Abstract
INTRODUCTION and OVERVIEW
AMA Research are pleased to announce the publication of the 1st Edition of a
new report on the UK Building and Construction Consultants Market, entitled -
" Engineering Consultants Market Report - Focus on Sector Capability and
Strategy - UK 2011-2015 Analysis" . The report should be of particular
interest to clients and supply chain members including manufacturers,
consulting engineers, architects & designers, contractors, suppliers, and
construction professionals, providing a comprehensive review of the
engineering consultancy market.
Key areas in the report:-
- Structure and size of the UK engineering consultancy sector.
- vAnalysis of key market sectors within the consulting industry.
- Analysis of the key market strengths/experience of the top 20 Tier
1 and top 20 Tier 2 consultants, Top 20 Architects and Top 20 Quantity
Surveyors operating in the UK.
- Analysis of the performance of the consulting industry including
structure, size, market segmentation and market strengths.
- Key market trends and the impact of the economic downturn on
consultants' focus and sector strategy.
- Market forecast for the Building and Construction Industry over the
next few years.
With competition for construction work now stronger than ever, consultants are
chasing growth prospects in other sectors such as environmental and energy,
driven by developments in low carbon and growth in the renewables market. As
market growth is driven by the evolving climate change agenda and the shift to
a low carbon economy we discuss key consultants' activity in this sector.
Solar thermal and PV systems are a well accepted technology in many European
countries, but overall volume demand is still relatively low in the UK -
though has grown strongly in 2010/11. Leading players are a mix of specialists
in solar systems, or parts of major groups involved in the heating industry.
In the medium term, capacity will need to increase - not only in terms of
production, but also in terms of installation capability to meet demand
projections, though 2010/11 has seen the emergence of many new entrants into
the sector.
Areas of particular interest include:-
- A detailed review of leading consultants and their consortia
in 10 key market sectors including healthcare and education -
covering review of the sector, key consultants within, their main experience
and consortia membership.
- Key market trends and the impact of government spending cuts
on sector projects and capital programmes.
- Analysis of change and diversification within the consulting
industry as firms address the impact of the downturn on workloads and order
books.
- Analysis of the performance of construction output over the past
five years for 10 leading non-domestic market sectors and forecasts to
2015.
Major Consulting Engineers profiled in the report
Aecom, Arup, Atkins, BDP, Capita Symonds, CH2M Hill, Halcrow, Hyder, Jacobs,
Mott MacDonald Group, Mouchel, Parsons Brinckerhoff, Turner & Townsend, URS
Scott Wilson, WSP Group, WYG,
Major Architects profiled in the report
ADP, Aedas, Devereux Architects, EPR Architects, Foster + Partners, Grimshaw
Architects, HLM Architects, Pascall & Watson, Penoyre & Prasad, PRP, Stanton
Williams, Wilkinson Eyre Architects.
Key areas of covered in the report include:-
CONSULTANTS REVIEW BY SECTOR
- Structure of the UK Engineering Consultancy Industry.
- Change and diversification within the consulting industry.
- Overview and consultants' strengths.
- Consortia in the consulting industry.
- End use sector analysis - consultants' capability by sector.
- The performance of leading consultants is reviewed over the past
five years, through 10 non-domestic market sectors together with forecasts for
construction activity over the next few years.
- The report reviews the continued expansion of many consultants into
overseas markets, as UK workloads fall, by tapping into high growth markets
such as Asia and covers the recent increase in takeover activity of UK
consultants by larger overseas firms. Both Scott Wilson and Davis Langdon were
acquired by large American engineers URS and Aecom respectively
in 2010.
UK CONSTRUCTION MARKET/CONTRACTORS' OUTPUT
- Total Construction Output - value of output: Construction new work
- Construction output in 2011 and beyond
- Construction output by sector, including the following data:
- Value from 2008, with forecasts to 2015.
- Key points and trends.
- Key capital commitments and building programmes.
- This information presented for the following key non-domestic sectors:
- Education, University, Healthcare, Transport, Defence, Utilities,
Industrial/Retail warehousing, Commercial Office, Retail, Hotel/Leisure.
THE ECONOMIC ENVIRONMENT IN THE UK
- GDP, Sterling, Inflation and Interest Rates
- Employment Rates in the UK
- Household Consumption
- Housing & Construction
- UK Population Profile
SUMMARY OF REPORT CONTENTS
The consulting industry has been undergoing a period of considerable change in
response to the current economic downturn and has identified the need
diversify as a result. Since the first indications of the credit crunch in
2007, firms have had to reshape their businesses to cope as the UK moved from
growth into recession.
