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.

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.

UK healthcare construction prospects are brighter than they have been for some years

A new report from AMA Research has stated that health sector construction output increased by 7% in 2016 to reach £3.1bn, followed by a 6% increase in 2015. Prior to this, the sector had experienced four years of declining output between 2011 and 2014. 

Into the medium- term, AMA Research expects steady, if moderate, growth in healthcare construction output, with annual rates of growth of 3-5% currently forecast to 2021 as work on small hospital projects is boosted by privately-funded projects under PF2.

Health output has benefited from the hospital building programme initiated by the previous government, much of which was delivered under PFI programmes. Despite a handful of large PFI hospitals still expected to complete over the next couple of years, the emphasis is now firmly on smaller acute projects through Procure21+ and Procure22 and in the primary care sector on GP surgeries/health centres through ExpressLIFT. Public sector output has however experienced fluctuations due to budget cuts impacting on the sector.

As a result of GP-led commissioning and financial constraints, the procurement of services to the NHS, including construction, are increasingly looking towards increased partnership with the private sector. A further driver is also taking place in the acute healthcare sector with the creation of NHS Foundation Trusts, under which hospitals can generate their own income. As a result, there has been a rise in private providers refurbishing part of existing hospitals, adding extensions, new-build facilities or even taking on the full operation of a hospital.

Future prospects look relatively bright, with the Government having announced a forward pipeline of around £5.7bn worth of capital projects in the healthcare sector between now and 2020, and beyond. This includes nearly 600 individual health projects under almost 100 schemes, which are mainly spread across the English regions, of which there are around 10 large NHS-led capital programmes, in addition to smaller works and capital programmes procured via the Procure 21/Procure21+ frameworks. However, whilst the Department of Health was allocated £4.8bn for capital investment for each year to 2020-21 in the 2016 Budget, this represents a real-terms cut of 1.7% per year.

The moderate forecast of 3-5% growth per annum is based on the steady level of health sector new orders over the last 2-3 years, and the focus on delivery of local services and chronic disease prevention initiatives put forward by successive Governments. Health RMI into the medium-term is also likely to remain positive but moderate and there are likely to be significant regional differences, especially where demand for key services is high. The focus on partnerships to drive increased efficiency and productivity, whilst lowering construction and maintenance costs is forecast to continue.

Keith Taylor, Director of AMA Research, commented: “The key construction opportunities in the healthcare sector are likely to be in the primary care sector and this may entail further opportunities for the development of hub facilities and integrated GP premises, while in the acute and secondary sector, much of the medium-term is expected to lie in refurbishment and extensions. Contractors will also be interested to see how new procurement routes and private finance initiatives, including P22, will be used to procure work in the health sector in 2017/18 and beyond, with the expiration of the Express LIFT framework and future options for health PPPs being explored.”

The ‘Healthcare Construction 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.

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UK electrical wholesale market to grow by 14% over the next 5 years

In 2016, the electrical wholesalers market was estimated to have grown by 4% compared with 2015. And it forecast to grow 14% over the next five years.

Following a period of consistent growth since 2013, supported by a strengthening economy and improved construction output, growth is estimated to have slowed in 2016 as uncertainty about the impact of ‘Brexit’ constrained construction output, raw material prices declined, and Government austerity measures continued to restrain public sector markets. These factors are expected to continue to limit the market growth somewhat in 2017/18.

There are plenty of factors supporting the market however, including growth in specialist markets, product development, demand for additional services and non-core products, and evolving legislation leading to a requirement for higher specification and new products, in addition to an improving economic and construction background and improved consumer confidence. Wholesalers’ margins have also continued to improve over the past 2-3 years.

Factors currently affecting market growth negatively include continued public sector budget constraints, uncertainty over the outcome of a Brexit process, price competition with many products in the mature phase of their life cycle, threat from competitive channels and longer product life-spans reducing the replacement market. The decision to significantly reduce Feed in Tariffs, is also impacting negatively on the renewables sector, a market that had offered good potential to wholesalers.

Cables and lighting remain the largest product sectors within the electrical wholesale market, accounting for almost 50% of the value of products sold. Product sectors experiencing relatively good performance in the current market include electrical accessories such as cable systems, circuit protection and wiring accessories as well as lighting and newer product areas such as smart control and automation, with product development primarily driven by environmental concerns, renewable energy issues and energy efficiency, motivating demand for more efficient products and more sophisticated control and testing equipment.

