Wall Cladding - 5 Key Facts

Did you know...

1) The overall value of the market was estimated at £1.8bn in 2013 covering products and materials.

2) The share of the market taken by curtain walling systems and structural glazing is 24% by value, but by volume it is significantly lower.

3) The end use mix for composite wall panels is led by commercial and public sector newbuild, which is estimated to account for 42% of the sector.

4) 2013 showed a sharp drop in activity levels for external wall insulation systems, to around 7.5m m2 reflecting the demise of the CERT energy programme in December 2012.

5)  Natural stone is used as traditional masonry and as facades on backing panels, with a market size estimated at 500k-700k m2.

These facts have been extracted from AMA Research's report 'Wall Cladding Market Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Renewables drive strong growth in the Utilities Construction Market

Construction output for utilities, as with other infrastructure sectors, was fairly robust in 2014 with 9% growth, representing a significant increase on the previous year. The market has been strengthened by ongoing asset renewal programmes and by the very strong performance in the electricity sector. Current prospects for the utilities sector remain optimistic with output set to increase to around £11.9bn by 2019.

Construction output in the utilities sector in Great Britain has experienced overall growth of 64% since 2008, and has outperformed the wider infrastructure market over the last 2-3 years. Positive influences on this sector include the government’s commitment to renewable energy and the country’s energy security. Renewables generation is likely continue to be a key driver for growth for electricity output in the medium term, particularly from offshore wind farms.

Water was the leading sub-sector up until 2011, but its share slipped back dramatically in 2014. The water sector benefits to a degree from the continued focus of the regulator on improved customer service and water quality initiatives which have resulted in greater spending on improvements to mains and water treatment plants, and the water and sewerage sectors are likely to see some degree of recovery through major projects such as the Thames Tideway Tunnel. However, the change in priorities set by the regulators appears likely to lead to greater emphasis on service delivery and on RMI, rather than on new work, so that any recovery in share is likely to be modest.

Construction output in the electricity sector more than quadrupled 2008-14, and has contributed strongly to the overall improvement in the utilities construction sector in recent years. Underpinning construction output growth for the electricity sector during the past three to four years has been the expansion of the renewables sector. In addition, the decommissioning of outdated power stations both fossil fuel and nuclear and the construction of new generation capacity, as well as the programme of renewal and improvement to the transmission and distribution networks have all boosted construction output.

The refurbishment of the gas distribution network and building of new gas storage facilities have assisted in boosting output growth in the gas sector in recent years. Medium-term prospects for the sector remain fairly positive with the likelihood of further onshore and offshore gas storage facilities to address the issue of the UK’s energy security and increasing dependence on gas imports as North Sea production declines.

The telecoms sector is the most open of the utilities sectors in the UK. Telecoms revenues have remained steady over the period, despite increasingly competitive pricing for mobile contracts. Revenue from mobile data, driven by increased smartphone use, and from fixed internet, driven by the rollout of superfast broadband, have offset the decline in revenue from fixed voice calls. Another key development is the increasing availability and uptake of superfast broadband. BT reached its target for the roll-out of superfast fibre optic broadband of the UK in 2014, a year earlier than originally planned.

“Current prospects for the utilities sector into the medium-term remain optimistic with output set to increase until 2019. Fundamental to this positive forecast remains the influence of Government policy commitments in a number of areas such as the Renewables Obligation, energy security and the rollout of superfast broadband” said Keith Taylor, Director of AMA Research. “Another key influence is the influence of the regulatory environment in the water and energy sectors, which provides an underlying motivation for medium-term programmes of capital investment.”

Growth in utilities construction will also be underpinned by the Government’s National Infrastructure Plan, which outlines a number of relevant policies, and the implementation of a number of measures to incentivise private investment in these sectors.

The ‘Utilities Construction Market Report – UK 2015-2019 Analysis’ is published by AMA Research, a leading provider of market research and consultancy services with over 25 years’ experience within the construction and home improvement markets. The report is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Growth of 6% in the UK Office and Home Office Furniture Market in 2014

The UK office and home office furniture market showed modest value growth in both 2012 and 2013, followed by stronger growth in 2014 of around 6%, indicating good recovery in the market. However, in volume terms, the market as a whole has continued to decline during much of that period. Current market conditions are looking more positive, supported by strong demand in London and the South East and the SOHO sector.

