Monday 28 May 2018

High performance products drive value growth in the UK building boards market

The market for building boards in the UK was estimated to be worth just over £1.1bn at manufacturers selling prices in 2017 states a new report from AMA Research. 

Products included in AMA’s definition are; rigid and semi-ridged polymer boards, gypsum plasterboards and specialist building boards.

The building boards market showed substantial growth between 2014 and 2016, with average annual rates of 6%, however, 2017/18 has seen some slowing of growth in construction activity leading to more modest growth in demand for building boards.

Demand for rigid polymer insulation, drylining and specialist boards is largely driven by developments in new housing, commercial newbuild and, to a lesser extent, domestic
extensions, loft conversions and non-domestic refurbishment. In 2017, demand was impacted by some slowing down in housebuilding growth rates and non-residential new work, particularly in the offices sector, in large part due to the uncertainty surrounding the Brexit process that has affected the timing of business investment decisions.

As a result, volume sales of building boards have been constrained, contributing towards a slowdown in overall sales growth in 2017. However, this relatively low volume growth has been partly offset by a rise in average prices due to a shift towards higher specification drylining, thermal insulation and fire protection boards. This, in turn, is being driven by ever tighter building regulation requirements and the need for products offering higher levels of performance with regards to fire safety and building insulation - both thermal and acoustic.

Factors driving market growth include the trend towards specifying more value-added, higher performance, products in preference to standard alternatives and the increasing use of newer methods of accelerated construction, including timber frame building and offsite modular construction, which favour the use of higher performance insulation, lining or sheathing boards.

In terms of end use applications, it is estimated that nearly half of all boards are used as permanent partitions in commercial and public access buildings, and internal walls in dwellings, with nearly a third used for the internal faces of outside walls, mostly on new dwellings. There is also a significant volume of boards supplied direct to manufacturers of offsite building systems. These include suppliers of volumetric units and closed panel timber frame and steel frame systems whereby drylining and sheathing boards are fixed at the point of manufacture.

Specialist distributors account for the largest distribution share of the building boards market, and primarily supply products direct to the trade for commercial and volume housebuilding schemes, although they also supply smaller builders’ merchants. Builders’ merchants account for the next largest market share and mainly depend on sales to the trade operating within the RMI and small building sectors. The direct sales sector also has a notable share, mainly comprising of offsite manufacturers they predominantly supply timber and light steel building systems and volumetric modular buildings.

Forecasts are for steady growth of around 3% per annum through to 2022, reflecting modest growth prospects in the construction industry. This assumption is based on indications that demand for value-added boards and accelerated construction methods will continue to increase, but that overall market growth will remain modest. However, impacts from political or economic events, particularly those relating to the UK’s departure from the EU, mean that the prospects for construction output remain clouded by uncertainty.

The ‘Building Boards Market Report – UK 2018-2022’ report is available now and can be
ordered online at www.amaresearch.co.uk or by calling 01242 235724.

Wednesday 16 May 2018

Job in Focus: National Sales Job for Heating Products to M&E - £70k

Our latest Job in Focus is a National Field Sales Executive role for Heating Products with a £70k OTE.

You will be responsible for selling a range of heating systems dealing with a range of specifiers including M&E consultants, architects and main contractors.

Our Construction & Building Industry Job in Focus feature takes a detailed look at some of the fantastic sales & marketing construction and building materials job vacancies currently on our books. 

Job in Focus is also promoted on our website. www.pinnacleconsulting.co.uk 


JOB IN FOCUS FULL DETAIL













Job Title: Field Sales Executive
Job Ref: J10401
Product: Heating & Plumbing
Location: National
Salary: £50k

Manufacturer of heating products. Selling to architects, M&E consultants and contractors

Package: Up to £50K with £70K OTE. Company Car, Mobile, Laptop, Pension. 

Employer: Innovative manufacturer of heating products. Leading brand name with an excellent culture and personal development opportunities. 

Job Description: You will be responsible for marketing the client's range of heating systems dealing with a range of specifiers including M&E consultants, architects and main contractors and following projects through to order. 

Area: National role with a London focus - Candidates will ideally live around the south-east i.e. Hertford, Dartford, Guildford, Reading etc. as you will spend the majority of your time in London. 

Person: We are seeking a proven specification professional with strong consultant and architects contacts. The ideal candidate will come from a heating product background but the client is open to any mechanical or electrical product background. 

For further information or to discuss your career options contact Luke Rootham on 01480 405225 or apply online.

Tuesday 15 May 2018

UK Construction growth rises at its fastest pace for five months!

Some great news! Growth in the UK construction sector rose at the fastest pace in five months in April as it rebounded from March’s snow disruptions.

The IHS Markit/CIPS UK Construction Purchasing Managers’ Index climbed to 52.5 in April, up from March’s 20-month low of 47 and against the neutral reading of 50.

