Bricks, Blocks and Precast Concrete Products Market - 5 Key Facts

• The market has grown by almost 50% in value terms since 2012. 
• Belgium and the Netherlands account for 85% of the UK’s brick imports by value.
• Bricks accounted for a 29% share of the total market in 2017 after growth of around 8% from 2015.
• Investment in capacity has continued, with brick production rising to its highest level for a decade in March-May 2017. 
• The precast concrete structural building products sector was worth around £770m in 2017.

These facts have been extracted from AMA Research's 'Bricks, Blocks and Precast Concrete Products Market Report – UK 2018-2022' available for purchase now. 

Plumbers’ merchants market in the UK worth over £4.2bn

The plumbers’ merchants market was worth an estimated £4.2bn in 2017, representing growth of around 2% from 2016. The overall trend in recent years has been positive, and early indications for 2018 are for a continuation of the modest recovery experienced from Q3 2017 onwards, although there is still a degree of restructuring activity, as major players adapt to changing conditions and slowing growth in some key end use sectors.

Although the plumbers’ merchants market has experienced 5 years of growth since construction output recovered in 2013, there has been considerable variation in the rates of growth between the various end use sectors. Sectors that have been strong include housebuilding, while residential RMI activity, a significant sector for plumbing & heating materials, has been more modest. Some non-domestic sectors, such as infrastructure have remained positive, but in the education, commercial offices and healthcare sectors there was an overall fall in output in 2017.

Expectations are for more modest annual rates of growth to 2022, for both new construction and non-residential RMI. Skills shortages remain critical and are a major concern in the plumbing and heating sector, with the skills gap said to be one of the biggest threats facing the UK’s plumbing industry.

The plumbers merchants’ market, which comprises national, regional and local merchants, is dominated by four major merchant organisations, which together account for an estimated 65-70% share, in value terms. These firms operate via a number of subsidiaries, each supplying a range of plumbing and building products.

The main competitors for the merchants are the home improvement retail and specialist outlets, as well as manufacturers and suppliers that deal direct with the construction trade. There has been strong competition from alternative suppliers, particularly online companies, retail outlets and DIY multiples, which is being driven by a shift in customer buying behaviour, with online shopping via PCs and laptops - as well as via mobile phones and tablets - becoming increasingly popular among tradespeople.

Some of the major nationals have responded to recent challenges in the plumbing and heating sector by restructuring and streamlining their operations, which has led to a number of branch closures, as well as the opening of new, more efficient outlets, enhancement of online and/or multi-channel offerings and a stronger focus on digital technologies. This focus on e-commerce has helped to offset some of the shift to internet-only distributors.

Prospects for plumbers’ merchants are relatively positive, although current political uncertainties surrounding the UK’s exit from the EU and the consequences in terms of trade, business investment and the availability of skilled labour are already affecting growth, and will continue to do so in the short to medium term. While construction activity and output levels will continue to increase, the rate of growth is expected to fall and remain relatively modest to the end of the forecast period.

A stronger focus on energy efficiency and water saving will continue to drive growth in the plumbing and heating sector, providing new opportunities for merchants, and a growing number of merchants have already expanded their ranges to include renewable energy and sustainable heating products as well as water saving solutions. Ongoing changes to building regulations will also boost demand for higher specification products.

The 'Plumbers Merchants Market Report - UK 2018-2022' report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Door and Window Fittings Market - 5 Key Facts

• The market for door and window fittings is estimated to have grown by 11% since 2013 but remains significantly below the pre-recession peak.
• Locks and latches represent the largest product sector, accounting for around 30% of market share.
• Low cost imports continue to limit value growth in some sectors, with imports of door and window fittings up 16% between 2013 and 2016.
• The residential sector accounts for over 60% of market value.
• In 2017 we estimate that the share of ironmongery distributed through door and window fabricators has increased to over 40%.

These facts have been extracted from AMA Research's 'Door and Window Fittings Market Report - UK 2018-2022' available for purchase now. 

29% growth in the UK generator hire market since 2014

The market for diesel generator hire, which according to AMA’s definition excludes ancillary products, has performed well in recent years, having experienced growth of 29% from 2014. Over this period, the market has benefitted from increasing demand across most many application areas including construction, events, infrastructure and industrial. Other drivers include rising power demand in several sectors, such as events and industrial, as well as ‘critical’ applications requiring more secure back-up support.

