1 / 26

The U.K. Construction Industry AN OVERVIEW

The U.K. Construction Industry AN OVERVIEW. Industry and its structure Some of the problems and how they are being addressed The economic context Solutions ?? Problems solved. The Construction Industry UK. Size Approx. £ 113 billion pa. (8% UK GDP) Approx 25% public sector investment

hao
Download Presentation

The U.K. Construction Industry AN OVERVIEW

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. The U.K. Construction IndustryAN OVERVIEW

  2. Industry and its structure • Some of the problems and how they are being addressed • The economic context • Solutions ?? • Problems solved

  3. The Construction Industry UK Size Approx. £ 113 billion pa. (8% UK GDP) Approx 25% public sector investment Public sector Highways, utilities, education, health, housing Private sector Housing, Offices, Industrial, retail Private sector “provision”- public service Housing (RSL), Education, health, infrastructure (PPP)

  4. Construction 2010

  5. Current position 2010

  6. Political influence ?

  7. Spending trends

  8. The UK’s four main ambitions are to: create the most competitive tax system in the G20; make the UK the best place in Europe to start, finance and grow a business; encourage investment and exports as a route to a more balanced economy; and create a more educated workforce that is the most flexible in Europe. As set out in ‘The Plan for Growth’ published alongside the Budget 2011

  9. Headline Forecasts % change year on year, unless otherwise stated Outturn Forecast 2009 2010 2011 2012 2013 2014 2015 UK GDP -4.9 1.3 1.7 2.5 2.9 2.9 2.8 Euro Area GDP -4.0 1.7 1.4 1.8 1.8 1.9 1.9 World GDP -0.7 5 4.2 4.3 4.3 4.4 4.4 PSc net borrowing 11.1 9.9 7.9 6.2 4.1 2.5 1.5 CPI 2.2 3.3 4.2 2.5 2.0 2.0 2.0 RPI -0.5 4.6 5.1 3.6 3.5 3.6 3.8 Unemployment (m) 1.53 1.5 1.54 1.53 1.43 1.31 1.18

  10. % change year on year, unless otherwise stated Outturn Forecast 2009-10 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 Consumer spending -1.9 5.1 5.2 4.2 4.6 4.6 4.6 Res property prices -2.9 5.5 -2.9 1.2 3.9 4.3 4.3 Res property transactions 14.2 -1.9 -1.0 20.2 20.4 1-.5 5.2 Comm property prices 5.9 4.7 2.1 3.9 5.6 5.2 4.2 Com property trans -17.5 11 4.5 3.1 5.1 5.3 5.2 Market interest rates 0.8 0.7 1.6 2.7 3.4 4 4.4 Euro/Sterling exc rate 1.13 1.18 1.16 1.16 1.16 1.16 1.15 Pubsec exp £ billion 600.9 632.8 656.7 669.6 682.4 694.6 713.4 Pubsec cap inv £ billion 68.9 61.6 53.7 50.7 47.7 49.1 50.4 Total Pubsec exp £ billion 669.7 694.4 710.4 720.2 730.1 743.6 763.8

  11. What is the short-term future for Construction

  12. Industry structure Categorised by small organisations employing up to 10 employees Typically trade based Is the industry concentrated? 100 largest firms same value of work as 137,000 smallest firms Top 42 firms responsible for 13% of output Possibly an argument that the industry is becoming more concentrated- main difficulty is measurement

  13. SIC Categories

  14. SIC Category F- Construction

  15. Number of firms

  16. Rise of the subcontractor Traditionally (50 yrs ago) high % employed craftsmen Now >80% work subcontracted to specialists Specialists range from high-tech Mechanical and Electrical to low-tech labour only bricklayers Result Increase in transactions in industry Increase in fragmentation Disbursement of expertise Problems- need for committees and reports Financial Management in Construction Contracting

  17. Trades and employees

  18. Problems and Reports Problems Late and low-quality projects Lack of skilled labour Poor prediction of budgets Cost overruns Disputes Communication…..

  19. Reports Over 40 since 1949 Most recent Latham 1994“ Trust and Money” Egan 1998“ Rethinking Construction” Never Waste a Good Crisis 2010 Impact KPI, Strategic and project Partnering, integration of supply chains, adoption of out of industry practice (automotive & aerospace) Main focus- public sector projects Need to improve the construction industry….

  20. Egan outcomes

  21. How have we done?Met targets ??

  22. Economic and Business Blockers…

More Related