UK steelwork contractors have 'sufficient capacity' to meet future demand within the industry, according to a new report.

The publication by KPMG states that contractors hold latent capacity of between 205,000 and 406,000 tonnes of steel.

This results in capacity lying between 1,142,000 and 1,343,000 tonnes, with forecasted demand for constructional steelwork being 1,050,000 tonnes in 2019.

KPMG said the required increase in constructional steelwork output in the UK will be achieved through a combination of increasing shifts, use of agency staff, and fully utilising current production facilities, without the need for any capital investment.


While the availability of skilled staff has been identified as a risk for the constructional steelwork sector, significant recent investment has been made in apprentices to address the issue, including the development of a sector specific apprenticeship scheme.

Other research by Gardiner & Theobald shows that compared with a comparative concrete building, steel construction is 7% cheaper and 5% quicker for a low rise business park office, and for a city centre high rise, the cost is 4% lower with the programme 11% shorter.

Richard Threlfall, KPMG's UK Head of Infrastructure, Building and Construction, said: "UK steelwork contractors hold latent capacity which will allow them to quickly increase production to meet the forecast rise in demand from the construction industry."

Sarah McCann-Bartlett, BCSA's Director General, added: "It is clear that with sufficient UK capacity to meet future demand for constructional steelwork, there is every reason to use a UK steelwork contractor."

(LM/JP)