The construction output price in the United Kingdom has reached an annual growth rate of two percent in September 2024. Construction costs have been increasing at a lower rate than in 2022 and 2023. The year-over-year growth rate reached over 10 percent in May and June of 2022. Public and private housing was the construction segment with the highest output price increase. How have material costs developed over the years? Several factors influence construction material costs, including supply and demand, regulatory requirements, and transportation logistics. Manufacturing efficiency and global trade policies also play a big part, along with economic factors like inflation and currency fluctuations. In June 2022, the price of construction materials for new houses in the UK were 53 percent higher than in 2015. What is the largest component of those costs? Labor costs are often one of the largest expenses in construction projects. That is due to the skilled nature of the work, which has a high demand for specialized trades. The construction sector's labor costs accounted for around 58 percent of the sector's earnings in the United Kingdom in 2023. In the past years, the size of labor costs as a share of the construction sector rose by more than three percentage points, indicating that labor costs have increased at a faster rate than the overall revenue of the industry.

Construction Output Price Indices (OPIs) from January 2014 to December 2024, UK. Summary.

From 2015 to the first quarter of 2024, the construction output prices of public and private housing increased by 46 percent in the United Kingdom (UK). Meanwhile, the prices of industrial buildings increased by 41 percent, and infrastructure prices by 37 percent. Housing and industrial are the segments that increased the most during that period. Balfour Beatty ranked in the past years as the construction firm with the largest revenue in the UK.

Building materials made of steel, copper and other metals had some of the highest price growth rates in the U.S. in early 2025 in comparison to the previous year. The growth rate of the cost of several construction materials was slightly lower than in late 2024. It is important to note, though, that the figures provided are Producer Price Indices, which cover production within the United States, but do not include imports or tariffs. This might matter for lumber, as Canada's wood production is normally large enough that the U.S. can import it from its neighboring country. Construction material prices in the United Kingdom Similarly to these trends in the U.S., at that time the price growth rate of construction materials in the UK were generally lower 2024 than in 2023. Nevertheless, the cost of some construction materials in the UK still rose that year, with several of those items reaching price growth rates of over five. Considering that those materials make up a very big share of the costs incurred for a construction project, those developments may also have affected the average construction output price in the UK. Construction material shortages during the COVID-19 pandemic During the first years of the COVID-19 pandemic, there often were supply problems and material shortages, which created instability in the construction market. According to a survey among construction contractors, the construction materials most affected by shortages in the U.S. during most of 2021 were steel and lumber. This was also a problem on the other side of the Atlantic: The share of building construction companies experiencing shortages in Germany soared between March and June 2021, staying at high levels for over a year. Meanwhile, the shortage of material or equipment was one of the main factors limiting the building activity in France in June 2022.

The prices of many construction materials in the United Kingdom kept increasing in 2024, but more moderately than in previous years. There were also several building materials whose prices fell that year. One of the most extreme examples was the price of flexible plastic pipes and fittings, which rose by over 14 percent that year. The price of a couple steel products fell by over 10 percent that year. In late 2024, copper-based products were among the building materials with the highest price increases in the U.S.

Between 2018 and 2021, the cost of construction materials mostly increased in the United Kingdom. There was only a small decrease in their price in 2020. In 2021, the costs reached a 4.8 percent growth rate. Moreover, building materials costs are expected to grow by 17.6 percent in 2022. Nevertheless, these figures were calculated at the end of 2021, and therefore do not reflect the developments seen afterwards.

