Builders and Plumbers Merchants Market Report - UK Analysis

Transcription

1 Builders and Plumbers Merchants Market Report - UK Analysis Published: 25/07/2017 / Number of Pages: 90 / Price: Introduction and Overview The 15th edition of the 'Builders and Plumbers Merchants Market Report - UK Analysis' provides an informed and up-to-date review of this influential market and addresses the market size and structure, key market drivers, key companies, product mix and ongoing changes in the supply chain driven by factors such as technology. Key issues covered in the report: Detailed assessment of the market - analysis of the market size, structure and recent developments in the market in the light of a strengthened building and construction industry. Market forecasts to Assessment of key influences - market size, influencing market factors, key players and customer groups. Market analysis - key characteristics of market, SWOT etc. Analysis by product group - market size, product mix, sector trends and merchants market share. Areas of particular interest include: Analysis of market size; comprehensive review of key factors/trends influencing the market. Market performance to 2016 and forecasts through to Review of leading national players and other important regional companies. Product group analysis - market sizes, influences, trends and merchant shares. Identification of key customer groups in merchant market. Changing customer buying behaviour - demand for online purchasing, click & collect. Detailed market data and insight on the builders and plumbers merchants market by AMA Research, a leading UK provider of construction market intelligence. Some of the companies included: AE Spink, Alsford Timber, Bradfords Building Supplies, Building & Plumbing Supplies, Buttle, C&W Berry, Chandlers Building Supplies, Coomers, Covers Timber and Builders Merchants, Crossling, EH Smith, Elliott Brothers, Findlay, G B Willbond,

2 George Bence, GPH Builders Merchants, Grafton Group, Graham, Grant & Stone, Haldane Fisher, Harris & Bailey, HPS (Heating Plumbing Supplies), Huws Gray, Jewson, James Burrell, James Hargreaves, Joseph Parr Group, JT Atkinsons & Sons, JT Dove, Lawsons (Whetstone), LBS Builders Merchants, MKM Building Supplies, MP Moran & Sons, Nicholls & Clarke Limited, Parker Building Supplies, RGB Building Supplies (RGB), Ridgeons, Saint-Gobain Building Distribution, Sehmi Builders Merchants, Shropshire Building Supplies, Smith Brothers (Leicester), Sydenhams, Screwfix, TG Builders Merchants, Wolseley UK. The Merchants National merchants - turnover, company structure, recent performance, market share. Regional merchants - key players, turnover, main product areas and branch numbers. Buying groups - identification of the main groups and sector consolidation. Merchants characteristics - product ranges, profitability, debtors, turnover per employee. Strengths, weaknesses, opportunities and threats in the merchant sector. Builders and Plumbers Merchants Market The merchants market - key characteristics of the market, analysis by value from , drivers, insight, market intelligence, trends and forecasts to Dominance of the national merchants - Travis Perkins, Saint Gobain, Grafton, Wolseley and Screwfix; market mix by merchants type (nationals, regionals & locals). Market trends and major factors influencing market development - growth of online purchasing, 'click & collect' etc. Identification of merchant's main customers. Product pricing trends in the industry. Review of market structure - lightside and heavyside product distribution. Merchants share of overall construction output. Merchants share by each product group. Products and Suppliers Product group reviewed - plumbing & drainage, heating & ventilation, bricks, blocks, clay & concrete products, cement & plaster materials, timber & timber products, kitchen furniture & appliances, roofing & insulation, decorating materials and ironmongery & miscellaneous. Product mix for builders and plumbers merchants. Analysis by product group - market size and product mix within each sector. Review of products including recent major trends and key factors affecting the sub-sector. Future Prospects Forecast of expected market development - short term prospects and medium term prospects through to Positive and negative factors affecting the market - increasing confidence for sustained UK economy recovery; residential & non-domestic construction levels, public and private sector performance likely to differ substantially.