The generator hire market is part of the larger construction equipment rental market that includes products typically hired out by plant and tool hire companies, such as earth moving, lifting, pumping, road-making, power and tools. It is estimated that the generator hire market accounts for only around 2% of the overall construction equipment rental market.

Opportunities in the generator hire market range from very large and infrequent situations to very small & recurring events. High value, one off sources of demand include major entertainment events and natural disasters; whilst other application areas include temporary construction usage and the need for power while a company’s own equipment is repaired.

Construction is a key end-use sector, and accounts for around one third of the market. Generators are required in a number of applications, such as for powering site cabins and welfare facilities, as well as powering pumps, lighting, crushing plant, tower cranes and tools & equipment etc. Generators are often one of the first pieces of equipment to arrive on site and the last to leave.

The industrial sector is the largest non-construction sector and the second largest overall, with demand driven by sectors such as manufacturing, refining & processing, recycling & waste, and data centres. Infrastructure and events are also important sectors for generator hire, each accounting for a significant share of the market. Further demand comes from the public sector as well other sectors including extractive, agriculture, commercial, retail and landscaping.

By volume, generators with a rating of 21-350kVA hold the largest share and account for close to half of the market, with generators up to 20 kVA having the second largest share at around a third of the market. The former are typically used in construction and events as well as in small offices, industrial units or hospital departments.

In terms of distribution, the market continues to be dominated by large, national multi-branch organisations that have expanded through a combination of organic growth and acquisition. In addition, a wider range of outlets including builders’ merchants, DIY multiples and garden stores now offer a hire service. Generator hire is also offered by both plant hire and tool hire companies, with the former focusing on larger generators with a higher generator rating and the latter focusing on smaller generators, typically up to around 20-25 kVA. Specialists can offer generators with a wider range of power ratings, up to around 2,000 kVA.

Prospects for the generator hire market into the medium-term remain relatively optimistic with the market forecast to experience annual growth rates of 4-5% following a slightly smaller increase of 2% in 2018. Going forward, construction sectors likely to be the main drivers of growth in the next 3-4 years are housing, infrastructure and entertainment & leisure.

The effect of the ‘Brexit’ negotiations on levels of confidence and investment remains the biggest risk factor to business confidence, which, if it falls further will have a direct effect on project starts. Additionally, any slowdown in non-construction activities, such as manufacturing or events, will negatively impact market value.

The ‘Generator Hire Market Report - UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Decline forecast for UK wall cladding market volumes

The UK market for wall cladding is estimated to have increased by around 40% between 2013 and 2017 in volume terms. In 2017/18, growth has been driven by strong growth in new build and major refurbishment output in the broader residential, commercial office, schools and universities, hotels & leisure facilities and warehousing sectors. However, in the retail and healthcare sectors and in certain segments of the leisure market, output levels have either declined or remained static. The forecast for 2018 is also for little to no growth.

Other than the state of the general economy and issues emanating from the ‘Brexit’ negotiations, it is the Grenfell Tower fire in 2017 that could have the greatest impact on the cladding market going forward. A possible ban on the use of combustible materials on buildings over 18 metres tall may well depress demand for cladding systems comprising rigid polymer insulation while benefitting those classified as A1 under Euroclass definitions e.g. stone and glass wool, concrete and fibre cement.

While investigations into other high-rise residential towers, with cladding similar to that installed on Grenfell Tower, have revealed that around 500 are similarly vulnerable to rapid fire spread, relatively few buildings have so far had the old ACM cladding replaced. With a number of local authorities and housing associations experiencing severe financial problems, that is unlikely to change in the near future.

Although modest annual economic growth levels are currently forecast to 2020, the medium-term outlook will be dependent upon the path taken to exit the EU and the type of trade and legislative deals formulated. As a result, our view is that demand for cladding will decline. Over the period ending March 2019, at the very least, the uncertainty created by the Brexit situation is likely to create more volatility in the construction market at large, which in turn will lead to a lack of confidence among property investors and business owners.

Other issues include a weakening of Sterling against the Euro and the US dollar, endemic problems concerning skills shortages in key areas, and the challenges associated with the changes to fire regulations and changed specifications for cladding products.

Other factors that are expected to contribute towards slower growth include the cutting or ending of subsidies for certain products and development programmes. For example, the government’s Energy Company Obligation (ECO) expires next April. A key driver stimulating demand for external wall insulation, it is likely that, as with previous government energy efficiency schemes, once ECO is complete there could be a large drop in demand.

