Strong growth for interior shutters in the UK window coverings market

The domestic window coverings market has remained positive throughout 2015, with an estimated 4% increase on 2014, following good growth in the previous year. Recent growth has been driven by several key factors, including a significant improvement in the housing market and the general strength of the wider economy, together with higher levels of both consumer confidence and spending. The market also continues to benefit from some pent-up demand, with homeowners spending more on home décor after a long period of restrained spending.

The UK window coverings market comprises of four major sectors - curtains, blinds, shutters and curtain suspension systems. Curtains are the largest sector with around 50% value share in 2015. Readymade curtains account for the largest share of the curtain sector, followed by custom made curtains, lightweight curtains and then curtain fabric.

The blinds sector has grown significantly in the last 3-4 years, underpinned by growing consumer confidence and a move towards more made to measure products. Windows are the biggest end use sector for blinds in 2015. Conservatories have lost share within the blinds end user mix due to recent trends towards orangeries and solid roofs, which have limited the applications for some higher value conservatory applications such as automated roof blinds. Custom made blinds have benefited from higher levels of spend on home décor, with a higher degree of trading up and demand for innovations and value added products as well as automation.

Interior shutters are a relatively new introduction to the UK market and have enjoyed a strong rise in popularly in the past decade. Market value has increased by around 15-20% per annum in recent years, and now represents a significant niche sector in the market. Medium–term forecasts for shutters also indicate good growth prospects, underpinned by their aesthetic appeal, as well as product innovations and wider distribution.

The distribution of window coverings in the UK is characterised by a high level of fragmentation and diversity, reflecting not only the product mix but also the different product delivery, installation and service requirements. The Internet/mail Order channel has grown strongly and accounts for over 25% of sector sales – growth has been driven by demand for both readymade and made to measure window coverings.

Market conditions remain are likely to remain challenging for suppliers. However, given the underlying positive trends in the housing market and housebuilding activity, our forecasts indicate steady annual market growth of around 3–4% going forward. There are still a number of challenges however, reflecting market maturity with high levels of competition and growing foreign imports, and the growth in online sales.

“Levels of consumer confidence and spending on window coverings have improved throughout 2014-15, and indications are that this will continue into the medium-term. This should result in value growth with the market also benefiting from a move towards higher value products, such as automated blinds” said Andrew Hartley, Director of AMA Research. “In terms of supply structure, there is likely to be a greater move towards more multi-sector providers – e.g. blinds specialists also supplying curtains – which is likely to provide acquisition opportunities for some of the leading suppliers.”

The market for curtains is likely to be sustained by replacement demand, but with increasing focus on extended services such as “measured, made and fitted”. The blinds sector is current forecast to increase by around 12% between 2015 to 2020, with value growth underpinned by uptake of more expensive made-to-measure products and increased use of automation in some applications. As a new entrant into the sector, growth in the shutters market has been particularly buoyant over the last 5 years, with medium term forecasts indicating that annual rates of growth are likely to outperform the overall market.

The ‘Domestic Window Coverings Market Report – UK 2016-2020 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.

Facilities Management Outsourcing - Corporate Sector Report - UK 2015-2019 - Key Facts

1. The corporate market for outsourced ‘bundled’ services is forecast to grow by 33% by 2019.
2. Commercial offices represent the largest end use sector accounting for 52% of the market by value, followed by retail.
3. Facilities outsourcing within the corporate market is considered to be mature, and estimated at around 75%.
4. The leisure and entertainment sector is expected to offer opportunities, with budget hotels in particular expected to exhibit good growth.
5. The top 10 FM bundled providers are estimated to account for over half the market.

These facts have been extracted from AMA Research's report 'Facilities Management Outsourcing - Corporate Sector Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724. 

Bricks, Blocks and Precast Concrete Products - Key Facts

• The overall market for bricks, blocks, concrete precast products, cast and natural stone products is valued at around £2 billion.
• After a difficult period, the sector has grown by over 20% in the 2013-2015 period.
• Housebuilding is estimated to account for around 45% of brick usage with RMI also a significant sector.
• ‘Precast structural components’ is a fragmented sector with flooring, stairs/ landings and balconies accounting for around 35% of the market, and crosswall panels also a significant sector.
• The market for natural stone and building products is forecast to grow by around 20% over the next 4 years.

These facts have been extracted from AMA Research's report 'Bricks, Blocks and Precast Concrete Products Market Report - UK 2015-2019 Analysis', available from www.amaresearch.co.uk or by calling 01242 235724. 

