Including facing bricks, rendered block and insulated render systems, AMA Research estimates that the total installed wall cladding area declined from over 45m m² in 2008 to 39 m², before showing gradual improvement to 48m m² in 2012 and 2013.
Since 2011, there has been some improvement in private housebuilding
output, social housing refurbishment, waste management infrastructure and the central
London office market.
Driven largely by the Help to Buy
schemes and a shift back from flats to houses, demand for facing bricks has
outpaced supply, with imports needed to make up the shortfalls. This has been
due to the time taken to restart ‘mothballed’ brick plants combined with a
marked shortage of bricklayers. Energy efficiency legislation and initiatives
(e.g. CERT) and requirements of Part L of the Building Regulations have driven
up demand for insulated external walls, in particular render coated external wall
insulation systems and composite panels.
The social housing refurbishment sector originally
seemed as if it would be a key area of demand for insulated render systems, due
to the introduction of the ‘Green Deal’, and, more relevantly, the Energy
Companies Obligation (ECO) in 2013. However, should the government’s proposed
changes for more moderate targets for solid wall insulation go through, then
projected growth levels will be negatively affected. Other potential market
drivers for cladding products are likely to arise from the waste management,
recycling and renewable energy sectors.
By value, the largest sector is the curtain
walling and structural glazing sector, while the share taken by facing bricks
is considerably lower by value. Other higher value sub-sectors include the high
specification zinc, copper and aluminium metal cladding systems, natural stone
cladding and pre-cast concrete cladding systems.
Over the 2008-2012 period, lower levels of
construction activity in the commercial sector have fed through to reduced
demand for up-market cladding, particularly unitised curtain wall and other
architectural products. Since 2012, there has been renewed demand in Central
London office projects and a growing trend among architects for copper and zinc
rainscreen systems and roofing.
With so many different types of cladding products
on the market, the supply base is highly fragmented, although there is a high
degree of market concentration in some sub-sectors. In the clay bricks
industry, the top three producers account for around 80% of the market. These
companies are also leading suppliers of other types of ‘niche’ clay cladding
material such as brick slips and terracotta rainscreens. However, imports
account for the majority of terracotta rainscreen systems installed in the UK.
The metal cladding panel market is a little more
fragmented while the profiled panel market is even less concentrated. Systems
companies and their approved fabricators / installers mostly account for the
lower-middle sectors of the curtain wall market. The remainder of the wall
cladding market is highly fragmented in terms of material types and in each
sub-sector there are relatively few suppliers.
the short to medium term, reasonable volume growth of between 5-8% per annum is
expected, largely driven by private housebuilding activity and the government’s
Help to Buy and other affordable homes programmes.” said Keith Taylor, Director of AMA Research. “Other end-use sectors likely to show increased demand are commercial
offices, waste management and leisure, reflecting expected recovery in the
commercial new build sector as well as commitments to further expansion in
sectors such as waste.”
The overall value of the wall
cladding market is difficult to estimate due to the fact that some elements are
system based and the product and material is integral with the installation. Keeping
this in mind, the product value at trade purchase price was estimated at around
£1.8 billion in 2013.
Cladding Market Report - 2014-2018 Analysis’ report is published by AMA
Research, a leading provider of market research and consultancy services within
the construction and home improvement markets. The report is available now and
can be ordered online at www.amaresearch.co.uk
or by calling 01242 235724.