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BMI's Executive Summary[TOP]
The Sector At A Glance Key Insights On The Infrastructure Sector Of the United Kingdom As one of the most robust economies in the world, the UK boasts of a large and highly developed construction industry, currently valued at US$122bn. The industry clocked 1.7% year-on-year (y-o-y) growth in Q306 and contributed over 5% to the GDP in 2005, providing employment to around 2.5mn people. According to BMI’s newly released United Kingdom Infrastructure Report Q406, the construction industry is forecast to grow at an average of 3.6% per year over 2006-2010. The UK is witnessing robust economic growth, outperforming most of the other developed economies in Europe. The economy grew 0.7% quarter-on-quarter (q-o-q) in Q306 and is expected to grow 2.6% in 2006. The government’s plans to build 30,000 homes by 2007-2008 are expected to drive growth in the housing segment and the construction industry as a whole. Another strong growth driver would be the government’s focus on Private Finance Initiatives (PFIs) and Public-Private Partnerships (PPPs). It is aimed at increasing private participation in areas such as social housing, urban regeneration and waste recycling. The Olympic Games in 2012 are also expected to catalyse investments in public infrastructure and commercial construction projects. The UK construction industry is characterised by a small number of large players that have access to huge capital reserves and world-class technology, enabling them to undertake massive infrastructure development projects. Major projects on the anvil include the planned development of the Crossrail in London at an estimated cost of US$31.37bn, the US$10.2bn development of the Channel Tunnel Rail Link, and the US$8.23bn construction of terminal 5 at Heathrow Airport. Shortage of skilled labour is probably the biggest threat facing the construction industry in the UK. Another factor causing concern is the rising interest rates which could lead to a decline in demand for residential units. The UK receives a composite score of 36 on BMI’s Business Environment Ranking matrix, placing it first among the three states included from the developed world. Aided by the various growth drivers, the industry is expected to reach a value of US$160bn by 2010, contributing over 5.5% to the nation’s gross domestic product (GDP). |
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Competitive Landscape for Europe Infrastructure Reports: Sample of Companies Ranked[TOP] Comparative company analyses and rankings by sales, % market share, employees, registration date and ownership structure. Company profiles include fully researched senior executives and contact details, business activity and leading products and services. SWOT (strengths, weaknesses, opportunities, threats) of the state’s business environment, infrastructure sector, politics and economics, which carefully evaluates the short- and medium-term issues facing the industry.
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Network of European Infrastructure Sources[TOP] BMI's European Infrastructure Reports are based on an extensive network of multilateral organisations, government departments, infrastructure industry associations, chambers of commerce and company reports. Information sources include:
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