Positive 5 year outlook for the UK ventilation and air conditioning market

Encouraging news for the UK ventilation and air conditioning market is significant and was estimated to be worth £1.17 billion in 2016. Growth has been steady since 2013, with the recovery in the UK economy stimulating construction activity, as well as consumer and business confidence levels. 

Although the market situation in early 2017 is more subdued, the current market forecast for remains moderately positive, with growth of around 3% per year from 2019 onwards.

The UK ventilation and air conditioning market exhibits the characteristics of an increasingly mature market. Positive influences on the ventilation and air conditioning market include increasing health, safety and energy efficiency legislation, revised Building Regulations and environmental legislation, and the generally increasing awareness about the importance of indoor air quality and energy use.

Considerable replacement and refurbishment opportunities are present in existing buildings;
there are still a large number of buildings with inadequate or inefficient VAC systems. In
addition, Government initiatives are also motivating the VAC market. For example, the
Enhanced Capital Allowance Scheme which offers up to 100% first year tax relief on a
number of energy saving plant and machinery, including VAC equipment.

Keith Taylor, Director of AMA Research, commented: “Following the UK Brexit vote in mid-
2016, the outlook for this market, like many others will depend on the path taken to exit the
EU and the type of trade and legislative deals formulated. By 2021 it is estimated that the UK ventilation and air conditioning market will have increased by 10 - 11% when compared to the estimated market size in 2017.”

Interested in a HVAC sales job? Find out more here>>

The future performance of the UK ventilation and air conditioning market is likely to be
influenced by overall trends in housebuilding and non-domestic construction, RMI activity,
fuel prices, energy efficiency legislation, renewable technologies, levels of personal
disposable income, plus climatic factors and air temperatures.

Enhanced levels of market penetration are also likely to arise from product innovation and
technological developments, for example variable speed drives, multiple scroll compressors,
EC motors, filter sensors and heat recovery systems. In recent years, there has been good
growth in VRF or VRV air conditioning systems, reflecting the fact that they offer more
efficient operation and can therefore save operational costs.

There is also increasing demand for intelligent ‘smart’ controls that can remotely manage
ventilation and air conditioning systems, as well as a greater emphasis on the integration of
VAC controls into the building management systems of commercial buildings.

The ‘Ventilation and Air Conditioning Market Report – UK 2017-2021 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.

Image: Shutterstock 305174123.jpg

Builders Merchants rewarded at Master Builder Awards!

Builders Merchants Federation (BMF) has partnered with the Federation of Master Builders (FMB) to reward some of the best merchants in the country alongside the UK’s best builders in the Master Builder Awards. It is really good to see the vital part the merchant sectors plays in the industry, slowly being more recognised.

The competition is judged in two stages, and the six Regional winners of the BMF Builders Merchant Award have just been announced. 

The Regional winners are:

• Midlands: E H Smith
• North: Milford Building Supplies
• Northern Ireland: Haldane Fisher
• South: Parker Building Supplies
• Scotland: Beatsons Building Supplies
• Wales: LBS Builders Merchants

John Newcomb, BMF CEO said: “The members of the BMF and the FMB are two halves of the same coin.  Both ultimately serve the communities in which they operate.  We were delighted to further cement our relationship with the FMB by adding to this year’s Master Builder Awards. The FMB Awards celebrate the work of small and medium sized builders who have demonstrated excellence both in their standard of work and their customer service.  Similarly, for the BMF Builders Merchant Award we were looking for local merchants – be they builders’, plumbing, heating, timber or decorating - who have focused on customer service to drive new business growth

 “We were delighted with the response and the quality of the entries and along with the FMB, we had a hard task selecting the six regional winners: We wish them all luck as they go forward to the national final.”

The national winner will be announced at the Master Builder Awards Ceremony presented by TV’s Nick Knowles and to be held at the Park Lane Hotel on 15 September 2017.

