Transport and energy investment to soar

An offshore wind turbine in the Thames Estuary. Photo courtesy of Phault
An offshore wind turbine in the Thames Estuary. Photo courtesy of Phault

A boom in UK construction demand is expected by forecasters at accountants PricewaterhouseCoopers with energy and transport to be the hot spots over the next ten years.

 

The balance of global investment will shift towards the Asia-Pacific region, but UK energy and transport investment will still rise by 50% to over £100Bn in the next ten years according to the report from infrastructure and capital projects specialists at PwC. The research suggests that energy and transport will generate thousands of construction jobs between them over the years to 2025.

 

Spending on social infrastructure like schools, hospitals and further education will still account for over 25% of UK infrastructure and capital projects, says PwC, but energy and transport will be the growth sectors leading the construction industry, with transport investment doubling and energy almost tripling.

 

PwC says its research does not depend on having identified specific projects, but is based on analysis of key economic drivers such as economic growth assumptions. The report does not factor in any shale gas boom such as has boosted the United States energy market.

 

The report also says the forecasts do not depend on big projects like HS2 or Heathrow’s third runway going ahead. If HS2 does not go ahead then major upgrades will take place elsewhere on the rail network.

 

Even greater growth is expected for infrastructure investment and employment in other parts of the world, with a forecast of almost US$78 trillion annually to be invested globally by 2025. The UK market will grow by 3.8% a year over that period, but global growth will average 6% to 7%.

 

The Asia-Pacific region is forecast to account for some 60% of infrastructure and capital project spending by 2025, with China alone accounting for about a third of the global total. Emerging markets generally will see much faster growth in infrastructure spending than advanced economies, party because they were less badly enmeshed in the global financial system that went into crisis in 2007-2008.

 

The report, entitled ‘Capital project and infrastructure spending: Outlook to 2025’ predicts that the global capital project and infrastructure market is will be worth over $9 trillion per year by 2025.

 

Licence for photo – https://creativecommons.org/licenses/by/2.0/

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

Caledonia Water bags infrastructure contract with Scottish Water

Caledonia Water bags infrastructure contract with Scottish Water

Caledonia Water Alliance – a Morrison Utility Services and AECOM joint venture – has landed a six-year extension on its water infrastructure contract with Scottish Water Following confirmation of the new agreements, from 2021-2027 Caledonia Water Alliance (CWA)

Skanska bags £135m revamp of Canary Wharf’s first office

Skanska bags £135m revamp of Canary Wharf’s first office

Skanska has won the contract to deliver the main structural revamp of Canary Wharf’s first major office at 30 South Colonnade in London Docklands.The major office deal is its second to be signed off this week after confirming an £83m contract with Royal London Asset Management to build

MWH Treatment secures key role on Scottish Water framework

MWH Treatment secures key role on Scottish Water framework

MWH Treatment (MWHT), together with partner Galliford Try, has successfully secured a six-year contract extension on Scottish Water's non-infrastructure framework for the Strategic Review 2021-27 (SR21) investment programme. MWHT, a sector leading solution provider operating across the UK water

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.