The ‘Wall Cladding Market Report - UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

UK plant hire market forecast to grow by 11% between 2018 and 2022

The UK plant hire market was estimated to be worth £3bn in 2017, with growth of around 1% forecast for 2018. The plant hire market is extremely diverse, with equipment ranging from dehumidifiers to excavators, and demand for each type of equipment varies, reflecting a combination of factors including the level of new work and RMI in sectors such as highways and distribution & warehousing. Demand in sectors such as pumping and climate control is also impacted by the prevalent weather conditions.

The market experienced modest growth up to 2013 but increased significantly in 2014 due to improvements in both housing and non-residential building markets, as well as manufacturing and other non-construction end-use sectors. Since then, the plant hire market has remained positive, though growth has been at a lower level. Infrastructure remains the key end-use sector, although different parts of the infrastructure sector have performed differently in recent years. Plant hire is a highly competitive market and as such hire rates have been affected, remaining relatively static in recent years.

Earth-moving equipment and lifting equipment together are estimated to account for over two thirds of the plant hire market by value. The earth moving equipment hire market is traditionally cyclical, with demand influenced by levels of the non-residential construction, housebuilding, construction associated industries such as quarrying, and some non-construction activities including waste management. Earth moving equipment is one of the first sectors to benefit from construction project starts, and prospects for the sector are positive with growth forecast to 2022. Hire demand the lifting sector has also remained relatively strong.

“The performance of the plant hire market is highly dependent on the performance of the overall construction market” said Jane Tarver of AMA Research “Individual hire company’s experiences tend to vary in terms of product sectors and regional & geographical trends, with companies in the South East, for example, seeing higher demand from the housebuilding sector than those in the North of England, Scotland, etc.”

Prospects for this sector remain positive, although in common with many sectors of the hire market, there are likely to be regional variations in performance. Overall, the market is forecast to experience modest growth in 2018, benefiting from the HS2 project which is due to be started in the Autumn. From 2018 onwards, construction sub-sectors forecast to increase output and provide opportunities for growth include infrastructure, entertainment & leisure, industrial and health as well as housebuilding.

The ‘Plant HireMarket Report – UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

4% growth in the UK market for street furniture

The total value of the street furniture market that is supplied to or influenced by local authorities and placed in public spaces or highways controlled by local authorities, is estimated to be worth around £328m in 2017, having grown by around 4% in the year. The local authority sector is thought to account for around 80% of the total market for street furniture. Forecasts indicate some growth over the 2018-2022 period, though growth rates are likely to be modest due to increasing pressures on budgets.

Street furniture can include a wide range of products, but the main product sectors can be considered to be; benches & seats, bins, bollards and barriers, planters, posts and rails, cycle stands and signage, including street name plates. Some street furniture products are more susceptible to the state of the economy than others - for example, damaged bollards and litter bins will need to be replaced, whereas plans for newbuild development and regeneration schemes using more expensive seating, planters and other optional etc. can be amended.

It is estimated that there are around 500-600 companies supplying street furniture, some of which manufacture branded products in the UK, while some manufacture for others without having a high profile with end-users. However, a substantial volume of products – usually at the lower end of the market - are imported into the UK from China and other countries.

Many companies specialise in only one or two products, or one type of material, such as stainless steel or timber. There is also a growing market for bespoke street furniture products, where the manufacturer is involved with the architect or specifier at an early stage of the project in order to produce a unique design for a particular location.

The future prospects for this market are for growth, though at a low level of around 1-2% per year between 2019 and 2022.

Keith Taylor, Director at AMA Research, said: “With grants from Central Government to Local Authorities falling, urban landscaping may be regarded as a lower priority for spending compared to social services and other costs and therefore likely to be under continual pressure for funding. In addition, maintenance budgets for street furniture may be limited because of high demand from other areas of highway maintenance expenditure, such as filling pot holes and converting street lighting to LEDs.”

However, demand for improving the urban environment is strong, with safety a key driver influencing decision-making, and increasing demand for certain types of street furniture, for example related to cycling.

Growth in the new housing market, in particular for larger-scale developments for affordable housing or private rental, should also benefit the overall street furniture market. There are schemes coming forward in many parts of the country to support the government’s aim to build more houses, including social housing. Despite the vote to leave the EU casting doubt on the future of the UK housing market, the overall outlook for residential construction remains positive, with modest growth over the next five years.

