Ventilation and Air Conditioning Market Report - UK 2017-2021 - 5 Key Facts

• The UK ventilation and air conditioning market is significant, with an estimated total value of over £1.1 billion at manufacturers selling prices (MSP) in 2016.
• Residential ventilation products have around 44% share by value and include intermittent extract fans and mechanical ventilation systems.
• The leading seven suppliers account for a total of around 66% of the market.
• PAC systems are estimated to account for around 60% share of the UK air conditioning market, while central station systems account for the balance.
• Cassettes, split systems and mini-split systems are estimated to account for over 85% of PAC sales in the UK. 

These facts have been extracted from AMA Research's 'Ventilation and Air Conditioning Market Report - UK 2017-2021 Analysis' available for purchase now. 

Water Heating Market Report 2017-2021 - 5 Key Facts

• The UK water heating market is forecast to grow by around 10% by 2021.
• The boiling water heater and taps sector is expected to grow by 27% over the same period.
• Electrical wholesalers account for around 12% of hot water storage product distribution in 2016.
• The top 4 hot water storage product suppliers accounted for 60% of the market in 2016.
• Vented cylinders only account for around a fifth of all cylinders sold in 2016 by volume. 

These facts have been extracted from AMA Research's 'Water Heating Market Report - UK 2017-2021 Analysis' available for purchase now. 

Healthcare Construction Market Report - UK 2017-2021 - 5 Key Facts

• Healthcare sector construction output peaked at £5.9bn in 2008, falling through to 2016 to reach £3.1bn.
• NHS Total Capital Spending is expected to increase by 18% between 2015/16 and 2020/21.
• The total size of the NHS estate in 2016 was estimated at 26.8 million square metres.
• The independent medical / surgical hospitals sector is a more mature segment within the UK independent healthcare market, where the top 5 providers control around 81% of the market, in terms of numbers of bed-spaces.
• Procure22 commenced on 1st October 2016 and will run for a maximum of 4 years with an expected annual value of between £650m and £750m.

These facts have been extracted from AMA Research's 'Healthcare Construction Market Report - UK 2017-2021 Analysis' available for purchase now. 

10% growth in the UK Commercial Washrooms Market in 2016

The UK commercial washrooms market is estimated to be have increased by 10% between 2015 and 2016, according to a report by AMA Research. This growth is largely due to a strong performance across several key sectors of the non-domestic construction industry including entertainment, offices, education and health. It is anticipated that the value of the commercial washrooms market will continue to rise, initially influenced by the rising cost of imports, given the weakness of sterling, and a stronger economic climate towards the end of the forecast period.

By product sector, washroom panel systems represent the largest category, accounting for around 40% of the commercial washrooms systems market value. Sanitaryware also account for a significant share, while overall sales of brassware, showers/mixers and baths are lower in value terms.

It is estimated that just under three quarters of commercial washroom products are distributed via trade channels, including builders/plumbers’ merchants and distributors. Direct sales to end users and dedicated online channels represent the remainder, with internet sales seeing stronger than average growth in recent years. Branded goods from leading manufacturers continue to perform strongly and are used within the commercial washrooms market as a perceived endorsement of quality, particularly in premises such as hotel chains and corporate premises. However, non-branded OEM products remain a cost effective option at the more price conscious end of the market.

In terms of trends, streamlined contemporary designs remain popular, driven by aesthetics, ease of cleaning and perceived improvements to hygiene. Safety is also a key consideration within the washroom sector, with products such as floor level showers, non-slip surfaces and low-level door sills seeing growth. Natural finishes incorporating real stone or wood are popular. More authentic and expensive materials tend to be used in the private corporate or upmarket hotel sector, where budgets allow.

In the commercial brassware and showers/mixers sectors, the need to conserve water has been a key feature in product design for a while, resulting in sensor activated taps and precision targeting of flow. Mixer taps continue to gain popularity and thermostatic controls have become the safety standard to prevent scalding, while thermostatically controlled mixers are now more mainstream in the shower sector. Smart technology and digital features, including touch free controls, movement sensors, automatic flushing and regulated temperature controls, have become more prevalent in the design of modern washrooms.

In terms of specification and installation, there is a trend towards specifying complete washroom solutions, encompassing all elements from ‘concept to completion’ in one integrated scheme for schools, offices and hospitals, for example. A requirement for quick installation has supported the wider use of pre-fabricated panels and systems, while shower and bathroom pods are widely used in the budget hotel and student accommodation sectors.

