- The UK FM Outsourcing market is estimated to be worth £19.3 billion in 2016, an increase of 13.5% since 2012.
- The corporate sector accounts for 58% of the market.
- Outsourcing has gained share within the UK market for FM, accounting for an estimated 64% share.
- Cleaning represents one of the largest and most competitive service areas at 11% of market value.
- Central and local government offers the best prospects, with growth forecast at 18% between 2016 and 2020.
These facts have been extracted from AMA Research's report 'Facilities Management Outsourcing Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.
- There are 500 high-rise buildings across the UK in the development pipeline, of which around 437 (87%) are in London.
- Around 70% of high-rise buildings currently under construction or under consideration across the UK are primarily residential, but with an element of mixed-use, e.g. retail, community or leisure.
- Elsewhere in the UK, over 60 high-rise buildings are in the development pipeline, of which around 32% are currently under construction.
- In terms of UK regional schemes, the majority of high-rise buildings are clustered in key cities such as Birmingham (11%), Liverpool (17%), Manchester (43%) and Salford (19%).
- In both the UK and across the world, there has been a big rise in the number of residential and mixed-use towers. Just 15 years ago, towers were predominantly built for the office market; they now make up just 5% of the current development pipeline.
These facts have been extracted from AMA Research's report 'Construction in the High-Rise Buildings Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.
The UK office and home office furniture market is estimated to have grown by 4% in 2016, with similar growth forecast for 2017. While the excess production capacity in the industry has mostly been absorbed, the market remains very competitive for all suppliers and market value remains below the peak year of 2001. Recent growth in the market has been largely the result of large scale office development or refurbishment and has benefited the fit-out specialists and larger dealers.
Business confidence has improved steadily as the economy has grown. The commercial new build sector is relatively buoyant, with new office construction increasing, albeit remaining well below the levels reached in the past. The most significant growth has taken place in the City and Greater London, with anecdotal evidence suggesting that regional centres are also increasingly attracting developers. However, forecasts for the next three years indicate a decline in the construction of offices due to Brexit related uncertainty and pressure on space.
The UK office furniture market has split into two broad categories, the corporate sector serviced by UK and overseas branded suppliers, either directly to end users or via fit-out specialists and furniture dealers and the SOHO sector supplied mainly from China and other low cost producing countries via mail order, the Internet and retail outlets.
A large proportion of home office furniture is supplied in flat pack form by specialist manufacturers and sold through outlets such as IKEA, Argos, Staples, and Tesco Direct. The home office has grown during the review period but is no longer increasing its share of the overall market.
Imports are significant in the office and home office furniture market and account for around a 35% share, with China as well as EU countries including Germany, Italy, France and Sweden important suppliers. The office furniture market remains fiercely competitive, with a large number of suppliers operating in the market, despite some high-profile casualties in the past.
"The UK office furniture market is expected to show slowing growth until 2021, with annual growth rates of 3-4% from 2017 onwards, as a result of the uncertain outlook for the economy as a whole” said Fiona Watts at AMA Research. “Technology will continue to influence the market, with more companies adopting wireless, network stations and VoIP systems, and this is likely to stimulate demand in some sectors in the longer term.”
Changes are likely in individual product groups. For example, demand for smaller desks will continue, reflecting technological developments and changing work practices, and some value will be added through the introduction of more accessories and a greater level of integration with other office products. The demand for wave desks and benching systems is expected to continue, reflecting a preference for open plan offices, and more adjustable height desks are also likely to be introduced to cater for stand-up/sit down arrangements.
The number of people working from home, either as self-employed or as employees, is likely to increase steadily in the medium term, as firms realise the benefits to be achieved from providing flexible working arrangements for their staff and this trend should continue to benefit the SOHO sector of the market. This sector is likely to continue to develop positively, with the choice offered by online suppliers and retailers increasing as more employees work from home, although wireless connectivity, laptops, and tablet usage is likely to impact on the demand for desks.
The ‘Office and Home Office Furniture Market Report – UK 2017-2021 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.
- Growth rates for the domestic replacement doors and windows market resulted in an 19% overall increase between 2011 and 2016.
- In 2016, it is estimated that around 4.5 million replacement windows were installed as well as an estimated 190,000 replacement patio doors and 1.25 million replacement entrance doors.
- The PVCu fabricator/installer sector continues to struggle with fierce competition and low margins characterising the sector.
- Increased demand for bi-fold doors saw an 21% overall value growth for replacement patio doors between 2011 and 2016.
- The outlook remains positive if modest with annual value growth at around 2% to 2020.
These facts have been extracted from AMA Research's report 'Domestic Replacement Door and Window Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.
