First Kelly Market - Construction  
Market High Suitability Low Suitability
Public sector market size

Large - £several billion per annum
Public sector is largest single client at 31% of total
UK wide

N/A
Supply capacity

Pinch points exists in different regions -Supply is sensitive to changes in demand

N/A
Degree of competition N/A

Considered adequate

Predictability of demand

Wide variations in demand
Demand plans not visible to the market
Opportunity for demand smoothing

N/A
Substitutability of skills

Critical to project success
Skills UK-based
Long lead-time to develop such skills

Potential for some substitutability between projects
Statutory obligations

Infrastructure needs

N/A
Government policy initiatives

Major programmes in place - Health, Education, Highways
Several Health policy initiatives which will significantly impact the market

N/A
Implementability Support from Key suppliers Potential for some Key stakeholders to oppose work

 

Approach High Suitability Low Suitability
Board level support and ownership of this programme Top of the Office authority to proceed On-going participation in the process Ministerial oversight N/A
The market has synergy with your business objectives Compatible with strategic objectives Qualified support from major departments
Programme appropriately organised and resourced for this market Extensive consultation with supply-side
Establishment of Construction forum
Non-public sector projects excluded
Required to establish an understanding of demand and supply and to propose ways to improve competition and capacity in this market Access to demand profilesData collection systems established Non-public sector data excludedVery large projects may bias findings

 

Deliverables High Suitability Low Suitability
Public sector spend and demand profile for the supply side Comprehensive survey of major construction programmesActual expenditure and projected demand plans N/A
Recommendations for a better market approach Active support from key stakeholders Implementation taken forward by key stakeholders Lack of full appreciation of characteristics of the market
Structures/groups for taking forward recommendations Market management group establishedSenior people participatingHigh market visibility N/A

 

Outcomes Likely Unlikely
A more responsive market for the public sector requirements Scoped for addressing capacity issues Levers for change exist Demand / Capacity model N/A
Less dependency of public sector on a small number of suppliers Improved lead-time planningInnovative ideas from supply side N/A
Better interchange between key stakeholders Better early two-way communications N/A