Electrical wholesalers remain market leaders in the distribution of electrical products and are particularly strong in core product areas such as electrical accessories and lighting equipment. Whilst the wholesalers’ share of lighting is currently marginally down on historical levels as newer LED technology has a higher proportion of direct sales, this is unlikely to be a long-term trend, with wholesalers expanding LED ranges and gaining knowledge and experience in the field.

“The electrical wholesaler market continues to be dominated by three large companies, which together account for the majority share of the market” said Keith Taylor, Director of AMA Research. 

“However, some newer entrants to the electrical wholesaler market, which offer a multi-channel approach coupled with more transparent pricing, have seen rapid share growth in recent years, and could potentially threaten the hold of the ‘Big three’ in the future.”

The wholesalers also face significant competition from the direct sales and specialist distributor channel, as well as internet retailers, merchants and electronic component distributors.

The electrical wholesaler market is expected to continue to grow in the short to medium term, although at a more modest rate, with current forecasts for construction output more cautious due to the uncertainty of the outcome of Brexit and continued restrictions in the public sector. From 2017, average growth levels of 2-3% per annum, with overall growth between 2016-2021 of 14%, is forecast. Obviously, the withdrawal from the European Union will have an impact on the overall economy and the construction industry, though quite what this impact will be remains to be seen.  Price increases will also have an impact.

Going forward, electrical wholesalers are expected to continue to widen product portfolios, introduce additional value-added services and embrace e-commerce to become more flexible and remain competitive. The development of niche product sectors will provide an opportunity to add value and differentiate on a basis other than cost, reducing price sensitivity.

The ‘Electrical Wholesale 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 in 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.

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UK water heating market to grow by 10% over the next 5 years

The value of the UK water heating market increased by a modest 1% in 2016, according to a news report by AMA Research. The market for domestic and non-domestic water heating products has seen relatively steady growth overall since 2013, with the recovery in the UK economy stimulating construction activity as well as consumer and business confidence levels. In addition, the growing concerns about energy efficiency and the environment have a positive influence on this market. It is forecast that the UK water heating market will increase by around 10% between 2017 and 2021. 

The Water Heating market has been an area where at Pinnacle Consulting we have seen a marked increase in employment and activity over the last 24 months.

The core product sectors of the UK water heating market include hot water storage systems, which account for an estimated 67%, followed by instantaneous water heaters and boiling water heaters and taps. The majority of water heating products are distributed via the trade channels such as builders/plumbers’ merchants, electrical wholesalers and specialist heating distributors. In addition, there are an increasing number of products sold via online retailers or manufacturer’s own websites.


The number of homes with hot water storage has declined significantly in recent years, with the vast majority of new homes now having a mains pressurised system installed as standard - predominantly in the form of an unvented storage cylinder in larger properties, and a combination boiler in smaller to medium properties and apartments. Sales of vented cylinders have declined significantly as a result of this shift, and are now almost entirely installed in replacement applications. Sales of mains pressurised systems have been driven by the increasing level of domestic hot water consumption, influenced by lifestyle factors such as demand for high performance showering and multi-bathroom properties.

The market for instantaneous water heaters has seen some moderate growth more recently, particularly in the commercial sector. However, demand for multi-point instantaneous water heaters has been negatively impacted by the development of the market for combination boilers. This sector is dominated by replacement demand, which is a large, but declining market.

The market for boiling water heaters for hot drinks has seen good growth over the last 5 years, particularly in commercial applications such as offices, staff canteens and factories. In addition, there is an increasingly significant market for boiling water taps in the UK. Trends in the market include; a move towards more energy efficient systems; a growing number of pre-plumbed unvented systems being used in the new build sector; and the introduction and growth of IoT devices in the heating market over the last 2-3 years, with smart heating controls that can manage both the heating and hot water increasingly available.

“Although the market situation in early 2017 is slightly subdued, the current forecast for the UK water heating market remains moderately positive, with more steady growth from 2018 onwards” said Hayley Thornley, Market Research Manager at AMA Research. “Following the UK Brexit vote in mid-2016, the outlook for this market is very much dependent on the path taken to exit the EU and the impact this has on the construction sector and consumer confidence.”