The ‘Street Furniture and Lighting Market Report - UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Housing deficit and skills shortages lead to sustained growth in the panelised modular building systems market

The UK market for panelised modular building systems has performed relatively strongly over the past 3 years or so, and is estimated to have grown by 26% between 2014 and 2017. The main product type is timber frame building systems, which is competing with light gauge steel, precast concrete and other engineered wood-based panels, including structural insulated panels (SIPS) and cross laminated timber (CLT) systems. Estimates for 2018 onwards are for 4% growth per year, until 2020. 

AMA Research’s definition of the market consists of pre-fabricated, 2-dimensional frames or panels in systems for constructing walls, partitions, roofs and floors, typically supplied to site as systems in flat-pack format.

Until 2016, the market for panelised modular building systems had seen steady demand resulting from improving conditions in the overall construction market, particularly in the residential sector, and the market has benefitted from an improved performance in some key end use sectors, including education, entertainment, leisure and offices, though more recently, the UK construction market has been less positive.

Several trends have been driving the market for panelised modular building systems. The drive towards sustainable development, coupled with the need to meet energy efficiency and carbon reduction targets, would seem to weigh in favour of offsite construction. Panelised modular buildings also generate less waste, typically have superior airtightness, and hence thermal insulation performance, than brick and block construction.

In terms of product mix, timber frame systems still constitute the largest sector of the panelised building systems market with a share estimated to be around 70%, largely due to a larger supply base and extensive usage in the Scottish housebuilding market as well as the self-build sector. By value, the timber frame market alone was worth over double the three other smaller sub-sectors combined, with light steel frame the largest of the three smaller sub-sectors.

The market has also benefitted from rapid development of timber engineering, which has resulted in many high-performance engineered timber products coming onto the market, including the likes of cross laminated timber panels and glue laminated timber products. Further growth in these product options may well further stimulate the overall panelised systems market.

Key end use sectors for panelised modular building systems are private and social housing, apartment blocks, schools, hotels, healthcare and care facilities and purpose-built student accommodation. Residential applications account for around 65–75% of the overall market, reflecting the predominance of timber frame in the building of both private and social housing.

“Over the next few years to 2022, there are several factors that will underpin a steady growth in this sector, probably over and above that forecast across the overall construction industry. These include an increasing use of Building Information Modelling, and an increasing number of public sector procurement frameworks” said Keith Taylor, Director of AMA Research.

“More importantly there is now a strong likelihood of an increase in the use of volumetric and other types of offsite construction method to help meet the chronic housing shortage and cope with the lack of traditional construction skills within the construction industry.”

The ‘Panelised Modular Building Systems Market Report – UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Transport Infrastructure Construction and RMI Market - 5 Key Facts

• As part of the Government's Roads Investment Strategy, Highways England will deliver 15 smart motorway projects providing 280 extra miles of capacity on England's roads.
• In 2017, airport construction output climbed by 6% to reach an estimated £900m.
• Sea ports and harbours construction was almost £200m lower in 2017 than in 2015.
• In 2016-17, Network Rail spent 3.5% more than in 2015-16 on RMI.
• In 2017, infrastructure accounted for 30% of non-housing contractors new work output.

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

Online sales of plumbing products in the UK to increase by 43% by 2022

The internet is the fastest growing channel of the overall UK plumbing and heating products market and has experienced strong growth levels in the last 5-7 years. In 2017 alone, the UK internet plumbing market is estimated to have increased by 17% in value terms. However, forecasts indicate that the pace of growth is gradually slowing down over the course of the review period. This change of pace can be partly attributed to market saturation of internet users and fewer new suppliers entering the market.

Despite the current uncertain economic climate with the UK’s departure from the EU, the UK internet plumbing and heating distribution market has continued to grow. With strong demand driven by lower prices and added convenience, internet retailers have been able to capitalise on changing consumer cross-channel shopping habits with a notable shift towards online purchases. Own-label products sold on the internet are performing particularly well.

Shower controls and bathroom taps represent the largest sector of the internet plumbing market with a share of around 23%, followed by bathroom furniture and accessories, baths and sanitaryware, heating products such as boilers and standard radiators and shower enclosures, screens, trays and wetroom products. Towel warmers and decorative radiators account for a much smaller share of the total market.

