Is this the UK Fit-Out market of today?

In my opinion and that of recent analytical reports major reductions in government capital spending programmes in education and healthcare have forced a significant shift from new build to lower cost remodelling and refurbishment of existing buildings. The conversion of LA supported schools to Academies and Free Schools and the creation of new primary school places and the Priority Schools Building Programme (PSBP) are key factors driving demand for fit-out and interior refurbishment services. With a large backlog of outstanding improvements to school estates, many establishments continue to face significant capital investment needs, while capital budgets remain under pressure. In the higher education sector, there are significant opportunities for fit-out and refurbishment work going forward, as universities remodel their capital programmes to meet revised funding expectations. The main emphasis on construction projects in the higher education sector is now towards refurbishment and upgrade of existing facilities as well as ongoing maintenance and improvements and less towards new build projects. In the healthcare sector, both organisational change and financial constraints in the NHS estates are leading to the focus shifting towards improving and refurbishing the current estates. The outlook for fit-out and refurbishment work in the leisure sector remains mixed with significant expansion plans announced by the budget hotels, food & drinks service and budget fitness club sub-sectors contrasting with less buoyant prospects for sectors such as the betting & gaming industry.

There have been relatively few major entrants into the interior refurbishment and fit-out market in recent years, as much of the turnover generated from leading companies is from repeat business or long term contracts and store roll-out programmes. Clients typically prefer to use contractors from preferred lists. However, an increasing number of large national contractors have diversified into or expanded their operations within the fit-out market, particularly in the commercial office and retail sectors, underpinned by the continuing pressures on new build. Your comments??