It is forecast that the UK water heating market will increase by around 10% between 2017 and 2021. Aside from economic factors, the future performance of the UK water heating market is likely to be influenced by overall trends in house building and construction, RMI activity, fuel prices, energy efficiency legislation, renewable technologies, levels of personal disposable income and changing patterns of hot water consumption.

The ‘Water Heating 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

Find out the future trends to influence the UK Domestic Central Heating Market

A new report from AMA research takes a detailed look at the future of this market over the next 4 years and is available now to order. Despite being a mature market, it is still expected to have an increase in value of 14% by 2020.

The UK domestic heating market has benefited from a number of Government initiatives in recent years, along with growth in the new housing sector. Other key trends include the wider use of smart heating controls and an increased focus on energy efficiency. The report reviews developments within the industry, with emphasis on both qualitative and quantitative market assessment - both essential requirements to good marketing planning. Recent trends, key influencing factors and future developments are assessed.

The UK domestic central heating market is substantial, with an estimated total value of around £1.1bn at manufacturers’ prices in 2015. While the market is mature with central heating installed in around 92% of UK homes, growth potential still exists, particularly through smart heating innovation, used to improve energy efficiency and control.

The UK market for central heating saw a notable increase in 2013, with demand in 2014 also reasonably positive, though performance has been much more subdued in 2015/16, reflecting the withdrawal of the ECO scheme and the Green Deal affecting boiler sales in particular. However, the market has benefitted from the introduction of smart heating controls in the past 2-3 years, and demand from the new housebuilding sector has continued to increase.

The UK domestic central heating market has benefited in recent years from increasing health, safety and energy efficiency legislation, revised Building Regulations and environmental legislation. This has stimulated product innovation and development in all sectors of the market. The widespread introduction of smart heating controls has also supported demand, with all of the Big 6 energy companies having added a smart thermostat to their home energy management portfolio. UK householders are becoming much more environmentally aware and are looking towards smart heating solutions in order to minimise energy usage and to save money. Factors which have limited opportunities for growth include the continuing trend towards greater levels of property insulation, driven by further 2014 revisions to Part L of the Building Regulations, which have tended to reduce the overall heating load. 

The future performance of the UK domestic heating market is likely to be influenced by overall trends in housebuilding, home improvement, fuel prices, energy efficiency legislation, renewable technologies, and technological developments. With the evolving trend towards smart IoT devices in the home, the development of smart heating controls will have a significant impact on the overall domestic central heating market. There also continues to be significant opportunities to upgrade existing boilers to the more fuel-efficient condensing models. Around 40% of all boilers installed in the UK are non-condensing models. However, there will still be many homeowners who will continue to demand more conventional solutions. Real benefits such as ease of use and convenience will continue to be the primary focus of many conventional heating controls suppliers.

The outlook for the UK domestic central heating market in late 2016 remains relatively flat, with an uncertain UK economy following the UK ‘Brexit’ vote. However, more steady growth is anticipated from 2018 onwards, driven by the replacement sector and the increasing concern regarding energy efficiency and energy costs etc. By 2020, it is estimated that the UK domestic central heating market will have increased by 14% in value terms, compared to 2016. 

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Builders’ merchant market is set for healthy 2016

A new report on the builders’ merchant market from MTW Research provides a fresh, comprehensive review of the UK Builders Merchants Market in 2015 with forecasts to 2019. It has found that 70% of merchants are experiencing growth in revenue and profitability in come the end of the year and also expect sales set to rise above inflation in 2016. 

The report has been written specifically for building product manufacturers, distributors and builders merchants, and is available now in a variety of formats for use in your market intelligence reports, presentations and is designed for sharing with colleagues.

The report represents a review of the UK builders merchants market providing statistically valid, reliable and vital market intelligence for any company selling to builders merchants or for the merchants themselves to undertake an in-depth review of their competitive environment.  

If you are are interested in a sales job in the builders' merchant market, you can find out more here.>>>

The methodology for this report is based on the last 3 years of financial data from more than 100 builders merchants, coupled with a wide range of secondary sources from websites, Companies House, HM Government, trade journals, credit reference agencies, industry commentators and our own experience of researching this market for more than a decade. The report is also unique in that a 2014 turnover and profit estimate is provided for every company reviewed. 

There was encouraging news for the building product manufacturers and suppliers as, based on industry sales, the research untaken for the report showed that their was sustained growth in heavyside sales this year. The report also revealed that key growth sectors have included domestic new build and commercial refurbishment.

