Industry Analysis & Industry Trends
The industry has a considerable influence on the economy as the construction of roads and motorways facilitates the journeys made by commuters and hauliers, making them safer and more efficient. The industry is primarily funded by the government, which mainly distributes money through road agencies and local authorities. In recent years, the government has prioritised spending on transport infrastructure to boost economic activity, supporting industry growth. Business confidence has been high for most of the period, encouraging rising private investment, while buoyant new car sales and strengthening economic conditions have increased the need for greater capacity of UK roads. The Road and Motorway Construction industry is expected to grow at a compound annual rate of 4.4%... purchase to read more
Industry Report - Industry Investment Chapter
The Road and Motorway Construction industry has substantial capital inputs in comparison with other construction industries. However, much of the finishing work on new roads and resurfacing of existing roads requires a significant input of relatively low-skilled labour. Expensive equipment is used to prepare and lay roads and most large-scale firms have invested significant amounts of capital in the latest technology. Much of the equipment required by this industry can be leased, or the work can be subcontracted to specialists such as earth-moving contractors and concrete contractors. The industry is considered to have a moderate level of capital intensity. Operators typically spend £6.33 on wages for every £1.00 they spend on capital.
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