Bridging the gap: Loss of EU funding and a growing skills gap could limit future growth

The Bridge and Tunnel Construction industry plays a vital role in ensuring road and rail networks reach every area of the United Kingdom and are maintained properly. The road system is predominantly funded by the public sector through Highways England and local authorities in England and comparable agencies in Scotland, Wales and Northern Ireland. The UK rail infrastructure network is mainly funded by public-private partnerships, notably Network Rail and Transport for London, so the contracts that industry operators work on are often funded by public bodies. Apart from transport infrastructure, contractors also work on projects for water and sewerage companies, energy companies, mining companies and commercial clients...read more.

Industry Statistics & Market Size
Revenue
£1bn
Annual Growth 13-18
2.7%
Forecast Growth 18-23
Profit
Employment
3,861
Businesses
92

Industry Threats & Opportunities

  • Construction for rail, road and sewer projects has supported growth over the past five years
  • Several major tunnel infrastructure projects have supported industry growth
  • Upgrades to several London Underground stations are expected to boost growth
  • Industry Report - Starting a New Business Chapter

    There are no significant barriers to entering the Bridge and Tunnel Construction industry as the varying scale and geographical dispersal of contracts mean the economies of scale available are somewhat limited. The technical complexity of some construction projects effectively restricts the entry of new small-scale start-up competitors into these segments of the bridge and tunnel construction market. The large-scale contractors generally have representation with many local government authorities and with the relevant central government body, such as Highways England, or a rail organisation, such as Network rail. However, new entrants can generally compete effectively on smaller scale local contracts, particularly maintenance and repair work on smaller rural bridges. Tec...purchase to read more.

    Additional Insights for the Bridge & Tunnel Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Bridge & Tunnel Construction Industry are

  • Ability to compete on tender
  • Ensuring pricing policy is appropriate
  • Ability to effectively communicate and negotiate
  • IBISWorld analysts also discuss how external factors such as Government capital expenditure and Real gross fixed investment in the Bridge & Tunnel Construction industry impact industry performance..

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    What's in this report

    What is the Bridge & Tunnel Construction Industry?

    This industry covers contractors that construct bridges, tunnels and flyovers used in road and railway transport and for other applications such as water distribution. Repairs, additions and maintenance on existing infrastructure are also included. Portions of work can be subcontracted out.

    Industry Products
  • New bridge construction
  • New tunnel construction
  • Maintenance and renovation of bridges
  • Maintenance and renovation of tunnels
  • Industry Activities
  • Road bridge and tunnel construction, repair and maintenance
  • Railway tunnel construction, repair and maintenance
  • Pedestrian bridge construction, repair and maintenance
  • Construction, repair and maintenance of flyovers
  • Other tunnel construction
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government capital expenditure
  • Real gross fixed investment
  • Demand from road and motorway construction
  • Demand from railway and underground railway construction

  • Current Performance
  • Investment climate
  • Constructing profit
  • Tunnel vision
  • Repairs and maintenance
  • Chart: Revenue Growth

  • Industry Outlook
  • In the pipeline
  • Landmarks ahead
  • Underlying uncertainty
  • Table: Bridge & Tunnel Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Bridge & Tunnel Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Intercity Passenger Rail Transport
  • Urban Passenger Rail Operations

  • Key Selling Industries
  • Concrete Construction Product Manufacturing
  • Construction Supplies Wholesaling
  • Mining, Construction & Civil Engineering Machinery Wholesaling
  • Ready-Mixed Concrete Manufacturing

  • Products & Services
  • New tunnel construction
  • Maintenance and renovation of bridges
  • Maintenance and renovation of tunnels
  • New bridge construction
  • Chart: Bridge & Tunnel Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Rail transport authorities
  • Road transport authorities
  • Water and sewerage companies
  • Private companies under PFIs
  • Other markets
  • Chart: Major Market Segmentation for the Bridge & Tunnel Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesSubcontractor paymentsWagesEquipment rental and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Bridge & Tunnel Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Bridge & Tunnel Construction Industry

  • Industry Globalization
    Balfour Beatty Group Limited, Costain Ltd,
  • Table: Balfour Beatty Group Limited - financial performance
  • Table: Costain Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Bridge & Tunnel Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Bridge & Tunnel Construction Industry
    Includes:
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Design, Build, Finance, Operate (Dbfo) Contract
  • A contract is one that lasts up to 30 years and focuses on the provision of a service rather than just the construction of an asset. It includes a maintenance contract.
  • Flyover
  • A bridge, road or railway that crosses over another road or railway.
  • Shaft Sinking
  • A method of excavating a vertical or near-vertical tunnel from the top down, where there is initially no access to the bottom.
  • Trunk Road
  • A major road, typically connecting two or more cities, ports or airports, favoured for carrying long-distance and freight traffic.
  • Turnkey Contract
  • A contract where the developer has complete control over the construction process and only sells the project completed.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Bridge & Tunnel Construction market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Bridge & Tunnel Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Bridge & Tunnel Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Bridge & Tunnel Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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