Key factors that have influenced growth in this market over the past few years include the growing number of UK households with internet access – estimates indicate that around 90% of households have access in 2017 – and significant growth in the level of online e-retail sales over the past 7 years. The usage of mobile internet technology has also increased substantially, with a growing number of purchases being made through mobile handsets or tablets.

The majority of plumbing products sold on the internet are through specialist online plumbing retailers, of which around 65% are pure-play retailers that do not have a showroom and only trade online. Non-specialists account for around a quarter of the total internet plumbing market and include merchant/trade outlets, DIY multiples, marketplace websites such as Amazon and eBay, and other general retailers. Non-specialists also include plumbing manufacturers that may make specific products available for consumers to buy online.

“Factors such as improved delivery/collection options, the growing range of products available online, along with technological improvements should drive Internet sales of plumbing products.” said Hayley Thornley, Market Research Manager at AMA Research.

“By 2022, it is estimated that the UK internet plumbing market will have increased by around 43% compared to 2018. However, it is likely that the pace of growth will start to slow as this market matures.”

There is still scope for growth – there are still around 2.8 million UK households which do not have an internet connection, and the use of mobile internet technology is also likely to grow significantly. Although in the medium term, the number of UK households with internet access is likely to reach saturation, with the majority also likely to have a faster broadband connection, the trade/installer channel is less mature in terms of online purchasing and it is estimated that, despite growth slowing down, the market will continue to grow by 10-15% per year for the remainder of the forecast period.  

The ‘Internet Plumbing and Heating Market Report – UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Tough market conditions in the UK door & window fabricators market

The UK door and window fabricators market put in a strong performance between 2013 and 2016 but appears to have flattened out in 2017. The key defining factors that continue to pervade the market include; market maturity, fragmentation, competition, cost-management, building legislation, ‘green’ building, tough market conditions and diversification. Competition between suppliers remains intensive particularly given the current challenging economic environment. Growth prospects therefore remain modest with only marginal growth at best forecast in the short term.

The UK door and window fabricators market is driven by many factors, reflecting exposure to a number of markets, at times moving in different directions. These include private home improvement, public sector housing renovation, new housebuilding, commercial new build and refurbishment. Many door and window fabricators have responded to consumer market demand by broadening their range with alternative materials, styles and technical improvements to capture preferences which have included greater thermal and security features as well as triple glazing and increased colour options.

The commercial glazing market has experienced steady demand in recent years with office construction in particularly a key driver of growth. However, continued over-capacity in the industry, especially in the PVCu sector, is resulting in intense competition for business mainly amongst the larger retail suppliers. The market for residential windows is largely driven by demand in the replacement sector. Value growth 2015-17 for residential windows was good as manufacturer, distributor and materials price increases were applied, however from H2 2017 both volume and value growth has slowed due to lower levels of demand.

The residential entrance doors sector has benefitted from sustained demand from the replacement sector, but increased competition has led to some squeezing of value growth. Following significant growth in 2016, the market for curtain walling has flattened in 2017 and H1 18 as demand from the commercial offices, in particular higher value glazed facades, has slowed.

The supply structure in the overall door and window market remains very fragmented, comprising a mix of vertically integrated retail glazing companies, PVCu trade fabricators and fabricator/installers, aluminium systems fabricator/installers, bespoke glazing contractors, composite door manufacturers, commercial glazing specialists, roof light manufacturers, steel window manufacturers and major joinery companies, as well as others.

There has been some corporate activity in the sector in recent years, along with major changes among the larger firms. In particular, the aluminium sector has experienced a period of consolidation.

Jane Tarver of AMA Research said: “In 2018, the prospects for this industry in the short-medium term remain challenging with little or no growth forecast 2018-19 as the economy remains volatile with some uncertainty over short term prospects. Longer term the outlook is mildly optimistic with lower growth forecast than in previous years but for a return to average growth of around 2-3% towards the end of the forecast period.”

Residential new work is forecast to provide opportunities within the window and door market but with RMI and residential replacement programmes likely to be somewhat depressed by lower consumer confidence levels and spending. The non-residential sector is facing additional challenges and is likely to see subdued growth in the commercial glazing sector, and decline in other sectors such as ground floor treatments. Medium term prospects for the commercial windows sector will be determined by the return of confidence in the private commercial construction sectors, particularly for offices.

Ultimately, the industry is mature and, in the longer term, heavily dependent on replacement demand in the residential sector, a market which into the medium-term will be influenced by aspects such as security, aesthetics, improved thermal performance/energy efficiency and product failure, which will remain the key reasons for replacing windows and doors.