3 Outlook for the builders and plumbers merchants' market through to 2021 and key drivers. Report Summary It is estimated that the builders and plumbers merchants' market will see growth of 2% in 2017, compared with 2016, in value terms. The end use sectors of the merchants' market have fared differently reflecting each sectors' construction performance. However, most end-use sectors have experienced growth since 2013, stimulating demand for merchants' products, with key sectors including housebuilding, offices, infrastructure, industrial and education. The merchants, which are dominated by a group of 5 organisations, remain an important distribution channel in the overall construction market. However, the merchants' market has undergone some significant structural changes, with many national operations consolidating and restructuring to streamline and enhance multi-channel offerings, and the regional sector has expanded branch networks. Competition from other channels, particularly the internet and home improvement multiples, continues to impact on the market. However, merchants appear to have outperformed home improvement multiples in recent years and their expansion into e-commerce has offset some of the movement towards internet-only distributors. Prospects for the merchants' market remain optimistic, although cautious, with confidence in the continued recovery of the UK economy positive but tempered by the uncertainty of the outcome of the General Election and Brexit negotiations. Drivers in the residential sector include under-investment in the housing stock in terms of new build requirements and the age of the current dwellings, which has stimulated expenditure on RMI activity. The cost of fuel and energy as well as the volatility of the exchange rate of Sterling against both the US Dollar and the Euro is likely to drive up prices and therefore market value will increase. List of Report Contents Contents Listing 1. INTRODUCTION INTRODUCTION SOURCES OF INFORMATION 7 2. SUMMARY & MARKET PROSPECTS SUMMARY MARKET PROSPECTS ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION 14

4 3.5 HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS THE BUILDERS' AND PLUMBERS' MERCHANTS' MARKET DEFINITION PRODUCTS Product Range MARKET STRUCTURE Lightside Product Distribution Heavyside Product Distribution Buying Groups MARKET SIZE Current Trends Market Prospects MERCHANTS' SHARE OF CONSTRUCTION OUTPUT BUILDING & CONSTRUCTION MARKET INFLUENCES Non-Residential Construction Market The Housing Market THE BUILDERS' & PLUMBERS' MERCHANTS MARKET SHARE MERCHANT COMPANY PROFILES National Merchants Large Regional Merchants Medium & Small Size Regionals Local Merchants 50

5 5.3 CHARACTERISTICS OF BUILDERS' & PLUMBERS' MERCHANTS Profitability Debtors Turnover Per Employee Pricing and Prices MERCHANTS' MARKET - SWOT ANALYSIS MERCHANTS' COMPETITORS MERCHANTS' CUSTOMERS BUILDERS House Builders/General Builders Commercial Construction Civil Engineering PLUMBING & HEATING CONTRACTORS MECHANICAL & ELECTRICAL CONTRACTORS OTHER CUSTOMERS PRODUCTS PRODUCT MIX MERCHANT SHARES BY PRODUCT PRODUCT TRENDS Heating, Ventilation & Air Conditioning (HVAC) Timber & Glazing Bricks, Blocks, Building Envelopes and Concrete (BBBEC) Cement & Plaster Domestic Kitchens Plumbing and Drainage Bathrooms 79

6 7.3.8 Roofing & Insulation Decorating Other Products 84 Tables & Charts CHART 1: UK BUILDERS' AND PLUMBERS' MERCHANTS' MARKET 2012 TO BY VALUE ( BN MERCHSP) 9 TABLE 2: GDP DATA KEY CONSTITUENT ELEMENTS 12 CHART 3: INTEREST RATES AND INFLATION (CPI) FROM CHART 4: PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5: EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16 TABLE 6: CHANGE IN PRODUCT CATEGORY DEFINITIONS 19 CHART 7: BUILDING PRODUCTS DISTRIBUTION STRUCTURE 20 TABLE 8: UK BUILDERS' & PLUMBERS' MERCHANTS' MARKET 2012 TO BY VALUE ( M MERCHSP) 25 CHART 9: GROWTH FORECASTS OF END-USE SECTORS OF MERCHANTS' MARKET, TABLE 10: MERCHANTS' SHARE OF UK CONSTRUCTION OUTPUT 2012 TO 2017 ( BN) 30 CHART 11: CONSTRUCTION OUTPUT (GREAT BRITAIN) NEW WORK & RMI - CURRENT PRICES ( BN) CHART 12: NON-RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK BY SECTOR 2016 AND % BY VALUE GB 32 TABLE 13: HOUSE BUILDING STARTS & COMPLETIONS (UK) 2012 TO BY VOLUME ('000 DWELLINGS) 33 TABLE 14: HOUSE BUILDING COMPLETIONS (UK) 2012 TO BY VOLUME ('000 DWELLINGS) 34 CHART 15: MERCHANTS BY TURNOVER & CHART 16: MIX OF MERCHANTS BY TYPE (NATIONAL, REGIONAL, LOCAL) CHART 17: LEADING MERCHANTS' MARKET SHARES TABLE 18: KEY INDICATORS UK BUILDERS' MERCHANTS' MARKET - TRAVIS PERKINS 41 TABLE 19: KEY INDICATORS UK BUILDERS' MERCHANTS' MARKET - WOLSELEY UK 42 TABLE 20: KEY INDICATORS UK BUILDERS' MERCHANTS' MARKET - SAINT GOBAIN BUILDING DISTRIBUTION 43 TABLE 21: KEY INDICATORS UK BUILDERS' MERCHANT MARKET - GRAFTON UK BUILDING PRODUCTS DISTRIBUTION 44

