The UK market for m&e contracting is expected to increase every year for the next five, although annual real term growth is anticipated at just 2%.

By 2011, the value of the market is projected to reach £25.16 billion, according to Market & Business Development (MBD), rising from current forecasts of £23 billion. The prediction follows an in-depth report into the sector, which included a market review of 2002 to 2006. During this period, the sector grew at a similar rate, although it slowed towards the end of the time frame in comparison with 2003, when a strong increase in output of 18% was recorded.

The recent trading period has been difficult though and, as a result, many companies have struggled to return a profit. This slowing of construction activity reflects the marked decline in private sector demand and rising energy and raw material costs throughout the construction sector.

Growth has also been exacerbated by the slow implementation of government construction at the start of the spending review in 2005.

Growth in the m&e sector over the next half decade is expected to reflect a resurgence in construction market buoyancy due to preparation for the 2012 Olympics and an increase in the social housing provision.

The value of the electrical sector is anticipated to reach £13 billion in real terms by 2011.

Source

Electrical and Mechanical Contractor