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. 

Contract Floorcoverings Market - 5 Key Facts

• Contract floorcoverings sales have grown steadily by 12% over the last 4 years.
• The contract sector currently accounts for around 50% of the total floorcoverings market.
• Sales of contract vinyl floorcoverings are estimated to have increased by 7% between 2015 and 2017.
• Modular flooring, such as carpet tiles and LVT products, are becoming an increasingly prominent feature of the market.
• Commercial buildings, including offices, are the largest end use sector, accounting for 24% of the market.

These facts have been extracted from AMA Research's 'Contract Floorcoverings 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.

Modest growth forecasts for passive fire protection products in the UK

The UK market for passive fire protection products is estimated to be worth around £650m at manufacturers selling prices - excluding installation. The market has grown by around 2% in 2017, with forecasts for 2018 at a similar level. This follows good growth between 2013 and 2015, which represented a period of recovery for the overall construction industry, especially in the education, offices, retail and leisure sectors. The forecasts indicate a more subdued performance, with lower levels of construction activity anticipated as investor confidence has fallen, in the lead up to Brexit.

In terms of structure, the passive fire protection market is comprised of fire resistant doors, fittings and intumescent seals, cables, partitions and suspended ceilings, glass, structural protection and ductwork and damper systems. Fire resistant doors, fitting and seals account for the largest shares of the market, with around 60% of the total value.

Recent product innovations in the sector include; intumescent coatings with faster drying times, electronic fire door closers that are linked to fire alarm systems, and more flexible fire stopping pipe collars that allow a greater range of applications compared to conventional collars.

Key drivers, such as the regulatory aspects of the fire protection sector, are expected to remain unchanged in the short term, since the Hackitt Review into the Grenfell Tower disaster only covered high-rise buildings and provided no recommendations for immediate change in the technical aspects of Building Regulations. However, modifications are expected in the medium to longer term, and AMA Research also anticipates that there will be other implications for the wider industry, as manufacturers and specifiers alike seek to provide safer environments, possibly leading to positive growth by value.

Forecasts for the passive fire protection market in the medium-term are for modest growth in 2018 and 2019, with slightly higher growth levels by 2020. While the longer-term impact of Brexit remains unclear, investors are likely to remain cautious, and this has resulted in recent forecasts being less optimistic for overall construction sector output growth.

In the short term, activity in the non-domestic construction sector is likely to slow down, with more subdued growth of around 1-2% 2018-19. The overall market for passive fire protection products such as cable, glass, ceilings, partitions and doors, is dependent on the performance of key construction sectors, such as offices, industrial, entertainment, health and education.

In terms of output, new office construction is forecast to be less positive over 2018-22, following strong output growth of 70% between 2013 and 2017, something which may impact on demand in sectors such as structural fire protection, suspended ceilings and partitions.

However, the hotel and entertainment sector has shown good growth in recent years and is attracting substantial investment, especially in the budget sector. The university sector has also been positive in terms of new orders in 2018, with future output having the potential to be boosted by demand for new accommodation and facilities for additional students following the removal of the cap on student numbers.

Uncertainty regarding Brexit is expected to have less of an impact on residential construction, where the outlook remains modestly positive, driven in particular by the ongoing imbalance between demand and supply for new housing. Increasing numbers of new flats and apartments built will be the primary source of demand for passive protection in the residential sector.

Other factors influencing the market include the performance of Sterling against both the US dollar and the Euro. Since the 2016 Referendum, Sterling’s fall in value and continued relative weakness has meant that materials price inflation has become a key influence in the UK construction market. If this situation continues, it will prompt some value growth in the passive fire protection sector, since a wide range of materials and products is imported.

The 'Passive Fire Protection 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.

