Industrial Support Services:
Re-energising the Sector M&A Review October 2020

23 October 2020

The infrastructure is in place for the Industrial Support Services sector to thrive.

The current backdrop for the Industrial Support Services market in the UK and beyond has never been quite so dynamic, with a number of interesting demand and structural drivers emerging at pace. 

Whilst the COVID-19 epidemic will likely be a defining feature of this year’s trading for many industrial support service providers, there is an emerging volume of new opportunities to deploy services and skills across a range of end-verticals, including offshore wind, oil & gas, rail, nuclear, and of course more general industrial markets.

We are seeing this playing out in particular around the accelerating shift in energy mix from fossil fuels towards more sustainable renewable sources, the recent announcement of £160m of new public funding to upgrade ports and infrastructure to further support renewable energy growth, the UK government’s pipeline for wider UK infrastructure spend, and the implementation of new technologies - all likely to drive increased demand for industrial support services. 

In this report we highlight some of the current demand drivers and developments in a selection of industry verticals, together with what this might mean for medium term opportunities in the Industrial Support Services sector. 

Whilst recent years were slightly less active for M&A activity, the underlying dynamics and current trends are positive and should underpin a renewed level of investment and consolidation activity.