The ‘Door and Window Fabricators Market Report - UK 2018-2022’ report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

High performance products drive value growth in the UK building boards market

The market for building boards in the UK was estimated to be worth just over £1.1bn at manufacturers selling prices in 2017. Products included in AMA’s definition are; rigid and semi-ridged polymer boards, gypsum plasterboards and specialist building boards. The building boards market showed substantial growth between 2014 and 2016, with average annual rates of 6%, however, 2017/18 has seen some slowing of growth in construction activity leading to more modest growth in demand for building boards.

Demand for rigid polymer insulation, drylining and specialist boards is largely driven by developments in new housing, commercial newbuild and, to a lesser extent, domestic extensions, loft conversions and non-domestic refurbishment. In 2017, demand was impacted by some slowing down in housebuilding growth rates and non-residential new work, particularly in the offices sector, in large part due to the uncertainty surrounding the Brexit process that has affected the timing of business investment decisions.

As a result, volume sales of building boards have been constrained, contributing towards a slowdown in overall sales growth in 2017. However, this relatively low volume growth has been partly offset by a rise in average prices due to a shift towards higher specification drylining, thermal insulation and fire protection boards. This, in turn, is being driven by ever-tighter building regulation requirements and the need for products offering higher levels of performance with regards to fire safety and building insulation - both thermal and acoustic.

Factors driving market growth include the trend towards specifying more value-added, higher performance, products in preference to standard alternatives and the increasing use of newer methods of accelerated construction, including timber frame building and offsite modular construction, which favour the use of higher performance insulation, lining or sheathing boards.

In terms of end use applications, it is estimated that nearly half of all boards are used as permanent partitions in commercial and public access buildings, and internal walls in dwellings, with nearly a third used for the internal faces of outside walls, mostly on new dwellings. There is also a significant volume of boards supplied direct to manufacturers of offsite building systems. These include suppliers of volumetric units and closed panel timber frame and steel frame systems whereby drylining and sheathing boards are fixed at the point of manufacture.

Specialist distributors account for the largest distribution share of the building boards market, and primarily supply products direct to the trade for commercial and volume housebuilding schemes, although they also supply smaller builders’ merchants. Builders’ merchants account for the next largest market share and mainly depend on sales to the trade operating within the RMI and small building sectors. The direct sales sector also has a notable share, mainly comprising of offsite manufacturers they predominantly supply timber and light steel building systems and volumetric modular buildings.

Forecasts are for steady growth of around 3% per annum through to 2022, reflecting modest growth prospects in the construction industry. This assumption is based on indications that demand for value-added boards and accelerated construction methods will continue to increase, but that overall market growth will remain modest. However, impacts from political or economic events, particularly those relating to the UK’s departure from the EU, mean that the prospects for construction output remain clouded by uncertainty.

The Building Boards Market Report - UK 2018-2022’ 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 bricks, blocks and precast concrete products at highest level since 2007

The market for bricks, blocks and precast concrete products was worth over £2.1bn in 2017 and has grown by around 10% in value terms since 2015, and by almost 50% since 2012. This is the highest value achieved since just prior to the recession in 2007, and market value is forecast to exceed this in 2018. The products covered in this market are bricks, blocks, precast concrete and natural and cast stone products, with precast concrete products representing the single largest product sector.

“Growth in this market has been underpinned by recovery and rapid recent growth in the housebuilding sector in particular, as well as higher levels of output from key non-residential sectors including infrastructure, commercial offices, education and entertainment & leisure. Non-residential output remains somewhat volatile, particularly since the EU vote, which introduced a level of uncertainty affecting both business confidence and levels of investment” commented Keith Taylor, Director at AMA Research.

There are negative factors currently impacting growth in the market. Lower levels of consumer confidence and downward pressure on household incomes have impacted private RMI activity and are likely to constrain spending going forward with little signs of the squeeze on household disposable incomes being relieved. Additionally, both the bricks and blocks sectors have experienced recent supply issues as suppliers have struggled to cope with the significant rise in demand.

Demand for bricks has accelerated since the housebuilding sector returned to growth in 2014 and entered a period of sustained recovery after several years of volatility. In March and May 2017 brick sales in the UK rose to their highest levels for a decade and builders’ merchants and other distributors were reported to be replenishing stock levels after an industry-wide destocking in early 2016.