Hayley Thornley, Research Manager at AMA Research, commented: “The commercial washrooms market is expected to grow by a further 15% between 2017 and 2021, representing lower annual growth rates than in 2015/16. Growth will be supported by rising prices and underlying demand in sectors such as health and education, particularly for RMI work, with the outlook more positive towards the end of the forecast period, when the economic and political situation is expected to be more stable”. 

Shortfall in bed spaces continues to increase in the UK care home market

Over the next 5 years, demand for care home places is expected to far exceed the number of bed spaces available. Demand is forecast to increase by around 9,000 bed spaces each year, while the current rate of care home development is at 5000-6000 new beds per year, leading to a substantial shortfall. The most significant change in the provision of residential care in the last 25 years has been the much greater involvement of the private sector. More than 75% of all care homes and over 80% of care beds in England are now operated by the private sector, with NHS operated beds accounting for only 1% of total provision.

There have been many changes in the care home market over the last few years affecting longer-term trends in supply and demand. Whilst an ageing population and rising levels of disability and dependency among older people has increased demand for care home places, the growth in domiciliary care and stricter entry criteria by local authorities has reduced the supply of care home places, especially in the local authority sector.

There has been a substantial growth in the number of privately provided places replacing large numbers of NHS hospital beds for both geriatric and mental illness care. There are almost 19,000 care homes, nursing homes and residential homes providing adult and elderly care throughout the UK, and in 2017 the number of privately operated care home beds represent a significant rise since 2010.

Reasons for the current overall shortage of bed spaces include the decline in public sector provision, while private sector building is failing to meet demand. The care home market has also become highly polarised in recent years with developers continuing to focus on locations which are characterised by a strong self-pay market where higher fees provide investors with a stronger return on capital. As such, new care home developments will be largely led by the availability of land. However, developers are facing increasing competition for land from alternative uses such as housing, student accommodation and hotels, particularly in desirable areas, and as a result, new care home development is forecast to remain relatively static in the short-term, despite an upturn in planning applications and increasing availability of funding.

A number of significant challenges are facing the care homes construction sector at present, with staffing and payroll issues a major concern. The introduction of the National Living Wage in April 2016 has led to increased payroll costs and reduced profit margins at a time when many care home operators already faced staff recruitment and retention problems - which are also being exacerbated by uncertainty over freedom of movement following Brexit. These factors have resulted in an increased reliance on agency staff, further impacting profits, and many care home operators face an uncertain and challenging trading environment going forward.

Hayley Thornley, Research Manager at AMA Research, said: “Despite the challenges currently facing the sector, the private care home market continues to attract new investment as the value of the sterling has made the UK market more attractive to overseas investors. In the longer term, the care homes sector is expected to outperform the wider healthcare market due to an acute undersupply of appropriate accommodation together with increasing demand from an ageing population, with the number of people aged over 65 in the UK forecast to be 50% higher in 2035 than it was in 2010.”

In terms of development, there has been significant activity in new and emerging areas of the care market, particularly care villages and extra care schemes. While delays to the Care Act 2014 have created uncertainty in how local authority funding is going to work and the likely financial implications on the care home market. Major reforms to the way social care is funded are expected to come into operation in April 2020, which could have a positive impact on the market.

Unless output substantially increases, however, the discrepancy between current annual rates of additional bed spaces and future annual demand is expected to widen significantly, with an estimated shortfall of 28,000 bed-spaces by 2025.

The ‘Care Homes Construction 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.

Flat Roofing Market Report - UK 2017-2021 Analysis - 5 Key Facts

• Sales of single ply membrane have increased in recent years and now account for 29% of the membrane market by value.
• Overall imports of RBM have fallen sharply in recent years, by an estimated 22% between 2014 and 2016.
• There has been a 58% fall in imported supply of RBM from Italian producers.
• In terms of insulation, Stonewool accounts for up to a quarter of flat roof installations with XPS taking a growing share.
• Builders’ merchants account for only 10-15% of the sector.

These facts have been extracted from AMA Research's 'Flat Roofing Market Report - UK 2017-2021 Analysis' available for purchase now. 