Despite the recent upturn, profitability among UK manufacturers remains poor. The office and home office furniture market remains fiercely competitive, with a large number of suppliers still operating in the market and there is also still an excess of production capacity in the industry, despite some well-known companies having ceased to trade, and this has resulted in suppliers and dealers having to cut prices further to maintain share. In addition, imports increased in 2014, after being fairly static for several years.

Imports are a significant factor in the market and are estimated to account for around 40% of the market. The most significant change in recent years has been the rise of China to become the major source for office furniture imports, with imports of adjustable seating from that source reaching almost £51m in 2014 (£44m in 2013) alone.

A large proportion of home office furniture is supplied in flat pack form by specialist manufacturers and sold through domestic furnishing outlets. The two main distribution channels for office furniture are the dealer network, which accounts for an estimated 45% of this sector, and direct sales to end users. However, retail outlets and mail order channels are also important, having benefited from continued growth in the SOHO market. Dealers have been losing market share in recent years but are continuing to differentiate through enhanced service levels and added value products, such as storage audits, free planning services, national showrooms, after sales service and maintenance.

In the medium term, demand for smaller desks is expected to continue, reflecting technological developments and changing work practices and additionally, some value will be added through the introduction of more accessories and a greater level of integration with other office products. Whilst technological developments, including better cable management and the increased use of wireless technologies around the office, are likely to stimulate demand in some sectors in the longer term, they are unlikely to affect demand significantly in the shorter term.

There has been an increased demand for bespoke desking in the systems sector, often consisting of small design changes to the colour, finish, shape or desktop size. Demand for ergonomic seating is expected to be resilient, although average prices are expected to experience downward pressure as newer competitors enter the market and the high level of lower cost imports continues. The requirement for more casual seating for reception, meeting and leisure or breakout areas is also set to continue, as more companies adapt to more flexible styles of working.

The storage sector is set to show modest increases in the next few years in line with the market as a whole, but in the longer term some decline may reflect the gradual adoption of electronic storage and the greater use of electronic data. However, there are several new product opportunities open to firms in this sector, particularly the continuing demand for personal storage solutions and the possibility of integrating storage with office furniture designs generally.

“In terms of the distribution structure, there are likely to be some changes, with the growth of the SOHO market benefiting the less traditional channels of supply, such as multiple furnishing retailers, superstores, mail order and the Internet” said Keith Taylor, Director of AMA Research. “The dealers’ market is expected to show modest growth in the next few years, although the share of the market held by dealers is forecast to decline slightly reflecting greater purchases through the SOHO sector.” 

The UK office and home office furniture market is expected to show steady growth in the medium to long term, with annual growth rates of 3-4% from 2015 onwards, following definitive signs that business confidence and the general economic climate are improving. The market is expected to reach a value of around £825m by 2019.

The ‘Office and Home Office Furniture Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services 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.

Hotel, Leisure & Entertainment Construction - 5 Key Facts

Did you know...

1) New build construction output in the leisure, hotel and entertainment sector is worth around £6bn per annum.

2) The hotel and pub sectors account for a combined share of around 50%.

3) The low-cost gym sector is growing rapidly.

4)  Expansion and refurbishment in the restaurant sector is buoyant and largely driven by international chains accelerating their roll-out programmes.

5)  Overall output in the sector is forecast to grow by around 15% over the 2014-2018 period.

These facts have been extracted from AMA Research's report 'Construction in the Hotel, Entertainment and Leisure Sector Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Office Furniture Dealers - 5 key facts

Did you know...

1) The size of the dealers’ market has been falling for many years, reaching just under £300m in 2014, compared with £358m in 2008.

2) The majority of office furniture is still distributed through dealers and contractors, with the direct selling channel as the second largest, currently estimated to account for 25%.

3) 57% of dealers source from between seven and nine different core suppliers for their products.

4) The share of the market held by the leading six office furniture suppliers has stabilised at around 35-37% in recent years.

5) The share taken by the SOHO market has increased in recent years and now accounts for around 28% of the overall office furniture market.

