Transport Infrastructure Construction and Refurbishment Market Report - Key Facts

Did you know that...

1. Construction output in the Transport Infrastructure sector is worth over £8 billion.
2. Rail is the largest sector, although road construction is still worth around £3 billion.
3. Rail has a pipeline of over £35 billion in the 2014-19 period.
4. Airports are a major area of opportunity with major development programmes at Heathrow, Gatwick, Edinburgh, Birmingham, Bristol, Manchester, Luton etc.
5. Growth prospects are significant with major projects such as HS2 and a new runway in the South-East representing major opportunities.

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

Pet Accessories Market Report – Key Facts

Did you know that...

1. Pet Accessories is a mature but substantial market worth over £800m at retail prices
2. Care Products are the largest sector, but toys account for around 30% of the market.
3. Small animals and fish- reptiles each have over 25% share of the housing/ bedding/ feeding sector.
4. The supply structure is very fragmented, with the leading 4 suppliers accounting for only 20-25% of the market.
5. Market prospects for the sector are optimistic with forecasts of over 15% growth the next 4 years.

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

‘Get someone in’ trend provides welcome boost for the Paint, Wallcoverings and Woodcare market

The UK market for paint, wallcoverings and woodcare has shown considerable improvement in recent years, boosted by increased spending on home improvement products. According to a new report from AMA Research, the market value increased by an estimated 3% in 2015, following 5% growth between 2012 and 2014. Whilst all product sectors have enjoyed increased demand, rates of growth have varied between the key product sectors.

Key drivers of demand are the rise in both new housing output and property transactions, which both stimulate demand for refurbishment. In common with other home improvement products in recent years, the paint, wallcoverings and woodcare market has also been boosted by the “get someone in” or “do it for me” trend due to the recovery in incomes, a reduction in DIY skills and lack of time amongst homeowners. Climate conditions and weather also play a significant role in market developments, with sales boosted during warmer summer months, but also severe winter storms resulting in increased demand for woodcare products for windows, doors, garden buildings, fence panels etc.

As the chart shows, ‘paint and effects’ represent the largest product segment in value terms – accounting for over 60% of the total market - having increased by an estimated 12% from a low point in 2009. Key sector features include, popularity and wider availability of designer paints, the proliferation of good quality own brand paint and expanded ranges, more value-added and innovative products - as well as increased focus on the environment and sustainability product features.

In 2015, the UK wallcoverings sector reached its highest point in over a decade, underpinned by consumer trends such as feature walls, with designer brands continuing to gain popularity. Sales of woodcare products have increased around 17% between 2009-2015, by value, and growth was relatively strong in 2014/15. However, sales remain strongly cyclical with UK weather conditions continuing to have strong influence of the sales of exterior wood care products.

In terms of distribution, the DIY multiples channel accounts for a significant share of the market, with large ranges of branded and un-branded/own brand products available in the majority of outlets. The distribution of paint, wallcoverings and woodcare is likely to experience some change into the medium-term as the trend for “get someone in” could bring focus back onto the trade centres/merchants at the expense of the DIY multiples.

 “Medium-term prospects for the paint, wallcoverings and woodcare market remain positive, if modest, with annual value growth of around 2-3% currently forecast to 2020” comments Andrew Hartley, Director of AMA Research. “Factors underpinning growth are likely to include the continuing recovery of the house moving and housebuilding sectors and continuation of the ‘get someone in/do it for me’ trend, though value growth may continue to be constrained by significant pricing pressures.”

The paint market will continue to benefit from the recent trend for use of more colours in internal décor schemes, but aggressive pricing pressure is likely to remain a key feature of the market as suppliers continue to compete for share. Wallcoverings will also benefit from the continuation of the trend for feature walls, as well as higher value products such as photo walls and murals. In the longer term, sales of woodcare products will ultimately be dependent upon the popularity of timber used for furniture, garden buildings, flooring, new & replacement doors & windows, patio doors and conservatories.

The ‘Paint, Wallcoverings and Woodcare 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.