If you are interested in a builders merchant job, find out more here >>


Image: Shutterstock 

Job in Focus: Regional Sales Manager for Commercial Interior Products to Architects in South East - £55k + bonus

Our new Job in Focus is a senior management position. As Regional Sales Manager for the South East region you will be managing and leading a field sales team of 9 selling interior fit-out products via specification. You could earn £55k + 20% bonus and benefits.

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 DETAILS

Job Title: Regional Sales Manager
Job Ref: J9219
Product: Commercial Interiors
Location: London & South East
Salary: £55k

Manufacturer of interior fit out products targeting architects.

Basic salary of up to £55K with 20% bonus plus company car, mobile, laptop, pension and additional company benefits. 

EMPLOYER: Our client are a leading European manufacturer of interior fit out products with an excellent reputation for cutting edge technology and innovative new product development. 

JOB DESCRIPTION: Regional Sales Manager: The successful candidate will have 9 field sales reports. This is a senior level management position with the person responsible for ensuring that the team deliver on targets and providing guidance and direction. Covering the company's full range of high quality fit out products. Responsibilities including day-to-day leading and supporting of the team, budget negotiation, sales forecasting and key account management working with supply chain customers. 

LOCATION: Field based covering London, South East and East Anglia covering London, Middlesex, Greater London, Kent, Surrey, East Sussex, West Sussex, Essex, Hertfordshire, Hampshire, Buckinghamshire, Oxfordshire, Berkshire, Bedfordshire, Cambridgeshire, Essex, Norfolk, Suffolk 

CANDIDATE: We are seeking a highly motivated individual with experience managing a field sales team. This person should also have knowledge of specification sales and targeting architects. 

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

Read the key facts of the 2017 Q2 State of Trade Survey for UK Construction from the CPA

The CPA’s State of Trade Survey for 2017 Q2 reveals that UK construction product manufacturers experienced growth in sales and activity for the 17th consecutive quarter, but higher input costs and rising uncertainty has dampened manufacturers’ views for the near-term future.

Results of the survey showed that among heavy side manufacturers, only 7% anticipated a rise in sales in the next quarter, a decline from the 68% who anticipated a rise when asked in 2017 Q1. A sharp rise in input costs was also reported in Q2, with 93% of heavy side manufacturers and all of those on the light side reporting an increase in costs compared with a year earlier.

The strongest inflationary pressures came from raw materials, fuel and energy, owing to depreciation in Sterling during 2016, alongside skills shortages pushing up wage bills.


The construction products manufacturing industry has an annual turnover of £55 billion, directly providing jobs for 300,000 people across 22,000 companies. Products range from ‘heavy side’ materials such as steel, bricks, timber and concrete to ‘light side’ products such as insulation, boilers, glass and lighting. On an annual basis, 47% of heavy side firms reported that sales had increased in Q2, whilst on the light side, 45% of firms reported that sales were higher than a year earlier.

Rebecca Larkin, CPA Senior Economist said: “It was an eventful quarter on the political front, with the announcement of a snap general election and the resulting hung parliament adding to existing uncertainty over the path for Brexit negotiations. Despite healthy growth in the second quarter, construction product manufacturers have turned more pessimistic over performance for the rest of the year, reigniting concern that the triple hit of imported inflation in raw materials, higher fuel and energy prices and the persistent pressure on labour costs will have a negative impact on demand and construction activity over the next 12 months.

 "An increase in overall costs was reported by 93% of heavy side manufacturers and all of those on the light side. Inflation is expected to endure as similar proportions anticipate that costs will continue to climb over the next year. Government’s ability to progress the pipeline for large public sector and infrastructure projects is now more important than ever as a means of sustaining activity when private sector decision-making may be stalling.”

