Wetroom Market Report - Key Facts

Did you know that...

1. Wetrooms are the fastest growing sector of the UK bathroom market and have grown by 14% since 2012.
2. The floor formers and level access trays sector, dominates the wetroom market with 50% share by value.
3. Wetrooms are installed in a wide range of end use sectors from aspirational residential and leisure applications to practical social housing and care applications.
4. The market is becoming less fragmented with the leading 3 companies accounting for 35%.
5. Direct sales account for almost half of the market.

These facts have been extracted from AMA Research's report ' Wetroom Market Report – UK 2015-2019 Analysis ' available from www.amaresearch.co.uk or by calling 01242 235724.

Office and Home Office Furniture Market Report – Key Facts

Did you know...

1. By 2019, the market for office and home office furniture is forecast to show steady growth and increase by 17%.
2. The share of the market held by the leading five suppliers fell steadily from 39% in 2000 to 35% in 2014.
3. In 2014 the desking market accounted for 39% of the market.
4. In 2014 the home office sector was estimated to be account for 30% of the total market.
5. The two main distribution channels for office furniture are via the dealer network or directly to end users, the latter with 25% of the market.

These facts have been extracted from AMA Research's report ' Office and Home Office Furniture Market Report – UK 2015-2019 Analysis ', available from www.amaresearch.co.uk or by calling 01242 235724.

Construction Equipment Rental Market Report – Key Facts

Did you know that...

1. The UK Construction Equipment Rental market is worth over £4 billion.
2. Earth moving is the largest sector, but lifting and access equipment hold a combined share of around 25%.
3. The top four hire companies account for around 30% of the market.
4. Hire of dehumidifiers has grown strongly in the last two years, with air conditioning less in demand in 2014/15.
5. Forecasts for growth are positive, with the market rising towards £5 billion by 2019.

These facts have been extracted from AMA Research's report 'Construction Equipment Rental Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Recovery in the UK Contract Floorcoverings market in 2014/15

In 2014 and 2015, the contract floorcoverings market began to recover from a relatively flat period experienced in 2012-13, and growth in 2015 was estimated to have been around 4%, according to a report recently released by AMA Research. This performance was underpinned by strong growth of 7% in the floor tiles sector and by returning confidence in the commercial construction sector. The contract flooring market tends to be less volatile than the domestic market with more steady market conditions and overall demand within the contract sector is dependent on levels of business confidence, investment and growth of commercial new build and refurbishment work.

The contract floorcovering market has changed significantly over the last decade in terms of both products used and specification levels. Key to this change has been the move away from carpet to ‘smooth’ floorcoverings with more integrated use of different types of flooring materials within a single installation. Design and aesthetics have also become increasingly important features in recent years, with contrasting colours and textures also used to provide differentiation between locations.

“There has been little change to the contract floorcoverings product mix over the last 2-3 years, with carpet retaining the largest single share followed by vinyl, wood and floor tiles” said Andrew Hartley, Director of AMA Research. “Modular floorcoverings have become more prominent in recent years. Initially associated with carpet tiles, floor tiles and laminates, this trend has expanded to include vinyl tiles - particularly luxury vinyl tiles - and more recently, linoleum tiles.”

Contract carpets have faced significant competition from smooth floorcoverings but enjoyed estimated growth of around 3% in 2015, underpinned by higher refurbishment and new build work in the private retail and offices sectors. The contract vinyl market has performed better than both the overall vinyl market as well as other contract floorcoverings materials in recent years. Contract vinyl has been at the forefront of product innovation with the development of a wide range of sector specific products, and the market has also benefited from greater specification of slip resistance and safety flooring in key end-use sectors, including health, education, entertainment & leisure.

Demand for wood flooring in the contract sector reached a low point in 2011 but the recent trend has been upwards with growth of 12% to 2015. The sector continues to be affected by strong competition from other smooths, but wood floorcoverings have benefited from the trend for the mixing of flooring types.

The contract floor tiles sector was affected by the recession but experienced less severe decline than the domestic floor tiles sector, and good growth in 2014 and 2015 has been due to higher demand from sectors such as hotels, retail, leisure and offices. The trend for larger format floor tiles and increasing adoption of higher value porcelain tiles, particularly stone effect designs, have all helped to underpin value growth.

Prospects for the contract floorcoverings market remain positive into the medium-term, with annual value increases of around 3% currently forecast to 2020. The forecast is based on the strengthening of the recovery for new build and refurbishment work in key private commercial construction sectors, but tempered by forecasts of flat or lower demand from some public sector end-users.