Not every sector has been affected in the same way. Consultants with a
significant proportion of workload tied into framework agreements will be
partially insulated from the downturn in the construction industry, at least
until these frameworks are due for renewal.
The cumulative impact of public sector cuts on the UK consulting and
engineering sector is expected to be considerable. Larger consultants'
reliance on big government-sponsored projects has now made them more
vulnerable as public spending cuts begin to take effect. However, relying on
the private sector in the short-term to balance the drop off in public sector
work will also be unrealistic for many consultants. Having taken measures in
the past two years to adjust their cost and workforce structures, consultants
are now focusing their attention on their target markets. The fact that energy
and nuclear projects are likely to go ahead with private funding is good for
those firms with expertise in these sectors and will help to balance the
inevitable fall off in health and education sector output.
A number of consultants involved in public sectors are now looking to
diversify and focus on strategies to balance the types of public sector work
currently undertaken. EC Harris, for example, has stated its intention to
position itself as a strategic 'built asset consultancy' rather than simply a
QS and project manager - traditional areas, which have been under pressure. As
such, the firm is looking to enter higher value areas of consultancy.
With the UK government planning to spend less, consultants are also
increasingly looking at overseas markets and diversifying away from their
reliance on UK construction, in favour of international operations. Many large
consultants are attempting to retain their position in the global marketplace
by achieving operations on a global scale and tapping into high growth markets
such as Asia. A global outlook is thought to be essential for the future of
the consulting profession over the short term as consultancies purely
dependent on UK work continue to struggle.
Two years ago, consultancies faced weakening demand from their private sector
clients, while public sector demand remained buoyant. Now the balance has
shifted. A partial private sector recovery is under way, but the public sector
spending squeeze is already affecting the sector. For consultancies dependent
on government and council clients, the impact of the cuts are of considerable
concern. However, there still remain growth possibilities for consultants with
the rebalancing of the public and private sectors giving rise to the
outsourcing of many services in the public sector to the private sector.
There are also growth prospects for consultants in environmental and energy
sectors, driven by developments in low carbon and growth in energy from waste,
anaerobic digestion, biogas and renewable sources of energy. Market growth is
expected to be driven by the evolving climate change agenda, the shift to a
low carbon economy and the development of associated legislation. The
coalition government has set out a programme for energy and environmental
issues and there is also a continued aim to do more on waste and
sustainability, with pressure for ongoing investment in waste and recycling
infrastructure. As a result, many councils look towards more private sector
involvement in expanding and improving their waste services.
Consultancy work in infrastructure planning is also expected to stay
relatively buoyant driven by continued infrastructure development and work
related to the 2012 Olympics, urban transport projects and the development of
high-speed rail.
Table of Contents
CONTENTS and LIST OF TABLES & CHARTS
1 INTRODUCTION
- 1.1 BACKGROUND
- 1.2 SOURCES OF INFORMATION