The UK construction chemicals market is estimated to have grown by around 4% in 2016, with a further 3% increase forecast for 2017. Annual growth rates vary between product sectors as trends differ within key end user markets, but in overall terms, growth has been slow and steady over the past five years. Despite the outcome of the vote to leave the EU, there have been steadily growing levels of home improvement and housebuilding output, leading to greater usage of sealants and adhesives, with bright prospects also in the infrastructure sector.
This is according to a report recently published on the sector by AMA Research, which focuses on liquid, spray, foam, mastic and powdered chemical products used by tradesmen, sub-contractors and homeowners, but also includes concrete and mortar additives that are used in both factory and on-site production of concrete products and mortars.
Adhesives constitute the largest product group and in recent years, growth in this sector has been underpinned by the recovery in the housing new build, home improvement, commercial new build and infrastructure applications. Since 2012, growth has also been good in the fillers product category, which includes powder and ready-mix products, wood fillers and expanding foam. Annual growth rates in the sealants, caulks and putties sector are typically steady due to the very broad range of applications targeted. The supply chain is highly fragmented, with merchant and distributor own label products being significant.
The supply of concrete, mortars & cement admixtures has improved steadily in recent years, driven by demand for use on major infrastructure projects and recovery in the housebuilding and commercial new build sectors. The strongest demand has been for water reducing admixtures i.e. plasticisers and superplasticisers, underpinned by the continuing need to reduce water usage, in particular by the concrete manufacturing sector.
Demand for protective coatings – fire retardancy, waterproofing & damp-proofing - has been maintained by the need for regular / remedial re-coating of buildings and infrastructure. A more recent new driver has been the growth in new basements and basement conversions in London homes within the more affluent boroughs, as these applications need protecting from below ground water ingress.
Demand for resin flooring systems appears to have remained steady, having diversified away from the core industrial/ warehousing market into education, food production and retail. However, a resumption in demand for warehousing, manufacturing and R & D facilities – particularly in the pharmaceutical, biotechnology & electronics sectors – will again boost this sector.
Key factors which are likely to influence the overall market over the next two years include a continued steady increase in housebuilding output partly stimulated by Government programmes, further infrastructure development in areas such as water treatment, drainage, ‘smart motorways’, energy-from-waste plants and transport, leading to greater use of admixtures, sealants and protective coatings.
There are also advances in technical composition for many products which could lead to improvement in market size, in terms of value at least. For example, the shift to water reducing admixtures and similar products which improve the consumption of ‘embedded water’ may add value to the sector.
“Medium term growth prospects for the overall construction chemicals market appear steady but modest, particularly for products mostly supplied to the home improvement and trade sectors for use in residential RMI and refurbishment, such as adhesives, sealants and protective chemicals” said Keith Taylor, Director of AMA Research. “There is likely to be a period of significant uncertainty over the next 2-3 years as the formal EU departure looms closer and the UK has to renegotiate trade deals. Risks also include changes to legislation affecting the construction chemicals market.”
Growth in the construction chemicals market is forecast at 2-3% per annum in the short to medium term.
The ‘Construction Chemicals Market Report – UK 2017-2021 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.
In 2016, the market for non-domestic catering equipment was estimated to have increased by 3%, with a further 2% value growth forecast for 2017. The main factors supporting the catering equipment market since 2012 have been an improving economy, increasing levels of consumer confidence and strong growth in the eating out sector. The catering equipment market is expected to show modest growth of 2-3% per annum through to 2021 in line with a less confident economy.
Despite the trend for healthy eating, it is quick serve restaurants that account for largest sector of the foodservice market. The rapid growth in the coffee shop sector and the popularity of ‘grab and go’ food has led to increasing demand for more compact catering products with multiple functions, to maximise performance in smaller venues. The growth in popularity of open plan restaurants has also boosted the industry, with restaurants investing in re-fits and new appliances to satisfy consumer demand for greater visibility of restaurant kitchens.
Cooking equipment represents the largest sector with around 50% of the market value, partly due to the high cost of cooking products. Refrigeration also accounts for a significant share, with steel fabrication, warewashing and other products making up the remaining market value. Key product trends include increasing demand for more compact, energy efficient, versatile catering equipment, a general requirement for more energy efficient products and the demand for fast, high volume cooking solutions such as Combi-ovens and Accelerated Cooking Ovens.
Products are largely distributed through specialist distributors, designers and installers, with the largest distributers improving their market share at the expense of smaller competitors. Bespoke solutions are still popular, particularly for steel fabrication and ventilation. Due to the mature nature of the market, larger distributers are looking to increase their market share by adding installation and design services to their portfolio.
