Digging deep: Residential development has mitigated commercial construction slump

Industry operators provide services that facilitate activity in the construction sector, including excavation and land drainage. The industry’s main clients are developers in residential and commercial construction, infrastructure and public-sector markets. The performance of these markets was hindered by the effects of the financial crisis, and subsequent constraints on government spending. This placed the industry on a relatively low base just prior to the beginning of the past five-year period. However, performance has since been more positive...read more.

Industry Statistics & Market Size
Revenue
£2.8bn
Annual Growth 15-20
13.9%
Forecast Growth 20-25
Profit
Employment
12,731
Businesses
3,332
Market Share of Companies
There are no companies with a dominant market share in this industry

Industry Threats & Opportunities

  • Industry growth has been hampered by post-referendum instability and the weak pound
  • Commercial investment has been delayed as investors wait for post-referendum stability
  • Potentially restrictive post-referendum migration systems may threaten industry productivity
  • Industry Report - Industry Analysis Chapter

    The performance of the Site Preparation industry is dependent on cyclical investment trends in downstream construction markets. Unlike the majority of construction trades, industry contractors are unable to supplement revenue with projects on existing structures. Without the demolition of an existing structure, or demand from property development, the requirement for site preparation services is somewhat limited. Industry revenue surged by 29.9% and 56.8% in 2014-15 and 2015-16 respectively. This was a result of efforts to accelerate the housing supply, with low mortgage interest rates having encouraged unprecedented demand, twinned with government support for property developers. For...purchase to read more.

    Additional Insights for the Site Preparation Industry

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

  • Ensuring pricing policy is appropriate
  • Ability to compete on tender
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Housing starts and Demand from commercial building construction in the Site Preparation industry impact industry performance..

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    What's in this report

    What is the Site Preparation Industry?

    Operators in this industry provide a variety of services to facilitate construction, including excavation, landfill, blasting, levelling and land drainage. The industry excludes demolition, drilling and decontamination activities.

    Industry Products
  • General site preparation
  • Foundation work
  • Site preparation for transport projects
  • Services for watercourses
  • Other services
  • Industry Activities
  • Clearing building sites
  • Digging trenches for irrigation and conduits for transmission
  • Working on watercourses, site drainage and riverbanks
  • Preparing sites for mining
  • Removing and blasting rocks
  • Draining agricultural or forestry land
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Housing starts
  • Demand from commercial building construction
  • Consumer confidence index
  • Business confidence index
  • Mortgage rate

  • Current Performance
  • Downstream demand
  • National infrastructure
  • Government initiatives
  • Chart: Revenue Growth

  • Industry Outlook
  • Infrastructure projects
  • EU labour
  • Growth opportunities
  • Table: Site Preparation Industry Revenue Outlook

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

  • Supply Chains
    Key Buying Industries
  • Building Project Development
  • Commercial Building Construction
  • Residential Building Construction
  • Road & Motorway Construction
  • Water Main, Sewer System & Related Project Construction

  • Key Selling Industries
  • Construction Equipment Rental & Leasing
  • Fuels, Industrial Chemicals & Metals Agents
  • Mining, Construction & Civil Engineering Machinery Wholesaling
  • Repair and Maintenance of Other Transport Equipment

  • Products & Services
  • General site preparation
  • Foundation work
  • Site preparation for transport projects
  • Services for watercourses
  • Other services
  • Chart: Site Preparation Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential
  • Infrastructure
  • Commercial
  • Public non-residential
  • Other
  • Chart: Major Market Segmentation for the Site Preparation Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitAs a result of sharp exchange rate-driven input price inflation and a notable deceleration in new construction investment following the EU referendum result, profit margins contracted slightly in 2016-17 to 22.6%. However, bottom lines rose in 2017-18 to 33.3%. This was a consequence of a combination of factors, including remuneration for high-value projects won prior to the referendum; delayed capital investment; the exit of unprofitable firms unable to remain commercially viable; and payroll cuts. However, margins contracted again in 2018-19 to 27.7%, and is expected to fall again in 2019-20 to 18.3%. This is a consequence of continued rises in supply chain costs – according to the Office for National Statistics, construction material prices were 4.4% higher in March 2019, compared to a year earlier – and a lack of high-yield projects. WagesPurchasesSubcontractorsDepreciation and rentOther
  • Chart: Cost Structure Benchmarking – Sector vs Site Preparation

  • Basis of Competition

    Internal competition

    External competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Site Preparation Industry

  • Industry Globalization
    There are no major players in this industry. This report includes analysis of other companies.
    Capital Intensity
  • Chart: Level of Capital Intensity for the Site Preparation 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 Site Preparation Industry
    Includes:
  • 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
    Excavation
  • To make a hole or channel by digging.
  • Laser Levelling
  • The levelling of ground using a laser beam projector to ensure accuracy.
  • Smart Motorway
  • A section of motorway that is able to increase capacity at busy times.
  • Soil Stabilisation
  • The changing of a natural soil to meet an engineering purpose.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Site Preparation market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

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

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