UTILITIES CONSTRUCTION AND CONNECTIONS MARKET - UK 2008-2012

SUMMARY

The ‘Utilities Construction and Connections Market - UK 2008-2012’ report is a review of the Utilities sector, covering the performance in the utilities themselves, but also the capital commitments to the sector and the impact on construction output throughout the sectors.

This second edition of the report also includes a review of the utilities connections sector. The utilities industry and the connections market have changed substantially in recent years, driven by privatisation, consolidation and pressure from the regulators, particularly to ensure that the market remains competitive.

The report includes:

• A review of contractors output in the utilities sector.
• A review of the utilities connections market, key changes, key companies etc.
• An overview of the major contractors working in the utility sector.
• An update on procurement directives and legislation.

During 2006 the value of construction output in the four major utilities sectors rose by just under 2% from 2005, to a value of £3.3bn representing just over 50% of all Infrastructure new work. 2007 is expected to see a 4% to a value of £3.4bn and ongoing investment by the utilities means this continues to be a growth area, with consequent opportunities for the construction industry.

Key areas in the report:

• Review of market performance - the market is experiencing steady growth and this is expected to continue up to 2012.
• Review of the major product groups as defined by Garden buildings and rooms, split by product sub-sectors where appropriate.
• Identification of key market influences - consumer interest, homeworking, product design, environment, housing transactions
• Identification of key suppliers and distributors for all product groups - shares, trends, market developments

Of particular interest:

• Future prospects, opportunities for expansion and increased market penetration in the connections and utilities industries.
• Key market influences and drivers of investment, e.g. climate change, sustainability, regulators.
• Changing structure of the industry, mergers and acquisitions.
• Value of the utility connections market.
• Review of contractors involved in utility connections

Significant areas of coverage include:

SUMMARY AND FUTURE PROSPECTS

• Future prospects for utilities and contractors - and key influences.
• Future prospects for the utilities connections market.
• Summary of the wider economic issues impacting upon the market, e.g. inflation and interest rates, housing and construction.

CONTRACTORS OUTPUT IN THE UTILITY SECTOR

• Total construction output, predicted growth in 2007 and to 2012, construction output by sector.
• Infrastructure and utilities new work output.
• Capital expenditure levels - in the different sectors - water, gas, electricity, telecoms.
• Key influences, e.g. longer price review periods, further consolidation by utilities, government expenditure - and future prospects.

THE CONNECTIONS MARKET

• Estimated market value of the UK connections market in 2007.
• The growth of competition in the connections market and the role of the regulators.
• The growth of multi-utility offerings by connections companies, reasons for this growth and impact upon the utilities market.
• Changes in the procurement of utilities contracts, key influences including legislation, trends in procurement.
• Identification of major connections companies, overview of company, and future plans.

UTILITIES SECTOR

• The utilities market in the UK.
• Water, Electricity, Gas, Telecommunications Industries - chapter on each detailing background and structure, industry size, levels of capital investment.
• Major utility companies and their turnovers, market shares, mergers and acquisitions.
• Key influences - legislation, climate change, regulators.
• Utility company profiles.

THE UTILITIES RENEWABLES MARKET

• Renewable sources of energy, details of biofuels, hydroelectric power and wind power.
• Situation assessment of current capacity and future plans for renewables in the UK.

CONTRACTOR PROFILES

• Structure of the UK utility contracting industry.
• Key construction companies involved with utilities by turnover.
• Profiles of the major contractors involved in the utilities sector, overview, key projects and future plans.