The precast concrete blocks market is also performing well, and in 2017 sales reached their highest levels in a decade in value terms following 14% growth over the period 2015-2017. One of the most important drivers of this growth has been the significant and sustained rise in housebuilding activity, with the residential sector a heavy user of a wide range of precast concrete products, including blocks. Demand is also underpinned by positive trends in non-residential construction where the main drivers for growth are the infrastructure, education and commercial office sectors.

Precast concrete structural products comprise of precast flooring, precast panels, panelised building systems and miscellaneous precast products such as structural frames and columns. Demand for precast concrete structural products has continued to rise, with the market worth 25% more in 2017 than in 2013. Output is strongly linked to the performance of sectors such as infrastructure, education, commercial offices, industrial, and entertainment & leisure – all strong users of precast concrete structural products.

Going forward, the individual product categories covered in the report are all expected to continue growing. However, the annual rates of growth are likely to be lower than those experienced 2013-16, at around 2-3%, but expected to rise more strongly 2021-22, once the Brexit-related uncertainties have been resolved and the market begins to regain some stability. Future demand will be underpinned by sustained growth in residential output, although the rate of growth, in terms of both newbuild and RMI, is expected be slower than that experienced 2013-16.

The ‘Bricks, Blocks and Precast Concrete Products Market Report – UK 2018-2022’ 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.

Building Insulation Products Market - 5 Key Facts

• Mineral wool products account for 30% of the insulation products market by value. 
• It is estimated that in 2016 the domestic new build sector accounted for just under a third of the market.
• Glass wool rolls and quilts accounted for nearly 60% of the UK retrofit loft market for insulation by volume 2016.
• PIR/PUR boards are the most widely used insulation product for flat roofing, accounting for just over 60% of area installed.
• Builders' merchants and DIY multiples account for some 18-20% of the market.

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

Commercial and Industrial Doors and Shutters Market - 5 Key Facts

• An upward trend in new build construction output for the private commercial and industrial sectors has resulted in 18% value growth for the commercial and industrial doors and shutters market between 2012 and 2017.
• Personnel doors have benefited from the increasing demand for automated pedestrian access doors and have seen market share increase to 59% in 2017.
• Growth rates for the industrial doors sector have been more subdued than for personnel doors in recent years, but a steady level of servicing and maintenance expenditure has helped smooth out demand levels.
• The supply structure is highly fragmented with a large number of small companies and few large key players. No single supplier dominates due to the wide and varied product mix.
• Positive but modest growth, 1-2% annual gain, is currently forecast to 2021 reflecting the slowing trend for commercial and industrial sector new orders as well as the uncertainties surrounding the Brexit process.

These facts have been extracted from AMA Research's 'Commercial and Industrial Doors and Shutters Market Report - UK 2017-2021 Analysis' available for purchase now. 

Distribution market for garden products in the UK worth around £5bn

The UK domestic garden products distribution market was worth an estimated £4.9bn in 2017 at retail selling prices (RSP), representing an increase of 3% compared to the previous year. Both the weather and the state of the economy influence growth rates within the garden products distribution market. A strong interest in home improvement, which extends to the garden, has also stimulated growth in this sector.

Key product sectors in the market are horticulture, garden sundries and garden buildings, which all account for a share of 20% or more by value, and garden equipment, garden leisure and garden chemicals, with slightly lower shares. Each sub-sector is subject to different influences and trends, for example, investment in ‘higher ticket’ items such as paving, walling and conservatories may be deferred if consumer confidence drops, and fencing sales may be boosted by wet and windy weather.

Whilst some parts of the garden products market may be considered comparatively mature, such as barbecues, conservatories and garden furniture, the desire to reflect more premium materials and styles is encouraging trade up sales. Developing areas within the market include garden rooms and garden decoration. Artificial grass has also risen in popularity, given the minimal maintenance required.

A notable trend has been the desire to maximise recreational use of the garden including for socialising and dining ‘al fresco’. This has helped to sustain growth in the sector as the garden is perceived as an additional room in the home. Other practical uses include use of the garden for home working and storage resulting in an increase in sales of garden buildings and clever use of space. Environmental aspects have become more prevalent, with greater concern over the provenance of materials, such as timber and ingredients used in garden control products and fertilisers.

