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 more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

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 - Industry Investment Chapter

    The level of capital intensity is determined by comparing the human and capital equipment factors of production, using wages and depreciation costs as proxies. Comparatively high depreciation costs indicate substantial investment in depreciable assets including establishments and equipment, resulting in high capital intensity. Conversely, comparatively high wage costs indicate high labour intensity. IBISWorld estimates that operators in the Bridge and Tunnel Construction industry spend £3.35 on labour for every £1.00 they invest in capital. This indicates that the industry is estimated to have a moderate level of capital intensity in 2017-18. ...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
  • 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?

    The Bridge & Tunnel Construction market research report provides key industry analysis and industry statistics, measures market size, analyzes current and future industry trends and shows market share for the industry’s largest companies. IBISWorld publishes the largest collection of industry reports so you can see an industry’s supply chain, economic drivers and key buyers and markets.

    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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