Economic uncertainty and inflationary pressures have spurred a degree of instability in the UK economy in recent years. This has spurred a reluctance among private investors to dedicate significant spending towards capital ventures, weighing on lead generation in commercial building construction markets. High construction costs and rising interest rates have led to further apprehension among property developers to engage in new ventures, though long-term government capital procurement frameworks have provided some resilience to wavering provate investemt. Revenue is slated to rise at a compound annual rate of 0.5% over the five years through 2024-25, reaching £22.8 billion. Aided by the release of pent up demand and a stronger than anticipated initial economic recovery from the pandemic, the industry recorded a strong rebound in new orders from pandemic-induced lows in 2021-22, particularly in private commercial and private industrial markets. However, capacity constraints and the impact of reduced new work volumes secured during the height of the pandemic limited output growth. Growth in new order volumes slowed in 2022-23, as economic uncertainty compounded and rising tender prices reduced the propensity of investors to commit to commercial real estate ventures. High borrowing costs continued to weigh on investor sentiment in 2023-24. However, a steady stream of work on projects procured through capital procurement frameworks, including Procure23 and the School Rebuilding Programme, is set to maintain revenue growth through the current year. Revenue is expected to increase by 6.6% in 2024-25. Revenue is slated to climb at a compound annual rate of 0.3% to reach £23.2 billion over the five years through 2029-30. The effects of the UK's economic slowdown will continue to bite in the near term, as weak order books limit remuneration. Input price inflation is set to continue to ease in the medium term. However, material costs are likely to remain elevated and a construction worker shortage will pressure profit. Commitments made by the government as part of capital procurement frameworks will continue to support demand for commercial building contractors in the coming years, while private sector order books should improve as borrowing costs come down.

In 2023, the cost of work in the construction sector in the United Kingdom (UK) represented around 58 percent of that industry's income. This measure, also known as labor share of income, has fallen significantly in 2022 and 2023. The relative cost of staff peaked in 2009, when it represented approximately 73 percent of the construction income. Two key factors can affect these figures: the evolution of construction salaries in the UK and the overall income of the industry. In times of inflation, a decline in the labor share of income could signal that the cost of work has increased at a slower pace than construction prices.

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Construction Market Size 2025-2029

The construction market size is forecast to increase by USD 1,288.3 billion at a CAGR of 5.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the rise in residential and commercial infrastructure projects worldwide. This trend is fueled by increasing urbanization, population growth, and economic development in various regions. One key trend is the increasing adoption of green buildings, which are in the Innovator's stage in some regions and the Early Majority in others, leading to varying adoption rates and penetration levels. Furthermore, the integration of Artificial Intelligence (AI) in the construction sector is revolutionizing the industry, enhancing productivity, efficiency, and safety. As the industry evolves, companies must navigate this obstacle by exploring cost-effective solutions, such as shared equipment ownership models or renting, to remain competitive.
To capitalize on the market's potential, businesses should focus on innovation, collaboration, and operational excellence, ensuring they deliver high-quality projects on time and within budget. By addressing these challenges and embracing the opportunities presented by the market, companies can effectively position themselves for long-term success. Another key driver is the integration of Artificial Intelligence (AI) in the construction sector, which is revolutionizing the industry by improving efficiency, reducing costs, and enhancing safety.

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In the dynamic market, securing permissions for building projects remains a crucial aspect of the industry. Cold storage facilities, a niche segment, continue to gain traction in the hospitality and leisure sectors, driven by innovative technologies and consumer demand. Smart cities are at the forefront of integrating sustainability regulations into commercial buildings, leading to increased usage of eco-friendly construction materials and raw resources. Site preparation and worker safety regulations are under constant scrutiny, ensuring compliance and adherence to industry standards.
The retail sector is also embracing technology, with the integration of automation and smart systems becoming increasingly common. Innovative technologies continue to shape the construction landscape, from 3D printing to modular construction, streamlining processes and reducing costs. Regardless, the industry's focus on sustainability and safety regulations ensures a responsible and forward-thinking approach to construction projects. However, the high cost of construction machinery poses a substantial challenge for market participants.

How is this Construction Industry segmented?

The construction industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Buildings construction
  Heavy and civil engineering construction
  Land planning and development
  Specialty trade contractors


End-user

  Private sector
  Public sector


Product

  Traditional
  Sustainable


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China
    India
    Indonesia
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The buildings construction segment is estimated to witness significant growth during the forecast period. The market encompasses various sectors, with buildings construction being a prominent and evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing significantly to the market's growth. For instance, Egypt's ambitious project to develop a new administrative capital, the New Administrative Capital (NAC), is a notable example. Located approximately 45 kilometers east of Cairo, NAC is designed to alleviate overcrowding and pollution in the current capital. A key player in this transformation is the China State Construction Engineering Corporation (CSCEC), a Chinese state-owned enterprise. Meanwhile, smart cities are emerging as a significant trend in the construction industry.

