| 1. |
INTRODUCTION |
7 |
| 1.1 |
INTRODUCTION | 7 |
| 1.2 |
SOURCES OF INFORMATION |
7 |
| 2. |
SUMMARY & FUTURE PROSPECTS |
9 |
| 2.1 |
SUMMARY | 9 |
| 2.2 |
FUTURE PROSPECTS | 11 |
| 3. |
ECONOMIC ENVIRONMENT |
14 |
| 3.1 |
GDP | 14 |
| 3.2 |
INFLATION & INTEREST RATES |
15 |
| 3.3 |
UNEMPLOYMENT | 16 |
| 3.4 |
HOUSEHOLD CONSUMPTION |
16 |
| 3.5 |
STERLING | 17 |
| 3.6 |
POPULATION PROFILE | 18 |
| 3.7 |
CONCLUSIONS | 19 |
| 4. |
THE BUILDERS AND PLUMBERS’ MERCHANTS’ MARKET |
21 |
| 4.1 |
DEFINITION | 21 |
| 4.2 |
PRODUCTS | 21 |
| 4.2.1 |
Product Range | 22 |
| 4.3 |
MARKET STRUCTURE | 22 |
| 4.3.1 |
Lightside Product Distribution |
23 |
| 4.3.2 |
Heavyside Product Distribution |
26 |
| 4.4 |
MARKET SIZE | 26 |
| 4.4.1 |
Recent Performance – 2004 to 2009 |
27 |
| 4.4.2 |
Future Prospects – 2010 to 2014 |
29 |
| 4.5 |
MERCHANTS’ SHARE OF CONSTRUCTION OUTPUT |
32 |
| 4.6 |
BUILDING AND CONSTRUCTION MARKET INFLUENCES |
33 |
| 4.6.1 |
Overall Construction Market |
33 |
| 4.6.2 |
The Housing Market | 36 |
| 4.6.3 |
Additional Factors Influencing the Merchants’ Market |
38 |
| 5. |
THE BUILDERS & PLUMBERS’ MERCHANTS |
40 |
| 5.1 |
MARKET SHARE | 40 |
| 5.2 |
MERCHANT COMPANIES | 44 |
| 5.2.1 |
National Merchants | 44 |
| 5.2.2 |
Large Regional Merchants |
53 |
| 5.2.3 |
Small and Medium Size Regionals |
56 |
| 5.2.4 |
Local Merchants | 62 |
| 5.2.5 |
Buying Groups | 64 |
| 5.3. |
CHARACTERISTICS OF BUILDERS & PLUMBERS’ MERCHANTS |
65 |
| 5.3.1 |
Product Range | 65 |
| 5.3.2 |
Profitability | 66 |
| 5.3.3 |
Debtors | 68 |
| 5.3.4 |
Turnover Per Employee |
69 |
| 5.3.5 |
Pricing and Prices | 70 |
| 5.4 |
MERCHANTS’ MARKET – SWOT ANALYSIS |
71 |
| 6. |
MERCHANTS' CUSTOMERS |
73 |
| 6.1 |
BUILDERS | 73 |
| 6.1.1 |
House Builders/General Builders |
73 |
| 6.1.2 |
Commercial Construction |
74 |
| 6.1.3 |
Civil Engineering | 75 |
| 6.2 |
PLUMBING AND HEATING CONTRACTORS |
75 |
| 6.3 |
MECHANICAL AND ELECTRICAL CONTRACTORS |
77 |
| 6.4 |
OTHER CONTRACTORS | 77 |
| 6.5 |
CONSUMERS | 78 |
| 6.6 |
LOCAL AUTHORITIES, PUBLIC BODIES INCLUDING HA/RSL/ALMOS |
79 |
| 6.7 |
OTHER | 80 |
| 7. |
PRODUCTS |
81 |
| 7.1 |
PRODUCT MIX | 81 |
| 7.2 |
MERCHANT SHARES BY PRODUCT |
82 |
| 7.3 |
PRODUCT TRENDS | 84 |
| 7.3.1 |
Roofing & Insulation Materials |
84 |
| 7.3.2 |
Bricks, Blocks and Concrete Materials |
87 |
| 7.3.3 |
Cement & Plaster Materials |
93 |
| 7.3.4 |
Timber Products | 96 |
| 7.3.5 |
Plumbing and Drainage Materials |
99 |
| 7.3.6 |
Decorating Materials | 104 |
| 7.3.7 |
Heating and Ventilation |
107 |
| 7.3.8 |
Kitchen Products | 110 |
| 7.3.9 |
Ironmongery & Miscellaneous Products |
114 |
| TABLES AND CHARTS |
| CHART 1 |
UK BUILDERS AND PLUMBERS’ MERCHANTS’ MARKET 2004 TO 2014 – BY VALUE £ BILLION AT MERCHANTS SELLING PRICES |