Residential work was by far the best-performing category, expanding at the fastest pace since May 2017, while commercial and civil engineering recorded modest returns to growth.

There was a renewed rise in new order volumes in April but the rate of new business expansion was only marginal, with anecdotal evidence of heightened economic uncertainty and subdued confidence.

Supply chain pressures remained marked with low stocks and shortages of transport capacity contributing to a further lengthening of delivery times for construction materials.

Input cost inflation was unchanged from March’s 20-month low, with reports that higher fuel and steel costs pushed up operating expenses.

Duncan Brock, group customer relationship director at CIPS, said: “The effects of the previous month’s bad weather were echoed in April as supply chains stayed under the cosh again. Besieged by raw material stock shortages and capacity difficulties, suppliers tried to catch up on their delivery commitments with limited success. Transportation times were still lengthy for construction materials for projects already in the pipeline.”

Sunday 13 May 2018

Construction Output Fell by Over £1 Billion in Q1

ONS figures published last week show that construction output decreased 2.7% in the first quarter of 2018. The fall was broad-based but was led by an 8.8% decline in public house building activity and a 5.9% reduction in public non-housing work. Private housing output recorded a fall of 1.6% over the quarter. Compared to a year earlier, total output was 4.9% lower during Q1.

Rebecca Larkin, Senior Economist at the Construction Products Association, commented: “This release confirms what was reported in preliminary GDP data: construction had a poor opener to 2018. The 2.7% contraction in output was revised up from the initial estimate of a 3.3% decline, but this still represents the weakest outturn since August 2012 and a £1.04 billion loss in output in three months.

“Output declined in each month of the quarter, undoubtedly capturing the pauses in work relating to Carillion’s liquidation in January and the snow disruption in February and March. Notably, private housing lost its position as the industry’s star performer, with output falling from a record high, but activity is expected to accelerate as we enter the Spring selling season.”

Tuesday 1 May 2018

UK market for bricks, blocks and precast concrete products at highest level since 2007

The market for bricks, blocks and precast concrete products was worth over £2.1bn in 2017 and has grown by around 10% in value terms since 2015, and by almost 50% since 2012. This is the highest value achieved since just prior to the recession in 2007, and market value is forecast to exceed this in 2018, according to a new report from AMA.

The products covered in this market are bricks, blocks, precast concrete and natural and cast stone products, with precast concrete products representing the single largest product sector.

“Growth in this market has been underpinned by recovery and rapid recent growth in the housebuilding sector in particular, as well as higher levels of output from key non-residential sectors including infrastructure, commercial offices, education and entertainment & leisure. Non-residential output remains somewhat volatile, particularly since the EU vote, which introduced a level of uncertainty affecting both business confidence and levels of investment” commented Keith Taylor, Director at AMA Research.

There are negative factors currently impacting growth in the market. Lower levels of consumer confidence and downward pressure on household incomes have impacted private RMI activity and are likely to constrain spending going forward with little signs of the squeeze on household disposable incomes being relieved. Additionally, both the bricks and blocks sectors have experienced recent supply issues as suppliers have struggled to cope with the significant rise in demand.

Demand for bricks has accelerated since the housebuilding sector returned to growth in 2014 and entered a period of sustained recovery after several years of volatility. In March and May 2017 brick sales in the UK rose to their highest levels for a decade and builders’ merchants and other distributors were reported to be replenishing stock levels after an industry-wide destocking in early 2016.

The precast concrete blocks market is also performing well, and in 2017 sales reached their highest levels in a decade in value terms following 14% growth over the period 2015-2017.

One of the most important drivers of this growth has been the significant and sustained rise in housebuilding activity, with the residential sector a heavy user of a wide range of precast concrete products, including blocks. Demand is also underpinned by positive trends in nonresidential construction where the main drivers for growth are the infrastructure, education and commercial office sectors.

Precast concrete structural products comprise of precast flooring, precast panels, panelised building systems and miscellaneous precast products such as structural frames and columns. Demand for precast concrete structural products has continued to rise, with the market worth 25% more in 2017 than in 2013. Output is strongly linked to the performance of sectors such as infrastructure, education, commercial offices, industrial, and entertainment & leisure – all strong users of precast concrete structural products.

Going forward, the individual product categories covered in the report are all expected to continue growing. However, the annual rates of growth are likely to be lower than those experienced 2013-16, at around 2-3%, but expected to rise more strongly 2021-22, once the Brexit-related uncertainties have been resolved and the market begins to regain some stability. Future demand will be underpinned by sustained growth in residential output, although the rate of growth, in terms of both newbuild and RMI, is expected to be slower than that experienced 2013-16.


The ‘Bricks, Blocks and Precast Concrete Products Market Report – UK 2018-2022’ 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.