Since 2012, the housing sector has seen market values for both new build and home improvement increase, something which has fed through to increased demand for many chemical products, in particular fillers, adhesives and sealants. Key areas of demand for construction chemicals include demand for admixtures for concrete and mortar products and adhesives used for glazing systems and bathroom installations.
The non-residential construction sector is also a key area of application for construction chemicals, split between infrastructure works and buildings. Construction output in the non-housing sector has also improved over the past 2 years and growth in the industrial sector, particularly R&D business parks and advanced manufacturing parks, is expected to lead to greater demand for resin floor systems.
Product supply chains vary according to product types. Although most fillers and sealants are distributed through DIY retailers, protection chemicals supplied through specialist chemical distributors or direct to the installers. The key manufacturers and suppliers across this industry are mainly subsidiaries or divisions of trans-national chemical product manufacturers. These typically have extensive product ranges for applications, other than construction, that include manufacturing, offshore and transport.
Medium term growth prospects for the overall market appear steady but modest, particularly for products mostly supplied to the home improvement and trade sectors - such as adhesives, sealants and protective chemicals - for use on residential
In addition, growing optimism in the commercial office sector should lead to increased refurbishment and redecoration work. Continued improvement in the infrastructure sector will also mean greater use of admixtures, sealants, protective coatings etc. for use in constructing buildings, bridges, sewers, tunnels etc. with road maintenance and parking infrastructure projects leading to higher demand for surface protection chemicals products for flat roofs, car park decking, concrete and metal structures and road surfaces.
“Factors which are likely to positively influence the overall market over the medium term future include improved levels of home improvement and new housebuilding activity as a result of economic recovery” said Keith Taylor, Director of AMA Research. “The private sector will be the main driver for medium-term growth, however questions still remain as to the level of future budget cuts for the public sector – something which could negatively impact on output into the medium-term.”
It is estimated that the market for construction chemicals will continue to grow at a modest rate of between 3-5% until 2019, to reach a value of around £620m.
The ‘Construction Chemicals Market Report – UK 2015-2019 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.