Increasing consumer confidence and homeworking drive growth in the UK garden buildings market

The market for ‘domestic garden buildings and structures’ is estimated to have grown by around 3.5% in 2015. Following a relatively flat period in 2010 to 2013, growth accelerated in 2014 and continued to perform well in 2015, buoyed by improving consumer confidence and spending, which stimulated demand for all product groups covered in AMA’ Research’s report. The sector is broad, ranging from lower value sheds and greenhouses, through to high value garden rooms and tree houses.

The sector is influenced by a range of factors, reflecting the diversity of products. For example, at the top end the trend towards homeworking has continued, and there is a growing need to provide accommodation for parents and children unable to enter the housing market, which has driven demand for garden rooms. Also benefiting the market are the increasing use of garden buildings for leisure activities as well as the trend for upgrading specification and increased customisation of buildings, while at the lower end there has been an increase in outdoor storage solutions other than the traditional shed. The weather can also have a significant impact - for example, summerhouse sales are very seasonal and poor weather during the key sales period tends to have a significant impact on annual sales, while stormy and windy weather can stimulate demand for damage replacements (sheds, greenhouses etc.).

Some sectors in this market are mature and household penetration is high, leaving limited scope for significant market growth and placing greater emphasis on upgrading and replacement products. Sheds & storage represents the largest product sector with a 35% share, followed by garden buildings ‘for all year use’, and log cabins and summerhouses, each accounting for over 20% of the market. The sheds and storage sector is mature and has been affected negatively by the trend towards buying cheaper sheds, but has seen steady growth in recent years, while the log cabin and summerhouse sectors were more markedly affected by the economic downturn.

DIY multiples are the leading channel in the distribution of garden buildings and structures and are estimated to hold a share of around 40-45%. However, overall distribution is fragmented, with ‘online, mail order and catalogue’ companies, garden centres and direct supply, grocery multiples and high street retailers, all accounting for some share in this market. While the internet continues to have an impact on how consumers interact with retailers, many garden building sectors are mature and the Internet is now considered an established sales channel in the garden products market. Going forward, it is therefore unlikely that it will see the level of share gains achieved in recent times, though some further growth is forecast.

The overall market for ‘domestic garden buildings and structures’ is forecast to experience growth of between 3-5% per annum to 2020. Factors expecting to drive growth include an improving economy & growing consumer spending, improving housebuilding & house moving levels, possibly a sustained ‘grow your own’ sector, as well as pent up demand for other garden buildings as disposable incomes recover. However, market growth may be limited by the decreasing size of the average garden size in new housing, as well as the large proportion of flats and apartments expected to be built to meet the Government’s housing targets.

“The shed and greenhouse sectors are mature and more dependent on replacement purchases; consequently growth rates are forecast to be more modest in the medium and long term with annual growth rates of 2-4% to 2020” said Andrew Hartley, Director of AMA Research. “In contrast, garden rooms and other buildings used for working, accommodation and leisure represent less mature sectors with high potential for growth”.

Pent up demand is likely to provide opportunities, but the unpredictable UK weather also influences the market to a certain extent which may impact on growth rates in any given year. However, it is likely that homeowners will continue to upgrade, with increasing specifications and customisation. It is also likely that homeworking levels will continue to grow, particularly as faster broadband coverage reaches all parts of the UK, and this should continue stimulating demand for garden offices.

The ‘Garden Buildings and Structures 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 in 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.

Enterprise Zones – Construction and Development Opportunities Market Report - Key Facts

1. Enterprise Zones (EZ) are at the heart of the Government’s long term economic plan, supporting businesses to grow. Since their start in April 2012 they have attracted over 430 companies, secured over £2.1bn of private sector investment and created more than 15,500 jobs across the Country.
2. In terms of value to the construction industry, more than £410m is being spent by Local Enterprise Partnerships (LEPs) on major projects across Enterprise Zones in the UK, of which £330m is being invested in infrastructure to support Zone development.
3. Momentum is now building across the 25-year programme to deliver local growth and jobs through EZs and many zones are set for substantial development over the short-medium term covering the commercial, industrial and housing sectors.
4. The 2015 Summer Budget also announced key measures affecting LEPs and Enterprise Zones with the invitation to bid for a new round of Enterprise Zones. This new round will include rural areas where appropriate, and the Government is encouraging towns and districts to work with LEPs to develop bids.
5. The Advanced Manufacturing/Engineering sector is one of the most significant within the UK Enterprise Zone market, with 19 of the 24 LEPs having earmarked large areas of EZs for future developments.

