Steady support: Government funding commitments are projected to counterbalance lulls in demand

The Commercial Building Construction industry's performance is contingent on various external factors, particularly cyclical fluctuations in the economy, investor sentiment and government funding for social infrastructure. Prior to the EU referendum, relatively stable economic growth stimulated demand for lucrative commercial expansion as business confidence rose above the long-term average. Consequently, the propensity to invest in big-ticket commercial developments, such as mixed-use complexes, was high, resulting in budding growth for contractors early in the period. Over the five-year period through 2019-20, revenue is forecast to increase at a compound annual rate of 2% to reach circa £19.2 more.

Industry Statistics & Market Size
Annual Growth 15-20
Forecast Growth 20-25
Market Share of Companies

Industry Threats & Opportunities

  • The EU referendum has induced a high degree of uncertainty, weighing on investment levels
  • The decline of the pound gave impetus to an upturn in FDI in UK property
  • A new business cycle as economic uncertainty dissipates could spur new construction prospects
  • Industry Report - Starting a New Business Chapter

    There are no specific barriers to entering the industry once a contractor has registered to tender for commercial building contracts. This registration is subject to trade qualification and accreditation under the Construction Industry Training Board (CITB). Contractors must be VAT-registered and have adequate public liability insurance to cover the scale of their projects. Since most contractors have evolved from specialist construction trades or hold recognised qualifications, CITB registration does not often present a barrier to entry. However, new competitors struggle to establish a foothold in the market without a reputation or proven track record. New...purchase to read more.

    Additional Insights for the Commercial Building Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Commercial Building Construction Industry are

  • Ability to compete on tender
  • Having good working relationships with subcontracting building trade specialists
  • Having links with suppliers
  • IBISWorld analysts also discuss how external factors such as Business capital expenditure and Government capital expenditure in the Commercial Building Construction industry impact industry performance..

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    What's in this report

    What is the Commercial Building Construction Industry?

    This industry consists of firms that construct non-residential buildings to sell on their own account or on a fee or contract basis. This includes schools, hospitals, stores and airport buildings. The assembly and erection of prefabricated buildings is also covered. Repairs and maintenance are also included in the industry. Part or all of the construction process may be outsourced.

    Industry Products
  • Educational buildings
  • Commercial offices
  • Industrial buildings
  • Entertainment buildings
  • Retail buildings
  • Healthcare buildings
  • Industry Activities
  • Constructing industrial buildings
  • Constructing institutional buildings
  • Constructing, office and other commercial buildings
  • Constructing recreation and entertainment facilities
  • Constructing educational and health related facilities
  • Assembling and erecting prefabricated non-residential buildings
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Business capital expenditure
  • Government capital expenditure
  • Number of businesses
  • Construction materials price index

  • Current Performance
  • Equity investment
  • Indicative opportunities
  • Public markets
  • Chart: Revenue Growth

  • Industry Outlook
  • New opportunities
  • Public frameworks
  • Policy support
  • Table: Commercial Building Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Commercial Building Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Building Project Development
  • Department Stores
  • Warehousing & Storage
  • Primary Education
  • General Secondary Education
  • Universities
  • Hospitals

  • Key Selling Industries
  • Architectural Activities
  • Bricklaying & Other Specialised Construction Services
  • Cement Manufacturing
  • Construction Equipment Rental & Leasing
  • Construction Supplies Wholesaling
  • Consultant Engineering Services
  • Mining, Construction & Civil Engineering Machinery Wholesaling
  • Ready-Mixed Concrete Manufacturing

  • Products & Services
  • Educational buildings
  • Commercial offices
  • Industrial buildings
  • Entertainment buildings
  • Retail buildings
  • Healthcare buildings
  • Other
  • Chart: Commercial Building Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Private sector - new construction
  • Private sector - repairs and maintenance
  • Public sector - new construction
  • Public sector - repairs and maintenance
  • Chart: Major Market Segmentation for the Commercial Building Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Wages
  • Purchases
  • Other Costs
  • Subcontractors
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Commercial Building Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Commercial Building Construction Industry

  • Industry Globalization
    Kier Construction Limited,
  • Table: Kier Construction Limited - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Commercial Building 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 Commercial Building Construction Industry
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Priority School Building Programme (Psbp)
  • A government investment initiative which financially supports the refurbishment and rebuilding of school buildings in the worst condition across the United Kingdom.
  • Private Finance Initiative (Pfi)
  • Where private capital is used to fund public infrastructure and building developments in return for the asset being partly privatised. It is a means of developing PPPs.
  • Public-Private Partnership (Ppp)
  • An agreement between a public agency and a private company to share their skills, assets and financial resources to deliver a building for public use.
  • What Our Customers Say

    Why buy this report?

    The Commercial Building 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 Commercial Building 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 Commercial Building 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 Commercial Building Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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