Foreign owned contractors strive despite Brexit uncertainty

Following Britain’s exit from the European Union at the end of January 2020, many would have assumed that the presence of foreign (especially European) owned contractor companies in the country would have dwindled, yet a great many still remain.

According to construction market analysis by the company Glenigan, the construction industry in the UK is comprised of 18 per cent foreign owned companies, with three of the top ten construction firms in Britain belonging to overseas investors, and 11 of the top thirty being of the same origin.

Glenigan has reasoned this presence of foreign owned contractors, measuring at almost one fifth of the overall composition, as being down to their appointment to large scale contracts. For example, the French-owned company VINCI has been appointed to construct the new Old Oak Common high-speed rail station in London as part of preparatory works for HS2, with this particular contract valued at £1Bn.

Furthermore, the Dutch-owned company Royal BAM has been appointed, in partnership with the Italian-owned contractor Ferrovial, to the Silver Town Tunnel scheme which has likewise been valued at approximately £1Bn.

And finally, the French-owned contractor Bouygues and the Swedish company Skanska, as well as the German construction titan Hochtief, are also present in the UK after being awarded placements on major schemes, like the £1Bn London Power Tunnel.

In fact, Royal BAM was identified by Glenigan as the fifth largest construction company in the UK in 2019, followed by ISG in sixth place which is actually under American ownership, signifying how trade uncertainties have had little effect upon the construction industry, where foreign companies continue to strive.

The Economics Director of Glenigan, Allan Wilén stated: “The amount of work that contractors from overseas won in the UK last year shows that irrespective of the consequences of Brexit most of these companies are planning to stay here for the long term.

“Spending on specialist areas of infrastructure from key clients such as the Environment Agency and Network Rail is also proving attractive to overseas contractors with the right skill-base.”

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