{
  "query": "UK construction cost variance benchmarks 2024 2025 steel industry",
  "raw_results": [
    {
      "url": "https://www.steelconstruction.info/images/4/4a/Costing_Steelwork-33.pdf",
      "title": "[PDF] COSTING STEELWORK #33 - SteelConstruction.info",
      "content": "The infrastructure sector was worth £29.7bn in 2024, and activity remains strong on major projects and frameworks such as Hinkley Point C and HS2. The June spending review confirmed funding for HS2, and beyond the forecasts for Sizewell C, along with large announcements of capital expenditure more generally. Energy generation and, especially, National Grid distribution work continue to grow and are likely to progress throughout the forecast period, in line with previous predictions. Overall, infrastructure output is expected to rise by 1.9% in 2025 and 4.4% in 2026. [...] Commercial sector output was worth £25bn in 2024. Activity on smaller, high-end, high-value refurbishment and fit-out projects remained very strong at the start of 2025. However, investors have become more price-conscious over the last 12-18 months, given the rise in construction costs. Construction and financing costs remain a major issue for large, new-build commercial developments in the pipeline, which historically have dominated the commercial sector, and larger “back to frame” refurbishment projects, where activity remains one-third lower than at the peak of the market in 2017. Investors in these large, new commercial projects are also now adopting a wait-and-see attitude to increased global and UK uncertainty and risk. A continued stream of activity from the fit-out, refurbishment [...] For example, for a typical low-rise frame with a composite metal deck floor and 60 minutes’ fire resistance, the overall frame rate (based on the average of each range) would be: £174.50 + £115.00 + £34.50 = £324.00 The rates should then be adjusted (if necessary) using the BCIS location factors appropriate to the project location.\nAecom index has dropped, but it has been picking up since autumn 2024 due to an array of small and medium-sized projects. Furthermore, industrial output will be boosted during the forecast period by projects in defence, renewable energy and giga-factories. Industrial output is expected to rise by 0.9% in 2025 and 2.6% in 2026.",
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    {
      "url": "https://assets.publishing.service.gov.uk/media/697112577e827090d02d431b/steel_industry_special_measures_bill_impact_assessment.pdf",
      "title": "[PDF] Steel Industry (Special Measures) Bill 2025: final impact assessment",
      "content": "schedule and cost pressures. Industry benchmarks, such as Flyvbjerg’s 14 Baker Institute for Public Policy. (2020). Policy considerations for energy infrastructure resilience. 15 Construction Management. (2024). Teesworks steelworks blast: No manslaughter charges, HSE to continue investigation. 16 Health and Safety Executive. (2024). Appraisal values or 'unit costs' 22 analysis of megaprojects (including Crossrail at $3.3 million per day), illustrate the magnitude of potential disruption when critical materials are delayed. 17 • Projects at Risk: Flagship UK megaprojects such as HS2, Sizewell C, and major offshore wind farms are highly steel-intensive. • HS2 alone has procured over £100 million worth of imported steel in the year to April 2024, highlighting its reliance on imported [...] Supply chain continuity Delay cost: £1–3 million per day Derived from Flyvbjerg’s megaproject benchmarks (e.g., Crossrail case study). Highlights potential disruption costs for major projects like HS2, Sizewell C, and offshore wind farms. Strategic resilience premium UK steel trade contribution: £3.4 billion; Government resilience agenda: £2.5 billion Security premium concept supported by observed 20–40% uplifts for low-carbon primary steel. Confirms that resilience carries additional societal value beyond market price and is embedded in policy and procurement practice. 11 Tata Steel UK. (2024). Annual results show continuing UK losses. 12 UK Parliament. (2025). British steel industry: transition to electric arc steelmaking 13 Companies House. (2025). British Steel Limited annual report [...] lever because avoided delays on major projects can generate very large savings. Industry benchmarks indicate that delays cost £1–£3 million per day for megaprojects. For example: • One major project avoiding a 30-day delay at £2.5 million/day would deliver £75 million, covering a substantial portion of the intervention cost. • To reach the upper bound of £195 million, three 30-day delays at £2.2 million/day or two 30-day delays plus a smaller 10-day delay would deliver around £198 million. • This stream is highly sensitive to the number, scale, and timing of disruptions avoided. Even modest improvements in supply chain reliability can unlock significant value, especially in sectors where steel 25 is a critical input and project timelines are tightly coupled to material availability. •",