Retail Construction and Refurbishment Market Report - UK 2015-2019 Analysis - Key Facts

• Retail construction output has grown by 14% since 2012 as levels of consumer confidence and spending have begun to recover. 
• The expansion of the grocery sector into “convenience” retailing has meant the construction focus has changed from large-scale new build, to smaller refurbishment projects.
• Discount food retailers are estimated to account for around 7% of the supermarkets and superstores sector, with the leading organisations having significant development pipelines.
• In the non-food sector, retailing is dominated by large multiple store chains who currently account for an estimated three quarters of annual sales. 
• Retail construction, whilst challenging for the contractor and only offering slim margins, does offer repeated high volumes of work – especially the grocery sector.

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

Good growth forecast in the UK Domestic Kitchen & Bathroom Worktops market

The value of the overall kitchen and bathroom worktop market is estimated to have reached a value in excess of £200m in 2015, reflecting a recent recovery in the market after the difficult post-recession trading period. There has been steady growth in the market since 2011, as a result of an increasing level of consumer confidence and a return to favour of the housing market in particular. The worktop market has grown fractionally faster than the equivalent kitchen furniture and overall bathroom products market.

The value of the total kitchen worktop market is estimated to have increased by around 5% in 2015, following a number of years of relatively good growth of 4-5% per annum. The distribution structure of the worktops market is highly fragmented, with raw material suppliers, importers, manufacturers, fabricators and distributors all being involved. In recent years, there have been changes to distribution shares, with growth in the builders merchants sector, while the DIY multiples sector has lost market share.

Key issues that have influenced this market sector in recent years include; an emphasis on aesthetics and stylish designs; the blurring of distinction between the kitchen and dining room, with less formality in the home and a move towards open plan living; a growing interest in cooking as a hobby and the demand for professional style kitchens and appliances and a trading up to higher value materials and products. The sale of kitchens with installation included is likely to continue to increase, with many large suppliers now promoting this service.

In the bathroom worktop market, growth resumed in 2012, following a difficult period. In 2015, the market saw growth of 8%, though from a low base, and in value terms regained the level seen prior to the economic downturn. However, bathroom worktops remain a small market in overall value terms. Builders and plumbers merchants are the major distributors for bathroom worktops with around 40% of the market, followed by DIY multiples and bathroom equipment specialists.

Major issues currently influencing this market include; rising levels of consumer confidence, which has increased the demand for design-led features in the bathroom; increase in the popularity of solid surfaces for worktops, partly because they can be worked into any shape and can be used to create an integrated basin, worktop and splashback; and a growth in the number of second bathrooms in the new housing market. However, the relatively high proportion of flats and apartments in this sector, and the generally small size of bathrooms in the UK, have limited growth in the bathroom worktops sector.

“As the kitchen market continues to grow, both natural stone and composite materials are forecast to gain market share, with granite and quartz in particular likely to become more competitive as a result of imports from lower cost producers” said Keith Taylor, Director of AMA Research. “However, the affordability and versatility of laminates means that they are likely to continue to dominate the market in the foreseeable future, particularly in volume terms.”

The future prospects for the worktops market are relatively positive with growth anticipated over the next 4-5 years, driven by a more secure and growing new housing market as well as a fundamentally sound level of consumer confidence underpinning the wider refurbishment and home improvement market. Growth in the market for kitchen worktops is likely to continue, and although demand for bathroom furniture and worktops is likely to show only modest growth until 2020, in the medium to long term the projected increases in the level of housebuilding volumes may lead to increased requirements for bathrooms and kitchens, including furniture and worktops. However, one key factor likely to continue to limit growth is the high level of competition at the retail level, which is expected to continue unabated.

The ‘Domestic Kitchen and Bathroom Worktops Market Report – UK 2016-2020 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.

Explosive growth in the LED Lighting market as domestic sector increases share

In 2015, the UK LED lighting market was estimated to have grown by 38% in value terms, incorporating all finished, mains-operated LED lighting products, domestic and non-domestic used within construction and building. The LED lighting market is experiencing an explosion in growth as the new technology becomes more widely accepted in the mainstream lighting market, further encouraged by energy cost savings and CO2 concerns, driven by legislative changes, in turn resulting from environmental pressures. The market remains largely reliant on total system upgrades and new installation applications.

