Construction companies will have to find new markets to carry them through 2011

Where next?

Most big firms have been reporting an increase in overseas work for several years and there has been growing interest in new markets, including Brazil, India, China, the Middle East and, most recently, North Africa. Global hotspots of the future will include Vietnam, Australia, Russia and Qatar.

And while overseas markets will take some of the pressure off construction firms, certain sectors here in the UK will continue to offer lifelines. So which areas are worth particular attention?

Transport

Investment in transport in the UK has remained relatively stable compared with some other areas. Kulveer Ranger, Boris Johnson鈥檚 transport adviser, says: 鈥淲e are in a period of unprecedented investment in transport - there are the Olympics, Crossrail, line upgrades, the East London line, High Speed Rail 2. And 鈥� post-2017, there鈥檚 Crossrail 2, high-speed rail, further development of the overground.鈥�

Power, energy and nuclear

Infrastructure UK has predicted that 拢100bn will need to be invested in this sector between now and 2015. 鈥淭he UK suffers from an ageing energy infrastructure, has a significant nuclear decommissioning bill, an EU-driven obligation to generate 15% of UK energy from renewable sources by 2020 and a commitment to a 30% reduction in carbon emissions by the same date,鈥� explains Victoria Jackson, business development manager of Davis Langdon. The energy department鈥檚 allocated capital budget was increased by 41% in real terms from 拢1.7bn in 2010-2011 to 拢2.7bn in 2014-2015.

Water and waste

The government will spend 拢22bn between 2010 and 2015 on the water sector. On the waste side, up to 拢11bn is needed between now and 2020 to meet EU targets for landfill diversion. Neil Morris, managing director of international property and construction recruitment consultant Digby Morris, says these sectors overseas will also offer up opportunities for UK firms: 鈥淥ver the next 10 years globally about 拢500bn will be spent on the water and waste sector,鈥� he says. 鈥淪o there will be a massive increase in demand for people with these skills sets all over the world.鈥�

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