Highway Maintenance Market Report - UK Analysis

Transcription

1 Highway Maintenance Market Report - UK Analysis Published: 17/10/2017 / Number of Pages: 75 / Price: Introduction and Overview The 3rd edition of the 'Highway Maintenance Market Report - UK Analysis'reviews the highways maintenance market in the UK, focusing specifically on projects and maintenance within the roads industry. The report also reviews major spending programmes and initiatives taking place within the industry, and considers how these will affect future direction. Key issues covered in the report include: Structure and size of the UK highway maintenance industry - budgets, funding sources, etc. Structure of responsibility for highway maintenance - Highways England, devolved bodies, local authorities, etc. Analysis by UK region - highway maintenance sectors in England, Wales, Scotland and Northern Ireland. Maintenance materials - market size, trends, key suppliers for asphalt, bitumen, surface dressings, aggregates, etc. Market forecasts - overall and for key product sectors. Areas of particular interest include: Key market trends - impact of recent Government spending on road construction & maintenance, etc. Review of key material sectors - market size, trends and key players. Supply chain review - key players, material suppliers, long term maintenance contractors, etc. Market forecasts to analysis of the key factors affecting future industry direction. Some of the companies included are: Amey, A-one+, Arup, Balfour Beatty, BASF, BEAR Scotland, Bestco Surfacing, BituChem, Cemex, Chevron, Colas, Connect Plus, Dowhigh, Eurasia, Eurovia, Fitzgerald, FM Conway, Fosroc, Henderson & Taylor, Henry Williams, J B Riney & Co Ltd, Kenson Contractors, Kiely Bros, Kier, LafargeHolcim, Marlborough Surfacing, Mott MacDonald, Murrill Construction, Nynas, Rhino Asphalt Solutions, R J Dance, Ronacrete Group, Stabilised Pavements, Scotland TranServ, Tarmac, Tayside Contracts, T J Surfacing, United Asphalt, VolkerHighways, W S Atkins. Highway Maintenance Budgets and Contracts Infrastructure output - analysis by sector (e.g. roads, rail, water, etc.) from Key trends, structure of the sector,

2 regional expenditure, road condition, market prospects and future developments. Department for Transport - annual spending and budgets (capital and resource) from to , Government spending reviews, etc. Highways England - operational breakdown, annual budget and performance, major projects/schemes, etc. Scotland, Wales & Northern Ireland - overview of road management agencies, motorway and trunk road expenditure, major projects/schemes, etc. Local authority road maintenance expenditure - includes highways and transport spending from to , capital expenditure on roads, average highways maintenance budget per authority, etc. Types of contract - framework agreements, term maintenance contracts, buying consortia, PFI schemes. Key Products/Materials Review of major areas of expenditure on highway treatments - products/services related to the road surface (including surface treatments), road reinstatement products and street lighting systems. Surfacing Products - bitumen macadam asphalt surfacing, surface dressing, surface dressing aggregates, resin anti-skid surfacing/high friction surfacing, slurry micro-seal surfacing, Other Surfacing Products and Maintenance - bitumen emulsions, footpath treatments, road markings, reinstatement products (i.e. manhole levelling compounds), road studs, winter maintenance and road and street lighting systems. Market size reviews - production levels, trends, drivers, market prospects. Company profiles - suppliers of surfacing materials, industry structure, key sectors etc. Contractor Review Term maintenance contractors - key suppliers, supply structure, financial performance, merger and acquisition activity, contracts etc. Specialist road contractors - key suppliers, supply structure, financial performance, contracts, merger and acquisition activity etc. Consulting engineers - key suppliers, financial performance, projects, etc. Product Suppliers and distributors - key suppliers, financial performance, recent new product innovations, etc. Report Summary The UK highways maintenance market is valued at more than 10bn and represents a major component of UK infrastructure spending. Public sector capital spending remains under constant pressure. However, the Government has committed to major spending and investment programmes in the road network, as well as other transport projects driven by factors such as increased road congestion, rising population levels and deterioration of roads by adverse winter weather. The Government is facing funding difficulties, with borrowing levels increasing and tax receipts lower than some of the initial projections. As a result, it is actively examining ways of attracting private capital into highways, although this process remains at an early stage of development. Expenditure on roads infrastructure fell by a significant amount in 2016, although the general trend since the start of the

