Albany, NY -- (SBWIRE) -- 09/27/2016 -- There is still a great deal of uncertainty on the full implications of the UKs exit from the European Union (EU) on the construction industry, but the view of Timetrics Construction Intelligence Center (CIC) is that there are major downside risks to growth, with little or no upside during the early part of the forecast period (20162020).

In June 2016, the UK held a referendum and decided to leave the EU. It means the UK will be the first member country to do so. The move is expected to lead to an economic slowdown in the UK accompanied by a fall in the value of its currency.

Timetric expects the UKs construction industry to suffer a contraction in output value in 2016 in real terms (constant prices). This reflects both weakness in the industry in the first half of the year ahead of the Brexit referendum, and the expected slowdown in the second half as investment plans are put on hold during economic uncertainty.

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However, the construction industry is expected to recover by the end of forecast period. Nevertheless, the pace of growth will remain sluggish in the latter part of the forecast period (20182020), averaging 1.7% a year in real terms.

The industry is expected to register a compound annual growth rate (CAGR) of 0.82% over the forecast period in real terms, compared to 1.39% during the review period (20112015).

Although the real outlook for the UKs construction industry is expected to be weak, there will be some support from investment in residential, infrastructure and institutional building projects.

Flagship government programs such as the National Infrastructure Plan (NIP), Priority School Building Program (PSBP) and National Health Service (NHS) program are expected to support industry growth. The governments plan to construct affordable homes for the low-income population, a renovation program for old school buildings and the replacement of aging infrastructure will also provide some support.

Summary

- Timetrics Construction in the UK Key Trends and Opportunities to 2020 report provides detailed market analysis, information and insights into the UK construction industry including:

- The UK construction industry's growth prospects by market, project type and construction activity

- Analysis of equipment, material and service costs for each project type in the UK

- Critical insight into the impact of industry trends and issues, and the risks and opportunities they present to participants in the UK construction industry

- Profiles of the leading operators in the UK construction industry

- Data highlights of the largest construction projects in the UK

Scope

- This report provides a comprehensive analysis of the construction industry in the UK It provides:

- Historical (2011-2015) and forecast (2016-2020) valuations of the construction industry in the UK using construction output and value-add methods

- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by project type

- Breakdown of values within each project type, by type of activity (new construction, repair and maintenance, refurbishment and demolition) and by type of cost (materials, equipment and services)

- Analysis of key construction industry issues, including regulation, cost management, funding and pricing

- Detailed profiles of the leading construction companies in the UK

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