Roofing Market - 5 Key Facts

• The roof coverings market is estimated to be worth over £1.3bn at manufacturers' selling prices (MSP).
• Overall, the roofing market increased by 7% in 2016, though growth in 2017 has been lower.
• The largest product sectors are metal roofing systems and concrete roof tiles, which accounted for respectively 29% and 21% of the total market by value in 2016.
• In terms of distribution, the leading channel is roofing merchants and specialist distributors with a share of 50-55%, though this varies by product type.
• Forecasts for the UK roofing market are modest with growth of just 2% expected over the next 4 years.

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

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

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

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

The UK roofing market sees growth of 7% in 2016

The overall UK roofing market has grown by 7% in value terms in 2016, according to a new report by AMA Research. Since 2012, demand for roof coverings has been supported by the growth of housebuilding and domestic RMI, along with increased output in a number of commercial and industrial new build & refurbishment markets. However, tendering for commercial and housebuilding roofing projects has remained highly competitive, and year on year performance has varied.

Overall market trends are largely determined by levels of demand for concrete roof tiles and metal panel systems, which together accounted for around half of total sales in 2016. While concrete tiles are predominantly used on commercial buildings, the main source of increasing demand has been volume housebuilding. Demand for roof tiles and slates is relatively lower within the commercial and industrial newbuild & major re-roofing and RMI sectors, with flat roofing and metal roofing systems being used to an increasing extent.

Distribution of roofing materials varies significantly between different product sectors. Builders’ merchants and roofing merchants are the key routes to market for suppliers of concrete and clay tiles, while independent importers and distribution networks are the main channels in the roofing slates sector, as the majority of products are imported. With flat roofing systems mainly used on commercial buildings, the main channels are roofing merchants and direct sales, while direct supply from the manufacturer is the main route to market for profiled metal roofing projects, which often require bespoke design, structures and close collaborations with manufacturers.

Several factors are threatening the construction market, and are likely to have a knock-on effect for the roofing market. Uncertainty following Brexit and the general election result appears to be undermining confidence within the UK construction industry at present, with Q2 2017 state of trade data from the Construction Products Association and ONS new orders and output statistics, suggesting major investors are starting to hold off from funding major commercial and industrial construction projects. Since 2015, an acceleration in the shortage of skilled roofers, which is likely to be exacerbated by the Brexit issue and a potential reduction of EU workers, has resulted in a demand for higher wages and contributed towards an overall reduction in margins.

However, there are also a number of positive factors supporting the UK’s roofing market. A significant share of roofing materials goes into RMI and replacement projects, which support the market even during difficult economic times. The markets for EPDM and other types of single ply membranes (SPMs) have grown strongly over the last half dozen years, also taking some share from bitumen sheets within the commercial sector.

Keith Taylor, Director at AMA research, said: “The housebuilding market remains very positive in the sense that demand levels are high, and the Government has indicated that it wants to support the affordable sector with various schemes, something which should have a positive impact on the roofing sector. In addition, a large part of the roofing sector is driven by repair and maintenance and as such the market value has good support, even if the wider construction market turns more negative.”

Bearing these factors in mind, we forecast a stabilisation in demand for roofing products through to 2021, with more positive market growth in the latter part of the forecast period, reflecting some improvement in confidence and the economy as the impact of the EU exit settles down. As such the overall market is forecast grow by a very modest 4% between 2016 and 2021.

The ‘Roofing Market Report UK – 2017-2021 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets.  The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Steady growth expected in the UK Flat Roofing market

Since 2012, the market for flat roofing has shown steady underlying growth to around 31 million m² in 2016, in terms of the coverage of waterproofing membranes fitted. Key demand drivers include increased levels of new build and re-roofing activity in key end-use markets notably; commercial offices, schools, distribution centres, infrastructure & utilities buildings, social housing re-roofing and private housing extensions & garages. Maintenance and repair work to private housing roofs is also an important area of activity while demand for green roofs has also begun to show steady growth.

In 2015 there was a slight fall in the overall market, partly due to a drop in the supply of bituminous membranes, as a result of European bitumen refining capacity declining sharply in recent years. Since then there has been some improvement in demand although RBMs continue to lose share to single ply membranes in the commercial / specification market and EPDM membranes and GRP in the domestic extensions and garage roofing sectors.

The waterproofing sector also accounts for the largest share of the market in terms of value, followed by insulation products and vapour control layers. While the UK market for bituminous waterproofing systems is concentrated among relatively few suppliers, the supply of single ply membranes and liquid waterproofing is more fragmented.

While there is significant production of bitumen membranes and felts in the UK, import levels are significant. In the single ply and liquid waterproofing sectors, imports account for the majority of supply. Distribution is largely split between the specialist roofing merchants and general builders’ merchants, typically supplying smaller contractors and general builders, and also direct sales to contractors working on large projects.

Growth in demand for single ply has largely been due to a surge in industrial and infrastructure buildings with large-spanning roofs developed in recent years, particularly in retail distribution centres. Other factors behind growth include inherent properties of single ply relative to RBMs –including the wider range of colours, speed of installation and lower costs of insurance for roofing contractors. In the private housing sector, escalating housing costs have driven up demand for garage conversions and extensions, which in turn has underpinned demand for both EPDM membranes and GRP and other liquid roofing systems.

“Over the medium term to 2021, it forecast that demand for flat roofing will continue to grow at a steady pace, key drivers being the continuing growth in demand for online retail distribution centres; pressures on housing supply driving up the need for increasing flats construction; increasing office construction output and a likely growth in demand for green roofs” said Keith Taylor, Director of AMA Research. “By the end of the forecast period the market is estimated to be worth some £530m at manufacturers selling prices, thereby showing modest growth over the next 5 years.“

In urban areas, factors likely to drive up demand include; increasing concerns about rainfall run-off, pollution & air quality and lack of private outdoor space. In rural areas, to date the main driver has been planning requirements demanding that buildings merge in with surrounding areas. Budget reductions in public sector capital programmes will impact on the market, with schools and the healthcare sub-sectors mainly affected. However, it may be that the shift to private sector funding in schools and universities will support these sub-sectors, as Academy schools and university development programmes with student accommodation investment continues to rise.

Factors that may have a negative impact on the market include the worsening skills shortages in the roofing trades and other construction trades, and the current uncertainty surrounding Brexit and the outcome of negotiations over the next couple of years.

The ‘Flat Roofing Market Report – UK 2017-2021 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience in the construction and home improvement markets.  The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.