Building Products & Services
The building industry and the market for Building Products & Services have been severely impacted by the two major structural upheavals of COVID-19 and Brexit.
Although the UK economy and construction output declined, this was hardly a classic recession. It wasn’t due to a dramatic drop in client demand or a lack of funds, which would ordinarily result in a crisis that would take a long time to recover from. The initial lockdown was a health emergency, with significant sectors of the economy having to shut down and other parts of the economy wondering how to continue operations in a safe manner.
As a result, if enterprises in the construction supply chain were permitted to work with site operating procedures and other safety precautions starting in mid-May 2020, activity in some sectors could quickly resume, especially since future lockdowns had little effect on the construction supply chain.
Market View
- Looking ahead, the promise of economy-saving infrastructure improvements through government initiatives has many Building Products & Services companies prepared for a boost in the months and years ahead.
- Private equity firms, which have strengthened their presence in the market in the last year, have taken notice of growth potential.
- COVID-19 has expedited the market’s digitisation and sustainability trends.
- With many opportunities resulting from portfolio reviews, corporates simplifying operations through carve-outs, and significant funds available in the private equity market to invest in promising businesses, now is a great moment to acquire and sell.
Market Outlook
Greater PE activity
Greater focus on sustainability
