Market Intelligence Reports

Latest Market Intelligence Report: Q2 2024

In the face of ongoing challenges driven by fluctuating outputs and evolving market dynamics, M&E packages are playing a critical role. Despite a 1.4% decline in overall construction output in April 2024 compared to the previous year, driven by reductions in new work and maintenance activities, there has been a notable 3.02% increase in tender workload for trade subcontractors in Q2 2024. This highlights a significant disparity between tendering activities and actual construction output.

M&E packages, which account for a substantial portion of construction costs, continue to face challenges such as high-profile insolvencies, a shortage of skilled labour, rising copper prices, and increasingly complex specifications. Mace suggest that changes in typical specifications, driven by stringent environmental and quality requirements, are adding to the complexity of M&E solutions, in addition to increased use of PV, air source heat pumps, ground source heat pumps, and mechanical ventilation.

Feedback from main contractors also indicates that insolvencies within certain packages have led to a reliance on trusted suppliers for pricing works. This has resulted in individual suppliers, especially those working with multiple main contractors, being asked to tender for more projects than they might have in a more stable market.

As the industry moves forward, it is crucial for project teams to engage early with specialist supply chains to incorporate their input on buildability, value engineering, and specialist design work. By agreeing on design fees, and committing to partners, project teams can enhance cost certainty and overall buildability.

Latest Market Intelligence Report: Q2 2024

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To this end, SCF market intelligence analyses data across 10 key trade packages. Data is collected across four cities within the south of the UK. The analysis identifies regional market trends and forecasts for the following year by commenting on changes in tender workload, number of employees, building costs and material & labour availability. When compared with other indices, this survey provides a unique outlook for clients by identifying the perspective of those trades directly involved with construction providing a real-time representation of market trends.

We share this information with our clients to highlight key areas of risk that may impact on project delivery. Our main contractors and clients can use this information to predict pressures and opportunities in the market, to make decisions about material specification, construction methodology, off-site or automated construction techniques and project planning and programming, ensuring the best possible decision making to deliver maximum value.

Report compiled by

Adrienne Turner

Adrienne Turner

Framework Manager
Janara Singh

Janara Singh

Assistant Framework Manager
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