Most Profitable Industries in the UK in 2020

1. Pension Funding in the UK

Total Profit for 2020: $71.2B

Revenue in the Pension Funding industry, which is calculated by combining contributions and investment returns, has increased over the past five years. The increase in contributions was fuelled by the phased introduction of automatic enrolment in pension schemes, which began in October 2012 and was fully phased in by February 2018. Record high levels of employment increased contributions to occupational pension schemes. Investment income grew over the period, despite some volatility, aided by low interest rates and significant quantitative easing activity. The fall in value of the pound also boosted equity values in 2016-17. Revenue is expected to increase at... Learn More

2. Banks in the UK

Total Profit for 2020: $29.7B

Retail and commercial banks generate most of their revenue by charging interest on loans, while a secondary source of revenue is represented by non-interest income from card fees and overdraft fees. Although economic uncertainty since the EU referendum in June 2016 limited demand from home mortgages to an extent, while subdued business confidence reduced demand for commercial loans, prior to the outbreak of the coronavirus the industry was expanding at a moderate pace. Personal lending grew as consumers became increasingly reliant on debt to fund spending. However, a stricter regulatory environment, including increased capital requirements introduced under the Basel III... Learn More

3. Construction Contractors in the UK

Total Profit for 2020: $19.6B

Operators in the Construction Contractors industry are active across the building construction and civil engineering markets. While, by broad definition, industry operators are remunerated for completing new building and infrastructure construction contracts, or for fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus almost exclusively on the construction of new dwellings, while civil engineering specialists afford clients services across the infrastructure value chain. Meanwhile, some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale maintenance contracts in local markets.Inclusive of 1.5% growth expected... Learn More

4. Open-Ended Investment Company Activities in the UK

Total Profit for 2020: $15.4B

Open-ended investment companies (OEICs) and unit trusts are both types of collective investment schemes that can constantly adjust their portfolios to maximise returns, given a specific investment remit. The size of the fund depends on demand for fund shares, which are created and cancelled upon purchase and redemption. Therefore, the fund size is proportional to its investment performance. OEICs are priced to reflect the net asset value (assets less liabilities) of their investments and may have multiple share classes. Funds invest in a range of assets, including domestic and global equities, government and corporate fixed-income securities, and a range of derivatives. While fund... Learn More

5. Residential Building Construction in the UK

Total Profit for 2020: $12.9B

The Residential Building Construction industry has performed well over the past five-year period, supported by a range of government policy initiatives intended to stimulate the housing market. During the economic downturn, revenue declined rapidly as tight lending criteria and dwindling equity made it difficult for many people to obtain mortgages and discouraged home improvement. However, demand for housing has since risen as economic conditions have improved, indicative of the procyclical nature of the industry. Sharp house price inflation encouraged spending on renovation and maintenance, while the construction of new properties has only been limited by supply constraints, such as a... Learn More

6. Legal Activities in the UK

Total Profit for 2020: $12.8B

Solicitors, barristers, patent agents, notaries and bailiffs carry out legal activities on behalf of private and corporate clients. Over the five years through 2019-20, industry revenue is expected to expand at a compound annual rate of 1.4%. Widespread business uncertainty following the EU referendum, a decline in merger and acquisition (M&A) activity and falling residential property transactions are expected to have limited industry revenue growth during the period. In the current year, however, revenue is forecast to rise by 1.4% to £35.7 billion. An increasingly large number of client firms have required legal support to comply with changing laws and... Learn More

7. Building Project Development in the UK

Total Profit for 2020: $12.0B

Operators in the Building Project Development industry bring together the financial, technical and physical resources required to complete a property development. Upon completion, the property may be delivered to a client for subsequent use or sale, or the developer may retain equity interest and derive income via rental fees. Given that project timelines can be lengthy, there can be a significant time lag between the start of a development and the resulting impression on remuneration, contingent on the effect of external forces (e.g. volatility in economic cycles). Over the five-year period through 2019-20, revenue is forecast to increase at a compound... Learn More

8. Consultant Engineering Services in the UK

Total Profit for 2020: $10.5B

The Consultant Engineering Services industry’s revenue is expected to increase at a compound annual rate of 3% over the five years through 2019-20 to £57.3 billion. Various types of infrastructure construction activity, such as electricity and telecommunications infrastructure construction, gained momentum and enhanced demand over the past five years. Government capital spending also increased mildly, and contributed positively. However, growth in industrial production activity remained weak, limiting the industry’s expansion. Commercial building construction activity also began to tumble from 2016-17, fuelled by uncertainties caused by the referendum result, and caused revenue growth to ease. Similarly, businesses investment was adversely affected following the EU... Learn More

9. Computer Consultants in the UK

Total Profit for 2020: $9.3B

The Computer Consultants industry is composed of businesses that provide expert advice and assistance in planning and designing computer systems that integrate computer hardware, software and communication technologies. Computer consultants provide services to clients in all sectors of the economy, although clients within the financial services sector and the public sector are particularly important markets. Demand for industry services is largely influenced by business confidence levels, which rise and fall with general economic conditions, and technological advancements, particularly those that are beneficial to businesses.

The industry has performed well over the past five years and is expected to record strong growth.... Learn More

10. Management Consultants in the UK

Total Profit for 2020: $8.4B

The Management Consultants industry covers a broad range of consulting services, including strategic and organisational planning, marketing, IT, human resource consulting and business process management. Over the five years through 2019-20, industry revenue is expected to grow at a compound annual rate of 2.8%, including growth of 4.5% in the current year, to reach £55.5 billion. This growth is anticipated to be largely driven by rising demand for IT consulting services. In addition, regulatory changes in the financial services sector, the industry’s largest downstream market, have benefited industry participants, as banks and other financial institutions have required assistance to reformulate... Learn More