Economic development and retail activities are integral to the market, with developers focusing on creating vibrant and sustainable communities. Civil engineering plays a crucial role in the development of infrastructure, including roads, bridges, and water supply systems. Climate change is a pressing concern, and the construction industry is responding by incorporating green and energy-efficient practices into their projects. Sustainability regulations are becoming increasi

The UK construction market, valued at £398.68 million in 2025, is projected to experience steady growth, driven by several key factors. Increased infrastructure investment, particularly in transport and renewable energy projects, is a significant driver. Government initiatives promoting sustainable construction practices and housing development further contribute to market expansion. The residential sector, fueled by population growth and housing shortages, remains a major contributor to overall market size. However, the market faces challenges including material price inflation, skilled labor shortages, and potential economic slowdowns, which could moderate growth in certain years. The commercial sector, while showing resilience, is sensitive to economic fluctuations and may experience slower growth compared to residential and infrastructure segments. Regional variations exist, with England expected to dominate the market due to its higher population density and economic activity. Scotland, Wales, and Northern Ireland will likely contribute proportionately less, though infrastructure projects could stimulate growth in these regions. The forecast period (2025-2033) anticipates a continuation of these trends, with the market demonstrating moderate but consistent expansion. Competition among established players like Morgan Sindall, Balfour Beatty, and Kier Group will remain intense, driving efficiency improvements and innovation. The consistent CAGR of 3.19% suggests a predictable, albeit not explosive, growth trajectory. To sustain this momentum, the industry must address workforce challenges through effective training and recruitment programs. Furthermore, adoption of innovative technologies, such as Building Information Modeling (BIM) and modular construction, will be crucial for improving efficiency and reducing costs, enhancing the market's long-term competitiveness. Strategic partnerships and collaborations will likely become more common to mitigate risks associated with fluctuating material prices and economic uncertainty. The market's performance over the forecast period hinges on the successful navigation of these challenges and the continued implementation of supportive government policies. Recent developments include: December 2022: The Access Group has announced that it has successfully acquired Construction Industry Solutions (COINS), enhancing its capacity to offer international software and services to businesses engaged in the construction industry., March 2023: The Department of Transport, UK, has announced over £40 billion of capital investment in transport across the next two financial years, which will drive significant improvements to rail and roads across our country.. Key drivers for this market are: Transport Infrstructure Investment. Potential restraints include: Shortage of Skilled Labor. Notable trends are: Increase in GVA of construction Industry.

The financial and operational success of property development markets depends on a range of socio-economic factors, such as property values, market sentiment and credit conditions. Building project developers' revenue is forecast to slide at a compound annual rate of 3.2% to £35.8 billion over the five years through 2024-25. The economic shock caused by the pandemic had a devastating impact on property development market in 2020-21. Severe supply chain and market disruption caused sentiment to wane and transaction activity fell, while property values initially depreciated and rental fee income stalled. Revenue rebounded in 2021-22, aided by low interest rates, house price inflation and a stronger than anticipated initial economic recovery from the pandemic. Nonetheless, revenue remained below pre-pandemic levels as growth was hindered by a further net deficit on revaluation of assets and lower rental income in office and brick-and-mortar retail markets. The fallout from the pandemic has caused developers to re-align investment towards lower-risk real estate markets which are likely to be more resilient to price shocks. Inaflationary pressures and rising interest rates spurred a further hit to portfolio valuations, discouraging developers from pursuing new developments. Revenue is forecast to grow by 2.5% in the current year, as interest rate cuts spur renewed growth in property values. Revenue is slated to climb at a compound annual rate of 1.3% to reach £38.2 billion over the five years through 2029-30. Following recent interest rate cuts, more stable economic conditions are set to continue to support improved sentiment in the near-term, spurring developers to pursue new ventures. Opportunities for growth are set to be most prominent in high-yield office markets and the technology sector, with growing use of artificial intelligence set to drive demand for the development and construction of data centres. Loosened planning policy is set to drive momentum in residential real estate markets, though more will need to be done for the government to achieve ambitious housebuilding targets.