However, both replacement products and replacement LED lights which use existing light fixture are starting to take more share of the overall market. Non-domestic end users dominate, with over 90% of market value, and while the domestic LED sector accounted for a small share, it has experienced dramatic growth between 2013 and 2015. Infrastructure remains the leading sector within LED lighting with many councils, replacing and planning to replace, conventional street lighting with LED lighting in order to achieve energy cost savings. The leisure & entertainment and health & education sectors have been early adopters of LED lighting and will continue to be major end users in the near to medium term. Retail use is also growing.

The five largest suppliers in the LED lighting market we estimated to account for around 75% of the market in 2015, while the remainder of the market was fragmented and comprising many second and third tier specialist and smaller firms. However, there is currently a high level of corporate activity taking place in this market due to its recent rapid growth.

In 2015, the LED lighting market was characterised mainly by sales of LED luminaires, while replacement lamps and LED controls and accessories made up the remainder. The new use of this technology for lighting often requires installation of specific luminaires in order to achieve the full benefits. That said there has been significant development of replacement products for traditional bulbs / lamps, where the LED replacement product has been specifically designed to fit the original luminaire, thereby widening the scope for LED market growth. Product development has been rapid, as major suppliers of LED products are finding it hard to complete with cheaper commodity LEDs and are looking instead to add value, for example by integrating with new technologies, such as the Internet of Things (IoT).

“The average price of LED lighting products has fallen substantially during the last three years, driven by the growing volumes of sales, manufacturing techniques and increased competition” said Keith Taylor, Director of AMA Research. “In 2015, the global price of LED bulbs was estimated to have fallen by 30-40% - this will have an obvious impact within the office, commercial and industrial sectors which are looking to replace existing fluorescent lighting and seek the commercial benefits of doing so.”

High growth is forecast across all sectors with domestic use a particular growth area over the next few years. The lack of product standards in the market has led to some consumer reluctance to purchase LED lamps, but this barrier to growth should recede as these lower quality products are forced out of the market by a combination of EU legislation and LED price falls. LED lighting penetration into the domestic sector has also previously been hampered by the quality of the light produced by LED bulbs, but this will change as the latest generation of bulbs are producing warmer light which is more comparable with that of incandescent bulbs. Wider use of high value application-specific products in the non-domestic sector is also expected to support the market in the longer term, and it is likely that high power and super power LEDs will gain market share compared to mid-power LEDs. Overall, the market is expected to continue to continue to see double digit growth between 2016 and 2020.

The ‘LED Lighting Market Report – UK 2016-2020 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.

Prefabricated Plant Rooms Market - Key Facts

1. The market for prefabricated plant rooms is forecast to grow by 31% over the next 4 years.
2. The cost savings achievable from prefabrication are believed to be in the region of 10-15%.
3. Health and education represent the largest end use sectors, accounting for 34% of the market by value.
4. The leisure sector is a significant end user and accounts for 16% by value.
5.  Retail is also a significant end use market having used this building approach from an early stage, particularly within large grocery stores.

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

Steady growth forecast in the UK heating spares market

Following significant growth in 2013, due to the cold weather causing an increase in wear and tear and boosting the requirement for spare parts, the UK heating spares market has experienced more modest growth of 3-4% per annum in 2014 and 2015. Factors supporting underlying demand in the spares sector includes the high level of combination boilers now installed in the UK, while the growth of maintenance schemes, such as those now offered by utility companies and home emergency insurance providers, also support the repair sector and subsequently the consumables and spares market.

Other factors supporting underlying growth include lower levels of capital expenditure in some non-domestic end-use sectors - in particular in some public sectors such as schools and public offices - supporting a trend towards repair rather than replacement, thereby boosting the spares market. Other positive influences have been the continued growth of renewable energy solutions and technological developments, for example in the area of ‘smart’ heating controls. These have generated demand for a wider range of spares, often more specialised and of a higher value. However, a negative influence on underlying market value has been intense price competition, partly created by cheap imports, and weaknesses in commodity prices.

The heating spares market is highly complex and comprises a wide range of products, with some of the major merchants supplying around 50,000 products. Over 50% of heating spares are distributed by four national merchant chains, though in recent years, smaller regional and local merchants have improved their service and ordering processes and, in some cases, have shown significantly higher growth compared to their larger competitors. A small proportion of sales are via the DIY sector, internet retailers and electrical wholesalers, whilst other channels include the service teams of boiler manufacturers and those of companies that provide home maintenance and servicing contracts.