3 present decade has been upwards. Transport represents one of the largest areas of Government expenditure - it has generally been recognised that investment in infrastructure will assist economic growth across the UK. Furthermore, in the 2016 Budget, the Government announced it was to increase capital transport budgets by almost double by 2019/2020. Highways England is responsible for operating the strategic road network in England on behalf of the Department for Transport. Outside of England, responsibility for operating and maintaining the motorway and trunk road network lies with bodies such as Transport Scotland, the Welsh Assembly Government (via two Trunk Road agencies) and Transport NI. The remainder of the network (i.e. non-trunk roads) is maintained by 217 local authorities. Scotland is divided into single tier councils who maintain roads. Wales has unitary authorities, and the Transport NI maintains roads in Northern Ireland. In terms of market features, product supply occurs mainly through direct supply on an annual tender or by individual order, and very much depends on the materials concerned. Some products are traditionally sourced using the annual tender process. Local authorities do have access to buying groups, but they are not very popular for highways maintenance. Innovations within the market include photovoltaic road surfacing and solar-powered road studs, greater use of natural and recycled materials and/or aggregates and micro-foamed asphalt which lowers carbon dioxide emissions. Demand is likely to continue rising for products which can help to reduce the time spent on site and therefore minimise disruption to road users. Going forward, future Government budgets and spending levels are likely to be heavily influenced by what form Brexit will take, and its impact upon the UK economy. However, investment in road construction and maintenance is projected to increase over the short to medium term, unless the UK economy suffers a major contraction. Additionally, there are likely to be changes in the way certain highways are maintained. The next decade or so is likely to witness greater impact of technological advancements and 'smart' systems, as well as more consideration given to the environmental impact of highways maintenance projects. Changes in the way maintenance contracts are introduced are also expected. List of Contents Contents Listing 1. INTRODUCTION BACKGROUND SOURCES OF INFORMATION 6 2. SUMMARY & MARKET PROSPECTS SUMMARY MARKET PROSPECTS ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING 16

4 3.7 POPULATION PROFILE CONCLUSIONS HIGHWAY MAINTENANCE EXPENDITURE MARKET INFLUENCE & TRENDS MARKET PROSPECTS DEPARTMENT FOR TRANSPORT ENGLAND Highways England Local Authority Expenditure on Highway Maintenance: Non-motorway and Trunk Roads London Boroughs SCOTLAND WALES TRANSPORT NI TYPES OF CONTRACT SPECIALIST HIGHWAY MAINTENANCE PRODUCTS AND PROCESSES INTRODUCTION & DEFINITION PRODUCTS & PROCESSES Bitumen Macadam Asphalt Surfacing Surface Dressing Surface Dressing Aggregates Resin Anti-Skid Surfacing/High Friction Surfacing Slurry Seal Micro Surfacing Bitumen Emulsions Footpaths Road Planing & Retreading Road Markings 54

5 Emergency Highway Bitumen Reinstatement Products Road Studs Winter Maintenance Road and Street Lighting DISTRIBUTION CHANNELS HIGHWAYS CONTRACTORS / MATERIAL SUPPLIERS TERM MAINTENANCE CONTRACTORS PRODUCT SUPPLIERS / DISTRIBUTORS SPECIALIST ROAD CONTRACTORS Consulting engineers 74 Tables & Charts CHART 1: ROAD AND TOTAL INFRASTRUCTURE OUTPUT IN THE UK ( M) 8 TABLE 2: GDP DATA KEY CONSTITUENT ELEMENTS 12 CHART 3: INTEREST RATES AND INFLATION (CPI) FROM CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5: EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 17 TABLE 6: INFRASTRUCTURE OUTPUT BY SECTOR (ROADS, RAILWAYS, WATER, ELECTRICITY ETC) BY VALUE ( M) AND % CHANGE BY VALUE 19 TABLE 7: STRUCTURAL CONDITION OF ROADS IN ENGLAND & WALES: 2016/2017 (%) 21 TABLE 8: NUMBER OF POTHOLES, TOTAL SPEND - ENGLAND & WALES 2011/ /17 22 CHART 9: LICENSED VEHICLES BY TYPE 2016: TOTAL ALL VEHICLES (%) 24 CHART 10: % OF ROAD LENGTH AND TRAFFIC BY CLASSES OF ROAD IN GREAT BRITAIN TABLE 11: DEPARTMENT FOR TRANSPORT - DEPARTMENTAL SPENDING ( M), 2014/ / CHART 12: DEPARTMENT FOR TRANSPORT: EXPENDITURE BY SECTOR (%) 2015/ TABLE 13: DEPARTMENT FOR TRANSPORT - LOCAL AUTHORITY TRANSPORT BUDGETS ( M) 2014/ / TABLE 14: STRUCTURE OF HIGHWAYS ENGLAND OPERATIONAL AREAS 2016-REGIONS, OPERATIONAL AREAS COVERED,

