Research and Markets has announced the addition of the “United Kingdom Infrastructure Report Q3 2012” report to their offering.
News that UK construction output fell by the sharpest pace in three years in Q112 highlights the detrimental effect the government’s austerity measures are having on the industry. On a local scale, small and medium sized contractors are struggling to compete for work, while on a national scale, larger companies are beginning to cut operations in the UK and look elsewhere for opportunities.
Recent Developments include:
– The controversial approval of High Speed Rail 2 (HS2) in January 2012 could give the UK railway sector a sizable boost, with the segment already posting strong growth from high value projects. However, construction is not due to begin until near the end of the decade and, consequently, the impact on our forecast is minimal. Nevertheless over the longer term we note significant potential and opportunities for British-based companies in particular. HS2 is expected to enter the construction phase in 2019/2020 and the first phase is estimated to take six and half years.
– In March 2012, UK renewable energy developer, Burcote Wind Ltd proposed a US$1.7bn investment plan into the UK wind energy industry that would see a number of parks being built across Scotland with a combined capacity of 800 megawatts (MW). The UK government has pledged to derive 15% of its energy from renewable sources (including hydropower) by the end of the decade, with a particular focus on offshore and onshore wind power. However, owing to downside risks stemming from uncertainty with regard to funding, BMI forecasts that the amount will fall short of the 15% target, instead coming in at 13% by 2020.
– The decision (March 2012) by E.ON and RWE not to proceed with plans to develop new nuclear power plants in the UK through their Horizon Nuclear Power joint venture (JV) confirms the view that the economics of nuclear power in the UK have come under serious scrutiny.
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Offshore WIND staff, August 06, 2012