CONTRACTORS’ CORNER
Contractors’ Corner
M&E sector holds fi rm T
he UK’s mechanical and electrical (M&E) contracting market has continued to demonstrate notable resilience despite
ongoing economic pressures, according to new analysis from the Building Engineering Services Association (BESA). Its latest annual survey of the sector’s largest fi rms shows collective turnover has climbed from £4.7bn in the immediate post- pandemic period to more than £6bn. Gokhan Hassan, managing director of GHCS and GH Engage, which carried out the fi nancial research for the Top 30 UK M&E Contractors report, said the sector had been “in a state of fl ux for some years”, but the rebound since 2022/23 aligned with rapid growth in mission-critical infrastructure. Data centres, digital infrastructure, healthcare, defence and energy transition projects are all contributing to rising demand, although the downturn in residential work has led to the collapse of several long-established fi rms. BESA’s research highlights steady activity in offi ce construction and fi t-out, with new entrants
signalling continued confi dence. The Association also points to signifi cant refurbishment and retrofi t opportunities emerging from PFI hand backs across the NHS estate.
Hassan said the future of the sector looked
“bright”, driven by the evolution of the Building Safety Act, intelligent buildings, resilient MEP infrastructure and environmental priorities. The report notes that many fi rms are investing in innovation and improving design and delivery processes, moving away from the traditional “fi rst past the post” tendering approach. BESA chief executive David Frise said demand for high-quality building engineering work was pushing companies to be more innovative and positioning M&E engineering at the centre of thousands of critical projects across digital infrastructure, healthcare, education and life sciences. He added that many fi rms were now acting as strategic partners to clients rather than simply technical service providers. BESA president-elect Anna Shephard said
the fi ndings reinforced the importance of apprenticeships and early-career development, with legislation sharpening the focus on competence, compliance and accountability across projects. However, several fi rms warned that protecting
margins remained diffi cult amid persistent infl ation, fi xed-price contracts and project delays. Many are becoming more selective, prioritising sectors with stable pipelines such as mission-critical infrastructure and retrofi t, and favouring clients who engage them earlier in the design process. Proposed legislation to outlaw retentions and tackle unfair payment practices was described as vital for safeguarding cash fl ow and reducing insolvency risk.
Frise said this could off er “much-needed relief” to SMEs and would mark the culmination of decades of work by BESA members. He also highlighted the growing adoption of BESA’s Member Pledge initiative, which is helping fi rms embed professional and technical competence throughout their operations and supply chains.
INDUSTRIAL REFRIGERATION
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