Since 2015, the interior fit out and refurbishment market has increased by 12%. However, from 2018 to 2019 there was a very modest growth of just 1%. It is noted that the high levels of annual growth witnessed in earlier in the decade have now slowed noticeably. This can be attributed to the uncertain political and economic environment of recent years which has affected budgets, business investments and more. In addition, the present pandemic will inevitably hit the market further still. AMA Research forecasts a decrease of 15% in 2020 due to COVID-19 and its effects throughout the wider economy.
Michelle Turner, editor of the Interior Refurbishment & Fit Out Market Report, said: “The fit out and refurbishment market is driven by some familiar forces; business confidence; changes in demand for office facilities; realignment of the governments national estate; online shopping growth and addressing the future needs of our schools, colleges and HEI’s. Now there is one very new and very prominent contender, social distancing. Only time will tell the true effect of the COVID-19 pandemic on this market and the impact of social distancing on each channel.”
Interior Refurbishment can have a broad interpretation, AMA Research’s Market Report focuses on main contractors whom typically manage the interior fit-out element of non-residential newbuild; shell & core developments as well as full upgrades and refurbishments of existing non-residential premises.
Whilst the office sector is the largest end-use market for fit-out and interior refurbishments works it will be interesting to see how this develops in a post-COVID working world. BIM shortages in traditional construction skills and growth in e-commerce are factors influencing the interior fit out and refurbishment market. Future developments may therefore focus upon using BIM throughout all stages of the process to improve collaboration, i.e. during the preconstruction and construction phases as well as design.
The information was taken from theInterior Refurbishment & Fit Out Market Report – UK 2020-2024 by AMA Research.