2 EXECUTIVE SUMMARY AND FUTURE PROSPECTS
3 ECONOMIC ENVIRONMENT
- 3.1 GDP
- 3.2 INFLATION & INTEREST RATES
- 3.3 UNEMPLOYMENT
- 3.4 HOUSEHOLD CONSUMPTION
- 3.5 HOUSING & CONSTRUCTION
- 3.6 STERLING
- 3.7 POPULATION PROFILE
- 3.8 CONCLUSIONS
4 UK CONSTRUCTION MARKET OVERVIEW
- 4.1 TOTAL CONSTRUCTION OUTPUT
- 4.1.1 Value of Output - Construction New Work (Non-Domestic)
- 4.2 CONSTRUCTION OUTPUT IN 2011 AND BEYOND
- 4.3 CONSTRUCTION OUTPUT BY SECTOR
- 4.3.1 Education Construction Output - Key Summary Data
- 4.3.2 University Construction Output - Key Summary Data
- 4.3.3 Healthcare Construction Output - Key Summary Data
- 4.3.4 Transport Construction Output - Key Summary Data
- 4.3.5 Defence Construction Output - Key Summary Data
- 4.3.6 Utilities Construction Output - Key Summary Data
- 4.3.7 Industrial Warehousing Construction Output - Key Summary Data
- 4.3.8 Commercial Office Construction Output - Key Summary Data
- 4.3.9 Retail Construction Output - Key Summary Data
- 4.3.10 Hotel & Leisure Construction Output - Key Summary Data
5 CONSULTANTS REVIEW BY SECTOR
- 5.1 STRUCTURE AND VALUE OF THE CONSULTANTS' MARKET
- 5.2 CHANGE AND DIVERSIFICATION WITHIN THE CONSULTING INDUSTRY
- 5.3 OVERVIEW AND CONSULTANT STRENGTHS
- 5.4 ARCHITECTS
- 5.5 SURVEYORS
- 5.6 CONSORTIA
- 5.7 END USE SECTOR ANALYSIS
- 5.7.1 Schools
- 5.7.2 Universities
- 5.7.3 Healthcare
- 5.7.4 Transport
- 5.7.5 Defence
- 5.7.6 Utilities
- 5.7.7 Industrial & Warehousing
- 5.7.8 Commercial Office
- 5.7.9 Retail Sector
- 5.7.10 Leisure Sector
6 CONSULTANTS PROFILES
- 6.1 MAJOR CONSULTING ENGINEERS - KEY PROFILES
- 6.1.1 Aecom
- 6.1.2 Arup
- 6.1.3 Atkins
- 6.1.4 BDP
- 6.1.5 Capita Symonds
- 6.1.6 Halcrow
- 6.1.7 Hyder
- 6.1.8 Jacobs
- 6.1.9 Mott MacDonald
- 6.1.10 Mouchel
- 6.1.11 Parsons Brinckerhoff
- 6.1.12 Turner & Townsend
- 6.1.13 URS Scott Wilson
- 6.1.14 WSP
- 6.1.15 WYG
- 6.2 MAJOR ARCHITECTS - KEY PROFILES
Tables and Charts
- TABLE 1 TOP CONSULTANTS BY SECTOR STRENGTH
- CHART 2 INTEREST RATES AND INFLATION (CPI) FROM 1992-2015
- CHART 3 PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2015
- TABLE 4 EXCHANGE RATE FLUCTUATIONS 2006-2011 - STERLING TO THE DOLLAR, AND
THE EURO, SPOT RATES
- CHART 5 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 ('000)
- CHART 6 NON-DOMESTIC CONSTRUCTION OUTPUT (UK) 2005 TO 2015 - BY VALUE
(£ BN AT CURRENT PRICES)
- TABLE 7 NON-DOMESTIC CONSTRUCTION OUTPUT BY SECTOR 2008 TO 2015 - BY VALUE
(£ BILLION CURRENT PRICES)
- TABLE 8 TOP 20 UK TIER 1 CONSULTANTS BY REVENUE (£M) AND SECTOR
STRENGTHS
- TABLE 9 TOP 20 UK TIER 2 CONSULTANTS BY REVENUE (£M) AND SECTOR
STRENGTHS
- TABLE 10 TOP 20 UK ARCHITECTS BY UK FEES (£M) AND SECTOR STRENGTHS
- TABLE 11 TOP 20 UK SURVEYORS BY UK FEES (£M) AND SECTOR STRENGTHS
- TABLE 12 LEADING CONSULTANTS AND PRINCIPAL PFI/FRAMEWORK CONSORTIA
- TABLE 13 SCHOOLS SECTOR ANALYSIS - TOP CONSULTANTS BY PROJECT EXPERIENCE
- TABLE 14 UNIVERSITIES SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT
EXPERIENCE
- TABLE 15 HEALTH SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT EXPERIENCE
- TABLE 16 TRANSPORT SECTOR ANALYSIS (ROAD, RAIL, AIRPORTS, PORTS) - TOP
CONSULTANTS BY VALUE OF PROJECTS (£M) 2010
- TABLE 17 DEFENCE SECTOR ANALYSIS - TOP CONSULTANTS BY VALUE OF PROJECTS
(£M) 2010
- TABLE 18 AMP WATER FRAMEWORKS 2010-15 - UTILITY COMPANY AND FRAMEWORK
CONSULTANTS
- TABLE 19 UTILITIES SECTOR ANALYSIS (TELECOMS, WATER, ENERGY) - TOP
CONSULTANTS BY VALUE OF PROJECTS (£M) 2010
- TABLE 20 INDUSTRIAL SECTOR ANALYSIS - TOP CONSULTANTS BY VALUE OF PROJECTS
(£M) 2010
- TABLE 21 COMMERCIAL OFFICE SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT
EXPERIENCE
- TABLE 22 RETAIL SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT EXPERIENCE
- TABLE 23 HOTEL & LEISURE SECTOR ANALYSIS - TOP CONSULTANTS - PROJECT
EXPERIENCE
