Industry Analysis & Industry Trends
The Commercial Building Construction industry has been recovering from a tumultuous period during the economic downturn, when 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 spending cuts affected demand for institutional buildings like schools and hospitals. However, the Olympic Games and some landmark office developments provided some support for those operators based in or near London.
Increased business confidence stemming from a stabilising of the economy helped demand to recover from the recession-induced low in 2011-12... purchase to read more
Industry Report - Industry Investment Chapter
The industry has a moderate level of capital intensity. Contractors add most of their value by providing project management and specialised construction skills, and the capital requirements for operating in the industry are relatively low. Depreciation is estimated to account for 1.7% 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, which keeps investment in depreciable assets low.
Wage costs, payments to subcontractors and professional consultants' fees absorb at least two-thirds of industry revenue, but direct employment costs account for just 12.5% of revenue in 2014-15... purchase to read more