The prices of machinery for mining, quarrying, and construction in the United Kingdom soared in 2022 and continued to rise in 2023. According to the Producer Price Index (PPI), the cost of that the equipment and machinery used in those industries increased by 17.86 percent from 2021 to 2022. The value of the index was set at 100 in 2015.

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Construction Machinery Market Size 2025-2029

The construction machinery market size is forecast to increase by USD 39.8 billion, at a CAGR of 3.9% between 2024 and 2029.

The market is experiencing significant growth, driven by increased investment in infrastructure projects worldwide. This trend is particularly prominent in emerging economies, where governments are allocating substantial resources to modernize and expand their infrastructure networks. These factors are creating new opportunities for market participants, particularly in regions undergoing extensive infrastructure expansion. A growing trend in the construction industry is the rental of construction machinery, which offers cost savings and flexibility for businesses. This has led to an increase in demand for rental services, benefiting companies such as Herc Rentals and United Rentals. Another notable development in the market is the growing secondhand machine industry. The availability of affordable, high-quality used machinery is attracting both small and large construction firms.
This trend is expected to continue, as the cost savings can be substantial, and the technology in older machines is often still advanced enough to meet the needs of many projects. Underground mining equipment, precast concrete, and rebar installation systems are other areas of growth. However, challenges persist in the form of regulatory compliance and the need for regular maintenance and upgrades to ensure machines remain safe and efficient. These challenges require careful planning and investment from construction machinery companies to remain competitive in the market.

What will be the Size of the Construction Machinery Market during the forecast period?

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The market is experiencing significant growth, driven by increased investment in infrastructure development and the expanding trend of construction equipment rentals. Heavy lifting tasks are a crucial aspect of this industry, with crawler cranes and skid steer loaders playing essential roles. Dealer networks and aftermarket services ensure the availability of spare parts and operator training for optimal machine performance. Environmental regulations and safety features are increasingly shaping market trends. Waste management solutions and infrastructure development projects require advanced technology integration, such as GPS guidance and remote control systems. Land clearing and material handling are also key applications, with earthmoving equipment and asphalt pavers essential for these tasks.

Construction equipment rental services offer cost optimization and flexibility for various projects. Fuel optimization and emissions reduction are critical concerns, with diesel engines being gradually replaced by electric motors and machine learning algorithms. Operator comfort and safety regulations are also crucial considerations, with hydraulic systems and operator training ensuring jobsite safety. Bridge construction and tunnel construction projects require specialized machinery, such as concrete mixers and dumper trucks, to meet ground pressure and lifting capacity demands. Additionally, surface mining equipment, such as skid steer loaders and concrete pumps, are in high demand. Project planning and carbon footprint reduction are ongoing priorities, with construction management software and technology integration playing a significant role. Regulations and standards continue to evolve, driving innovation in the market. Cost optimization and service contracts are essential for maintaining machine performance and ensuring regulatory compliance. Overall, the market's continuous dynamism underscores the importance of staying informed and adaptable to evolving trends and applications.

How is this Construction Machinery Industry segmented?