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    {
      "url": "https://www.ibisworld.com/united-kingdom/industry/metal-structure-manufacturing/1505/",
      "title": "Metal Structure Manufacturing in the UK Industry Analysis, 2025",
      "content": "Metal structure manufacturers have faced a series of hurdles in recent years, as macroeconomic headwinds have dampened demand from key markets, primarily the construction sector. Large-scale commercial construction projects require steel beams, roof trusses and other metal parts, providing sales opportunities for manufacturers. However, soaring interest rates in the three years through 2024-25 resulted in elevated borrowing costs, deterring private investment in commercial construction. Residential construction has also slumped, as high interest rates have elevated mortgage repayments and pushed up house prices. According to the Office for National Statistics, private new housing output fell by 18.5% over the two years through 2024, as lower housing demand deterred investment into new [...] ## Financial Benchmarks\n\n### What's included in the Financial Benchmarks chapter?\n\nThe Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Metal Structure Manufacturing industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.\n\nQuestions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.\n\n## Industry Data\n\n### What's included in the Industry Data chapter? [...] 2024, as lower housing demand deterred investment into new residential spaces. Government support packages have helped minimise the impact on construction output, with the Affordable Homes Programme and Labour’s target to build 1.5 million new homes by 2029 propping up residential construction output, offering metal structure manufacturers some relief.",
      "score": 0.78866494,
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    },
    {
      "url": "https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026/",
      "title": "UK Steel Price Forecast 2025–2026 | Market Outlook",
      "content": "##### Steel Market Snapshot (2024 Recap)\n\nIn 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement:\n\n Merchant Bars: +4% to +7%\n Coil Sheets: +5% to +8%\n Structural Steel: Stable to +3%\n Rebar: +2% to +5%\n\nThis forms the baseline for 2025–2026 expectations.\n\n##### Price Outlook for 2025\n\nUK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs.\n\n Merchant Bars: +3% to +6%\n Coil Sheets: +2% to +7%\n Structural Steel: Stable to +4%\n Rebar: +2% to +5%\n\nImport pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises.",
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    {
      "url": "https://www.tmhcc.com/en/news-and-articles/thought-leadership/trade-credit-uk-metals-sector-report-2025",
      "title": "UK Metals Sector Report 2025 - Tokio Marine HCC",
      "content": "Source: World Steel Association\n\nIn Q4 2024, steel prices had hit the lowest reading since late 2020. Positively for steel producers, prices increased somewhat in Q1 2025 and further improvements were recorded in April when European steel prices averaged USD721 per metric tonne (file:///C:/Users/mmartinez2/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/WVXMK5N2/Metals%20Sector%20Note%20May%202025.docx#_ftn1), up from USD594 in Q4 2024. Notably, heavy sections and beams fared less well as steel frame building demand is down.\n\nSource: www.focus-economics.com [...] With energy costs accounting for 20%-40% of total steel production costs, the price shock following the start of the Russia-Ukraine war in 2022 had a negative effect on companies’ cost base. Also problematically, the UK has the highest industrial electricity costs in the G7; prices stand 46% above the International Energy Agency’s median as British power plants often run on natural gas(file:///C:/Users/mmartinez2/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/WVXMK5N2/Metals%20Sector%20Note%20May%202025.docx#_ftn1)\n\nSource: ONS [...] Also positively, producer price inflation (PPI) in the sector has been modest in recent months, highlighting a more manageable cost base in the industry. According to data from the Office for National Statistics (ONS), the “metals and non-metallic mineral products” sub-sector has seen input PPI of 0.8% y/y in December 2024, followed by 0.7% in January 2025. However, this is still above the national average of -1.3% y/y in December and 0.1% in January.\n\nMeanwhile, output PPI (also called factory gate PPI) is equally modest: the “metals and machinery” sub-component increased by 1.3% y/y in December and by 1.2% in January, above the UK average of 0.3% y/y and 0.1%, respectively.\n\nEnd Users",