Although demand for housing remains high in the UK, the rates of housebuilding and home moving activity have been slow in recent years, impacting negatively on the garden products market. The average size of the UK garden is also diminishing and this, coupled with an increase in apartments, has given rise to products which suit a smaller space, such as ‘vertical gardens’ and greater use of pots and containers which can be re-located from home to home and suit balconies.

“The DIY sector and garden centres account for the majority of sales of garden products, reflecting their diverse product range, especially in garden equipment and leisure products, but these are facing increasing competition from other channels - in particular online specialists, but also discount chains and grocery stores” said Fiona Watts, Editor at AMA Research. “Although most larger DIY outlets have embraced the internet as a distribution channel, there is significant scope for existing retailers to develop internet sales, particularly in the garden centre sector.”

The UK is undergoing a period of political and economic uncertainty, as negotiations for Brexit continue. This has created a number of issues, such as potential seasonal labour shortages within the horticultural sector and the rising costs of imported garden products and components. Price competition will, however, constrain market value to some degree, despite any price increases, due to the rising cost of imports.

Our market forecasts assume moderate growth within the garden products distribution sector, from 2018 – 2022, underpinned by sustained demand for housing and interest in home improvement. The market is forecast to grow by around 2% per year until the end of the forecast period, assuming UK weather patterns over this period are not severe.

The ‘Garden Products Distribution Market Report – UK 2018-2022’ 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.

Powered Access Equipment Hire Market - 5 Key Facts

• The Powered Access Equipment Hire market is expected to grow by 6% between 2017 and 2020. 
• The hire market is a particularly important part of the supply chain for MEWPs in the UK, representing around 80% of manufacturers’ sales.
• Scissor lifts and boom lifts dominate hire fleets in 2016, accounting for a share of 47% and 29% respectively in terms of the volume of equipment hired.
• Boom lifts account for nearly half (48%) the total value of the UK powered access hire market.
• It is estimated that 70-75% of hire market revenue is accounted for by specialist companies.

These facts have been extracted from AMA Research's 'Powered Access Equipment Hire Market Report - UK 2017-2021 Analysis' available for purchase now. 

The UK pipes and fittings market has grown by 21% since 2012

The UK pipes and fittings market has achieved good levels of growth over the last five years, and although growth has slowed more recently, the market has achieved overall value growth of 21% since 2012. Key factors influencing market growth in recent years include increasing levels of demand from key end-use sectors, principally in new housebuilding and non-domestic construction, and rises in raw material prices such as copper and plastic over the last two years. The plumbing pipe systems sector accounts for over half of the pipes and fittings market, as defined by AMA Research, with the rainwater, soil and waste products sector accounting for the remainder.

Flexible plastic plumbing pipe systems are the dominant material used in hot and cold potable water installations, particularly for new build. Factors driving the growth of the plastic sector include technological developments, improved reliability, installation efficiency, the growth of underfloor heating and the price advantage over metal products. In addition, in the residential sector, the faster rate of growth of new build, compared with RMI, has boosted the market share of plastic, as plastic tends to dominate the new build sector.

Hayley Thornley, Research Manager at AMA Research, commented:

“In particular, plastic push-fit and press-fit fittings have experienced growth due to the considerable savings made on installation time. In addition, with increasing health and safety legislation, and the lack of ‘traditional’ skills of soldering and welding pipework, there has been a continuing shift in the market towards flame free jointing. Use of multi-layer barrier pipes, including a metal layer to protect against degradation, has also grown significantly in the water supply sector.”

Although the market for copper pipe has grown relatively more slowly in recent years, it is still used across the majority of heating installations, and copper pipe remains a popular choice among plumbers, particularly in exposed areas, where its ‘traditional’ aesthetic appeal remains strong, and copper shows signs of starting to stabilise its market share

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.

The focus on reducing water consumption has increased in recent years and rainwater harvesting has become an important way of achieving this, especially in densely populated areas, such as London and the South East, where water shortages are more likely.

The outlook for the UK pipes and fittings market in 2018 is moderately positive, supported by continued growth in construction levels and RMI expenditure, though the rate of growth is likely to be slower than in the period 2012-2016. However, residential RMI – which the market is highly reliant on - is likely to experience low annual growth rates reflecting weaker consumer confidence, rising inflation, a reduction in the DIY skills base and fewer high value RMI projects such as bathrooms, kitchens and extensions. A flat house moving market is also having a negative impact on RMI activity at present.

The ‘Pipes and Fittings Market Report – UK 2018-2022’ 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.