NEW YORK, Feb. 18, 2016 /PRNewswire/ -- AMA Research have published the 2nd edition of the report 'Highway Maintenance Market Report – UK 2015-2019 Analysis'. The report should be of particular interest to clients, contractors and other members of the supply chain including; suppliers, manufacturers, consulting engineers etc. and provides a comprehensive review of the highway maintenance sector.
Key areas covered:
• Structure and size of the UK Highway Maintenance sector - budgets, funding sources etc.
• Structure of responsibility for highway maintenance - Highways England, DLO'sm, Long Term Maintenance Contracts, Devolved Agencies.
• Review of England, Scotland, Wales and Northern Ireland highway maintenance sectors.
• Maintenance materials - market size, trends, key suppliers for asphalt, bitumen, surface dressings, aggregates etc.
• Market forecasts - overall sector and for key product sectors.
Key areas of insight include:
• Key market trends and the impact of Government spending on highways projects and maintenance.
• Structure of highway maintenance contracts in UK – Highways England, DLO's, Contractors, Agencies etc – impact of recent Election on mix between in-house and external maintenance contracts.
• Review of key material sectors – asphalt, bitumen, surface dressings, aggregates etc – market sizes, trends and key players.
• Supply chain review – key players, material suppliers, long term maintenance contractors etc.
Some of the companies included:
A-one Colas, Amey, Ayton, Balfour Beatty Living Places, BEAR Scotland, Berkshire Macadams, Bestco Surfacing, Bituchem, Breedon Aggregates, Britcon, Carillion, Cemex, Chevron, Chris Wright Planing, Clearview Traffic, Cleveland Potash, CMS Pozament, Colas, Coldmac, Coneworx, Connect Plus, Dowhigh, Fitzgerald, FM Conway, Fosroc, Foster Contracting, Glendinning Highways, Halcrow, Hanson UK, Hazell & Jefferies Henry Williams, Holcim (Aggregate Industries), INEOS, Irish Salt Mining, J B Riney & Co, Jet Plant Hire, Jobling Purser, Jordan Surfacing, JPCS, Kiely Bros, Kier Group, Lafarge Tarmac, Lagan, Leith Group, Marlborough Surfacing, May Gurney, McQuillan Companies, Midland Quarry Products, Miles Macadam, Murrill Construction, Nynas, O'Hara Bros, O'Rourke, Parex, Peacock, Phoenix Specialist Solutions, Power Plane, Rhino Asphalt Solutions, R J Dance, Ringway/Eurovia, Ronacrete, Salt Union, Scotland TranServ, Shell, SIG UK, Specialist Surfacing, Spray Tanker Services, SSE Contracting, Stabilised Pavements, T J Services, Tarstone Surfacing, Tayside Contracts, Total, United Asphalt, Volker Highways, Wainwright, Whitemountain Quarry, Wirtgen.
Key areas covered in the report include:
HIGHWAY CONSTRUCTION AND MAINTENANCE BUDGETS
• Infrastructure Output – split by roads, rail, water, electricity etc. – output by sector 2010-14 – forecasts for infrastructure 2015-2019. Key authorities responsible for roads.
• Department of Transport Road Budgets – 2015-21. Programme Areas – Highways England, Local Authorities, Transport for London – major schemes, maintenance etc.
• Investment in Transport Infrastructure – DfT, Highways England - Resource / Capital – 2015-2021.
• Highways England – 13 operational regions - areas covered, roads managed 2015.
• Highways England – Indicative Budgets 2015-21 - Capital and Resource Budgets - Areas of Spend – New Projects, Major Schemes, Maintenance, Network Management, Technology Improvements, Smaller Schemes Budgets etc.
• Scotland, Wales, Northern Ireland – overview of road management agencies 2011-2014.
• Scotland – motorways and trunk road expenditure 2011-2016 – Road Improvements, Structural Repairs, Forth Bridge Crossing, Network Improvements, Routine and Winter Maintenance etc. Local Authority road expenditure 2008-12.
