posted 13th May 2024
The world has a long history with construction services. It is intertwined throughout our society, and the whole world relies on it to maintain crucial services and infrastructures. However, there is more to the sector than what most people might first consider.
The industry is not only the physical construction of buildings, but includes the planning, design, logistics, and execution of projects that range from buildings to transport routes, historical sites, and housing. In this Shared Insight article, we review some of the top construction companies in the UK, as named by Beauhurst, and what the possible future holds for UK's construction industry.
The history of the UK's construction industry
Construction and architecture mark many periods of the UK's history - from Stonehenge to Buckingham Palace, to the Shard - and is home to hundreds of historical landmarks that demonstrate the country's high-level of construction dependency.
From the time of the Industrial Revolution, the UK witnessed an unprecedented surge in new machinery, methods and techniques that facilitated huge advances in the sector. This allowed one of the great periods of connection in Britain as more roads were created, alongside a large number of railways and canals. Over the years, it cannot be denied that construction has formed, and continues to form, the UK's urban landscape.
These days, the construction industry is again seeing immense growth as businesses take advantage of digital technology and embrace sustainable methods to address modern challenges.
In November 2020, the UK government introduced a way to address challenges like housing shortages and infrastructure deficits by introducing the National Infrastructure Strategy (NIS) which outlines a long-term vision to allocate £100billion of infrastructure investment. This will be across vital projects in energy, transport, housing, and digital connectivity.
There are a number of other schemes and incentives in the UK designed to foster innovation, productivity, and collaboration within the sector, as well as provide the means for local authorities and developers to deliver housing and essential community infrastructure.
According to Beauhurst, in the UK there are currently just under 1,500 private construction companies operating with a combined turnover of £53 billion. Construction contractors are also one of the UK's largest employers. The industry has strong equity funding totalling £1.67 billion across 373 fundraisings since 2011. As with most sectors, the construction industry was affected by the Covid-19 pandemic and has not yet seen as much equity funding since 2018/2019, though it has picked up since a low of £136 million in 2021.
The Top 10 Construction Companies in the UK
The businesses featured in the list of top 10 UK construction companies range from 4 to almost 80 years old, with most based in London and Southeast England. Between them, they have raised an impressive £270.4 million across 37 equity rounds.
The list offers a succinct microcosm of the UK's construction sector - ranging from younger businesses offering digital platforms and augmented reality, to firms more than 30 years old offering more 'traditional' consultancy and equipment supplies.
Companies like YardLink and FYLD are providing digital platforms that aim to improve site safety and procurement, while other tech firms like nPlan and XYZ Reality aim to help construction firms save time and money by using AI to predict project outcomes and visualising completion through augmented reality respectively.
Other, longer-established firms, provide the construction industry with essential services. The Molson Group provides machinery and equipment, Troy provides tools, construction wear and janitorial equipment, and Ridge and Partners provides essential consultancy for almost every aspect of construction. All place within the top 5 on the list.
Signalling the move into more sustainable construction practices, number 6 on the list, Sicut Industries, uses recycled plastics to produce railway sleepers and has been selected as National Rail's replacement provider when it ends the procurement of existing hardwood sleepers in June 2024.
What does the future hold for M&A in the UK construction industry?
M&A in the construction industry is helping to tackle challenges and growth opportunities that will shape the sector's future. With technological innovation and changes in society, in addition to adaption and collaboration opportunities, there's no doubt that the future of the construction industry looks promising.
As AI has taken precedence in recent times, the UK construction industry is ready to take project planning, design, construction processes, cost reduction, and enhancing efficiency to the next level. With the businesses mentioned in the list seeming to lead the way in helping the construction industry grow, there's no doubt that the sector seems ready to meet challenges and demand for smart infrastructure that is sure to continue to rise.
Taking advantage of collaborative approaches such as partnership and investments in skills development will play an important part in helping the construction industry to become more inclusive and dynamic when it comes to meeting the needs of society.
Whether you are considering buying, selling, or raising equity for your construction business, the need for expert advice is essential. GS Verde Group are business focused experts in getting deals done, combining multiple disciplines including law, tax, finance, and communications, to provide end-to-end support as a complete advisory team.