TABLE OF CONTENTS

1. INTRODUCTION

2. SUMMARY AND FUTURE PROSPECTS

• 2.1 OVERVIEW
• 2.2 WATER
• 2.3 ELECTRICITY
• 2.4 GAS
• 2.5 TELECOMMUNICATIONS
• 2.6 UTILITY CONNECTIONS
• 2.7 FUTURE PROSPECTS

3. ECONOMIC ENVIRONMENT

• 3.1 GDP
• 3.2 INFLATION & INTEREST RATES
• 3.3 UNEMPLOYMENT
• 3.4 HOUSEHOLD CONSUMPTION
• 3.5 HOUSING & CONSTRUCTION
• 3.6 STERLING
• 3.7 POPULATION PROFILE
• 3.8 CONCLUSIONS

4. UTILITIES SECTOR OVERVIEW

• 4.1 THE UTILITIES MARKET
• 4.2 THE UK WATER INDUSTRY
  • 4.2.1 Background and Structure
  • 4.2.2 Size of the Industry
  • 4.2.3 Factors Affecting The Industry
• 4.3 THE UK ELECTRICITY INDUSTRY
  • 4.3.1 Structure and Size of the Industry
  • 4.3.2 Factors Affecting the Industry
• 4.4 THE UK GAS INDUSTRY
  • 4.4.1 Structure and Size of the Industry
  • 4.4.2 Market Share
• 4.5 THE UK TELECOMMUNICATIONS INDUSTRY
  • 4.5.1 Background and Structure
  • 4.5.2 Industry Revenue
• 4.6 UTILITY COMPANY PROFILES
  • 4.6.1 Water Companies
  • 4.6.2 Electricity and Gas Companies

5. UTILITIES RENEWABLES MARKET

• 5.1 RENEWABLE SOURCES OF ENERGY
• 5.2 TYPES OF RENEWABLE ENERGY
  • 5.2.1 Biofuels
  • 5.2.2 Hydroelectric Power
  • 5.2.3 Wind Power

6. CONTRACTORS OUTPUT IN THE UTILITY SECTOR

• 6.1 TOTAL CONSTRUCTION OUTPUT
  • 6.1.1 Growth in Output
  • 6.1.2 Construction Output by Sector
  • 6.1.3 Construction Output in 2007 and Beyond
• 6.2 INFRASTRUCTURE AND UTILITIES OUTPUT
• 6.3 WATER INDUSTRY CAPITAL EXPENDITURE
  • 6.3.1 Overview
  • 6.3.2 Periodic Reviews in the Water Industry
  • 6.3.3 Factors Affecting The Industry
• 6.4 ELECTRICITY & GAS INDUSTRIES - CAPITAL INVESTMENT
• 6.5 TELECOMMUNICATIONS INDUSTRY - CAPITAL INVESTMENT
• 6.6 FUTURE PROSPECTS

7. THE CONNECTIONS MARKET

• 7.1 MARKET OVERVIEW
• 7.2 MARKET VALUE
• 7.3 COMPETITION IN THE CONNECTIONS MARKET
• 7.4 PROCUREMENT OF UTILITIES WORK.
• 7.5 MAJOR CONNECTIONS COMPANIES
  • 7.5.1 Blyth Construction Utilities Ltd
  • 7.5.2 British Gas New Housing Connections
  • 7.5.3 Connect Utilities
  • 7.5.4 Core Utility Solutions
  • 7.5.5 E.on UK Energy Services
  • 7.5.6 Energetics
  • 7.5.7 Fulcrum Infrastructure Services Ltd
  • 7.5.8 Integrated Utility Services (IUS)
  • 7.5.9 Intoto Utilities
  • 7.5.10 Morrison Utility Services
  • 7.5.11 PN Daly
  • 7.5.12 Subterra
  • 7.5.13 Thames Water Developer Services
  • 7.5.14 United Utilities Networks
  • 7.5.15 Wales and West Utilities (WWU)
  • 7.5.16 Others

8. CONTRACTOR PROFILES.

• 8.1 STRUCTURE OF THE UTILITY CONTRACTING INDUSTRY
• 8.2 MAJOR CONTRACTORS INVOLVED IN THE UTILITIES SECTOR
  • 8.2.1 AMEC PLC
  • 8.2.2 Alfred McAlpine Plc
  • 8.2.3 Balfour Beatty
  • 8.2.4 Clancy Docwra Ltd
  • 8.2.5 Costain
  • 8.2.6 Galliford Try
  • 8.2.7 MJ Gleeson
  • 8.2.8 Interserve Project Services
  • 8.2.9 Kier Construction
  • 8.2.10 McNicholas Construction
  • 8.2.11 Morgan Est
  • 8.2.12 Others

