Drilling down: Recovery in downstream construction markets has resulted in strong revenue growth

Operators in the Test Drilling and Boring industry drill into the ground to examine the attributes of soils, measure ground heat, test for water reserves and monitor the accumulation of gas under reclaimed land. These services are typically required to ensure the safety of brownfield, greenfield and industrial sites prior to construction work. The industry is one of the smallest in the UK construction sector and its performance is contingent on investment and demand cycles in downstream construction markets.The past five-year period has been characterised by recovery in the UK economy and construction sector. Lulls in private-sector investment and austerity measures following the financial crisis starved the industry of tender opportunities at the start of the period...read more.

Industry Statistics & Market Size
Revenue
£262.7m
Annual Growth 14-19
33.5%
Forecast Growth 19-24
Profit
Employment
1,992
Businesses
262

Industry Threats & Opportunities

  • Public-sector funding for construction projects has supported demand and propelled revenue
  • Falling commercial construction activity since the EU referendum has limited industry expansion
  • Restrictions to the movement of EU workers could further inflate the average industry wage
  • Industry Report - Industry Locations Chapter

    Demand for test drilling and boring services is influenced by the level and type of downstream construction activity, and the requirement for geotechnical investigation for mineral resources, underground water reserves, and other environmental aspects. To a certain extent, variations in demand for drilling services relate to the regional variations in soil substructure and mineral deposits.ScotlandScotland accounts for 13% of industry establishments. Two of the industry’s largest players, Structural Soils and Van Elle, maintain operations in Glasgow. In Scotland, demand for drilling contractors servicing offshore oil and gas fields is high given the nation’s long coastline and access to the North Sea, a prominent location for harsh environment exploration. Whi...purchase to read more.

    Additional Insights for the Test Drilling & Boring Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Test Drilling & Boring Industry are

  • Ability to accommodate environmental requirements
  • Good project management skills
  • Having a good reputation
  • IBISWorld analysts also discuss how external factors such as Demand from commercial building construction and Demand from residential building construction in the Test Drilling & Boring industry impact industry performance..

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    What's in this report

    What is the Test Drilling & Boring Industry?

    This industry includes firms engaged in test drilling, boring and core sampling. It excludes water well drilling and drilling activities in the mining, oil and gas industries. Most firms operate as subcontractors for builders, engineers and local councils on building and development projects, or for geophysical surveying and mapping applications.

    Industry Products
  • Ground and site investigation
  • Geotechnical and geo-environmental services
  • Soil, rock and materials testing
  • Other services
  • Industry Activities
  • Test drilling and core sampling for construction projects
  • Test drilling and core sampling for mineral exploration
  • Test boring for water and gases on reclaimed land
  • Test drilling for ground heat
  • 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 commercial building construction
  • Demand from residential building construction
  • Demand from road and motorway construction
  • Government capital expenditure
  • Public concern over environmental issues

  • Current Performance
  • Policy support
  • Commercial market
  • Margins narrow
  • Chart: Revenue Growth

  • Industry Outlook
  • Potential threats
  • Downstream support
  • Technological advances
  • Table: Test Drilling & Boring Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Test Drilling & Boring Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Residential Building Construction
  • Consultant Engineering Services
  • Technical Testing & Analysis

  • Key Selling Industries
  • Construction Equipment Rental & Leasing
  • Construction Supplies Wholesaling
  • Mining, Construction & Civil Engineering Machinery Wholesaling
  • Petrol Stations

  • Products & Services
  • Ground and site investigation
  • Geotechnical and geo-environmental services
  • Soil, rock and materials testing
  • Other services
  • Chart: Test Drilling & Boring Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Residential construction
  • Infrastructure construction
  • Commercial and industrial construction
  • Public non-residential construction
  • Chart: Major Market Segmentation for the Test Drilling & Boring Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesSubcontractor paymentsEquipment rental and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Test Drilling & Boring

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Test Drilling & Boring Industry

  • Industry Globalization
    Structural Soils Ltd, Van Elle Ltd,
  • Table: Structural Soils Ltd - financial performance
  • Table: Van Elle Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Test Drilling & Boring 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 Test Drilling & Boring 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
  • A piece of land that has already been used for industrial or commercial purposes. It may be contaminated with low concentrations of hazardous waste or pollution.
  • Geophysical Survey
  • A study of the structure and composition of the earth.
  • Greenfield Site
  • Undeveloped land that has previously been used for agriculture or landscape design or has been left undisturbed.
  • Water Well
  • An excavation that can be created by drilling or boring to access groundwater in underground layers of rock.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Test Drilling & Boring market research report provides the latest industry statistics and industry trends, allowing you to identify the products and customers driving revenue growth and profitability. The industry report identifies the leading companies and offers strategic industry analysis of the key factors influencing the market.

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

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