• Wales – roads expenditure 2009-14 – structural maintenance, routine/winter maintenance, street lighting etc.
HIGHWAY MAINTENANCE CONTRACTS
• Non-Trunk Road Network – management structure - rest of the network is maintained by 217 local authorities, including county councils, metropolitan boroughs, London boroughs, district councils etc.
• Reactive highway maintenance in the UK - market is split between DLO's that are part of the council, and long term contracts - recent trends in mix - analysis of split, shares, differences between authorities, London Boroughs and regions (devolved authorities in Wales, Scotland, N. Ireland etc).
• Types of Contracts – Framework Agreements, Term Maintenance Contracts, Consortia, PFI.
• Local Government spending on transport – split by funding area – roads, rail, bus, parking services etc.
• Data on Road Network – number of vehicles, road length, class of roads etc, Spending on potholes.
• Local Authority spend on reactive road maintenance – England, Scotland, Wales, N. Ireland.
• Review of major areas of expenditure on highway treatments - products/services covered relate to the surface of the road which includes surface treatments and reinstatement of the road pavement and repairing manhole frames, gulleys and street lighting etc.
• Key Product Sectors - Bitumen macadam and asphalt manufacture and application, Surface dressing manufacture and application, Bitumen emulsion manufacture and applications, Aggregates for macadam and surface dressing. Special surfaces including Anti skid surfacing, slurry and micro surfacing, Footpath treatments, Road markings, Reinstatement products, manhole repair products, Road studs, Winter maintenance, Street lighting etc.
• Reviews of market size - trends, drivers, key manufacturers / suppliers, shares, future prospects.
• Key contractors – term maintenance contractors (Kier, Amey, Ringway, Balfour Beatty etc) specialist road contractors, consulting engineers etc.
• Company profiles
The Highway Maintenance market in the UK is valued at approximately £10 billion per annum and is a major part of UK infrastructure spending, which has been restricted for several years. Key areas of expenditure are road surfacing, drainage for new construction and improvements, street lighting and furniture. However, the Government is showing signs of recognising the need to invest more in road building and other transport projects, and the bad winters over the last 2 years has brought forward some extra funding for mending potholes - which is a contentious issue at a local political level.
There is a complex structure of responsibility for maintenance of highways: motorways and major trunk roads are managed by Highways England, while the rest of the road network is managed by various classes of local authorities, who either undertake the work with direct works teams, or award contracts to contractors to undertake the work on their behalf. The chart below gives the breakdown of responsibility for reactive highway maintenance in the UK. In overall terms, the market is split between direct labour organisations which are part of the council, and long term contracts awarded to external organisations specialising in term maintenance contracts.
There has been a rationalisation of local government authorities in the last 40 years and, at the same time, the move to local authorities awarding long term maintenance contracts steadily increased since 1974. Early contracts were of a short duration and it was difficult to organise and generate a reasonable level of profitability, so contract periods have lengthened allowing the contractor a chance to invest in plant and equipment necessary for the contract – as a result, current contracts run from 3-5 years up to 25 year PFI contracts. There has been a growth in contractor involvement in this market and companies such as Lafarge Tarmac, Amey, Ringway, Balfour Beatty, Kier etc. have taken many of these contracts in the last 20 years. As a result, as of early 2015, some 50% of all authorities have now created long term contracts for maintaining highways in their areas, though the split varies significantly between types of authorities and regions of the country.
The government is keen to explore more opportunities to bring private finance and expertise into the road network. The national network is complete although there are plans to improve sections of motorways which are most heavily trafficked, but there is a need to improve the regional network by improving roads which link national network motorways and improving local A roads. The government is examining the possibility of letting contracts in these areas which will embrace maintenance of existing roads and undertaking improvements, many of which are mentioned in the recently published DTP Road Investment Strategy. The combination of term maintenance contracts and new forms of regional contracts, and the anticipated increase in funding, should offer opportunities for the private sector.
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