4% value growth in the brassware and taps market despite intense pricing pressures

The brassware and taps market in the UK, which is worth in excess of £200m, is estimated to have grown by 4% in 2017. Following a period of slow growth, the market improved between 2014-2016, driven by more favourable conditions in the new housebuilding sector and demand from the private commercial sector. A more modest performance is anticipated in 2018 and 2019, with consumer and business confidence expected to decline, impacting on demand for brassware and taps. 

Basin brassware represents largest sector of the market with around 40% share, closely followed by kitchen taps with a similar share, while remaining 20% was accounted for by bath brassware.

The main distribution channel for brassware and taps continues to be builders and plumbers’ merchants with the home improvement multiples also holding a substantial share. Other retail channels include kitchen and bathroom specialists, grocery and furniture multiples, direct supply and department stores. Online retailers are also becoming more important as consumers increasingly use the internet to source the best deals.

Along with durability, key factors such as quality and design will remain important in the UK brassware and taps market. Aesthetics will continue to exert a notable influence on consumer choice particularly with respect to total kitchen or bathroom co-ordination, but the issue of design has also gained importance in commercial applications such as hospitals and schools, with a shift away from the traditional institutionalised appearance towards more domestic orientated styling.

With an ageing UK population, there will continue to be a significant demand for inclusive brassware and taps that combine style with ease of use. For example, lever-controlled products, thermostatic mechanisms, and those designed with digital/electronic controls. Water saving will also continue to be an important consideration and growth is likely in product areas including aerated spray taps, low water content taps, and brassware with an in-built eco button etc. 

Going forward, there are several key factors affecting the market prospects for the brassware and taps market in the UK. Housebuilding volumes have achieved good growth in recent years and this is expected to remain steady, albeit at a lower level compared to recent years, while RMI activity may be more constrained. However, refurbishment activity is expected to improve towards the end of the forecast period.

In the commercial sector, private work is typically a key driver of growth, but also relies upon business confidence, which is again expected to be stronger towards the end of the forecast period following the EU withdrawal. However, public sector spending cuts will continue to be an issue.

Exchange rates and the cost of imported goods have direct implications for brassware and taps produced or sourced from abroad. The current weakness of sterling makes imports into the UK more expensive, along with increasing transportation costs.

“Moderate to steady growth of 3-4% per annum is currently forecast from 2020 to 2022” said Hayley Thornley, Market Research Manager at AMA Research. “The brassware and taps market will continue to fragment and the number of own-label products, is likely to increase. Pricing pressures are likely to remain intense due to the high level of imported product, weak value of sterling and the growing number of competitive distribution channels such as the internet.”

The ‘Bathroom & Kitchen Brassware and Taps Market 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.

UK interior refurbishment & fit-out sector increased by 6% in 2017

The interior fit-out and refurbishment market -as defined in AMA Research’s latest report on the sector - has increased by 34% since 2013, in value terms, and rose by 6% within the last year alone. However, annual growth levels are starting to slow, and more constrained growth is forecast, for reasons including the uncertain state of the UK economy, a deferral of major investment decisions, cuts to public sector budgets and a continued scaling back of large construction programmes.

Fit out and interior refurbishment output has increased steadily in recent years, especially within sectors such as commercial offices, education and leisure & entertainment. For a variety of reasons, many private sector clients have chosen to commission interior refurbishment works rather than costlier and potentially more disruptive new build projects. Ongoing shortages of Grade A office space in many parts of the UK have also contributed towards much of the recent market growth.

In the public sector, reductions in capital spending programmes and the trend towards smaller but more suitable estate portfolios has led to increased interest in refurbishment in industries such as education and healthcare. Organisations such as NHS trusts and universities have tended to reassess and refresh their existing assets, rather than taking on more expensive new build projects.

“In many end use sectors, demand for refurbishment services is also being led by changes in the way industries operate, such as a much greater emphasis upon technology-based learning in schools and universities, as well as rising expectations amongst students, which have led to significant improvements in many higher education institution facilities” said Fiona Watts of AMA Research. “Annual levels of growth of around 2-3% are forecast for the next few years.”