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  ],
  "formatted": "Source: [PDF] COSTING STEELWORK #33 - SteelConstruction.info\nURL: https://www.steelconstruction.info/images/4/4a/Costing_Steelwork-33.pdf\nThe infrastructure sector was worth £29.7bn in 2024, and activity remains strong on major projects and frameworks such as Hinkley Point C and HS2. The June spending review confirmed funding for HS2, and beyond the forecasts for Sizewell C, along with large announcements of capital expenditure more generally. Energy generation and, especially, National Grid distribution work continue to grow and are likely to progress throughout the forecast period, in line with previous predictions. Overall, infrastructure output is expected to rise by 1.9% in 2025 and 4.4% in 2026. [...] Commercial sector output was worth £25bn in 2024. Activity on smaller, high-end, high-value refurbishment and fit-out projects remained very strong at the start of 2025. However, investors have become more price-conscious over the last 12-18 months, given the rise in construction costs. Construction and financing costs remain a major issue for large, new-build commercial developments in the pipeline, which historically have dominated the commercial sector, and larger “back to frame” refurbishment projects, where activity remains one-third lower than at the peak of the market in 2017. Investors in these large, new commercial projects are also now adopting a wait-and-see attitude to increased global and UK uncertainty and risk. A continued stream of activity from the fit-out, refurbishment [...] For example, for a typical low-rise frame with a composite metal deck floor and 60 minutes’ fire resistance, the overall frame rate (based on the average of each range) would be: £174.50 + £115.00 + £34.50 = £324.00 The rates should then be adjusted (if necessary) using the BCIS location factors appropriate to the project location. Aecom index has dropped, but it has been picking up since autumn 2024 due to an ar\n\n---\n\nSource: [PDF] Steel Industry (Special Measures) Bill 2025: final impact assessment\nURL: https://assets.publishing.service.gov.uk/media/697112577e827090d02d431b/steel_industry_special_measures_bill_impact_assessment.pdf\nschedule and cost pressures. Industry benchmarks, such as Flyvbjerg’s 14 Baker Institute for Public Policy. (2020). Policy considerations for energy infrastructure resilience. 15 Construction Management. (2024). Teesworks steelworks blast: No manslaughter charges, HSE to continue investigation. 16 Health and Safety Executive. (2024). Appraisal values or 'unit costs' 22 analysis of megaprojects (including Crossrail at $3.3 million per day), illustrate the magnitude of potential disruption when critical materials are delayed. 17 • Projects at Risk: Flagship UK megaprojects such as HS2, Sizewell C, and major offshore wind farms are highly steel-intensive. • HS2 alone has procured over £100 million worth of imported steel in the year to April 2024, highlighting its reliance on imported [...] Supply chain continuity Delay cost: £1–3 million per day Derived from Flyvbjerg’s megaproject benchmarks (e.g., Crossrail case study). Highlights potential disruption costs for major projects like HS2, Sizewell C, and offshore wind farms. Strategic resilience premium UK steel trade contribution: £3.4 billion; Government resilience agenda: £2.5 billion Security premium concept supported by observed 20–40% uplifts for low-carbon primary steel. Confirms that resilience carries additional societal value beyond market price and is embedded in policy and procurement practice. 11 Tata Steel UK. (2024). Annual results show continuing UK losses. 