The product mix for contract floorcoverings is unlikely to change significantly due to the number of end-use sectors, the range of sector specific products and the propensity for the replacement of ‘like with like’, with carpet set to retain its leading share.   

The ‘Contract Floorcoverings Market Report – UK 2016-2020 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.

25% increase in UK social housing completions ahead of AHP deadline

In 2014-15, housing association new build completions were 25% higher than in the previous year, driven by higher workloads before the deadline to complete the final units under the 2011-2015 Affordable Homes Programme (AHP). In 2015-16, the number of HA completions is expected to rise by around 2% and thereafter expected to remain relatively flat until 2019. Looking further ahead, the sector is forecasting around 170,000 homes to be built by housing associations across the UK by 2020.

In 2015, total UK housing association stock increased to almost 2.9m units, with increases in all types of housing. Around 75% of market stock owned or managed by housing associations is general needs housing, which is primarily social rental accommodation. Though the housing association sector is diverse, with over 1,700 UK associations varying in size from under 10 homes to more than 50,000, over 95% of homes are managed by the top 400 housing associations. Sanctuary H.A is still the largest housing association in England followed by London and Quadrant, which increased its stock by 1,600 units last year, and Circle.

There is currently a period of unprecedented change in the sector, with changes to the welfare system and a greater use of the Affordable Rents Model representing new challenges. In addition, the policies of the government to increase the supply of affordable housing are now firmly focused on home ownership rather than affordable housing for rent. A number of housing associations are considering building more private rented housing – known as ‘build to rent’ - to fund development. Indeed, some major housing associations have now dropped affordable and social rent from their development plans, in a response to government cuts and changes outlined in the 2015 Budget.

Housing associations face significant new risks – not least the introduction of the Affordable Rent investment model which is expected to have a considerable effect on income streams. The Government acknowledged a number of challenges to the housing association sector in the 2015 Budget, including a decision to impose a 1% annual rent reduction in the social rented sector for 4 years from April 2016, which will directly reduce social landlords’ rental income and welfare payments made to tenants. Further reforms to the social housing sector are also expected under the Government’s Housing and Planning Bill 2015, which had its second reading in the Commons on 2nd November 2015. The Bill aims to provide legislation for the creation of more affordable homes, with a focus on ‘starter homes’ and ‘custom or self-built’ homes, for increased home ownership.

 “The Affordable Rent model is one of the most far reaching changes to affect the social housing sector. It has absorbed large amounts of the housing association sector’s financial capacity, and as a result many housing associations have been forced to take on increasing amounts of borrowing and risk” said Andrew Hartley, Director of AMA Research. “This is likely to continue with the majority of all homes allocated funding under the AHP 2015-18 being for affordable rent.”

Going forward, prospects for the housing association sector in the short-term remain challenging. While it was announced in the 2015 Spending Review that the annual public housing budget would be doubled to £2bn a year in 2018-19 and 2019-20, the government’s £6.9bn housing investment plan focuses almost entirely on home ownership, with little reference to social or affordable housing for rent. The Government’s focus on starter homes is likely to be led by private sector developers exempted from Section 106 obligations, rather than building by councils or housing associations. The limited grant funding under the AHP, driven by the emphasis by the Government on the Affordable Rent investment model, will also severely affect housing association building activity, and in addition, revenue streams are likely to be sharply reduced by welfare changes and housing associations will find their capacity to borrow or secure finance from capital markets will continue to be constrained.

The ‘Housing Association Market Report – UK 2016-2020 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience 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. 

UK market for Bathroom Installation Frames & Systems sees 7% growth

There has been a growing demand for bathroom installation frames since they were first introduced over a decade ago. In 2015, the installation frames and systems market increased by around 7% by value, compared to 2014, having seen a notable increase since 2013. It is generally now considered that in order to ensure a secure fixing, wall-hung sanitaryware should be supported by an installation frame.

The WC frames sector (including concealed cisterns and flushing controls) dominates the installation frames and systems market with a share of over 80% by value, followed by urinal and bidet frames and wash basin frames, which account for much lower shares. Flush plates offer easy maintenance of the cistern and are often supplied as part on an installation frame system, with pneumatic flush plates and non-touch controls becoming increasingly popular. Installation frames and systems are installed in a wide range of end use sectors from residential, including private, social and extra care housing, to commercial applications, such as care homes, hospitals, hotels and leisure facilities.