Electricity Generating Set Market Report - UK 2017-2021 Analysis - 5 Key Facts

• The UK Genset market (up to 750 kVA) has grown by 24% between 2013 and 2016, underpinned by good growth in key end use sectors such as construction, infrastructure, telecoms and hire.
• Increasing power requirements from end-users is underpinning the market as has the need to provide back-up power generation for “mission critical” installations in sectors such as health.
• Key focus of product development has been centred on reducing emissions, lower noise output and increased fuel efficiency as well as the development of remote monitoring systems.
• Exports continue to take up significant proportion of UK manufacturing and further export market growth could be stimulated by the current lower value of Sterling.
• Market forecasts indicate overall growth of around 17% between 2016 and 2021 with demand for Gensets underpinned by increasing power needs by end users, growth of the hire sector and concerns regarding the security of energy supply.

These facts have been extracted from AMA Research's 'Electricity Generating Set Market Report - UK 2017-2021'  available for purchase now. 

Comfort and well-being driving factors for the UK pet accessories market

Highly fragmented and competitive, the UK Pet Accessories Market was estimated to be worth around £850m at retail selling prices in 2016. The market covers a wide range of product groups including care products, toys, housing, bedding & feeding products, collars, leads and utility products. The maturity and competitive nature of the market and the uncertainty of the political and economic situation means that growth in 2017 is forecast at around 2%.

The market for pet accessories is generally considered to be relatively resilient to economic slowdowns, and has generally experienced flat to marginal growth levels over recent years - although there have been varying performances by different sectors. Imports play a significant part for many sectors of the pet accessories market and changes to Sterling exchange rates over the last 12 months has resulted in increasing price competition. However, growing demand for premium products has helped to underpin many sectors.

The increasing trend for pet humanisation – e.g. owners reflecting their own needs and wants onto their pets – is adding value to the market, with pet owners increasingly prepared to pay more for their pet accessories. In addition, the replacement cycle for some products has reduced as many owners increasingly seek to keep up with design and fashion trends. Ownership levels of smaller dog breeds has grown in recent years which has resulted in increased demand for specifically targeted products such as coats, grooming products and fashion accessories.

A steady demand for essential pet care products is helping to underpin the market, including rising demand for flea and worm treatments. The latter has benefited from a combination of wide distribution, increased awareness of the importance of preventative care and recent weather conditions that have boosted flea numbers. Cat litter is a sector that has become polarised between the low volume but high value, premium quality products and the high volume, value for money products. Product development in recent years has also helped to boost the market with the introduction of innovative products that focus on odour control, absorbency and the use of eco-friendly & biodegradable materials.

Toys are forecast to remain a key product sector and will benefit from continued product innovation and gift purchases. The rapidly growing interest in interactive and multi-functional toys is expected to continue. Another growth area appears to be in pet ‘technology’ products, including for example automatic feeders, toys, pet monitors and pet GPS trackers. The functionality and range of such products are also likely to increase in the short-medium term.

In terms of distribution, the pet superstore channel has continued to grow, with the number of outlets, choice and product range in these stores helping to stimulate demand and growth. In addition, the discount retail sector is also taking share, particularly for toys and some own-brand bedding and cat litter products. In addition, online distribution is also increasing in importance as a channel in its own right. The trend among pet stores to offer ever wider ranges of products and services, including grooming, veterinary care, boarding and breeding is likely to continue.

The mature nature of the market means that it is unlikely that pet accessories will show significant growth in the medium-term due to the highly price competitive nature of the market. The development of the economy remains uncertain at this stage following the Brexit vote, and this could have an impact on consumer spending, particularly on non-essentials.

Reflecting the resilient nature of this market, steady but modest annual growth rates of around 2-3% are currently forecast between 2018 and 2021. Care and maintenance products are forecast to continue to underpin the market as they are generally considered to be essential and represent the largest product sector, while the cat litter sector should continue to benefit from sales of more innovative products. Other factors expected to help underpin this market into the medium-term include product innovation focused on convenience, eco-friendliness and aesthetics. In addition, replacement cycles for some products are likely to decrease as owners seek to ensure that the comfort and happiness of their pets is maintained.

The ‘Pet Accessories 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.

Prospects for the UK Builders and Plumbers Merchants market cautiously optimistic

It is estimated that the UK builders and plumbers merchants' market will see growth of 2% in 2017, compared with 2016, in value terms. The end use sectors of the merchants' market have fared differently reflecting each sectors' construction performance. However, most end-use sectors have experienced growth since 2013 stimulating demand for merchants' products, with key sectors including housebuilding, offices, infrastructure, industrial and education.

