According to a new report published by AMA Research, construction output for utilities, as with other infrastructure sectors, was fairly robust in 2014 with 9% growth, representing a significant increase on the previous year.
According to a new report published by AMA Research, c
onstruction output for utilities, as with other infrastructure sectors, was fairly robust in 2014 with 9% growth, representing a significant increase on the previous year.
The Utilities Construction Market Report – UK 2015-2019 Analysis says that the market has been strengthened by ongoing asset renewal programmes and by the very strong performance in the electricity sector. Current prospects for the utilities sector remain optimistic with output set to increase to around £11.9bn by 2019.
Construction output in the utilities sector in Great Britain has experienced overall growth of 64% since 2008, and has outperformed the wider infrastructure market over the last two to three years. Positive influences on the sector include the Government’s commitment to renewable energy and the country’s energy security. Renewables generation is likely to continue to be a key driver for growth for electricity output in the medium term, particularly from offshore wind farms.
Construction output in the electricity sector more than quadrupled 2008-14, and has contributed strongly to the overall improvement in the utilities construction sector in recent years. Underpinning construction output growth for the electricity sector during the past three to four years has been the expansion of the renewables sector. In addition, the decommissioning of outdated power stations both fossil fuel and nuclear and the construction of new generation capacity, as well as the programme of renewal and improvement to the transmission and distribution networks have all boosted construction output.
The refurbishment of the gas distribution network and building of new gas storage facilities have assisted in boosting output growth in the gas sector in recent years. Medium-term prospects for the sector remain fairly positive with the likelihood of further onshore and offshore gas storage facilities to address the issue of the UK’s energy security and increasing dependence on gas imports as North Sea production declines.
The Utilities Construction Market Report – UK 2015-2019 Analysis, published by AMA Research, can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.