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

Strong recovery in the UK market for Building Boards in 2014/15 set to continue

The UK market for building boards - incorporating primarily dry lining, rigid polymer and specialist boards - is estimated to have grown by around 6% in 2015, according to a new report published by AMA Research. Following a difficult period in 2009/10, the market has recovered in recent years, and performed particularly well in 2014 when the market grew by an estimated 9%. Demand is primarily driven by developments in new housing, commercial newbuild and, to a lesser extent, domestic extensions, loft conversions and non-domestic refurbishment.

The return to growth in housebuilding and commercial newbuild has generated higher levels of demand for all product groups, although overall growth rates have been somewhat constrained by lower levels of newbuild and interior refurbishment work in some key commercial sectors. Another factor driving growth has been the trend towards higher specifications for value-added products, driven by increasingly tighter building regulations, and associated demand for higher levels of product performance. The offsite building sector is a particular area of demand, especially timber frame systems, where high levels of fire protection are critical.

By value, rigid polymer insulation boards are estimated to account for around 60% of the total as defined in the report, followed by plasterboards at 30% and specialist building boards at around 10%. The polymer boards sector is dominated by PIR, followed by polystyrene (extruded and expanded) and phenolic foam. These products are mostly used on housing and commercial newbuild, particularly where insulation products with other properties are required. Plasterboards can broadly be split between standard wallboards and baseboards on the one hand, and performance boards on the other. Standard boards account for the majority of sales by volume, with demand largely driven by housebuilding and office newbuild and refurbishment. Performance boards are not generally used on volume housebuilding development, key markets being architectural specification and offsite construction.

The specialist building boards sector is diverse, but consists mostly of boards made from composite materials with cores of cement, calcium silicate and, to a lesser extent, magnesium oxide, alongside other types of composite boards, including wood plastic and stonewool. It is estimated that cement based boards and boards of calcium silicate account for around two thirds of sector sales. Key applications for specialist building boards include; fire protection, rainscreen cladding backing, ceramic and stone tile backing, timber frame sheathing and internal wall linings, and key drivers include fire performance specifications and demand for moisture resistance alternatives to plasterboards in ‘wet rooms’.

While there are just three manufacturers of plasterboards dominating the European market, the specialist building boards sector is more diverse. Distribution is mainly through specialist distributors, and many of these are also able to fabricate panel systems using proprietary facing materials from manufacturers.

“Our forecasts for this market are for steady growth through of between 3-5% per annum to 2020, notwithstanding impacts from political or economic events” said Andrew Hartley, Director of AMA Research. “Underpinning growth is likely to be the demand for more new homes and strong levels of activity in the commercial office, higher education, Academy and Free Schools sectors.”

The ‘Building Boards 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 in 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.

Commercial Glazing Market Report - Key Facts

Did you know that...

1. The Commercial Glazing industry is worth well over £2 Billion in 2015, with good growth in the last 2 years.
2. Office construction is the largest sector, the education sector accounts for around 18-20% of demand.
3. Curtain walling has grown by around 20% over 2013-15, with further growth forecast in 2016-2019.
4. The top 3 aluminium commercial glazing systems suppliers account for around 40% of the sector.
5. Market prospects for the sector are optimistic with forecasts of over 15% growth the next 4 years.

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

Replacement Kitchen Doors Market Report - Key Facts

Did you know that…

1. Specialist kitchen retail outlets account for some 10% of this sector.  
2. The market for replacement doors has grown in recent years, by around 25% over the last 3 years.
3. The replacement door sector accounts for a minor share of the overall kitchen furniture market – probably around 2-3% at the present time.
4. Cheaper materials are more prominent in the replacement door sector, with MDF/foil wrap accounting for almost two thirds of the market.
5. Single 1 door units account for almost 60% of the replacement door sector.

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

Education Construction Market Report - Key Facts

Did you know that...