7 TABLE 22: KEY INDICATORS UK BUILDERS' MERCHANT MARKET - SCREWFIX 45 TABLE 23: LEADING SMALLER REGIONAL MERCHANT COMPANIES TABLE 24: MERCHANTS' PROFITABILITY 2012 TO TABLE 25: MERCHANTS' DEBTORS LEVELS 2012 TO TABLE 26: MERCHANTS' TURNOVER PER EMPLOYEE 2012 TO TABLE 27: PERCENTAGE CHANGE OF PRICE INDICES OF CONSTRUCTION MATERIALS TABLE 28: MERCHANTS' MARKET SWOT ANALYSIS 54 CHART 29: DIY MULTIPLES & BUILDERS' MERCHANTS' SALES (INDEX 2012=100) 55 TABLE 30: ENTERPRISES REGISTERED FOR VAT INVOLVED IN CONSTRUCTION OF BUILDINGS BY TURNOVER BAND 2012 & TABLE 31: PLUMBING, HEATING & AIR CONDITIONING INSTALLERS REGISTERED FOR VAT BY TURNOVER BAND TABLE 32: UK ENTERPRISES REGISTERED FOR VAT INVOLVED IN MEP ACTIVITIES BY EMPLOYMENT SIZE BAND CHART 33: MIX OF BUSINESSES WITH MORE THAN 20 EMPLOYEES BY PRIMARY ACTIVITY CHART 34: BUILDERS' AND PLUMBERS' MERCHANTS' MARKET PRODUCT MIX TABLE 35: BUILDERS' & PLUMBERS' MERCHANTS' SHARE OF MARKET SECTORS 2016 ( M MERCH SP) 67 CHART 36: THE HEATING VENTILATION & AIR CONDITIONING MARKET 2012 TO 2021 BY VALUE ( M MERCHSP) 68 CHART 37: PRODUCT MIX HEATING, VENTILATION & AIR CONDITIONING PRODUCTS % BY VALUE 70 CHART 38: UK MARKET FOR TIMBER & GLAZING PRODUCTS 2012 TO BY VALUE ( M MERCHSP) 71 CHART 39: PRODUCT MIX TIMBER & GLAZING PRODUCTS % BY VALUE 71 CHART 40: UK MARKET FOR BRICKS, BLOCKS, BUILDING ENVELOPE & CONCRETE 2012 TO 2021 ( M MERCHSP) 74 CHART 41: UK MARKET FOR CEMENT & PLASTER 2012 TO BY VALUE ( M MERCHSP) 75 CHART 42: UK MARKET FOR DOMESTIC KITCHENS 2012 TO BY VALUE ( M MERCHSP) 77 CHART 43: UK MARKET FOR PLUMBING & DRAINAGE 2012 TO BY VALUE ( M MERCHSP) 79 CHART 44: UK MARKET FOR BATHROOM PRODUCTS 2012 TO BY VALUE ( M MERCHSP) 80 CHART 45: UK MARKET FOR ROOFING & INSULATION 2012 TO BY VALUE ( M MERCHSP) 81 CHART 46: UK MARKET FOR DECORATING MATERIALS 2012 TO BY VALUE ( M MERCHSP) 83

8 CHART 47: PRODUCT MIX FOR 'OTHER' PRODUCTS % BY VALUE 85 The 'Builders and Plumbers Merchants Market Report - UK Analysis' costs 845+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on