Dam, Harbour & Other Water Project Construction in the UK - Industry Market Research Report

Fluctuating flow: Revenue continues to move in line with investment cycles and public-sector spending

Contractors that specialise in providing civil engineering services on projects related to the construction and maintenance of flood defence and coastal erosion abatement infrastructure are dependent on public spending to achieve growth. Contractors working on behalf of water-only companies (WOCs) and water and sewerage companies (WaSCs) are also subject to cyclical investment trends, which are dictated by price controls set by water regulator Ofwat. The industry's reliance on capital investment frameworks induces a degree of volatility; for instance, spending typically higher during the central 12-18 months of utility companies' five-yearly asset management plan (AMP) cycles. This trend has been evident in recent years, with increased spending at the peak of the AMP6 cycle causing revenue to spike in 2018-19. This industry comprises contractors that carry out water-based civil engineering projects. This includes dredging waterways, maintaining levees and riverbanks, and constructing infrastructure such as dams, harbours, marinas and flood and coastal defence. The project management activities involved in civil engineering works are not included in this industry. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.