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The United Kingdom building market is a significant sector, valued at approximately USD 386 billion in 2023. It employs nearly 2.8 million individuals and contributes substantially to the nation's economy. The market is expected to expand at a CAGR of 3.19% from 2023 to 2028, reaching a projected value of USD 452.15 billion by 2028.
United Kingdom Building Government Procurement
The UK government plays a crucial role in the construction industry through its procurement activities. In 2022, the government spent over GBP 57 billion on construction projects, accounting for around 23% of total construction output. Government procurement drives demand for various building products and services, stimulating the industry's growth.
The UK government focuses on a broad range of building products and services to maintain and improve its infrastructure. They primarily need construction services for new construction, refurbishment, maintenance, and repairs. Building materials like timber, concrete, steel, bricks, and other essential components are crucial. Additionally, they require MEP services for installing and maintaining heating, ventilation, air conditioning, electrical, and plumbing systems. Professional services like architectural design, engineering, project management, and quantity surveying are also important.
Several government agencies oversee building procurement in the UK, including:
Crown Commercial Service (CCS): A central purchasing body responsible for procuring goods and services for the UK government
Ministry of Housing, Communities and Local Government (MHCLG): Sets policy and provides funding for housing and construction
Department for Education (DfE): Procures construction services for schools and other educational facilities
National Health Service (NHS): Procures construction services for hospitals and other healthcare facilities
Leading companies involved in UK building procurement include:
Balfour Beatty: A multinational construction company with a strong presence in the UK
Laing O'Rourke: An international construction and engineering company with a significant UK portfolio
Kier Group: A UK-based construction, services, and property development company
Morgan Sindall: A UK-based construction and regeneration company
BAM Construct UK: A subsidiary of the Dutch construction company Royal BAM Group.
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