The construction machinery industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Application

  Commercial
  Residential
  Infrastructure


Product

  Earthmoving machinery
  Material handling machinery
  Concrete and road construction machinery
  Others


End-user

  Public works
  Mining
  Oil and gas


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  APAC

    Australia
    China
    India
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Application Insights

The commercial segment is estimated to witness significant growth during the forecast period. The metal additive manufacturing Market encompasses various sectors, including aftermarket parts, project management, mining operations, rental services, environmental impact, road construction, and more. Artificial intelligence and data analytics are increasingly integrated

Snapshot img

Construction Scaffolding Rental Market Size 2025-2029

The construction scaffolding rental market size is forecast to increase by USD 3.38 billion at a CAGR of 5.3% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increase in global construction activities. This trend is expected to continue as infrastructure development and real estate sectors remain key priorities for governments and businesses worldwide. The market is also witnessing the incorporation of advanced technologies, such as modular and automated scaffolding systems, which offer increased efficiency, safety, and cost savings. However, the shortage of skilled labor poses a significant challenge to market growth. As the construction industry continues to expand, there is a pressing need for companies to invest in training and development programs to address this issue. Moreover, this trend is driven by the growth of end-user industries such as real estate and infrastructure development.
Additionally, the adoption of innovative business models, such as rental and leasing, is gaining traction as a cost-effective solution for construction projects. Companies seeking to capitalize on market opportunities and navigate challenges effectively should focus on offering flexible rental solutions, investing in technology, and addressing the labor shortage through training and recruitment initiatives. The construction sector's expansion in these countries is resulting in an increased requirement for extension and platform ladders to ensure safe and efficient workmanship and fall protection. 

What will be the Size of the Construction Scaffolding Rental Market during the forecast period?

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The market in the United States is a dynamic and sizeable industry, driven by the continuous need for temporary structures to support building projects. Market activity remains, with key growth factors including the outsourcing of scaffolding services, a focus on sustainability, and the pursuit of productivity enhancements through innovation. Scaffolding rental companies prioritize efficiency in areas such as inventory management, delivery, and assembly, while also addressing safety compliance and repair needs. The industry hosts numerous events and conferences to showcase the latest trends, including automation, fleet management, and cost-effectiveness. Innovation is a significant driver in the market, with advancements in scaffolding design, materials, and technology continually shaping the landscape. Smart Transportation methods, ladder innovation trends, and sustainability practices are shaping the industry.

How is this Construction Scaffolding Rental Industry segmented?

The construction scaffolding rental industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Supported
  Mobile
  Suspended


Application

  New construction
  Refurbishment
  Demolition


End-user

  Non-residential
  Residential


Type

  Frame scaffolding
  Tube and clamp scaffolding
  Others


Geography

  APAC

    Australia
    China
    India
    Japan
    South Korea


  North America

    US
    Canada


  Europe

    France
    Germany
    UK


  Middle East and Africa



  South America

By Product Insights

The supported segment is estimated to witness significant growth during the forecast period. The market is marked by the widespread usage of scaffolding safety solutions in various projects, including heavy industrial and infrastructure. Scaffolding plays a crucial role in ensuring safety through risk assessment, accident prevention, and compliance with regulations. Adjustable and mobile scaffolding towers, such as system and steel scaffolding, cater to diverse project requirements. Scaffolding training programs equip workers with the necessary skills for installation, maintenance, and inspection. Safety audits, certification, and software facilitate scaffolding compliance and optimization. Ladder designs continue to innovate with features like handrails, automation, fiberglass, and aluminum materials, catering to diverse applications. Suspended platforms, fall protection systems, and scaffolding components like safety harnesses and fall arrest systems ensure height safety.

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The Supported segment was valued at USD 4.55 billion in 2019 and showed a gradual increase during the forecast period. The energy industry, aerospace manufacturing, and bridge construction are just a few sectors that heavily rely on scaffolding rental services for their projects. Scaffolding rental companies offer various services, including installation, maintenance, design, an

