Industry Analysis & Industry Trends
The Commercial Building Construction industry has endured a sustained decline over the past five years, as its primary markets plummeted into a recession brought on by the financial crisis and took industry operators down with them. Private investment in commercial and industrial premises has 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, notably schools and hospitals. Over the five years through 2013-14, industry revenue is expected to decline at a compound annual rate of 5.6% to £15.6 billion... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a moderate level of capital intensity. Principal value added is derived from the provision of project management and specialised construction trade skills, while the capital requirements for operating in the industry are relatively low. Depreciation is estimated to account for 2.5% of industry revenue. Operators mainly get access to equipment by leasing it on a project-by-project basis or by subcontracting to specialist providers such as crane operators and excavation contractors.
Wage costs, payments to subcontractors and professional consultants' fees absorb at least two-thirds of industry revenue, but direct employment costs account for just 13.8% of revenue in 2013-14... purchase to read more