Table of Contents
Supermarkets in the UK
Construction Contractors in the UK
Pension Funding in the UK
Hospitals in the UK
New Car & Light Motor Vehicle Dealers in the UK
Banks in the UK
Business Process Outsourcing Services in the UK
Residential Building Construction in the UK
General Insurance in the UK
Fuel Wholesaling in the UK
1. Supermarkets in the UK
Revenue for 2023: $190.7B
The traditional ‘big four’ supermarkets (Tesco, Sainsbury’s, Asda and Morrisons) are under intense pressure from discounters like Aldi and Lidl, with their low prices and improving quality of products resonating with price-conscious shoppers. Sainsbury’s and Asda sought to merge in 2018 to better position themselves against the threat of the discount chains. However, the CMA blocked their plans, stating that the merger could lead to higher prices and reduced choice and quality. The COVID-19 pandemic sparked initial stockpiling activity and paved the way for online delivery services to become essential to people’s lives.
2. Construction Contractors in the UK
Revenue for 2023: $171.5B
Companies in the Construction Contractors industry are active across the building construction and civil engineering markets. Despite being remunerated for completing new building and infrastructure construction contracts or fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus on new dwellings construction, while civil engineering specialists afford clients services across the infrastructure value chain. Some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale repair and maintenance contracts in local markets.
3. Pension Funding in the UK
Revenue for 2023: $156.4B
Pension funds are undergoing a period of change. The past few years marked a shift from defined benefit (DB) to defined contribution (DC) schemes dominating the industry. Following the onset of the COVID-19 pandemic, equity markets were destabilised, causing asset values to decline in 2020. However, the steady recovery of economic conditions as the pandemic wound down was mirrored in equity values, supporting pension fund assets.Pension funds were rocked in late 2022, when a fire sale of gilts meant that funds were forced to sell assets to meet margin calls.
4. Hospitals in the UK
Revenue for 2023: $112.9B
A growing and ageing population has increased demand, but public healthcare budgets have failed to keep pace with this, which has aided demand for private hospitals as a greater number of patients seek private treatment. Over the five years through 2023-24, industry revenue is expected to rise at a compound annual rate of 1.8% to reach £118.2 billion.The outbreak of COVID-19 necessitated the release of significant government funding to help hospitals boost their capacities to treat afflicted patients.
5. New Car & Light Motor Vehicle Dealers in the UK
Revenue for 2023: $101.9B
New car dealers’ revenue is anticipated to fall at a compound annual rate of 5.9% over the five years through 2022-23 to £101.9 billion. New car registrations have been inching downwards – the result of skyrocketing fuel prices and a weak pound restricting sales. At the same time, weak consumer confidence disposable incomes, caused by Brexit, the COVID-19 pandemic and the ongoing cost-of-living crisis – curbed spending on big-ticket discretionary products, like new cars. Many have been drawn to the used car market instead.In 2020-21, the COVID-19 outbreak decimated the industry.
6. Banks in the UK
Revenue for 2023: $101.0B
Over the five years through 2022-23, UK banks’ revenue is expected to decline at a compound annual rate of 0.5% to £109.6 billion, including anticipated growth of 14.8% in the current year. Low interest rates after the financial crisis limited the interest earned by banks from loans, hitting income. At the same time, a stricter regulatory environment, including increased capital requirements introduced under the Basel III banking reforms and ring-fencing regulations, constricted lending activity. To protect their profitability, banks have shut the doors of lots of branches and made substantial job cuts.
7. Business Process Outsourcing Services in the UK
Revenue for 2023: $82.7B
Business process outsourcing (BPO) companies provide services to clients in all sectors of the economy, with the financial services and public sectors being particularly important markets. IT adoption and government expenditure have increased throughout the period, incentivising businesses to invest more heavily in IT systems and upgrades, supporting demand for BPO services.Industry revenue is forecast to fall at a compound annual rate of 2.5% over the five years through 2023-24 to £71.5 billion, including expected growth of 4.6% in 2023-24.
8. Residential Building Construction in the UK
Revenue for 2023: $82.2B
Residential building contractors are contingent on the propensity of property developers to invest in new ventures; movements in property prices; government schemes intended to boost the housing supply; and underlying sentiment in the housing market. Revenue expanded prior to the pandemic, with the support of government programmes and new funding to induce land development and housebuilding activity mitigating the effects of market uncertainties stemming from the Brexit vote. Revenue is forecast to decline at a compound annual rate of 2.9% to £80.6 billion over the five years through 2023-24.
9. General Insurance in the UK
Revenue for 2023: $74.4B
Over the five years through 2022-23, the General Insurance industry’s revenue is forecast to edge downwards at a compound annual rate of 1.5%. After Solvency II regulations were brought in at the start of 2016, buffer requirements constricted capital. More recently, the pandemic severely disrupted insurance patterns and claims, with some lines (like car insurance) becoming considerably more profitable.
10. Fuel Wholesaling in the UK
Revenue for 2023: $70.2B
Players in this industry sell a range of fuel products and some by-products from the petroleum refining process. Industry revenue has been volatile over the past five years, as it’s heavily determined by shifting crude oil prices. Plummeting demand during the COVID-19 outbreak led to historically low prices over 2020-21, causing a sharp dip in profit. OPEC+ manipulates oil prices through controlling the global supply of oil, adjusting production quotas, strategic communication, and collaboration with other major oil producers. Cuts to production by OPEC+ led to prices recovering to pre-pandemic levels in February 2021.
Source from IBISWorld
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