These facts have been extracted from AMA Research's report 'Office Furniture Dealers Market Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

UK Mechanical & Electrical Contracting market grew by 7% in 2014

The market for mechanical and electrical (M&E) contracting was estimated to be valued at around £16bn in 2014, following strong growth of around 7% during the year. A key area of growth has been installations aimed at improving energy efficiency and reducing carbon emissions, driven by increasingly stringent legislation and regulations, but also given impetus by the long-term cost savings that can be made by installing such systems, driven by underlying, increasing fuel costs.

However, market values remain some 13% below their 2008 peak. Following a decline in 2012, growth resumed in 2013 driven by improvements in office and leisure sectors in particular and private construction output in general, and this has continued into 2014 and 2015. However, the industry continues to face growing competition from other sectors such as FM, and M&E contractors are expected to diversify into wider service areas in order to build revenues, for example offering design and build capabilities or expanding to total management of hard FM projects.

As market conditions improve, M&E contractors are starting to experience the benefits of restructuring and streamlining exercises through improved margins. Consolidation activity amongst suppliers continues to be high within the market and this has led to a number of major players increasing in size. The growth in strategic acquisitions is also in response to the growing focus on integrated services within the sector with contractors widening the range of services offered.

“The fact that businesses within both the public and private sectors urgently need to find cost savings has led to demand for more energy efficient heating, lighting and ventilation systems, both the simple extract types and the mechanical extract and heat recovery types” said Keith Taylor, Director of AMA Research. “This type of work will also be stimulated by legislation and guidelines around carbon reduction and renewable energy sources and as a result energy management will become an even more important area of focus for M&E contractors.”

Current forecasts for the M&E contractors market indicate that it will continue to increase, though at a more modest rate of around 3-4%, until the end of the forecast period. Non-domestic construction output is set to increase during 2015 and remain positive through to 2019, though the government’s efforts to reduce public sector spending are continuing, and may lead to reduced opportunities within the public sector for M&E contractors in the next few years. However, areas such as university expenditure, student accommodation, Free schools / Academy schools etc. where private funding is being channelled into public sector projects, should continue to offer good opportunities. 

The ‘Mechanical & Electrical Contractors Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services 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.

Domestic Window Coverings - 5 key facts

Did you know...

1) Window coverings are valued at over £1.1 billion at retail prices in the UK.

2) Curtains are the largest sector, accounting for close to 50% of the market.

3) Blinds are the second largest sector, with venetian blinds accounting for over 30% of the sector.

4) Mail order/catalogue and the internet represent growing channels for window coverings – accounting for over 25% of sales.

5) Future prospects are for steady growth of around 3% per annum over the next 2 years.

These facts have been extracted from AMA Research's report 'Domestic Window Coverings Market Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

Steady growth over the next 4 years in the UK Commercial Washrooms Market

The UK commercial washrooms market increased by 3% in 2014 compared to 2013, reflecting the improving market conditions post-recession within the non-domestic construction industry. The UK market is now showing some signs of recovery, following a static period over the past 5 years. The upward trend is driven by stronger RMI activity in non-residential sectors, allied to more positive new work activity.

Washroom panel systems continue to account for the largest sector of the market, followed by sanitaryware, brassware, showers/mixers and baths. It is estimated that around two thirds of commercial washroom products are distributed via trade channels such as builders / plumbers’ merchants and distributors. The remainder represents mainly direct sales from supplier to end-user and includes online.

The recession saw the emergence of more cost effective solutions within the commercial washroom environment, to cater for a range of budgets. At the same time, it is apparent that the trend towards higher value products with contemporary design has continued at the more premium end of the marketplace, driven by the private sector, such as upmarket hotels and leisure schemes. Applications include brass fittings and personalised logos to provide a customised feel. Manufacturers also appear increasingly focused upon specification-led work, providing total solutions for each application, such as education, healthcare and offices.   

There has also been an emphasis upon increased functionality within the commercial washrooms market, including greater use of intelligent technology to control water flow and temperature, as well as baths and showers with sensory options to provide a personalised experience. There is greater incorporation of energy efficient and water saving solutions across the commercial washrooms market, driven by legislation and the introduction of the Water Label.