The merchants remain an important distribution channel in the overall construction market. However, the merchants' market has undergone some significant structural changes, with many national operations consolidating and restructuring to streamline and enhance multi-channel offerings, and the regional sector has expanded branch networks. The market is currently dominated by a group of 5 organisations, that together account for an estimated 75% share of the market, by value.

Builders and plumbers merchants offer an extensive range of products, although traditional building materials dominate the product mix. Competition from other channels, particularly the internet and home improvement multiples, continues to impact on the market. However, merchants appear to have outperformed home improvement multiples in recent years and their expansion into e-commerce has offset some of the movement towards internet-only distributors.

The role played by buying groups continues to be important, particularly for regional and local merchants, as considerable benefits can be derived by membership. This sector has also undergone changes with some of the leading organisations merging in recent years.

Prospects for the merchants' market remain optimistic, although cautious, with confidence in the continued recovery of the UK economy positive but tempered by the uncertainty of the outcome of Brexit negotiations. Drivers in the residential sector include under-investment in the housing stock in terms of new build requirements and the age of the current dwellings, which has stimulated expenditure on RMI activity, and the continued confidence in the new housebuilding sector in terms of starts, forward reservations, completions and average prices.

The cost of fuel and energy as well as the volatility of the exchange rate of Sterling against both the US Dollar and the Euro are also likely to drive up prices, causing the market value to increase. Growth in the builders and plumber merchants market is likely to be moderate over the next 3-4 years, with growth rates of 2-3% per year forecast until 2021.

New opportunities may arise from the demand for greater sustainability in construction materials and materials with a low-carbon footprint. Investment in online and mobile websites - in terms of improvements to product offering, availability and ordering process, as well as overall customer service - may also contribute towards growth. It is likely that those companies that embrace online selling and service will see higher growth than those that stick with a more traditional approach.

The ‘Builders and Plumbers Merchants 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.

Health and Safety Products Market Report - UK 2017-2021 Analysis - 5 Key Facts

1. The health and safety products market is forecast to grow 4% in 2017.
2. Personal protective equipment (PPE) dominates the health and safety products market, accounting for a value share of around 42% in 2016.
3. The leading distribution channels are industrial distributors and health & safety specialists, which together account for an estimated 56% share of the distribution mix.
4. Hygiene products account for an estimated 40% share of the market.
5. The market is becoming increasingly competitive, not only as the result of a rise in the number of suppliers, but also because of the range and variety of outlets offering health and safety products

These facts have been extracted from AMA Research's 'Health and Safety Products Market Report - UK 2017-2021' available for purchase now.

Public Sector (Non-Residential) Construction Market Report - UK 2017-2021 Analysis - 5 Key Facts

1. The largest single areas of public spending are in the departments of Work & Pensions (23%), NHS (Health) (19%) and Education (9%).
2. In 2016-17, the level of public sector capital expenditure accounts for just under 7% of total government expenditure. However, this percentage is expected to rise to around 8% of total government expenditure by 2020-21.
3. The public sector accounts for around 17% of total non-residential new construction output.
4. In terms of the construction supply chain, the value of new public sector work won by the top 21 largest contractors was around £3.8bn.
5. Going forward, public sector construction is forecast to grow by around 1.5-2% per annum to 2021.

These facts have been extracted from AMA Research's 'Public Sector (Non-Residential) Construction Market Report - UK 2017-2021 Analysis' available for purchase now.

Domestic Garden Leisure Market Report - UK 2017-2021 Analysis - 5 Key Facts

·                Subject to the influence of British summer weather, the UK garden leisure market has remained positive in recent years with overall growth of 37% between 2012 and 2016.

·                Garden furniture accounted for the largest sector in 2016 at around 60% in value terms with metal and wood based furniture accounting for combined value share of around 76% in 2016.

·                The barbecue sector has benefitted from a general upward movement in average prices in recent years, as well as increased focus on outdoor entertainment, resulting in 51% overall value growth between 2012 and 2016.

·                The internet has become an increasingly important channel for garden leisure purchases in recent years with many garden e-tailers now offering large ranges of garden furniture, barbecues and accessories.

·                Garden leisure is currently forecast to remain relatively buoyant into the medium-term with overall growth of 19% currently forecast between 2016 and 2021.

These facts have been extracted from AMA Research's report 'Domestic Garden Leisure Market Report - UK 2017-2021 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.