Some of the key factors influencing the market in the medium to longer term include the growing number of tourists visiting the UK, with the reduction in value of the pound making the UK a more affordable destination. Continuing growth in the café/coffee shop market should also provide a major boost for the UK foodservice market overall. In addition, new regulations to govern the ventilation requirements for solid fuel cooking appliances should drive growth in this sector of the market.
Factors negatively affecting market growth include the economic uncertainty caused by the UK’s decision to leave the EU. The major chains are likely to remain cautious regarding expansion plans and pricing pressures are influencing manufacturers as a result of the weaker pound and rising material costs. Distributors are increasingly selling equipment online, with players such as Amazon entering into the UK catering equipment market, introducing further competition into the market.
The ‘Non-Domestic Catering Equipment Market Report – UK 2017-2021 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.
- The UK space heating market is estimated to be worth £569
million in 2016, an increase of some 4% since 2014.
- Domestic space heating accounts for 53% of the market.
- The retail sector accounts for 70% of sales of domestic
space heating.
- The commercial space heating market is expected to grow
by 10% through to 2020.
- Commercial heating systems (boilers, radiators, heat
emitters) are estimated to account for 48% of the sector.
These facts have been extracted from AMA Research's report 'Space Heating Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.
The UK domestic garden landscaping materials market, including horticulture, hard landscaping and garden decoration, increased by 2% in 2016. Subject to the vagaries of the British weather, the market has experienced steady underlying growth over the last 2-3 years as consumers continue to invest in their gardens by updating or upgrading outdoor areas with more modern décor schemes. In addition, replacement purchases continue to benefit sub-sectors such as containers and horticultural products.
Market performance is also influenced by the general economic situation, with higher value projects likely to be put on hold during times of economic uncertainty when disposable incomes are stretched. Consumer lifestyle choices can also impact significantly upon the size of the market with recent trends including ‘grow-your-own’, the continuing trend for al-fresco dining and entertaining as well as the recent focus on the garden as an outdoor living space.
There is also a trend towards stylish design and trading up, but at the same time a dominant trend has been low maintenance, exemplified by the recent growth for artificial turf. Demand for pots and planters has remained resilient as they provide a cost-effective means of updating the garden, providing both colour and flexibility, since they can be easily relocated – something which is becoming increasingly important given that the average garden in new build housing is diminishing.
The fencing sector is particularly affected by weather with the stormy conditions in successive winters benefitting sales of replacement products. However, design influences are also at play within the market with many consumers upgrading existing fences to more decorative, rather than purely functional designs.
In the decking sector, the uptake of timber decking has plateaued while a new wave of composite decking has helped to sustain demand to some degree in this sector. The sector remains price competitive and is characterized by significant penetration of imports.
Distribution of landscaping materials is fragmented, and online sales continue to increase. In recent years, a growing number of dedicated online garden specialists or e-tailers have emerged. Many of the traditional ‘bricks and mortar’ channels now also have a much stronger transactional online presence, with home delivery offered for a wide variety of items.
“The market has been positive in H1 2017 with good spring weather encouraging gardeners and home owners to update and renew planting and landscaping schemes” said Jane Tarver, Editor at AMA Research. “The outlook for 2018 and beyond is for steady growth, underpinned by sustained demand for key repeat purchase products, such as bedding plants, but with an element of price inflation from imported products such as planters, pots and decorative items.”
Into the medium-term, the domestic garden landscaping materials market will show steady, if modest, underlying growth of around 1-3% per annum until 2021. A key factor in the future health of the UK domestic garden landscaping materials market remains the British weather, which can have significant impact on the strength of the market within a given year.
The ‘Domestic Garden Landscaping Materials Market Report – UK 2017-2021 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.
The UK generating set market, up to 750 kVA, has experienced 24% overall growth 2013-16. Whilst the growth rate slowed to around 3% in 2016, factors that fuelled significant growth in earlier years - such as improvements in residential output, recovery of the manufacturing sector and growth of data centres – all continued to stimulate demand for generating sets in 2015-16. Another significant factor underpinning demand has been the steadily increasing power requirements of office and commercial buildings.
The market also benefits from the need for emergency power generation capacity which has been exacerbated in recent years by the increasing incidence of weather related disasters such as flooding and damage to power lines leading to supply interruptions. In addition, continuing concerns regarding the shortage of grid capacity and the slow progress of some replacement generation plants have also led to increased demand for gensets, particularly in “mission critical” sectors such as healthcare and data centres.
The main focus of new product development has been around noise, engine efficiency and emissions with the development of advanced optimised engine management systems being introduced to maximise power output whilst minimising fuel consumption and emissions. An increasingly common solution to the issues of reducing fuel consumption and emissions is the use of hybrid generating sets that combine a conventional diesel engine with renewable energy sources, such as solar photovoltaic.