Sand, gravel and clay extraction revenue is forecast to climb at a compound annual rate of 4.5% over the five years through 2025-26 to £3.6 billion, while the average industry profit margin is set to reach 3.7%. This is mostly as a result of price inflation, despite subdued demand from residential and commercial construction limiting demand for sand, gravel and clay for construction projects. However, growing use of sand and gravel for flood defences is elevating industry revenue and offsetting the dip in demand from other sectors, particularly construction. Sand, gravel, and clay extractors' revenue is forecast to hike by 0.8% in 2025-26, thanks to lower inflation and improved consumer and business confidence supporting construction activity. In 2022-23 and 2023-24, high borrowing costs, a looming recession and the cost-of-living squeeze damaged construction output, dampening industry revenue. While construction output is improved in 2024-25, increasing demand for gravel, sand and clay, persistently low business and consumer confidence and high interest rates will limit growth opportunities for quarrying companies. In 2025-26, trade uncertainty caused by the US’s new “Liberation Day” tariffs is likely to dampen short-term growth as uncertainty limits investment in major construction and manufacturing projects. Sand, gravel and clay extraction revenue is projected to climb at a compound annual rate of 0.9% over the five years through 2030-31 to £3.9 billion. Continued government investment into major infrastructure projects, like the Road Investment Strategy 2, is set to propel demand from key construction markets. However, the booming emphasis on using recycled aggregates made from materials previously used in construction, due to their lower carbon footprint and cost-effectiveness, will likely eat into sales of gravel, sand and clay. However, gravel, sand and clay extracting companies pivoting to more high-specification products and more sustainable practices are set to fair better in the coming years.

Steel rose to 2,949 CNY/T on June 6, 2025, up 0.31% from the previous day. Over the past month, Steel's price has fallen 4.69%, and is down 14.47% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Steel - values, historical data, forecasts and news - updated on June of 2025.

Brick & tile manufacturers have contended with a rapidly evolving landscape over recent years, as the government clamps down on carbon emissions and customers increasingly demand sustainable products. Economic conditions following the COVID-19 outbreak also presented challenges, ranging from supply chain disruptions, spiralling inflation and rising interest rates. Over the five years through 2024-25, industry revenue is anticipated to dip at a compound annual rate of 3.8% to £1.3 billion, including a forecast decline of 6.6% in 2024-25, when profit is estimated to reach 11%. In recent years, higher living costs have eaten into consumers’, business’ and the government’s pockets, hitting new demand for residential and commercial construction. The government provided support like the Help to Buy scheme, implemented in 2013, as well as funding the construction of 23,318 affordable homes in 2022-23. However, this wasn’t enough to jumpstart subdued residential and commercial construction activity from tight economic conditions in 2023-24. Despite interest rate cuts, construction activity is set to drop in 2024-25 as borrowing costs remain high and business confidence remains subdued. According to BCIS, new work output is forecast to fall by 4.7% in 2024. Manufacturers also contend with substitutes like steel, glass and concrete blocks, investing in significant R&D to remain competitive and introduce new value-added products to the market, like solar tiles. Brick and tile manufacturing revenue is projected to climb at a compound annual rate of 6.6% to £1.8 billion over the five years through 2029-30. Revenue growth is set to pick up in the coming years as interest rates come down and borrowing costs are lower, supporting investment activity. Commercial construction will also experience a resurgence, with companies bringing workers back to offices as businesses emphasise high-quality workspaces. However, conditions will remain precarious in the short term as higher interest rates and sticky inflation deter many developers from beginning projects. Manufacturers will look to find lucrative infrastructure projects, which often have sizeable budgets even amid a subdued economy. Advances in energy efficiency production and sustainable products will bolster the industry's relevance, boosting demand and providing niche markets for new entrants to capitalise on. Although this will weigh on profit in the short term as manufacturers pour money into R&D to remain competitive, the subsequent uptick in demand will offset this.

Companies in the commercial property remodelling industry refurbish, maintain, repair, alter and retrofit commercial property and real estate. The COVID-19 outbreak resulted in an economic shock and severe market disruption, which had trickle-down ramifications for contractor lead generation, leading to a 16.9% tank in industry revenue in 2020-21. However, in 2021-22, revenue rebounded impressively by 25.4% thanks to a substantial surge in pent-up demand from downstream markets and a backlog of remodelling activity. Over the five years through 2024-25, the commercial property remodelling industry is expected to expand at a compound annual rate of 2.6% to £7 billion. After expanding over 2022-23 and 2023-24, industry revenue is expected to climb again by 1.1% in 2024-25, driven by increased remodelling output prices and falling interest rates, which should boost market activity. According to the ONS, repair and maintenance construction material prices fell from March 2023 until April 2024, with the first monthly increase in prices in June 2024. This shows that material costs have been cooling for a long period, boosting profit for commercial property remodelling companies. Over the five years through 2029-30, the commercial property remodelling industry is expected to swell at a compound annual rate of 0.9% to £7.4 billion. Commercial property remodelling contractors will contend with lingering operating difficulties amid higher interest rates and lingering economic uncertainty in the short term. However, commercial property remodelling contractors may find growth opportunities, most notably in the retrofit market, as future regulations for EPC ratings on commercial properties will boost demand. If economic conditions stabilise in the coming years, a new business cycle could spur fresh investment in business expansion, creating new tender prospects.