Short-term forecasts for the heating spares market are difficult to make, as the market is to some extent reliant on the weather influencing usage levels and wear and tear. However, factors supporting underlying growth include the large installed base of boilers in the UK; in particular, the large volume of combination boilers installed, which generally experience a higher level of wear and tear. In the non-domestic sector, the focus on repair is likely to be particularly strong in certain public sectors due to constraints on capital spending. The level of housebuilding is expected to remain buoyant and while this favours demand for new equipment rather than spares in the immediate term, the growth in the installed base of heating equipment will support demand for spares in the longer term. In addition, many of the boilers and systems being installed are now more complex, which could result in more expensive repairs.

The type of systems installed in new dwellings will impact on the nature of future spares demand. For example, the increasing pressure on available space and smaller households will favour the development of small homes and flats. This is likely to have a positive impact on electric or gas combination boilers, which are suited to small properties. In terms of product trends, it is likely that the focus on energy efficiency will continue to stimulate the replacement of ‘traditional’ boilers with high-efficiency combination boilers.

“In the renewables sector, demand for combination boilers that can take feed water preheated by solar energy will grow; and there will also be a greater requirement for stored hot water and cylinders with the means to integrate both fossil fuel and renewable heat sources” said Keith Taylor, Director of AMA Research. “Underfloor heating is a growth area in both the domestic and commercial markets, particularly when used in conjunction with renewable technology, boosting demand for the pipework, cabling and controls associated with the heating spares sector”.

Forecasts for 2016 are for growth of around 3%, reflecting another relatively mild winter, with the period to 2020 looking set for steady growth of around 3-4% per annum, subject to the weather.

The ‘Heating Spares Market Report – UK 2016-2020 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.

The UK Panelised Modular Building Systems market grows by 10% in 2015

The UK market for panelised modular building systems is estimated to have grown by 10% in 2015. Since the recent market low of 2012, demand for offsite building systems has increased strongly, underpinned by the improved economic situation and increased levels of activity in the housebuilding, hotel, student accommodation and education sectors. This recovery followed a downturn between 2008-12 due a decline in the housing market, cuts in public sector budgets and the completion of major MoD projects.

AMA Research’s definition of this 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. However, some systems, particularly light steel frame, are supplied to site in 'stick' form and/or direct to manufacturers of volumetric building systems. The main product type is timber frame, which is competing with light gauge steel, precast concrete and other engineered wood-based panels, with the latter group including structural insulated panels and cross laminated timber systems. While timber frame is currently the most widely used type of offsite systems in housing, it is expected to face competition from cross laminated timber over the next few years.

Key end use sectors for panelised modular building systems are housing, apartment blocks, schools, budget hotels, smaller healthcare and care facilities, and purpose built student accommodation. With the exception of the MoD, where many projects are now complete, most of the key end use sectors for panelised modular building systems look set for growth over the next few years and a number of housing developers and housing associations have declared their intentions to increase usage of offsite systems.

“Difficult market conditions in recent years had led to all sectors of the panelised building systems industry suffering a number of business failures, leading to a reduction in production capacities, and market supply has become much more polarised, in particular in the timber frame sector” said Keith Taylor, Director of AMA Research. “However, the market has improved since 2012 and further sustained recovery is expected until 2020, driven by improvements in key end use sectors such as housing - including self build, which is significant in this market”.

Growth over the next few years should also be enhanced by the mandatory use of Building Information Modelling on public sector projects from 2016. BIM will streamline building design, procurement and construction which should favour the use of offsite building. The drive towards sustainable development, coupled with the need to meet energy efficiency and carbon reduction targets, would also seem to weigh in favour of offsite construction.

In addition, some of the key drivers for offsite construction are coming back into focus, with recent announcements of a number of larger scale, repetitive construction programmes, in sectors such as university accommodation, social housing, affordable private sector housing and budget hotels.

The ‘Panelised Modular Building Systems Market Report – UK 2016-2020 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.

FM Outsourcing – Health and Education Market - Key Facts

1.  The market value for outsourced integrated services and TFM in health and education is expected to grow by 17% through to 2019.
2. The penetration of FM outsourcing within healthcare is estimated at around 30%, with outsourcing generally higher for ‘soft’ services.
3. FM outsourcing within the education sector is less well established, at 20-25%.
4. Catering accounts for a significant portion of FM expenditure in education, representing 15-20% of the overall market.
5. Bundled services in the Mental Health & Learning Trusts represent only 14% of the total service provision.

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