomes
      • Figure 19: SCA-funded capital spending by type of work delivered (proportion of total SCA funding), 2018-19
  7. Universities

    • Current outlook
      • Figure 20: Top 10 UK universities by number of overseas students (number of students), 2019-20
      • Figure 21: Higher education student enrolments by level of study (number of enrolments), 2015/16-2019/20
      • Figure 22: UK universities sector capital expenditure and sources (£000), 2015/16-2019/20
    • England
      • Figure 23: Total higher education capital funding (£m), 2016/17-2020/21
    • Scotland
      • Figure 24: Scottish Funding Council capital funding allocations, 2016/17-2021/22
  8. Hospitals

    • Current outlook
    • Funding channels and capital expenditure
    • England
      • Figure 25: Cost to eradicate backlog maintenance by risk level (£m), 2019/20 and 2020/21
    • Scotland
      • Figure 26: Health and social care capital expenditure budget (£m), 2018/19-2022/23
    • Summary of estates
    • England
      • Figure 27: NHS England estate profile (number of sites), 2019/20 and 2020/21
      • Figure 28: Public hospital bed availability in England (number of beds), Q1 2016/17-Q2 2021/22
      • Figure 29: Public hospital bed occupancy in England (%), Q1 2016/17-Q2 2021/22
    • Scotland
      • Figure 30: NHS Scotland Hospital profile (number and area), 2017
      • Figure 31: Public hospital bed availability and occupancy in Scotland (number of beds and %), 2011/12-2020/21
    • Wales
      • Figure 32: Public hospital bed availability and occupancy in Wales (number of beds and %), 2011/12-2020/21
  9. Industry Structure

    • Changes in industry structure
      • Figure 33: Analysis of changes in ‘construction of residential and non-residential buildings’ activities (number of outlets and businesses), 2017-21
    • Structure by employment
      • Figure 34: Analysis of the employment structure of ‘construction of residential and non-residential buildings’ activities (number of outlets), 2020 and 2021
    • Structure by turnover
      • Figure 35: Analysis of the turnover structure of ‘construction of residential and non-residential buildings’ activities (£000, number of businesses), 2020 and 2021
  10. Company Profiles

    • Balfour Beatty
    • Balfour Beatty has simplified and refocused operations through its Build to Last programme
    • Recent company activity in the health and education sectors
    • Financial performance
      • Figure 36: Financial analysis of Balfour Beatty, 2016-20
      • Figure 37: Turnover analysis of Balfour Beatty, by segment, 2018-20
    • Galliford Try
    • Strategy
    • Recent contract awards in the health and education sectors
    • Financial information
      • Figure 38: Financial analysis of Galliford Try (£m and %), 2017-21
    • Kier Group
    • Strategy
    • Financial performance
      • Figure 39: Financial analysis of Kier Group (£m), 2017-21
    • Skanska UK
    • Skanska adopts Laser Focus Plan to improve performance and focus on core business
    • Skanska sells its infrastructure services arm
    • Recent contract wins in the education sector
    • Financial performance
      • Figure 40: Financial analysis of Skanska UK, 2016-20
    • Wilmott Dixon
    • Recent company activity in education and health sectors
    • Financial information
      • Figure 41: Financial analysis of Willmott Dixon Construction (£m and %), 2016-20
  11. Appendix – Data Sources, Abbreviations and Supporting Information

    • Abbreviations
    • Methodology
  12. 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
    • Design London
    • Education Estates (exhibition and conference)
    • Futurebuild
    • London Build 2022
    • UK Construction Week

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