Re:Generation Edition 01
Latest Demoiltion Market Forecast predicts long term growth
The report suggests that total and selective demolition services will generate 49.6% of industry revenue in 2022- 23 , while dismantling and decommissioning services will account for 43.8%.
Latest demolition market forecast predicts long term growth
£1216m
Predicted Demolition Industry Revenue
£165.9m
£1117.8m
£1071.8m
£1027.6m
£985.3m
2023
2024
2025
2026
2027
2028
The rise of residential Although the current decline in new housing starts is an obstacle, demand for site preparation is predicted to drive revenue growth through 2028. The residential property construction market is estimated to produce 34.8% of industry revenue in 2022-23, having grown as a share of revenue due to sustained policy support for both downstream housing developers and the stimulation of regional economic development. The government’s housing target of 300,000 new dwellings per annum by the mid-2020s has facilitated demand from property developers, while the £1.2 billion Starter Home Land Fund has supported the remediation and de-risking of land.
Following a 24.7% decline during 2020-21, the report predicts that improving operating conditions following the now largely mitigated pandemic are likely to result in increased industry revenue next year, rising by 4.6% to reach £985.3 million. A 4.3% compound average growth rate through 2027-28 should see this figure ultimately reach just over £1.2 billion, buoyed by the UK’s long-term decommissioning targets and policy support for the residential property, critical infrastructure and social infrastructure markets that are expected to create supply chain contract opportunities for demolition firms. The report suggests that total and selective demolition services will generate 49.6% of industry revenue in 2022-23, while dismantling and decommissioning services will account for 43.8%.
Demand for commercial building construction is also likely to rise over the next year, producing knock-on benefits for the demolition sector. In 2022-23, UK demolition firms are anticipated to generate 21.9% of industry revenue from commercial market contracts, while the public non-residential construction market is estimated to account for 9.4%. infrastructure work in March 2022 being 30.7% higher than in February 2020, predicted growth in the civil engineering sector is set to result in greater potential for lead generation in coming years. In particular, the trend towards renewable energy generation will provide major opportunities for the removal of the UK’s obsolete nuclear legacy. The Nuclear Decommissioning Authority (NDA) owns 17 sites currently listed for decommissioning, at a cost of approximately £120 billion, providing a lucrative avenue for specialist demolition firms. Constituting 33.9% of industry revenue in 2022-23, with new
With strikes and economic woes all around, with the risk of blackouts ahead, it’s almost as though the 1970s are here again. Nevertheless, the latest research from IBISWorld offers some encouraging predictions for the UK demolition sector. A new report covering the UK’s demolition market confirms General Demolition’s cautious optimism regarding the industry’s direction over the next five years. Annual growth is predicted to rise to 4.3% throughout 2023-2028 – a welcome relief from the -3.1% decline during 2018-2023 – according to the latest data compiled for the Demolition in the UK Industry Report (F43.110), published by IBISWorld.
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www.general-demoliton.co.uk
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