Break the fall: Firms are likely to adopt a strict approach to bidding as new orders slow down

Services provided by contractors in the Demolition industry are required by general building firms and property developers that plan redevelopments on land where obsolete structures still exist. Demolition firms are contracted to either completely demolish or selectively dismantle structures during the pre-construction development phase. Consequently, the industry’s performance is procyclical, characteristically running in tandem with downstream investment in new construction. Specialist operators may offer decommissioning services which relate to the decontamination and deconstruction of nuclear power and pharmaceutical facilities.Over the five-year period through 2018-19, revenue is forecast to grow at a compound annual rate of 12.8% to reach £1.1 billion...read more.

Industry Statistics & Market Size
Revenue
£1.1bn
Annual Growth 14-19
12.8%
Forecast Growth 19-24
Profit
Employment
7,949
Businesses
713

Industry Threats & Opportunities

  • In the current year, contractors are expected to rely on a backlog of projects to make a profit
  • Firms and construction contractors have been encouraged to diversify and embark on hiring sprees
  • Economic uncertainty is likely to lower demand for demolition services in the short term
  • Industry Report - Industry Products Chapter

    Total and selective demolitionIn 2018-19, total and selective demolition services are estimated to generate 54.3% of industry revenue. While total demolition involves levelling an entire structure or building, selective demolition enhances efficiency by demolishing the interior of a building while preserving the exterior. Selective demolition also allows for the repurposing of reusable materials, albeit not to the extent of dismantling services, and lessens the environmental impact of construction activity, as contractors often recover demolished assets for recycling or resale purposes. Sel...purchase to read more.

    Additional Insights for the Demolition Industry

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

  • Ability to accommodate environmental requirements
  • Ability to compete on tender
  • Ability to negotiate successfully with regulator
  • IBISWorld analysts also discuss how external factors such as Demand from site preparation and Demand from commercial building construction in the Demolition industry impact industry performance..

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    What's in this report

    What is the Demolition Industry?

    This industry covers firms that demolish and dismantle buildings and structures. This may include storing recyclable construction materials derived from these operations. Contractors offer complete and selective demolition and interior strip-outs. This industry excludes waste and scrap wholesaling (see IBISWorld report G46.770).

    Industry Products
  • Total and selective demolition
  • Dismantling and decommissioning
  • Other services
  • Industry Activities
  • Demolishing buildings and structures
  • Stripping out interiors
  • Cleaning up sites
  • Providing concrete-cutting services
  • Removing and disposing of reclaimed materials
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Demand from site preparation
  • Demand from commercial building construction
  • Housing starts
  • Demand from bridge and tunnel construction
  • Business confidence index

  • Current Performance
  • Operating difficulties
  • Indicative recovery
  • Key developments
  • Chart: Revenue Growth

  • Industry Outlook
  • Short-term slowdown
  • Policy support
  • Nuclear decommissioning
  • Table: Demolition Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Demolition Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Building Project Development
  • Construction Supplies Wholesaling

  • Key Selling Industries
  • Chemical Product Wholesaling
  • Construction Equipment Rental & Leasing
  • Construction Supplies Wholesaling
  • Explosives Manufacturing
  • Mining, Construction & Civil Engineering Machinery Wholesaling

  • Products & Services
  • Total and selective demolition
  • Dismantling and decommissioning
  • Other services
  • Chart: Demolition Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Commercial
  • Residential
  • Civil engineering
  • Public non-residential
  • Chart: Major Market Segmentation for the Demolition Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesSubcontractorsWagesDepreciation and equipment rentalOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Demolition

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Demolition Industry

  • Industry Globalization
    Keltbray Ltd, Erith Contractors Ltd,
  • Table: Keltbray Ltd - financial performance
  • Table: Erith Contractors Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Demolition 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 Demolition Industry
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Brownfield Site
  • Land that has already been developed, but is available for redevelopment because it is abandoned or underused.
  • Disposal Route
  • The disposal and end-use of waste through one of a number of avenues: reusing, recycling, waste to energy, incinerating, landfill and other.
  • Ferrous
  • Ferrous metals mostly contain iron and give little resistance to corrosion. They are typically demolition site scrap metals including steel and pig iron.
  • Flyrock
  • Rock that is ejected from the blast site in a controlled explosion in demolition operations.
  • Remediation
  • The process of removing pollutants and contaminants from a plot of land.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Demolition market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Demolition:
    • 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 Demolition 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 Demolition, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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