 Key survey findings include:

• A balance of 40% of heavy side firms and 55% of light side firms reported that construction product sales rose in the second quarter of 2017 compared with the first quarter
• On an annual basis, sales rose for 47% of heavy side firms and 45% of firms on the light side, on balance
• On balance, 7% of heavy side manufacturers anticipated a rise in sales in Q3, decreasing from a balance of 68% in the previous quarter
• On the light side, 20% of firms expected an increase in product sales in the next quarter, compared to a balance of 47% in Q1
• Annual cost increases were reported by 93% of heavy side manufacturers and 100% of those on the light side
• Raw materials costs rose according to 87% of heavy side manufacturers and 100% of those on the light side
• 93% of heavy side manufacturers and 90% of light side manufacturers anticipate a rise in costs over the next year.

The Construction Products Association represents the UK’s manufacturers and distributors of construction products and materials.  We are committed to raising the profile of our industry and members’ businesses, helping grow the market and reducing regulatory risk.  The sector directly provides jobs for 300,000 people across 22,000 companies and has an annual turnover of more than £55 billion.  The CPA is the leading voice to promote and campaign for this vital UK industry.

The CPA produces a range of economic reports including the quarterly Construction Industry Forecasts, Construction Trade Surveys and the State of Trade Surveys.  All are available to members or subscribers via our website.

Image: From shutterstock_136321814

BMF membership hits new high at 600 (six hundred!)

Membership of the Builders Merchants Federation (BMF) continues to rise, with the Federation welcoming Cardiff-based FW Morgan as its 600th member on 1 July.

Over the last five years, the BMF has developed and implemented a strategy that has seen positive benefits for every sector of the building materials supply industry. The result has been a surge in membership among merchants and their suppliers of every size and in every part of the country. FW Morgan, for example, is the 46th member of the nationwide h&b buying group to join the BMF.

John Newcomb, managing director of the BMF, said: “The BMF plays an extremely important role in representing the interests of our industry and has become the sector’s must-join body, with member numbers at their highest since 1995. We are the fourth largest construction trade organisation in the UK and our views are increasingly sought by policy makers at every level of government. Our voice is also receiving greater exposure in both mainstream and digital media, helping to build wider understanding of the merchant industry.”

If you are interested in a sales or marketing job in the builders merchant sector, find out more >>

UK construction sector recovery loses momentum in June

June data revealed weaker growth momentum across the UK construction sector, with business activity, new work and employment all expanding at slower rates than in May. Survey respondents commented on signs of renewed risk aversion among clients, reflecting concerns about the economic outlook and heightened political uncertainty.

The latest survey also indicated that construction companies were the least optimistic about their near-term growth prospects since December 2016.

At 54.8 in June, down from 56.0 in May, the seasonally adjusted IHS Markit/CIPS UK Construction Purchasing Managers’ Index® (PMI®) registered above the 50.0 no-change mark for the tenth month running. Although signalling a solid upturn in overall business activity, the rate of expansion eased from May’s 17-month peak.

Key findings:

• Business activity growth slows from May’s 17- month high
• Weaker rises in new orders and employment
• Business optimism eases to its lowest so far in 2017

Softer growth momentum was recorded across all three broad categories of construction activity. Residential building continued to outperform commercial work and civil engineering in June.

Moreover, the latest rise in housing activity was still the second-fastest since December 2015. Reports from survey respondents suggested that a lack of new work to replace completed projects had weighed on construction growth in June. Latest data indicated that new order growth eased to its weakest since March. A number of firms cited delays in decision making among clients, partly linked to heightened economic uncertainty.

Mirroring the trend for new business, construction companies reported the slowest rise in employment numbers for three months in June. Some survey respondents noted that concerns about the business outlook had led to the non-replacement of voluntary leavers. Reflecting this, the index measuring construction firms’ expectations for growth over the next 12 months was the lowest so far in 2017.

Meanwhile, demand for construction materials continued to rise at a solid pace in June, with the rate of expansion holding close to May’s 16-month peak. A sustained upturn in input buying placed pressure on stocks held by vendors and resulted in longer delivery times for construction materials. 

The latest deterioration in supplier performance was the second-sharpest since March 2015.

