Write a briefing paper for circulation to Willetts shareholders which explains and justifies Clarkes decision to merge with Matthews - Essay Example

Normally, the construction sector is divided into five major categories of house building, infrastructure development, industrial construction and development, commercial construction was well as building materials. However, most significant among these categories is the commercial construction and to some extend house building also. Construction market is however, mostly dominated by the commercial construction which specially got a boost due to consistent economic performance of UK’s economy.

Till 2004, the construction industry of UK was enjoying strong growth and prospects were high too however, after this period, construction industry on a whole started to slide. Over the period of time, this sector witnessed a gradual shift as firms attempted to engage themselves into low risk and long term deals as compared to high risk and short term construction deals. Construction industry in UK however, is also facing different diversified challenges such as sustainability, environmental protection as well as building socially and economically compatible structures.

The new trends are moving towards development of green buildings as more and more consumers prefer environment friendly building structures. Apart from this, due to recent economic slowdown, construction industry is also being regulated heavily as legislators are taking diversified views of how the industry and its relationship with its employees, environment, national resources and energy are going to shape in the future. UK’s construction market is largely dominated by the private finance introduced by the private owners as government also prefer to involve private consortiums in building different public building such as schools, railway stations etc.

This trend indicated that in order to be successful in this market, it is really critical that the strategic alliances must be formed to enjoy the greater leverage and flexibility in completing bigger projects. UK