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New Report on UK Healthcare Construction Market

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Reviewed

Mar 30 2015

Research and Markets has announced the addition of the "Healthcare Construction Market Report - UK 2013-2017 Analysis" report to their offering.

Despite reforms and austerity measures, investment in the NHS still remains a priority for the Government, with revenue funding for the NHS protected until 2015, although this includes a 17% decrease in capital spending over the period. The DH is one of the largest departments in government and one of the largest clients for construction work in the Health sector, with a capital budget of around £4.4bn in 2012-13 and 2013-14. However, with the squeeze on health capital funding, many large-scale capital schemes are expected to suffer, with contracts taking longer to reach financial close. This could lead to proposals being scrapped or trusts having to consider smaller refurbishment schemes rather than new-builds.

Construction output in the health sector has been subject to volatility in recent years with extraordinary growth in 2008 (£5.9bn) and sharp annual decline ever since. Short-term prospects for health construction output are likely to continue the downward trend in output reflecting a continuing squeeze on capital budgets and current forecasts for 2012 indicate further decline of 7-8% and value of around £3.2bn. This will be followed by further output declines in 2013 and 2014 when the value is forecast to be around £3.1bn.

Key to this pessimistic short-term forecast is the significant cuts to capital budgets faced by the health sector 2011-16 with declining new orders underpinning this decline. Output is forecast to remain static at around £3.1bn in 2014-16, but still approximately 47% down on the 2008 peak.

Going forward, the healthcare market is likely to open up further, with new entrants, new investment, and a range of different procurement solutions. The reduction in capital together with the cost of estate stock through routes such as PFI and PPP means it will be important for new funding models to be developed. Although PFI will still have a role to play it will be used less as alternative models of procurement come through.

Key Topics Covered:

1. Introduction

2. Summary And Future Prospects

3. Public Sector Healthcare In The Uk

4. Private Acute Healthcare Sector In The Uk

5. Contractors Output In The Healthcare Sector

6. Procurement Of Healthcare Construction Work

7. Construction Supply In The Healthcare Sector

Companies Mentioned