Other product developments have included the use of cloud computing to enable remote monitoring, the incorporation of fully bunded internal fuel tanks, and the development of gensets offering longer service and fuel replenishment intervals to minimise the cost of maintenance and site visits. The power to weight ratio of gensets has also tended to increase, whilst the footprint of the genset has tended to decrease, making them easier and less costly to install.
Into the medium-term, annual growth rates averaging of 2-4% are currently forecasts for UK genset market for the period 2016-21, reflecting continuing positive prospects for the market, although at a slower growth rate than in 2014-15. However, future prospects are difficult to predict, given the uncertainties as to how the UK economy will perform following the EU ‘Brexit’ decision. One immediate consequence of the ‘Brexit’ vote has been the decline in the value of Sterling, which has given a short-term boost to export-led industrial sectors, though the long-term implications remain unclear.
“The genset industry is likely to be supported by continued growth in the construction sector going forward, including a significant pipeline of major infrastructure projects under the Government’s National Infrastructure Plan (NIP) which currently covers over £480bn of projects” said Jane Tarver at AMA Research. “Government measures to alleviate concerns over security of energy supply, including the Capacity Market and the Short Term Operating Reserve (STOR) will continue to provide opportunities for UK generator suppliers to provide standby reserve power, though concerns over the use of diesel generators for this application may lead to pressure to switch to alternative fuels.”
Environmental concerns and tightening of regulations are likely to stimulate value-added product developments, focusing on emissions reduction, engine efficiency, and advanced monitoring and control systems. The hire market is also likely to benefit from increased power and lighting needs for the growing outdoor events sector such as music & sporting events, festivals, etc. In addition, the recent trend for providing additional WiFi and telephone connectivity at such events could also provide further opportunities for growth.
The ‘Electricity Generating Sets Market Report – UK 2017-2021 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.
The UK ventilation and air conditioning market is significant and was estimated to be worth £1.17 billion in 2016. Growth has been steady since 2013, with the recovery in the UK economy stimulating construction activity, as well as consumer and business confidence levels. Although the market situation in early 2017 is more subdued, the current market forecast for remains moderately positive, with growth of around 3% per year from 2019 onwards.
The UK ventilation and air conditioning market exhibits the characteristics of an increasingly mature market. Positive influences on the ventilation and air conditioning market include increasing health, safety and energy efficiency legislation, revised Building Regulations and environmental legislation, and the generally increasing awareness about the importance of indoor air quality and energy use.
Considerable replacement and refurbishment opportunities are present in existing buildings; there are still a large number of buildings with inadequate or inefficient VAC systems. In addition, Government initiatives are also motivating the VAC market. For example, the Enhanced Capital Allowance Scheme which offers up to 100% first year tax relief on a number of energy saving plant and machinery, including VAC equipment.
Keith Taylor, Director of AMA Research, commented: “Following the UK Brexit vote in mid-2016, the outlook for this market, like many others will depend on the path taken to exit the EU and the type of trade and legislative deals formulated. By 2021 it is estimated that the UK ventilation and air conditioning market will have increased by 10 - 11% when compared to the estimated market size in 2017.”
The future performance of the UK ventilation and air conditioning market is likely to be influenced by overall trends in housebuilding and non-domestic construction, RMI activity, fuel prices, energy efficiency legislation, renewable technologies, levels of personal disposable income, plus climatic factors and air temperatures.
Enhanced levels of market penetration are also likely to arise from product innovation and technological developments, for example variable speed drives, multiple scroll compressors, EC motors, filter sensors and heat recovery systems. In recent years, there has been good growth in VRF or VRV air conditioning systems, reflecting the fact that they offer more efficient operation and can therefore save operational costs.
There is also increasing demand for intelligent ‘smart’ controls that can remotely manage ventilation and air conditioning systems, as well as a greater emphasis on the integration of VAC controls into the building management systems of commercial buildings.
The ‘Ventilation and Air Conditioning Market Report – UK 2017-2021 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.
- The floorcoverings market continued to be positive in 2016 with overall growth of 13% since 2011.
- Returning consumer confidence and spending levels, an improving housing market as well as good growth for some contract sectors have been key drivers for growth since 2014.
- Carpet continues to take largest value share at over 50% in 2016.
- The demand for LVT in both contract and domestic sectors has helped vinyl to outperform the total floorcoverings market in recent years with overall growth of 16% from 2011 to 2016.
- Current forecasts indicate more modest annual value growth rates of 2-3% to 2020.
These facts have been extracted from AMA Research's report 'Floorcoverings Market Report - UK 2016-2020 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.
