Infrastructure market in the United Kingdom

The United Kingdom’s infrastructure program is considered essential to economic growth, national renewal and greater productivity. 

In the wake of the COVID-19 pandemic, infrastructure is being considered a driver of the country’s recovery, with a range of projects spanning from high-speed rail to a school rebuilding programme.

Infrastructure projects are key to helping the U.K. to meet its commitment to reach net zero emissions by 2050. The U.K. will use modern construction methods and new technologies to ensure that project outcomes help achieve these ambitions.

Devolved regional governments (Scotland, Wales and Northern Ireland) have an increasing responsibility to invest in infrastructure, as do a number of metro regions in England.

As 84% of the nation’s population lives in England, the majority of infrastructure work is done there and is largely under the control of the central government in London.

Key opportunities for Canadian infrastructure companies in the United Kingdom

• Education, including the school rebuilding programme
• Healthcare
• Roads
• Rail services
• Prisons

Notable challenges for Canadian infrastructure companies in the United Kingdom

• The U.K. is a world leader in infrastructure services, with many foreign operators with a strong in-market presence
• Success often requires working with a local partner

United Kingdom’s business landscape

Published annually, the U.K. government’s Annual Report on Major Projects outlines 235 projects with a total whole life cost of $1 trillion. This includes 70 projects that are specific to infrastructure and construction valued at over $500 billion.

The 2021 National Infrastructure and Construction Pipeline sets out future planned procurements and levels of investment. The pipeline’s procurement element includes details for more than 400 contract opportunities.

The pipeline workbook’s planned investment element includes details for 528 individual projects, programmes and other investments. The investments section sets out around $600 billion in planned investments, over $300 billion of which will occur by fiscal year 2024 to 2025. 

This is a comprehensive plan and includes information such as project summaries, funding sources (private/public), scheme status, budgets and further information sources.

British procurement opportunities are posted by the Find a Tender service. However, it is more likely that Canadian organizations will enter with Tier 2/3 subcontracts. In this case, direct interaction with Tier 1/2 contractors is advisable and the TCS can help with this. The largest infrastructure projects are usually delivered through special purpose vehicles, which go to extreme efforts to help SMEs access procurement opportunities using CompeteFor.

There are other procurement opportunities with the U.K.’s devolved governments in Scotland, Wales and Northern Ireland, and in London.

Summary

The United Kingdom is a wealthy G7 economy that commits considerable resources to infrastructure development. Many Canadian firms already operate in the market and are strengthening our reputation for innovative and original technologies and services to deliver on the U.K.’s ambition to reach net zero emissions by 2050. 

Our specific strengths include sustainable engineering and designing buildings for the health care, education and criminal justice sectors, which are in demand. British companies are quite open to meeting, and possibly partnering, if you have the right product, service or solution.

For more information on infrastructure in the United Kingdom market, please contact jason.kee@international.gc.ca.