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Research Report on UK’s Bridge and Tunnel Construction Industry

In the UK economy, rail and road networks play a significant role. The bridge and tunnel construction industry has enabled transportation through mountains, across rivers and under cities.

Transport infrastructure contributes considerably towards the local economy and improves efficiency and safety for freight distribution and commuters. In 2012-13, revenue of £1.95 billion is anticipated to be generated in the Bridge and Tunnel Construction industry, and value added is approximately £585 million or 0.05% of UK GDP.

Anthony Kelly, industry analyst at IBIS World industry, stated that the industry is anticipated to increase its revenue growth by 7% per year over the next five years from 2012 to 2013. Private sector investments in sewer tunnel, rail projects, and bridge construction works will further contribute to the growth of the bridge and tunnel construction industry.

About 8,500 people including part-time and permanent employees, working proprietors and partners are directly employed by the industry in 550 establishments in 2012-2013. About 20,000 people accounts for the total industry workforce.

Kelly added that reduction in government spending to control the rising public sector debt will impact the demand for bridge and tunnel construction services in the next five years.

Compared to the general economy, the bridge & tunnel construction industry is experiencing reduced concentration of ownership. However, it is less fragmented when compared to that of the construction sector. The four largest players constitute for about 22% of yearly industry revenue. A small proportion of participants is performing a high proportion of total work in this market.

Source: http://www.ibisworld.co.uk

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