Commercial offices constitute the largest market for interior refurbishment and fit-out services, accounting for 27% of value in 2017. The shortage of Grade A office space has contributed to growth in retrofit refurbishment and remodelling of existing space, whilst considerations such as changing patterns of working and energy or sustainability concerns are also affecting ways in which offices are being designed.

Opportunities in the retail sector are expected to decline over the coming years. Store conversions and interior refurbishments remain important to many of the UK’s leading retailers, however many are now rationalising their estates in the face of greater competition from online shopping channels.

Others with a high-street presence such as pubs, restaurants and betting shops also face similar challenges, although overall the leisure and entertainment sector is forecast to grow, driven by clients such as budget hotel and gym/fitness club operators.

Education represents the second largest sector for interior refurbishment in the UK. In the higher education sector, there are significant opportunities for fit-out and refurbishment work going forward, and investment in areas such as student accommodation and learning and recreational facilities continues to grow, as establishments bid to stand out from their rivals to attract students. At the same time, the healthcare sector share is expected to remain unchanged for the next few years, although looking further ahead, the predicted expansion of the care homes sector may assume increasing significance within the healthcare market.

The ‘Interior Refurbishment and Fit-Out 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.

UK underfloor heating market forecast to grow by 7% in 2018

The underfloor heating (UFH) market has performed well over the last few years, driven by good levels of commercial and domestic construction and RMI, and now accounts for almost 7% of the total UK heating systems sector. More recent growth can also be attributed to rising energy prices and concerns over fuel bills, and the fact that UFH is now seen as a more affordable mainstream heating option. In 2017, the market grew by 6%, with similar growth forecast for 2018.

The domestic sector accounts for almost two-thirds of the overall UFH market value, and includes new build activity by housebuilders, the self-build market and RMI / DIY retrofit projects in residential homes. Non-domestic applications account for the remainder. Although large-scale health and education projects represent the most significant non-domestic end-user markets, opportunities are arising in the care home, industrial, warehousing, leisure and entertainment, commercial office and retail sectors.

Water-based underfloor heating makes up the largest share by value, compared to electric systems. The supply structure is dominated by direct supply, with some manufacturers and other specialists offering a ‘supply and fit’ service. Elsewhere, UFH systems increasingly form a core component of the product ranges of companies such as tile manufacturers and kitchen and bathroom specialists. DIY multiples and merchants also continue to play a major role. Much of the recent growth in the market has come from online retailers, the number of which continues to expand.

Factors that influence demand for underfloor heating include housebuilding activity, which is expected to continue at a steady pace, as demand for new and affordable housing is likely to remain a major political issue. The conversion of commercial office spaces into multi-residential flats and apartments, particularly in areas of high population density, should create additional opportunities for UFH, as they are likely to be smaller in size and high-spec.

Ease of installation continues to be an important consideration within construction, given the ongoing skills shortages and a need to reduce both build time and cost. This is expected to contribute towards further growth in modular build/off-site construction, which should benefit the UFH market. Retrofit activity in both the domestic and commercial sectors are also expected to see steady growth.

In addition, the commitment towards further development of the renewable energy sector and sustainable homes should continue, irrespective of whether the Government meets its 2020 targets, and this is likely to favour adoption of UFH.  Growth will also be driven by product development focused on flexibility and maximising individual control of systems, which is likely to increase the efficiency of UFH systems further, and the increasing uptake of intelligent technology.

 “Although the market value has increased by almost 25% since 2013, there remains significant scope for growth in this sector” said Keith Taylor, Director of AMA Research.

“The level of installations remains low compared with European countries such as Germany and the Nordic nations. Penetration is forecast to continue to grow with demand driven by concerns over volatile energy bills, ongoing running costs of systems and maximising comfort, and the fact that underfloor heating is becoming a more mainstream product.”

The ‘Underfloor Heating 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.