The report forecasts market sales growth to 2019, and although this does vary across different markets, the general message is one of optimism for most building product sectors.

Contractors are set to increase their expenditure on tools and equipment in 2016 which should further boost the merchants next year.

Commenting on the findings, Mark Waddy, director at MTW Research, said: “There are clear indications of strengthening profitability for most merchants, tempered to some extent by rising debt levels. Nevertheless, our forecast models indicate that merchants profitability will rise by around 30% in the next few years, underlining a fundamental strength in the market for 2016 and beyond.”

Prospects are for builders’ merchants to benefit from growth in several end use sectors, notably the private house building market and private refurbishment within housing and non-housing applications.

While public expenditure will decline in the current Parliament, MTW Research indicates that this ‘slack’ will be more than accounted for by growth in the private sector refurbishment and newbuild sectors.

The report also points to an increase in demand from the industrial construction and refurbishment sector as business confidence strengthens, sustaining demand growth for builders’ merchants.

The report forecasts relatively healthy sales growth for the next few years to 2019 and indicates that profitability has now fully recovered from the legacy of the recession when income troughed at 60% of current levels. While there remains turbulence for some sectors in the builders’ merchants market, MTW Research’s report presents a generally positive view of current trading conditions, identifies several opportunities for growth and forecasts positive future prospects for builders’ merchants and their suppliers.

Prospects are for builders merchants to benefit from growth in several end use sectors, notably the private house building market and private refurbishment within housing and non-housing applications. Whilst public expenditure will decline in the current Parliament, MTW indicate that this ‘slack’ will be more than accounted for by growth in the private sector refurbishment and new build sectors.   The report also points to an increase in demand from the industrial construction and refurbishment sector as business confidence strengthens, sustaining demand growth for builders merchants.

The research report is available now from MTW Research’s website here, or by calling 0845 652 4324.

Power tools in demand due to technology improvements and more in-store visits

New research from 'AMA' shows that demand for power tools has benefited from product innovation such as lithium-ion battery and brushless motor tools, which has helped drive sales. 

Hand tools has remained a steady sector, while 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. 

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, according to AMA. 

The internet has prompted a change in buying behaviour, with 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 tool market is forecast to continue growing in 2015, say AMA, 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 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." 

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UK Ventilation and Air Conditioning market back in growth

One by one most sectors of the building and construction industry are returning to growth, and the latest report from AMA Research confirms the positive thoughts in the last 18 months of our clients in the Ventilation and Air Conditioning market. 

The report revealed that the UK ventilation and air conditioning market experienced growth of 4% in 2014, and by the end of 2019 market value is forecast to have reached a value in excess of £1.2bn. Though growth rates expected between 2015 and 2019 can be considered moderate, this marks a turnaround for a market that has seen static conditions at best since the beginning of the economic downturn. 

The largest product sector is air conditioning systems, which account for over half of the market by value, followed by ventilation products and VAC accessories. Positive influences on the ventilation and air conditioning market in recent years have included increasing health, safety and energy efficiency legislation, revised Building Regulations and environmental legislation, all of which have stimulated product innovation and development.

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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. More specifically, initiatives include The ErP Directive for ventilation fans, the European Ozone Depleting Substances (ODS) Regulation, the CRC Energy Efficiency Scheme which targets emissions from large public and private sector organisations, EU Fire Legislation and general concerns relating to fire and smoke precautions and The Green Deal.
Enhanced levels of market penetration are also likely to arise from product innovation and technological developments that will lead to an overall increase in system efficiencies. For example, variable speed drives, multiple scroll compressors, EC motors, heat recovery and demand control ventilation.

“In general, the UK ventilation and air conditioning market exhibits the characteristics of an increasingly mature market with manufacturers developing brand and product differentiation and niche specific sectors in order to secure competitive advantage” said Keith Taylor, Director of AMA Research. “The relatively wide range of end use sectors and specialist applications for UK ventilation and air conditioning products represents a supporting factor to underpin the long term market development.”

The current forecast is based on steady growth in the economy and on business and consumer confidence levels. By 2019 it is estimated that the UK ventilation and air conditioning market will have increased by around 10% when compared to the estimated market size in 2015.

The ‘Ventilation and Air Conditioning 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.

Open those doors and windows!

The UK market for replacement domestic doors and windows is an important part of the housing market, but it is also a mature sector, and volumes have been in steady underlying decline. 

