Domestic Central Heating Market - 5 Key Facts

Did you know:

1) With around 92% of UK homes having central heating installed, the market is now mature but still offers further growth potential.

2) The market for domestic central heating products consists of refurbishment (81%), first time installations and new build.

3) System boilers have grown steadily in recent years and now account for around 10% of sales.

4) In terms of product type, the UK market for domestic radiators continues to be lead by standard radiator products, with an estimated share of 65%.

5) Domestic circulator sales in 2013 were up by around 10%.



These facts have been extracted from AMA Research's report 'Domestic Central Heating Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724.

UK market for Construction Chemicals to see 5% growth in 2015

The UK market for construction chemicals was estimated to have grown by 5% in 2014, although annual growth rates vary between product sub-sectors due to differing trends within key end user markets. Adhesives constitute the largest product group, and in recent years, growth in this sector has been driven by the recovery in the housing new build, as well as residential RMI and infrastructure applications.

Since 2012, the housing sector has seen market values for both new build and home improvement increase, something which has fed through to increased demand for many chemical products, in particular fillers, adhesives and sealants. Key areas of demand for construction chemicals include demand for admixtures for concrete and mortar products and adhesives used for glazing systems and bathroom installations.

The non-residential construction sector is also a key area of application for construction chemicals, split between infrastructure works and buildings. Construction output in the non-housing sector has also improved over the past 2 years and growth in the industrial sector, particularly R&D business parks and advanced manufacturing parks, is expected to lead to greater demand for resin floor systems.

Product supply chains vary according to product types. Although most fillers and sealants are distributed through DIY retailers, protection chemicals supplied through specialist chemical distributors or direct to the installers. The key manufacturers and suppliers across this industry are mainly subsidiaries or divisions of trans-national chemical product manufacturers. These typically have extensive product ranges for applications, other than construction, that include manufacturing, offshore and transport.

Medium term growth prospects for the overall market appear steady but modest, particularly for products mostly supplied to the home improvement and trade sectors - such as adhesives, sealants and protective chemicals - for use on residential RMI and refurbishment.

In addition, growing optimism in the commercial office sector should lead to increased refurbishment and redecoration work. Continued improvement in the infrastructure sector will also mean greater use of admixtures, sealants, protective coatings etc. for use in constructing buildings, bridges, sewers, tunnels etc. with road maintenance and parking infrastructure projects leading to higher demand for surface protection chemicals products for flat roofs, car park decking, concrete and metal structures and road surfaces.

“Factors which are likely to positively influence the overall market over the medium term future include improved levels of home improvement and new housebuilding activity as a result of economic recovery” said Keith Taylor, Director of AMA Research. “The private sector will be the main driver for medium-term growth, however questions still remain as to the level of future budget cuts for the public sector – something which could negatively impact on output into the medium-term.”

It is estimated that the market for construction chemicals will continue to grow at a modest rate of between 3-5% until 2019, to reach a value of around £620m.

The ‘Construction Chemicals 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 Domestic Landscaping Materials market to exceed £1bn by 2019

The market for domestic garden landscaping materials is forecast to see steady growth of 3-4% per annum following a period of volatile market conditions, caused by the economic downturn and weather conditions, particularly affecting the market in 2012. The market recovered in 2013, and subsequently grew by an estimated 7% in 2014, but growth in 2015 onwards is likely to be more modest.

The strong growth levels seen in 2014 were mainly due to favourable weather, an improving economy and increasing consumer confidence & spending. Annual growth rates in the market are heavily influenced by prevailing weather conditions, as seen in 2012 and 2014 in particular. Though the overall performance of the UK economy impacts on the market, it tends to cope well with economic downturns and has not suffered as badly as some other consumer markets.

Key product sectors in the UK domestic landscaping materials market are horticulture, which accounts for just under half of the market by value, hard landscaping and garden decoration. Since the start of the economic downturn, sectors of the landscaping materials market have performed differently, with sectors such as paving and decking declining, whilst sectors associated with ‘grow your own’ (GYO) have experienced overall growth.

Distribution of landscaping material is complex and fragmented, with products distributed through a wide range of channels. Key channels include DIY multiples, garden centres, builders’ merchants and mail order & internet businesses. Going forward, internet retailing is expected to continue to gain share as consumers seek greater value for money and convenience, with delivery of hard landscaping products a key issue. Garden centres are increasingly addressing this issue and it is likely that those companies prepared to evolve their formats and develop their offering will perform better than others in the future.

Garden centres are increasingly seen as ‘destination centres’ and have expanded their product ranges with the aim of weatherproofing their businesses to some extent. Trends that may benefit the market include increasing demand for artificial grass, permeable paving and other environmental friendly options (e.g. solar lighting) and container & ‘vertical gardening’.