12 UK Parliament. (2025). British steel industry: transition to electric arc steelmaking 13 Companies House. (2025). British Steel Limited annual report [...] lever because avoided delays on major projects can generate very large savings. Industry benchmarks indicate that delays cost £1–£3 million per day for megaprojects. For example: • One major projec\n\n---\n\nSource: Metal Structure Manufacturing in the UK Industry Analysis, 2025\nURL: https://www.ibisworld.com/united-kingdom/industry/metal-structure-manufacturing/1505/\nMetal structure manufacturers have faced a series of hurdles in recent years, as macroeconomic headwinds have dampened demand from key markets, primarily the construction sector. Large-scale commercial construction projects require steel beams, roof trusses and other metal parts, providing sales opportunities for manufacturers. However, soaring interest rates in the three years through 2024-25 resulted in elevated borrowing costs, deterring private investment in commercial construction. Residential construction has also slumped, as high interest rates have elevated mortgage repayments and pushed up house prices. According to the Office for National Statistics, private new housing output fell by 18.5% over the two years through 2024, as lower housing demand deterred investment into new [...] ## Financial Benchmarks ### What's included in the Financial Benchmarks chapter? The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Metal Structure Manufacturing industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples. Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime. ## Industry Data ### What's included in the Industry Data chapter? [...] 2024, as lower housing demand deterred investment into new residential spaces. Government support packages have helped minimise the impact on construction output, with the Affordable Homes Programme and Labour’s target to build 1.5 million new homes by 2029 propping up residential construction output, offering metal structure manufacturers some relief.\n\n---\n\nSource: UK Steel Price Forecast 2025–2026 | Market Outlook\nURL: https://coremetsteel.com/news-insights/uk-steel-price-forecast-2025-2026/\n##### Steel Market Snapshot (2024 Recap) In 2024, UK steel prices saw moderate increases as energy costs settled and imports from Turkey and Asia increased competitiveness. Overall annual movement: Merchant Bars: +4% to +7% Coil Sheets: +5% to +8% Structural Steel: Stable to +3% Rebar: +2% to +5% This forms the baseline for 2025–2026 expectations. ##### Price Outlook for 2025 UK steel prices are expected to rise gradually due to stronger construction demand, global scrap trends, and steady energy costs. Merchant Bars: +3% to +6% Coil Sheets: +2% to +7% Structural Steel: Stable to +4% Rebar: +2% to +5% Import pressure — especially from Turkey and India — will help prevent sharp increases, but procurement teams should still expect gradual quarterly rises.\n\n---\n\nSource: UK Metals Sector Report 2025 - Tokio Marine HCC\nURL: https://www.tmhcc.com/en/news-and-articles/thought-leadership/trade-credit-uk-metals-sector-report-2025\nSource: World Steel Association In Q4 2024, steel prices had hit the lowest reading since late 2020. Positively for steel producers, prices increased somewhat in Q1 2025 and further improvements were recorded in April when European steel prices averaged USD721 per metric tonne (file:///C:/Users/mmartinez2/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/WVXMK5N2/Metals%20Sector%20Note%20May%202025.docx#_ftn1), up from USD594 in Q4 2024. Notably, heavy sections and beams fared less well as steel frame building demand is down. Source: www.focus-economics.com [...] With energy costs accounting for 20%-40% of total steel production costs, the price shock following the start of the Russia-Ukraine war in 2022 had a negative effect on companies’ cost base. Also problematically, the UK has the highest industrial electricity costs in the G7; prices stand 46% above the International Energy Agency’s median as British power plants often run on natural gas(file:///C:/Users/mmartinez2/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/WVXMK5N2/Metals%20Sector%20Note%20May%202025.docx#_ftn1) Source: ONS [...] Also positively, producer price inflation (PPI) in the sector has been modest in recent months, highlighting a more manageable cost base in the industry. According to data from the Office for National Statistics (ONS), the “metals and non-metallic mineral products” sub-sector has seen input PPI of 0.8% y/y in December 2024, followed by 0.7% in January 2025. However, this is still above the national average of -1.3% y/y in December and 0.1% in January. Meanwhile, output PPI (also called factory gate PPI) is equally modest: the “metals and machinery” sub-component increased by 1.3% y/y in December and by 1.2% in January, above the UK average of 0.3% y/y and 0.1%, re"
}