The good news, revealed in a recent AMA Research report, is that the market returned to value growth in 2014, partly due to rising consumer confidence and an improving housing market. We take a more detailed look at some of the findings...

PVC-u is still King
The dominant position of PVC-u, especially in the windows and patio door sector, is a key feature with the PVC-u dominated direct sell route to market particularly strong in these product sectors. Aluminium and timber also retain shares, though aluminium is largely restricted to specific applications or products. Composite doors have gained significant market share and have grown rapidly in popularity in recent years.

Some major restructuring has been seen in this sector in the last 2 years, with further rationalisation anticipated at all levels of the supply chain. In particular, the composite door sector has seen significant change in terms of acquisitions and companies exiting the market in 2013/14.

If you are looking to recruit in the windows and door sector, or are looking for a job in the sector, contact Pinnacle Consulting on 01480 405225 to visit our website >>>.

Growth set to continue
The forecast for the development of the door and window replacement market for 2015 is for further good growth in the region of 5%, given continued growth in the general economy, strong consumer confidence and a good housing market. For the longer term, forecasts are for steady recovery of around 2-3% growth, reflecting market maturity and a steadily rising economy – though growth rates are unlikely to be buoyant on a sustained basis.

“We anticipate that, certainly in the short term, the market will be primarily driven by demand from the private rather than public sector, because of the impact of cuts in government spending for the forecast period” said Andrew Hartley, Director of AMA Research. “However, a return to the volumes seen in the 1990s is not likely. Increases in the market will be limited by a number of factors including the maturity of the market, high household penetration levels, and the extended lifespan of door and window products.”

Legislation may further increase growth
New legislation may encourage replacement of windows and doors to some extent, as regulations for thermal efficiency etc. become stricter over time, while security and appearance will also drive second/third-time replacement. New niche sectors also continue to offer opportunities – bifold doors have been a recent example as homeowners look to open up access to their garden areas with large, flexible glazed areas.

By 2019, it is expected that the market for domestic replacement windows and doors will reach a value of around £2.5bn at retail selling prices. In the longer term, the UK replacement door and window market is likely to see further consolidation at all levels.

The ‘Domestic Replacement Door and Window 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 Flat Roofing market is showing encouraging signs of improvement

There has been encouraging news for the flat roofing market in the latest AMA Research report, which indicates improvement during the last two years. It has grown by around 3.5% and reached around 28 million m sq. in 2014 (in terms of area of waterproofing membranes fitted by metres sq.)

It also showed that some flat roofing products, e.g. PVC single ply membranes and liquid roofing systems, fared better than others, due to factors such as greater ease and speed of installation, lower cost and wider ranges of colour finishes available to specifiers. All key areas that produce development and marketing professionals should take heed of.

Are you a sales or marketing professional looking for a new job in the roofing market? Find our more >>>

Which sectors are showing growth?
Mirroring many of the vacancies in the flat roofing market that we have filled on behalf of our clients, since 2012, key areas of growth in demand have included commercial offices, schools, leisure facilities, warehouses and infrastructure buildings. 

However, maintenance and repair work is also a key area of activity. Basic repair work by jobbing builders, using traditional bitumen felts, as opposed to higher performing reinforced bitumen membranes (RBMs) is a significant factor in the market and has also helped to sustain the market in recent years.

Type of product selling
Waterproofing membranes are the most extensively used product on flat roofing works as they are used on all applications from basic repairs to complete new installations. Bitumen products have the largest share although these range from basic, single layer felts used on garage roofs to higher performance, triple layered reinforced bitumen membranes (RBMs) used on large newbuild developments.

Distribution trends
The supply of waterproofing membranes is concentrated among relatively few suppliers, which are also key suppliers of vapour control layers, and the supply of insulation products is also limited to a relatively small number of UK manufacturers. While there is significant production of bitumen membranes and felts in the UK, import levels are significant, in particular within the single membrane and liquid waterproofing sectors.

Distribution is largely split between the specialist roofing merchants and general builders’ merchants, typically supplying smaller contractors and general builders, and also direct sales to contractors working on large projects. The contracting sector is polarised between a large number of very small, local firms and a relatively small number of national and large regional businesses.

Future outlook
Over the medium term, to 2019, it forecast that demand will increase owing to growth in the development of key new build markets, notably industrial buildings and commercial offices, internet warehousing, free schools & city academies, university buildings and leisure facilities.