TABLES AND CHARTS

• CHART 1 INTEREST RATES AND INFLATION (CPI) FROM 1990-2012
• CHART 2 PDI & SAVINGS RATIO AT CURRENT PRICES 1990-2012
• TABLE 3 EXCHANGE RATE FLUCTUATIONS 2000-2007 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES
• CHART 4 AGE DISTRIBUTION OF THE RESIDENT UK POPULATION 2001 (‘000)
• TABLE 5 WATER AND SEWERAGE COMPANIES IN THE UK BY TURNOVER 2001/02 AND 2005/06 - (£M)
• TABLE 6 WATER INDUSTRY TURNOVER & OPERATING PROFIT 2001/02-2005/06 (£M)
• TABLE 7 AVERAGE PRICE LIMITS SINCE WATER PRIVATISATION
• TABLE 8 ELECTRICITY SUPPLIERS, BRANDS AND ULTIMATE PARENT
• TABLE 9 NATIONAL MARKET SHARES OF DOMESTIC ELECTRICITY SUPPLY - 2002, 2004 AND 2006
• CHART 10 DOMESTIC ELECTRICITY MARKET SHARES - MARCH 2006
• CHART 11 DOMESTIC GAS MARKET SHARES - MARCH 2006
• CHART 12 UK TELECOMS INDUSTRY REVENUE £BN
• CHART 13 UK TELECOMS INDUSTRY RETAIL REVENUE
• CHART 14 % SHARE OF TOTAL UK TELECOMS CONNECTIONS - 2005
• TABLE 15 WIND FARMS COMMISSIONED 2004-2006
• TABLE 16 UK OFFSHORE WIND FARMS ROUND 2
• CHART 17 VALUE OF CONSTRUCTION OUTPUT NEW WORK 2000-2012 (£ BILLION)
• CHART 18 VALUE OF CONSTRUCTION OUTPUT NEW WORK BY SECTOR - % BY VALUE 2006
• CHART 19 INFRASTRUCTURE OUTPUT
• CHART 20 INFRASTRUCTURE OUTPUT - % SHARE BY SECTOR - 2006
• TABLE 21 INFRASTRUCTURE OUTPUT BY TYPE OF UTILITY 2002-H1 2007 - VALUE (£M)
• TABLE 22 GROSS CAPITAL INVESTMENT BY SERVICE - INDUSTRY £M 2002/3 TO 2006/7
• TABLE 23 GROSS CAPITAL INVESTMENT BY WATER AND SEWERAGE COMPANIES £M 2006/7
• TABLE 24 AVERAGE ANNUAL CAPITAL INVESTMENT (WATER & SEWERAGE) - 1990-95 TO 2005-10 (£BN) AT 2002-03 PRICES
• TABLE 25 INVESTMENT & CAPITAL MAINTENANCE SUMMARY (WATER & SEWERAGE) 2006/07 TO 2009-10 (£M) 2003/4 PRICES
• TABLE 26 POST AND TELECOMMUNICATIONS INDUSTRY - TOTAL NET CAPITAL EXPENDITURE £M 2000-2006
• TABLE 27 UTILITIES CONSTRUCTION OUTPUT BY VALUE 2002-2012 (£M AT CURRENT PRICES)
• TABLE 28 VALUE OF UTILITY CONNECTIONS INDUSTRY - 2004-2012
• TABLE 29 VALUE AND NUMBER OF GAS CONNECTIONS 2003/4-2006/7
• TABLE 30 VALUE AND NUMBER OF ELECTRICITY CONNECTIONS 2003/4-2006/7
• TABLE 31 EU THRESHOLDS FOR ALL SECTORS TO 31 DECEMBER 2007
• TABLE 32 CIVIL ENGINEERING CONTRACTORS - BY NUMBER OF EMPLOYEES 2002 AND 2005
• TABLE 33 TOP CONSTRUCTION COMPANIES INVOLVED WITH UTILITIES BY TURNOVER