The commercial and industrial doors market increased by an estimated 3% in 2016, following 4% growth in 2015, though there are indications that the growth rate is slowing in 2017.
Key factors underpinning growth in the market have included the increase in private commercial and industrial new build and non-residential RMI since 2012. While the market for industrial doors regained their pre-recession level in 2016, commercial and personnel access doors remain nearly 7% below its 2008 peak.
Sub-sectors within manufacturing such as transport, aviation and food production, have helped sustain construction demand for a variety of door products - from high insulated systems for refrigerated units, to large transport warehouse industrial doors. The chemicals and pharmaceuticals sectors also require very high-quality door systems and materials including high value specialised hygienic products developed for use in these industries. Changes to building regulations and increased requirements in terms of security, as well as sustainability issues, have also helped to assist market growth with increasing emphasis placed on higher-quality products.
The market for personnel doors is directly related to commercial and industrial new build and RMI demand, which declined between 2008 and 2012, but has seen continuous annual growth since 2013. In overall terms, the industrial doors market has demonstrated erratic trends at times with demand sometimes bucking an otherwise falling economic trend with rising demand. More importantly, an underlying steady level of servicing and maintenance expenditure has also contributed towards smoothing out demand.
Jane Tarver of AMA Research commented: “The market outlook for commercial and industrial doors over the next few years is positive, but forecasts indicate only modest growth in the short-medium term, based on a slowing trend of new construction orders and the uncertainty affecting business confidence and investment levels as a result of the Brexit process.”
Short-medium term prospects in construction activity in 2017/18 have gone from modestly optimistic to ‘relatively cautious’, with variations between construction sectors. Modest growth is currently forecast in the leisure and industrial sectors but with the commercial offices and retail sectors forecast to show short-term decline as they come under pressure reflecting reduced confidence and investment levels.
Given the above background, the forecasts are that the commercial and industrial doors and shutters sector will show low to modest annual growth from 2016-21, with only 6% overall value growth currently forecast 2016-2021.
Demand will continue to focus on automated systems, more energy saving and security door systems, and for sustained RMI work across sectors leading to some market growth in the replacement market, while new build volumes for both personnel access doors and industrial doors will see lower rates of growth. Product innovations and increased security and insulation properties for both personnel access and industrial doors are also likely to be key factors underpinning market value into the medium-term.
The report (Commercial and Industrial Doors and Shutters Market Report – UK 2017-2021 Analysis) is available now and can be ordered online at www.amaresearch.co.uk or by calling 01242 235724.
Photo: Via Shuttestock
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.
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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.