“Key factors influencing market performance include the housing market, consumer confidence & spending, and levels of interest in gardening as a hobby or to grow produce, as well as the trend for gardens to be seen as an extension to the home and al fresco dining” said Andrew Hartley, Director of AMA Research. “In addition, the mature structure of most sectors and the growth in internet sales are also important as they tend to drive down average prices and increase price competition in the market.”

Predicting future performance in this market is difficult due to its dependency on the weather, as well as continued uncertainty regarding the pace of recovery in consumer confidence. However, housebuilding and house moving levels have improved recently and this is forecast to continue, stimulating growth in this sector. As the economy improves and consumer spending grows it is expected that the market will benefit from pent up demand for landscaping projects that have been deferred during the economic downturn and is forecast to exceed a value of £1bn by 2019.

The ‘Domestic Garden Landscaping Materials 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.

Waste Management Market - 5 Key Facts

Did you Know:

1) By value, the market for the collection, treatment, recycling and disposal of controlled waste was just under £20 billion in 2014.

2) It is estimated that UK CIW (Commercial and Industrial Waste) arisings are around 55 million tonnes in 2012/13.

3) There has been a slowdown in the growth of household waste recovery in England in recent years, stabilising at around 10.6m tonnes.

4) The volume of controlled waste landfilled has been declining steeply since 2002, towards 25m tonnes in 2014.

5) The leading 8 contractors account for around a quarter of the waste management services market.

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

LED Lighting - 5 Key Facts

Did you know...

1) Non-domestic end users dominate the LED market in 2014, accounting for 96% of market value.

2) The four main suppliers; Philips, Zumtobel, Osram, GE and Havells Sylvania, are estimated to account for around 80% of the market.

3) Industrial lighting is dominated by high intensity discharge (HID) lighting with LED accounting for only 7% of this sector currently.

4) Infrastructure is a significant sector with many LED street and road light investment schemes underway and is estimated to account for 23% of the market.

5) Direct sales have a leading role in LED lighting distribution led by large scale, private and public sector projects, accounting for over a third of the market.

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

UK Tool Distribution market saw growth of 8% in 2014

In 2014, it is estimated that the tool distribution market grew by 8% as a result of the improving economy which led to higher levels of construction and RMI activity. The tool market is mature and has, in general, seen moderate growth rates, though 2014 has proved to be good year.

Power tools account for an estimated 50-55% share of the market and hand tools for around 45-50% share. Hand tools is a mature, steady sector with few major changes in product development and sales are largely dependent on product replacements. In contrast, demand for power tools has benefited from new products and product innovation that help to drive sales, such as lithium-ion battery and brushless motor tools. Performance in the garden tools sector is heavily influenced by the weather in any given year, with 2014 a relatively good year, though performance in 2015 has been less buoyant.

Distribution of tools used in construction, RMI and gardening is highly complex and fragmented, reflecting the number and ranges of products offered, as well as the range of different end-users and contractors. Tool distribution comprises a mix of large national players competing with many regional and local companies, in both trade and consumer channels, but several major national and international groups hold significant shares in the tools market.

Digital technology is driving a change in buying behaviour in this sector, with the internet and, in particular, the use of mobile devices among tradesmen, becoming increasingly important. Whilst the internet-only channel is currently relatively small, its influence on distribution and sales is much wider. It has changed the way in which customers interact with suppliers - for example, there has been an increase in the use of ‘click and collect’ facilities that encourages people to visit stores, and leading to an increase in sales via trade counters. Social media is also gaining in importance for both promotional messages and customer feedback, assisting in growing direct sales.

“The future of the tools distribution market mix will depend on channel response to the opportunities and threats posed by the evolving distribution landscape and how quickly they respond to them” said Andrew Hartley, Director of AMA Research. “Over the past 2-3 years there has also been some consolidation within key distribution channels and this is likely to continue for the duration of the forecast period.”

Future prospects for the overall tools market are positive, with both domestic and non-domestic construction levels forecast to increase. There will be a continued expansion of cordless product ranges and brushless motors products, with other product developments expected to stimulate market growth, including tools that are more ergonomically designed for employee welfare as well as increasing lifetime and efficiency.

The tool market is forecast to continue growing in 2015, with steady underlying growth of around 3-4% per annum forecast in the medium term, providing the construction and home improvement markets remain reasonably buoyant.

The ‘Tool 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.

UK Floor and Wall Tiles market to grow by around 5% in 2015

The UK market for floor and wall tiles grew by an estimated 4% in 2014, underpinned by rising demand from a combination of growth in housebuilding activity, home improvements and commercial applications. Ceramic & porcelain tiles dominate the mix in 2014 with an estimated value share of over 75%.