6 ROADS MANAGED 33 TABLE 15: HIGHWAYS ENGLAND: EXPENDITURE BREAKDOWN ( M), 2015/ / TABLE 16: HIGHWAYS/TRANSPORT EXPENDITURE BY ENGLISH LOCAL AUTHORITIES / / TABLE 17: LOCAL AUTHORITIES - CAPITAL EXPENDITURE ON ROADS IN ENGLAND ( M) 2013/ / CHART 18: LOCAL GOVERNMENT EXPENDITURE BY KEY SECTORS (%) 2016/ TABLE 19: AVERAGE HIGHWAYS MAINTENANCE BUDGET PER LOCAL AUTHORITY IN ENGLAND, LONDON ( M), 2011/ /17 36 TABLE 20: MOTORWAYS AND TRUNK ROADS EXPENDITURE: SCOTLAND 2013/ /18 BY WORK AREA (STRUCTURAL REPAIRS, ROUTINE MAINTENANCE, ROAD IMPROVEMENTS, ETC) 38 TABLE 21: ROADS AND TRANSPORT REVENUE EXPENDITURE WALES (SAFETY & ROUTINE MAINTENANCE, PLANNING, WINTER MAINTENANCE ETC), 2010/ /16 40 TABLE 22: TOTAL PRODUCTION OF HOT MIX ASPHALT AND MACADAM MIXES IN UK MILLION TONNES/NO. OF PRODUCTION PLANTS 45 TABLE 23: MAIN USES FOR BITUMEN-BASED ASPHALTS AND MACADAMS 2016 (HIGHWAY SURFACING, PATCHING/POTHOLES, OTHER SURFACING ETC.) 46 CHART 24: LEADING SUPPLIERS OF ASPHALT AND MACADAM IN THE UK - MARKET SHARES TABLE 25: UK SURFACE DRESSING MARKET: BINDER SUPPLY - BITUMEN EMULSION (000 TONNES) 49 TABLE 26: SUPPLIERS OF SURFACE DRESSING BINDERS IN THE UK - ESTIMATED VOLUMES AND MARKET SHARE TABLE 27: BITUMEN EMULSION MARKET - MIX BY SURFACE DRESSING/OTHERS: (000'S TONNES) 52 TABLE 28: MARKET SHARE ANALYSIS OF LEADING COMPANIES SUPPLYING CEMENT-BASED BAGGED MANHOLE LEVELLING COMPOUNDS AND SETTING TABLE 29: UK PUBLIC SECTOR EXPENDITURE ON STREET LIGHTING ( M) / / TABLE 30: LOCAL AUTHORITIES - CAPITAL EXPENDITURE ON STREET LIGHTING IN ENGLAND ( M), 2013/ / TABLE 31: STREET LIGHTING MARKET SPLIT BY NEW PROJECTS/REPLACEMENT EQUIPMENT, MAINTENANCE, ENERGY CONSUMPTION 59 CHART 32: PRODUCT MIX OF PUBLIC SECTOR STREET LIGHTING % BY VOLUME 59 CHART 33: MERCHANTS MARKET SHARES

7 CHART 34: PLANT HIRE MARKET PRODUCT MIX IN THE ROADS SECTOR BY VALUE M 61 The 'Highway Maintenance Market Report - UK Analysis'costs 895+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on