The UK installation frames and systems market has been positively impacted in recent years by the influence of European design on UK bathrooms. This has led to an increasing demand for wall-hung sanitaryware driven by the trend towards minimalism and space-saving within the bathroom environment. Wall-hung products have also become more affordable, with sanitaryware often costing less than the installation frame, however, a secure supporting frame is generally considered a justified investment. In addition to this, the improving economic situation and the steadily recovering consumer confidence levels have also contributed to growth in the market. 

Wall-hung sanitaryware has steadily gained share at the expense of more traditional products such as the close-coupled WC pan and wash basin pedestal, supported by the growing trend for open plan design and contemporary, minimalist styles. The increasing popularity of wetrooms has also had a positive influence on demand. Wall-hung frames are also becoming more versatile and can be used in refurbishment applications, with frames now available for all wall types, including stud and partition walls.

A significant proportion of installation frames and systems for the domestic and commercial sectors are distributed either directly to contractor/housebuilder or through builders and plumbers’ merchants and distributors. Other channels include bathroom specialists and DIY multiples, with the latter offering own branded goods, with online retailers also becoming more important as consumers and installers increasingly use the internet to source the best deals.

The outlook for the UK installation frames and systems market in 2016 looks positive with good growth anticipated into the medium-longer term. By 2020, the market value is forecast to have seen an increase of 28% compared to 2015. Minimalist styles should remain popular, with more focus on an overall finished look that provides an ordered, clutter-free environment.

“Developments such as concealed wall frames will make installation easier and influence demand for wall-hung sanitaryware, and product improvements such as adjustable fixings, tool-free connections, sound-reduction features and remote flush actuation will also add value to this market sector” said Keith Taylor, Director of AMA Research. “Installation frames and systems will become more widely available with a growing number of online retailers, merchants and distributors competing in this sector, offering both branded and own brand products.”

The ‘Bathroom Installation Frames and Systems Market Report – UK 2016-2020 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.

Electrical Wholesale Market Report Western Europe - Key Facts

Did you know that...

1. The European Electrical Wholesale Market is worth around £20 billion.
2. Germany is the largest market, with France and the UK accounting for a combined share of over 30%.
3. The market in Germany is influenced heavily by Buying groups, such as MITEGRO, Fegime etc.
4. Sonepar and Rexel are dominant suppliers in France, Belgium and Netherlands.
5. Growth prospects are cautious in most markets.

These facts have been extracted from AMA Research's report 'Electrical Wholesale Market Report - Western Europe 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Growth of 5% in the UK Furniture Fittings market in 2015

The UK market for furniture and cabinet fittings is estimated to have seen 5% growth by value in 2015, according to a new report released by AMA Research. The sector has benefited from growth in recent years within the domestic furniture market, particularly the kitchen furniture sector, as consumer confidence has increased and the general economic situation has improved. The market has seen solid average growth of 3-4% on an annual basis since 2011.

As well as good growth in some key end use sectors, the furniture fittings sector has also been supported by ongoing product development by suppliers, the trend towards more storage facilities in the home, trading up to soft close drawers, along with a wider range of specialist equipment designed for elderly or disabled householders.

The furniture fittings sector accounts for around 6% of the total domestic furniture market, although this share is significantly higher in some sectors. The kitchen furniture market accounts for the largest share of the furniture fittings market with estimated sales representing 62% of the market, compared to an estimated 15% in the bedroom sector and 11% in the dining and occasional furniture sector. The kitchen furniture market is at the mature stage of its product lifecycle, with replacement sales currently accounting for over 75% of sales.

In terms of product mix, hinges form the major product sector, with sales estimated to account for 37% of the market by value, followed by interior fittings and drawer systems, with handles, knobs and miscellaneous products accounting for smaller shares of the market. Although no separate figures are available for imports of furniture fittings, it is estimated that they account for a significant share of the market, with major suppliers importing products from their overseas parent companies, or from subsidiaries abroad.

“Going forward, the market for furniture fittings is forecast to show good growth of 4-5% per annum between 2016 to 2020, with growth likely in all product sectors” said Keith Taylor, Director of AMA Research. “Key drivers include reasonably positive economic conditions compared to the last five years, and the need for a significant increase in housing construction should provide strong demand for domestic furniture and fittings.”

In addition to the demand created by rising sales in the domestic furniture market, the manufacturers and suppliers of furniture fittings are likely to provide added value to their market sector by developing new and improved products. Particular product areas where development is likely to take place include interior storage solutions, driven by space limitations in modern housing in the UK and equipment for disabled and less mobile customers, as the population demographics move towards an ageing population.

The ‘Furniture Fittings Market Report – UK 2016-2020 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.