In the industrial sector, it is anticipated that there will be a surge in growth in advanced manufacturing and R&D, with universities and property developers pushing forward with developments in Enterprise Zones, where there is a focus on building factories and research facilities.

“Contractors output in the education sector is also expected to grow, mainly due to greater capital commitments among universities and Free schools and also Academies” said Keith Taylor, Director of AMA Research. “Budget reductions in public sector capital programmes will impact on the market, however, with the public sector schools and healthcare sub-sectors mainly affected”.

The ‘Flat Roofing Market Report – UK 2015-2019 Analysis’ report is published by AMA Research. The full report is available now and can be ordered online here.

Homeowners prioritise the kitchen for renovation more than any other room

The new Home Wrenovation Survey reveals that almost 50% of all households give more attention to renovating and decorating their kitchens than any other room in their house. 

Kitchens are seen as the centrepiece of the home, where we do everything from socialising and cooking, to watching television and completing work. Add in all of the extra work involved in crafted and installing a kitchen and you start to understand why we give this room the most attention. Off course, you find the kettle in the kitchen, and whatever room you're working on, the kettle is one of the most important tools of any tradesperson or DIYer!

Around 63% of the 1,788 people surveyed also said that the kitchen is the room they spend the most money on when renovating or decorating. Just 8% of homeowners said that the bathroom was their biggest renovation expense.

The survey also found that 91% of UK households within the £70,000-£80,000 salary bracket redecorate yearly.

Just over 50% of those surveyed said that they would do DIY tasks themselves, whereas 27% said they would hire someone and 22% said their partner would do the work.

Interestingly, the largest age bracket that stated they would take on DIY tasks themselves was those aged 18-24, with 95% of homeowners in that bracket stating they would get involved in DIY tasks. As people get older, busier and richer, they are much more likely to hire someone to do the job.

Pinnacle Consulting UK Ltd

With the KBB market on the increase it is a fantastic time to get a new sales job in the sector, call us on 01480 405225 to discuss your career. More on KBB Sales and Marketing Jobs >>.

View the full report >>.

What factors are underpinning investment in the Construction Products Industry?

A new study by the Construction Products Association has been published to help understand the economic, political and regulatory landscape facing the industry. 

The key findings in this report suggest how industry and government can work better together to develop policies that give greater certainty and confidence to industry to encourage investment, innovation and growth.


You can download the report here.


Summary of the key findings include:

• Effective regulations are clearly defined, target-driven and not prescriptive.
• Industry needs policy and regulation that is simple with minimal administrative burden.
• Policy works best when government consults industry early and regularly to identify problems, review measures, provide solutions and evaluate results.
• Government can create greater certainty for industry by providing a roadmap with a long term plan – not just over five-year parliamentary cycles – and clear goals which allow time for industry to prepare. 
• Once the roadmap is implemented, unplanned changes should be avoided.  Delivery according to the original plan is key.  Consistency of policy helps industry to invest.
• Cross-party consensus should be sought in advance for policies which are key drivers in major markets (e.g., infrastructure and housing), to prevent changes occurring due to party politics.

Industry also needs to demonstrate leadership and play its part in helping develop effective policy and regulation. We can do this by working together to establish a consensus and:

• Speaking as a supply chain with a consistent voice to government.
• Providing government with high-level, outcome-focussed, strategic input which avoids commercial differences.
• Supporting well-considered, effective regulations with credible, practical solutions that are fact and evidence-based.

Recruitment for the building and construction sector

If you are looking for a sales or marketing job with a construction product manufacturer, we can help. Find out more...

Construction Industry set for huge job creation over next 5 years

A new report from the CITB, a construction industry training body, predicts that the construction industry will create nearly 200,000 new jobs over the next five years due to demand for new homes.  It will be a buoyant sector and by definition, this is also fantastic news for manufacturers and distributors of building and construction products as the need for products will grow.

The Government’s Help to Buy will soon start to take full effect and with mortgages becoming easier to get, the next five years will see the construction industry contribute approx. £120bn per year to the country's output. Housing is predicted to account for a third of this figure.

Figures show that only 108,000 homes were completed according to the last full-year data available - this is less than half the target set for 2016 of 240,000 new homes a year. It is clear that to achieve this, the country needs two main things: building products and people with the skills to build.