UK construction companies reported another steep increase in their average cost burdens in June. The overall rate of inflation rebounded since May and was the strongest for three months. Reports from survey respondents mainly commented on the weaker sterling exchange rate feeding through from manufacturers. Some firms also noted that a combination of resilient demand for construction materials and stretched supply had underpinned the latest round of price rises by vendors.

Comments
Tim Moore, Senior Economist at IHS Markit and author of the Markit/CIPS Construction PMI®, said:

“The construction sector experienced a growth slowdown in June, largely reflecting weaker rises in commercial building and civil engineering activity. Residential construction work continued to increase at one of the fastest rates since the end of 2015.

“Survey respondents commented on renewed caution among clients, in response to heightened political and economic uncertainty. Fragile business sentiment led to delayed decision-making on large projects and greater concern about the outlook for workloads during the next 12 months. While construction firms remain upbeat overall about their near-term growth prospects, the degree of confidence fell to its lowest so far this year.

“Despite a softer rise in construction output, the latest survey revealed that supply chain pressures were among the most intense since early-2015. June data also pointed to strong input price inflation, driven by resilient demand and upward pressure on costs imported construction materials.” 

Duncan Brock, Director of Customer Relationships at the Chartered Institute of Procurement & Supply, said:

“The construction sector’s confidence took a knock this month as optimism fell to its lowest reading in 2017 and clients became more restrained in placing new orders. Respondents cited continuing uncertainty in the run up to the election and Brexit negotiations for the hesitancy. But, the housing sector continued to have the most get-up-and-go with the second fastest rise since December 2015, leaving the other sectors lagging behind.

“While new business wins were less in evidence, demand for materials remained high as suppliers scrabbled to meet the need for a number of materials in short supply and their performance worsened as their delivery times lengthened. The availability of skilled workers still remained an issue, with the slowest rise in employment levels for three months as a lack of new orders translated into restricted levels of hiring.

“With some doubt edging into the psyche of the construction industry about positive trading
conditions, the sector will be guarding against continuing higher input prices with another eye on the possibility of rising interest rates as well.”

Job in Focus for July: National KBB Sales Director for House Builders - £80k OTE

Our new Job in Focus is for a Sales Director heading up a team of 6 targeting the house builder and main contractor market for KBB products. You will be tasked with growing turnover and managing senior level negotiations at head office level. The position is worth a potential £80k plus benefits.

You will be tasked with growing both the turn over of the division as well as the size of the team. It is a national role.

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 DETAILS

Job Title: Sales Director - House builders
Job Ref: J9146
Product: KBB
Location: National
Salary: £60k + 20k bonus.

SUPPLIER OF HIGH QUALITY KBB PRODUCTS TARGETING THE HOUSEBUILDER MARKET 

Package: Basic salary of up to £60,000 plus up to £20,000 bonus, company car, pension, mobile, laptop and 25 days holiday. 

Role: Business Development Director - Our client is looking for an experienced sales manager to head up a team of 6 targeting the house builder and main contractor market marketing a fantastic range of kitchens and bathrooms. You will be tasked with growing both the turnover of the division as well as managing senior level negotiations at head office level. This is largely a strategic role with the person being heavily involved in developing and implementing sales strategies, competitor analysis and forecasting. 

Location: National coverage but ideally living with good motorway access in the Midlands ideally in West Midlands, Warwickshire, Herefordshire, Worcestershire, Staffordshire, Shropshire, Nottinghamshire, Northamptonshire, Derbyshire, Lincolnshire, Leicestershire but candidates will also be considered living at other central location elsewhere in the UK 

Candidate: We need someone who can represent a brand at top level with key decision makers in the boardroom. The client is open on product and customer base experience but they must have managed a field based sales team in the construction market. and be used to targeting house builders or main contractors. 

To apply for this role or discuss your career opportunities further please contact Natalie Matthews on 01480 405225 or apply online.