1. Education construction output increased by around 19% in 2014 to reach a value of £10bn, bringing it back to the same level as 2010, prior to the scrapping of the BSF programme.
2. The DfE, the single largest client for education construction works, controls a total resource budget of almost £59.4bn in 2015-16 and a capital budget of over £4.7bn.
3. The second phase of PSBP was announced in February 2015 which should result in £2bn invested in rebuilding or refurbishing buildings at 277 schools across England between 2015 and 2021.
4. Capital allocation for the Higher Education sector in England, Wales and Scotland in 2015-16 is in the region of £200m, which includes research capital and teaching capital investment.
5. Going into 2016 and beyond, the outlook for the student accommodation sector remains positive, with student numbers expected to increase with the removal of the cap on student numbers.

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

5% growth estimated in the UK Pipes and Fittings market for 2015

The UK pipes and fittings market has achieved good growth over the last 3 years and is estimated to have grown by 5% in 2015. Key factors that have influenced the market in recent years include improving levels of construction in the commercial and housing sectors and falling raw material prices, particularly for copper and oil. Since 2012, the market has grown by around 15%, suggesting that it has nearly recovered to the levels seen at its peak in 2007.

The plumbing pipe systems sector accounts for around 60% of the pipes and fittings market, as defined in AMA Research’s report, while the rainwater, soil and waste products sector accounts for the remaining 40% or so. Flexible plastic plumbing pipe systems are the dominant material used in hot and cold potable water installations, and although the majority of heating installations and refurbishment projects use copper pipe, the market for copper pipe has remained relatively static in recent years. There has also been steady growth in the demand for flame free and low-skill fittings such as plastic push-fit and press-fit pipe fittings.

Factors driving the growth of the plastic sector include technological developments and improved reliability, as well as the availability of a wider range of products and price. The focus on recycling and the use of recycled materials in the plastic sector has also increased in recent years. Underfloor heating has also increased in popularity between 2010 and 2015, and growth in this sector is likely to continue to have a positive impact on the market for plumbing pipe systems. In addition, with increasing health and safety legislation, there has been a continuing shift in the market towards flame free jointing.

PVC-U continues to dominate the above ground rainwater guttering, soil and waste pipework sector. There is continuing demand for seamless aluminium guttering and cast iron effect PVC-U guttering, which provides the effect of cast iron. Increasing pressure to conserve resources and mounting public concerns about the cost of water usage have also led to a growing interest in rainwater harvesting systems, and there is an increased interest in general in water management, supported by the heavy rainfall and more volatile weather patterns over the last 4 years, across the UK.

The main channel of distribution is via the builders’ merchants, which account for almost 50% of the distribution for pipes and fittings products. This is followed by specialist plumbing/roofing/drainage distributors, DIY multiples and other independent DIY/hardware stores with significant shares, while others include internet sales, catalogue sales and direct sales from OEM business.

“The outlook for the UK pipes and fittings market in 2016 is positive, supported by the growth of new construction levels and RMI expenditure. Private housing completions are forecast to experience steady growth in the medium to longer term, while the private commercial sector is likely to drive newbuild demand in the non-domestic market” said Keith Taylor, Director of AMA Research. “Growth sectors should include budget and luxury hotels, care homes and student accommodation, and there may also be opportunities in the education sector, where around 70% of washroom installations are over 20 years old and many heating systems are aged.”

Bathroom pods are commonly used in the student accommodation and budget hotel sectors, and offsite construction is likely to continue to grow, driven by skills shortages and the need to improve efficiency, providing an opportunity for pipes and fittings. The market is also likely to see a continued focus on sustainability and the environment, particularly in the domestic sector, something which will have an impact on the type of products and materials used. Products made from plastic are expected to continue to increase their share of the market, however, the price of plastics has continued to rise despite the recent fall in crude oil prices, and this may affect the plastics sector negatively in the short to medium term.

The ‘Pipes and 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.

Building Insulation Market Report - Key facts

Did you know that...

1. The building insulation market has been volatile, driven by government schemes, with a 7% drop in the market in 2013 and growth of 5% in 2014.
2. Mineral wool products account for around a third of the insulation products market by value, although by volume the share.
3. It is estimated that in 2015 the domestic RMI & retrofit sector accounted for only 41% of the market, in terms of area, a significant fall on previous years.
4. The market for loft insulation products has fallen by 70% since 2010, reflecting the end of the CESP and CERT programmes.
5. Builders’ merchants and DIY multiples account for some 18-20% of the market.

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