Following several difficult years in 2009-13, the outlook is for positive annual growth of around 5% in 2015/16 - underpinned by returning confidence in both domestic and contract sectors - followed by more moderate annual gains of around 3-4% to 2019 when market value is forecast to be over £550m.

Changes and trends within the UK tile market identified in the last edition of this report have continued into 2013-14. The main trend has been a gradual switch upmarket, particularly in the domestic sector, which has been dominated by stone effect porcelain & ceramic, as well as natural stone. In terms of decorative trends, fully or ¾ tiled bathrooms remain a key trend, but with stone effects and natural stone continuing to take share from plain tiles. Although neutrals continue to dominate the sector, there has been a trend for greater use of colour through Mediterranean and North African inspired designs and through the use of feature tiles, such as pop art panels, single tile motifs etc.

The trend for design breaks within a tiling scheme has become more prevalent, with combinations of tile sizes, shapes, textures and colours now used to create borders, frames, etc., for both wall and floor tiling installations. The stone tiles sector, and slate in particular, has undoubtedly benefited from the recent trend for texture in tiles, with growing demand for more riven products, particularly for texture walls. Wall tiles still dominate the sector, but floor tiles are well-established now, with share over 30%.

Imports have continued to increase share, and are now estimated at around 75%-80% of the market. In addition, more global suppliers are now targeting the UK market with the Middle East region becoming an important source country.

“The overall tiles market is likely to be characterised by price competition into the medium-term and beyond, as competition between tile types and other wall and floorcoverings will remain strong into the medium-term and imports continue their dominance of the UK market.” said Andrew Hartley, Director of AMA Research.

Medium-term forecast are related to the strength of the economic recovery, which in mid-late 2015 remains generally positive, and continuing recovery in the new housebuilding and key commercial construction sectors, such as offices and leisure. In addition, both consumer and business confidence have continued to improve. For the tiles market, this indicates potential for good short-term gains followed by steadier rates of annual growth into the medium-term, as indicated above.

The ‘Floor and Wall Tiles 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.

Upgrading and fit-out work dominates UK Food & Drink sector construction output

The food processing industry has performed better than the wider manufacturing sector in recent years and growth is forecast at between 3-4% in the short to medium term. Construction output in the sector is forecast to remain relatively buoyant with growth at a similar level of 3-5% over the next few years. The FDMP sector has recently seen increased capital investment levels, reflecting the growing optimism in the wider economy.

The food and drink manufacturing and processing industry (FDMP) is the single largest manufacturing sector in the UK, employing around 400,000 workers, and exports of food and drink products form an important proportion of UK trade. The value of UK food and non-alcoholic drink exports increased by over 6% in 2014, the 10th consecutive year of record growth. Exports of UK dairy are also at a record high.

The market is polarised, with over 8,000 companies active in the FDMP sector across the UK, and over 85% of enterprises qualifying as small. However, the top 5 UK food companies account for over £30bn in terms of turnover, with the leading 20 food producers operating over 300 manufacturing and distribution sites across the UK. In total, there are over 9,500 manufacturing sites and factories in the UK FDMP sector, with the bakery, meat processing and dairy industry operating the largest number of processing sites and accounting for the highest turnover. FDMP activity varies across the UK, with Scotland, the North West and Yorkshire and Humber having the highest concentration of food processing activity.

The industry is characterised by an ageing stock of manufacturing facilities and equipment, and new projects are mainly focused on upgrading existing assets to achieve greater efficiencies, leading to higher outputs and lower costs. Upgrading and fit-out work therefore accounts for around 80% of total output in the sector. Growing demand in certain sectors has driven capacity expansion, with significant projects in the dairy, beverage, meat and ready meals sectors recently completed or under development. However, with fewer new build factories now being built, there is more of an emphasis on regular maintenance of existing facilities ensuring that machinery and processing equipment is running efficiently.

Going forward, construction output in the food processing sector is likely to remain relatively buoyant, mainly driven by RMI activity, however, the industry faces the ongoing challenges of rising costs, compliance and regulatory controls, EU legislation and political priorities. Therefore construction output is forecast to grow by between 3-5% over the next few years to reach a total of around £475m by 2019.

“The impact of the recession and consolidation and rationalisation in the food industry has meant that food manufacturers have become more cautious about investing in new plants and facilities” said Keith Taylor, Director of AMA Research. “However, it seems the current focus is on refurbishment and modernisation projects aimed at improving production capacity and efficiency through initiatives such as automation and temporary processing“.

The ‘Construction Activity in the Food & Drink Manufacturing & Processing Industry 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.

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.