Executive Summary
- The Building Engineering Services Association’s latest Top 30 UK M&E contractors report argues the mechanical and electrical contracting market has shown ‘impressive’ resilience amid challenging economic conditions
- Many engineering businesses are leveraging technology to become strategic partners to clients, rather than simply providing technical services
- The evolution of the Building Safety Act, intelligent buildings and resilient MEP infrastructure all form part of how building services will contribute further towards economic growth
The mechanical and electrical contracting market (M&E) has shown ‘impressive’ resilience amid challenging economic conditions in 2026.
That’s according to the Building Engineering Services Association’s (BESA) latest Top 30 UK M&E Contractors report.
Data centres, and the wider digital infrastructure market, is a primary source of market growth, along with healthcare, defence and the energy transition. Compliance with building safety legislation has also driven work. Yet residential work has seen a fall – and some firms have collapsed as a result.
Office construction and fit-out, meanwhile, is providing a steady pipeline of work. BESA says new entrants into these markets are providing evidence of sector resilience. Since the Covid recovery in 2022-23, collective turnover among top firms has risen from £4.7 billion to more than £6bn.
“The future of the M&E sector is bright,” said Gokhan Hassan, managing director of GHCS and GH Engage, which carried out financial research for the report. “The evolution of the Building Safety Act, intelligent buildings, resilient MEP (mechanical, electrical and plumbing) infrastructure and environmental awareness will propel building services to contribute even further towards economic growth.”
David Frise, BESA chief executive, noted how many engineering businesses were leveraging technology to become strategic partners to clients, rather than simply providing technical services.
“There is great demand out there for high-quality building engineering work and the challenge of turning opportunity into business success is also driving companies to be more innovative,” said Frise.
“M&E engineering is central to so many vital services and our companies are delivering more than 50% of the value of thousands of critical projects including digital infrastructure, healthcare, education and life sciences. This year’s report also shows there is even more potential out there for our companies’ expertise.”
Resilience was the name of the game for the building controls and building energy management systems (BEMS) markets, according to a March report from the Building Controls Industry Association (BCIA).