“The high level of price competition, which is currently a feature of this market, is expected to continue, potentially curbing overall value growth within the marketplace. However, manufacturers will seek to offset this by focussing upon added value design, quality and performance” said Keith Taylor, Director of AMA Research. “The baths sector is likely to continue to face competition from showers, which are becoming more popular, and the more muted performance of the health sector and the potential trend towards smaller premises with more local delivery will exacerbate this trend.”

The overall commercial washrooms market is likely to show year on year growth over the next 4 years, as key application areas for commercial washrooms, such as entertainment & leisure and offices, benefit from private investment in RMI activity and the construction market as a whole sees gradual improvement. The entertainment and leisure sector has been relatively resilient to the recession and growth in the budget hotels sector has helped to counter balance the decline in food service and the larger scale sports facilities that were associated with the Olympics. However, continuing economic uncertainty due to high levels of debt within the Eurozone and planned budget cuts within the public sector, especially in health and education, may all restrict rates of growth.

The market is forecast to have increased by around 11% in 2019, to reach a value of around £340m at manufacturers’ selling prices.

The ‘Commercial Washrooms Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services 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 Garden Products market set for further growth

The UK domestic garden products market is valued at around £5bn and has grown by an estimated 8% in 2014 according to a new report from AMA Research. Market forecasts are for further steady underlying growth to 2019, with the market benefiting from pent up demand in many product areas and a stronger performance in the housing market in the next couple of years - though the weather will always impact on the market in any given year.

Key product sectors in the market by value are horticulture – accounting for almost a 25% share – while garden sundries, garden buildings, garden equipment, leisure and chemicals all have shares typically ranging from around 10-20% of the total market. Individual sectors of the garden products distribution market perform differently - horticulture for example, benefited from the boom in GYO, conservatories have returned to growth since 2011, the fencing sector performed particularly well in 2014 due to the winter storms, and garden leisure has benefited from homeowners increasingly moving upmarket and using the garden as an ‘extra room’. Decking, however, is experiencing an underlying decline as its popularity appears to be falling.

Annual growth rates in this sector are influenced by prevailing weather conditions and market performance fluctuations reflect this variability. Also impacting on market performance are the UK economy and consumer confidence & spending, although the sector has tended to cope well with economic downturns, not suffering as badly as some other consumer markets. The market benefits from underlying trends for outdoor living, environmental concerns, and an ageing population that are generally more interested in gardening, however, the number of apartments and smaller size of UK gardens in new properties negatively impacts on the market in the longer term.

Distribution of garden products is complex and fragmented, consisting of a wide range of products distributed through a range of channels. Garden centres account for over 20% of total sales and are a key channel for horticulture, while DIY multiples are the largest channel and a key outlet for garden equipment & leisure products, and direct sales are important for garden buildings. In terms of product distribution, it is expected that DIY multiples and garden centres will remain the key distribution channels, but the Internet accounts for around 7-8% and mobile technology as a means of researching and buying products will continue to grow.

“Growth is forecast for most product sectors, but given the high maturity of most product sectors of the market, underlying growth rates are forecast to be more modest in the medium and long term, at a level of around 2-4% to 2019” said Andrew Hartley, Director of AMA Research. “Having said that, the development of some niche, less mature products, such as garden rooms - and a move upmarket in other sectors such as leisure products - are expected to benefit the market as these will experience slightly higher levels of growth.”

The ‘Garden Products Distribution Market Report – UK 2015-2019 Analysis’ report is published by AMA Research, a leading provider of market research and consultancy services 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.

Garden Leisure - 5 Key Facts

Did you know.... 

1) The domestic garden leisure market is worth around £600m.

2) Metal products account for over 40% of the garden furniture market.

3) The top 5 suppliers account for a combined share of around 30% of the garden furniture market. 

4) The barbeque market (including fuel and accessories) is valued at nearly £200m in the UK with 2014 a good year for the sector.

5) DIY multiples are the largest channel, but the mail order/internet channel is growing and now accounts for around 20% of sales.


These facts have been extracted from AMA Research's report 'Garden Leisure Market Report - UK 2014-2018 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.