Industry Analysis & Industry Trends
The Commercial Building Construction industry has endured a tumultuous period over the past five years because its primary markets plummeted and took industry operators down with them. Private investment in commercial and industrial premises slumped in response to adverse trends in company profitability, employment and household spending. In the public sector, the government's fiscal austerity measures involved cuts to funding for institutional buildings like schools and hospitals. Many companies went bust as business profit plummeted, retailers were hit by online competition and consumer spending fell. Various retailers, including supermarkets and department stores, scaled back their expansion plans, and lack of demand for offices caused property developers to halt investment too... purchase to read more
Industry Report - Industry Products Chapter
Constructing educational buildings contributes 22.6% of industry revenue. Educational buildings such as primary and secondary schools, colleges, universities, nurseries and childcare centres are typically constructed in suburban areas. Firms of all sizes can contest contracts, but all must do so using rigid government processes.
The injection of additional funding from the central government under the Building Schools for the Future programme helped boost construction in the educational building market in the mid- to late 2000s, but recent cuts in public spending have resulted in the value of construction in this market contracting. However, private investment in this segment through PFIs is expected to grow over the next five years... purchase to read more