Mechanical & Electrical Contractors Market Report UK 2019-2023 – New Report from AMA

The market entered a period of sustained growth in 2013 driven by a buoyant new build market, with rising output in the office and infrastructure sectors in particular.   This growth continued up to 2017, but the market stagnated in 2018 due principally to declines in the commercial office sector as well as in healthcare and education.

Uncertainty over the outcome of the Brexit process and …..

….. its impact on the UK economy is a major factor negatively impacting market growth, especially in the commercial non-residential sector, whilst the public sector also faces constraints in public spending and uncertainty over the sources of funding for capital projects since the termination of PFI.

Factors supporting market growth include the introduction of new technologies and products, particularly in the area of energy efficiency and reducing carbon emissions, driven by changing legislation and greater awareness of the issue.   There has been a rapid expansion in the range of LED lighting and increasingly sophisticated building control systems for heating, lighting, and energy management.

Other factors stimulating growth are the continued strength in data centre construction and greater levels of outsourcing of M&E services, either singly or as part of wider multi-service FM contracts.

In the private sector, non-residential new work output remains susceptible to changes in levels of business confidence and the uncertainty surrounding Brexit has affected investment in the office sector.   However, on the assumption that the outcome of the Brexit process does not have significant adverse effects on the economic climate, some return to modest growth is expected.

The public sector is also expected to see modest growth, though the availability of funding for future projects in healthcare and education is uncertain and the outlook for public sector construction may be unclear until the planned publication of the Government’s Spending Review later in 2019.   The infrastructure sector will benefit from HS2 and some larger utilities contracts. 

The Mechanical & Electrical Contractors Market Report – UK 2019-2023 is available now and can be ordered here.