Market overview

Current market conditions
In October 2016 the Construction Products Association (CPA) estimated the overall construction market at £135bn in 2016, up 0.6% from the previous year. The CPA forecasts further growth of 0.3% in 2017 and 0.2% in 2018.  This includes growth in infrastructure work of 6.2% in 2017 and 10.2% in 2018. 

The chart below shows the contribution towards the Group’s revenue of our key targeted markets.


 
Each of our division’s markets is described fully in our 2016 annual report.

Long-term trends
There are four fundamental long-term trends that will support growth in the Group over the next 10 to 20 years:

1. Housing shortages 
2. Investment in infrastructure
3. Population growth 
4. Constrained public expenditure

These trends will provide opportunities in our target markets such as housing, transport, energy, water, education and healthcare.  More detail can be found in our 2016 annual report.