£46 Billion Public Boost for Building Contractors in 2009
Recent Government pledges to support vital PFI construction projects will result in more than £46 billion of capital expenditure in 2009, according to a new database & mailing list on public sector building contractors from MTW Research.
[UKPRwire, Tue Mar 10 2009] More than 1,700 major building contractors should benefit from the rise in public sector construction in the short term, according to the new database, with the recent announcement that £13 billion of PFI investment would be safeguarded. MTW point to substantial capital expenditure and construction activity in a wide range of sectors including Waste Treatment (GBP3.5billion); Transport (GBP 3.1 billion); and Education (GBP 2.4 Billion), which offer should offer strong opportunities in the short term for building contractors and associated suppliers to grow sales.
Capital expenditure on public sector services has increased by 30% since 2005, according to MTW, underlining the level of commitment from the Government to developing longer term opportunities for the construction industry and building material suppliers. PFI expenditure at present typically accounts for around 10% of public capital spending at present according to the research.
With around 110 PFI projects currently in the pipeline, MTW point to this sector being most likely to provide impetus for building contractors in the next 12-18 months. Mark Waddy, lead analyst at MTW, commented that, “The competition amongst contractors to win tenders in this sector is likely to increase rapidly during 2009” highlighting the likelihood of fierce competition in the market in the near term. Waddy also pointed to a “…Clear and growing need for building material suppliers to identify and target more effectively in order to gain or maintain competitive advantage.”
The database identifies the contractors most likely to benefit from the growth in public sector construction activity in the short term, providing a comprehensive insight into what appears to be the only growth area in the construction industry at present. Designed specifically for companies supplying to the UK construction industry, the mailing list and database is available to purchase directly from MTW Research for GBP450 by calling 08456 524324 with free samples and on-line ordering at www.marketresearchreports.co.uk