The report from the CITB states that 182,000 new construction jobs will be created by 2018 to help meet these targets. 

This news should fill manufacturers and distributors with great confidence that their products and services will be in demand for the medium term - with so much potential new business to win, the more astute building product manufacturers and merchants are already recruiting to ensure they get their fair share. 

At Pinnacle Consulting we have seen a noticeable increase in new Business Development and Specification Sales roles being created. 

Contact us if you are looking for a job in construction sales? or looking to recruit? 

Over the next five years, performance across the UK construction industry is expected to show:

• Output growth will be strongest in the South West (+3.5%), Wales (+3.4%) and East Anglia (+3%) – all set to perform above national average of 2.2%
• The North West (+1.3%), the East Midlands (+1.1%) and the West Midlands (+0.8%) will be slower to feel the effects of the return to growth
• Private housing will be the chief driver for construction’s growth and the sub-sector will see a 7.0% rise in output in 2014, followed by 5.0% in 2015. On average, it will grow by 4.6% a year to 2018

James Wates, chairman of CITB, said, “Clarity and certainty of future projects is an important element of a sustained recovery. That gives employers the confidence to train and to plan.

“The report shows that the economy is turning the corner and the UK construction industry will benefit from that. But growth needs to be sustainable; underpinned by long-term infrastructure projects and continued investment.

“The Government’s Help-to-Buy scheme has kick-started demand across the housing market and announcements on nuclear power, rail and roads have the potential to breathe fresh life into infrastructure and industry. Alongside this, we’d welcome fresh incentives to encourage house building, and the assurance that major infrastructure projects in the pipeline go ahead as planned.

“Employment (in construction) in 2018 is predicted to be 196,000 below pre-recession levels, which is why measures must be taken now to ensure growth is sustained over the long-term.”

Stewart Baseley, executive chairman of the Home Builders Federation, said: “Help to Buy has addressed the biggest short-term constraint on supply and as a result, builders are increasing output and looking to recruit in all areas – as outlined in the report.

“All political parties recognise the social and economic benefits of increased housing supply and policies need to promote this, but as the economy recovers, and lending conditions improve generally, we look to the future with confidence. To build the homes the country needs we will need a bigger and suitably skilled workforce and we are working with the industry to put this in place.”
More information can be found here on the report.

Image thanks to: "Engineers Planning House" by njaj FreeDigitalPhotos.net

Success is starting to flow for the UK Bathroom market in 2014

A recent research report from MTW Research into the UK bathroom market has suggested that bathroom retailers' sales will surpass the performance of the country's economy in 2014, the report goes on to state that this is due to 'steadily returning' consumer confidence and their adoption of clear market positioning.

After gaining data and views from 90 bathroom retailers, MTW Research has been able to establish that market sales are now £20m more than they were at their lowest point of the recession, factors such as, falling unemployment and growth in the housing market have helped increase buyer confidence. Half of the those in the survey reported sales growth during 2013, while general industry credit levels are shown to have risen on last year's report, with 70% having a positive credit rating in 2013, compared with 60% in 2011.

The KBB sector has shown a significant increase in sales, marketing and management job opportunities available from Pinnacle Consulting. Find out more on our current roles...

However, MTW did also point out that a number of retailers, distributors and manufacturers continued to experience difficulties during 2013 and had found the year challenging.

Commenting on the research MTW director Mark Waddy said: "With industry sales some 11% down on pre-recession levels, there is still some overcapacity in the market with some respondents suggesting that this could be as high as 20%. However, this scenario is abating and all the signs are increasingly positive for those bathroom suppliers who maintain a keen eye on current trends."

The MTW report also indicated that much of the upturn can also be attributed to the clever sales and marketing strategies adopted by many retailers, who by, clearly positioning themselves within the market and offering solutions, such as; advice, design and post-sales support to consumers, have been rewarded accordingly. Independent retailers are said to have been particularly active in looking at improving their service levels. The report also suggests that retailers benefitted from suppliers' stricter distribution policies, which has helped maintain brand value.

The most successful dealers, the report reveals, were those who offered ‘turnkey solutions’, including a full ‘design and fit’ service together with installation and after sales support. This has been a key factor to the resistance to online discounting with growing numbers of retailers deciding that taking this path is a road to disaster.