The increasing uptake of online retailing has supported the online hardware and tool retailers industry, giving online retailers an edge over traditional bricks-and-mortar establishments. Over the five years through 2024-25, revenue is slated to swell at a compound annual rate of 4.7% to £3.9 billion. The COVID-19 pandemic drove a sharp uptick in online retailing – online stores were the only way people could get hold of non-essential items at the peak of the pandemic. At the same time, the combination of more time spent at home and a lack of places to spend money caused household spending on home maintenance and repair to rise, driving a significant hike in industry demand over 2020-21 and 2021-22. However, the cost-of-living crisis has hampered the market and squeezed household spending on home improvements in the years since – that's why revenue dropped in 2022-23. Subdued investment in construction, infrastructure and housing has led to a stagnation of revenue in 2023-24 and 2024-25, with construction firms cutting spending on new tools as a result. Over the five years through 2029-30, industry revenue is expected to increase at a compound annual rate of 4.6% to reach £4.8 billion. Disposable incomes are anticipated to grow over the next five years, starting on the road to recovery from their steep decline during the cost-of-living crisis. Consumer confidence is also expected to rise as Brexit uncertainties fall away and the cost-of-living eases. For similar reasons, UK construction activity is projected to grow and more people will take up household renovation projects. Online retailers are expected to work harder to steal lucrative professional clients and large contracts away from wholesalers and bricks-and-mortar stores.

The Lock and Hinge Manufacturing industry is highly globalised, with several major global manufacturers operating or importing into the UK market. Before the COVID-19 outbreak in 2020-21, the industry benefitted from expanding residential and commercial construction markets. In particular, solid housebuilding activity, supported by the government's outlandish commitment to building 300,000 homes annually in the mid-2020s and high capital investment in commercial projects, fuelled revenue growth. Vehicle manufacturing was less lucrative over the same period. Over the five years through 2023-24, industry revenue is forecast to contract at a compound annual rate of 1.4% to £1 billion. Import penetration thanks to the cost advantages of manufacturing giants like China and Germany. Manufacturing revenue plummeted in 2020-21 thanks to volatile commodity prices, a weak construction sector and measly manufacturing output caused by the COVID-19 outbreak. During the year, supply chain disruption caused substantial trade flow volatility, slashing exports and imports. Nonetheless, a domestic and global economic recovery occurred in 2021-22 amid the successful and effective vaccine rollout. Manufacturing output returned to full capacity, and rising economic sentiment boosted sales across downstream buying industries like the construction sector. Over 2023-24, revenue growth is expected to decelerate to 0.4% amid a challenging economic environment. Lingering cost-push inflation is expected to keep operating costs high across the UK manufacturing sector, eroding profitability and output capacity. Investment in the residential and commercial construction industries will drive revenue prospects. The residential construction market will boom over the coming years as the government continues pursuing audacious housing targets to cater for the ever-growing UK population. Purchases from furnishings manufacturers, motor vehicles and other durable goods that require locks and hinges will also provide lucrative sales opportunities. Profitability will slowly recover but remain below historical levels thanks to weak UK manufacturing productivity relative to other G7 economies and China. Over the five years through 2028-29, the UK lock and hinge manufacturing industry's revenue is forecast to expand at a compound annual rate of 0.1%, reaching close to £1.1 billion.