Growth forecast for bridge and tunnel construction in 2012-13
19 June 2012
Posted by Michelle Devonshire
This year is expected to see an increase in activity within the UK's tunnel and bridge construction industry compared with 2011-12.
New analysis by IBISWorld predicts the sector will see revenues increase by 2.6 per cent year on year in 2012-13, with value-added reaching 0.05 per cent of UK gross domestic product, or around £585 million.
This rise in activity is likely to see demand increase for eurocodes as civil engineers and construction firms work to the harmonized technical standards, with annualized average accelerated revenue growth of seven per cent in the five years to this year.
Private sector investment in infrastructure schemes such as road, rail and sewerage is expected to fuel the market for bridge and tunnel construction.
However, IBISWorld also forecasts there will be a slight dip in activity during the next five years, as public sector cuts aimed at reducing the UK's budget deficit start to take effect.
The company stated: "Transport infrastructure can have far-reaching multiplier effects for the local economy and delivers greater efficiency and safety for commuters and freight distribution."
Road and rail networks are central to the UK's economic success, with tunnel and bridge construction enabling wide access to services.
The bridge and tunnel construction industry is dominated by a "relatively small proportion of participants, with the four largest players accounting for 22 per cent of total yearly revenue".
Eurocodes may be employed in the south of England as a new footbridge is due to be constructed in Shoreham, West Sussex.
Osborne has been selected as the contractor for the £9.8 million project by West Sussex County Council and the build phase is expected to be completed within 45 weeks.
The bridge will open to the public in summer 2013, with construction due to commence at the beginning of August, having been delayed as a result of a review of the commercial and technical details of the scheme being carried out.
"It was important to get all the details in place first, but we're very pleased to now get on with delivering the project," stated Dr Tommy Chambers, Osborne Civil Engineering Managing Director, adding: "The new footbridge will be a great asset to Shoreham."