However, underpinning the increased market confidence is the improving housing market and lower unemployment figures. The Government’s Help to Buy scheme is said to have helped growth, allowing retailers to target the younger generation as well as more affluent 50+ audience, enjoying the extra disposable funds now that their children are leaving home.

But, the report confirmed that the wider bathroom industry continued to find the market challenging as last year came to a close.

Shortages in building materials and products are still a major concern: how are you dealing with this issue?

The good news is that housebuilding continued its recovery at the end of 2013, as shown in the latest RICS Construction Market Survey released last week. However, a large number of those surveyed, stated that material shortages are creating a major problem, particularly materials such as, bricks and blocks. 

As we discussed, some months ago, in our article: Where are the building blocks to recovery when you need them, this seems to be an on-going issue for the housebuilding industry and still hasn't been resolved. It affects the whole industry, from the architect, developer, manufacturer, stockist, builder to the homeowner. However, it is still a welcome problem after the doom and gloom of the last few years.

We would like to hear from manufacturers and stockists to understand how you are dealing with this issue and as demand increases during 2014, if you feel supply will get better or worse and what kind of time scale is involved?

RICS survey summary
The survey revealed the private housebuillding sector saw its output increase 7.3% in the first three quarters of 2013 against 2012. 

However, the RICS also said that almost 40% of respondents stated material shortages as a concern and pinpointed bricks and concrete blocks as being in particularly short supply, as were the bricklayers to build them - 36% of respondents to its survey found labour shortages to be constraining activity in Q4 2013. Its research showed a higher percentage of respondents reporting difficulties sourcing skills than at any time since the middle of 2006. 

The outlook for 2014 is very bright with expectations for future construction activity shown to be extremely upbeat with 74 percent more chartered surveyors expecting workloads to increase rather than decrease during 2014. Furthermore, predictions for employment levels and company profits were also very positive, suggesting that the construction sector may at long last be beginning to prosper.

The RICS survey stated: “Predictions for employment levels and company profits were also very positive, suggesting that the construction sector may at long last be beginning to prosper.”

Looking to employ?
With greater levels of work for manufacturers and stockists clearly evident  to supply the housebuilders, many are looking to invest in their workforce. 

If you are a building products manufacturer or stockist looking to recruit for sales or marketing professionals, contact us on 01480 405225 or find out more about our services at www.pinnacleconsulting.co.uk. 

If you are looking for a new job, why not arrange to attend our building industry career development recruitment clinic.

When you recruit with Pinnacle Consulting, you also help one of two building and construction industry charities: CRASH or Lighthouse Club. Find out more.

Great news for commercial construction output

Commercial construction output increased at its fastest rate since August 2007 according to figures from the latest Markit/CIPS UK Construction Purchasing Managers’ Index. The index also shows that the UK’s construction industry is in its eighth consecutive month of growth. This seems to be proof that the recovery of the construction industry is being sustained and that it is 'well placed' for 2014.

UK construction PMI was 62.1 in December – well above the score of  50 which separates growth from contraction. Although it was slightly down from the 62.6 seen in November, it was encouragingly ahead of expectation for the traditionally quiet December and is the eighth month running it has been above the 50 mark.

If you are looking to recruit, contact Pinnacle Consulting - the construction sales recruitment specialist on 01480 405225

There were “strong output rises” in all three main areas of construction activity - residential, commercial and civil engineering. The major boost in December was due to new commercial building projects and it is biggest growth in this area since before the financial crisis.

Housebuilding remained the fastest growing area of the sector. The construction survey suggested growth in December was broad-based and civil engineering also expanded.

Markit senior economist Tim Moore says: “The latest survey highlights that construction companies enter 2014 with the wind in their sails.

“Most encouragingly, the improving UK economic outlook is helping boost private sector spending patterns, meaning that the construction recovery has started to broaden out from housing demand and infrastructure projects to include strong growth in commercial building work.”

"Over half of all survey respondents anticipate increased output levels during the course of 2014, which is up sharply from one-in-three construction firms that expected growth at the same time one year ago."

IHS Global Insight chief UK and European economist Howard Archer points out that December PMI “almost matched” the 75-month high seen in November, suggesting the sector is “well placed going into 2014”.

“Evidence that the construction sector is sustaining its recent markedly improved performance is obviously good news for overall growth prospects, although it needs to be remembered that the sector only accounts for 6.3 per cent of national output”


"Image courtesy of potowizard / FreeDigitalPhotos.net".