9 |
| CHART 2 |
INTEREST RATES AND INFLATION (CPI) FROM 1992-2014 |
15 |
| CHART 3 |
PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2014 |
17 |
| TABLE 4 |
EXCHANGE RATE FLUCTUATIONS 2004-2010 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES |
18 |
| CHART 5 |
AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 (‘000) |
19 |
| CHART 6 |
DISTRIBUTION STRUCTURE - LIGHTSIDE |
24 |
| TABLE 7 |
UK BUILDING & PLUMBING MERCHANTS’ MARKET 2004 TO 2014 – BY VALUE (£ MILLION AT MERCHANT SELLING PRICES) |
27 |
| TABLE 8 |
MERCHANTS SHARE OF UK CONSTRUCTION OUTPUT 2004 TO 2009 (£ BILLION CURRENT PRICES) |
32 |
| CHART 9 |
UK CONSTRUCTION OUTPUT BY SECTOR, ANNUAL TOTALS, INDEX 2002 = 100 |
34 |
| CHART 10 |
HOUSING COMPLETIONS 2004 TO 2008 – UK (‘000) |
36 |
| TABLE 11 |
NUMBER OF RESIDENTIAL PROPERTY TRANSACTIONS IN ENGLAND AND WALES 2002-2009 (MILLIONS) |
38 |
| CHART 12 |
MERCHANTS’ MARKET SHARES 2009 |
41 |
| CHART 13 |
NATIONAL MERCHANTS MARKET SHARE COMPARISON 1997 AND 2009 |
42 |
| TABLE 14 |
CHANGING PERCENTAGE SHARE OF THE NATIONAL MERCHANTS 1997-2009 |
43 |
| CHART 15 |
MIX OF MERCHANTS BY TYPE 2009 |
43 |
| TABLE 16 |
KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – TRAVIS PERKINS PLC |
45 |
| TABLE 17 |
KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – WOLSELEY UK |
47 |
| TABLE 18 |
KEY INDICATORS UK BUILDERS’ MERCHANTS MARKET – SAINT GOBAIN BUILDING DISTRIBUTION (JEWSON & GRAHAM) |
49 |
| TABLE 19 |
KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – GRAFTON UK BUILDING PRODUCTS DISTRIBUTION* |
51 |
| TABLE 20 |
KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – BSS GROUP PLC |
53 |
| TABLE 21 |
LEADING SMALLER REGIONAL MERCHANT COMPANIES 2008 |
62 |
| CHART 22 |
MERCHANTS BY TURNOVER - 2009 |
63 |
| TABLE 23 |
MERCHANTS PROFITABILITY 2004 TO 2008 |
66 |
| TABLE 24 |
MERCHANTS DEBTORS LEVELS 2004 TO 2008 |
68 |
| TABLE 25 |
MERCHANTS TURNOVER PER EMPLOYEE 2004 TO 2008 |
69 |
| TABLE 26 |
PERCENTAGE CHANGE OF PRICE INDICES OF CONSTRUCTION MATERIALS 2005-2009 (%) |
70 |
| TABLE 27 |
MERCHANTS’ MARKET - SWOT ANALYSIS |
72 |
| TABLE 28 |
ENTERPRISES INVOLVED IN THE CONSTRUCTION OF BUILDINGS REGISTERED FOR VAT BY EMPLOYMENT BAND SIZE 2009 |
74 |
| TABLE 29 |
PLUMBING, HEATING AND AIR CONDITIONING INSTALLERS REGISTERED FOR VAT BY TURNOVER BAND 2009 |
76 |
| CHART 30 |
BUILDERS’ MERCHANTS’ AND DIY MULTIPLES’ SALES 2004-2009 (2000=100) |
78 |
| CHART 31 |
BUILDERS AND PLUMBERS’ MERCHANTS’ MARKET PRODUCT MIX 2009 |
81 |
| TABLE 32 |
BUILDERS & PLUMBERS’ MERCHANTS SHARE OF THE MARKET SECTORS 2009 AT MERCHANT SELLING PRICES |
83 |
| CHART 33 |
UK ROOFING AND INSULATION MATERIALS MARKET 2004-09 £ MILLION MERCHANT SELLING PRICES |
84 |
| CHART 34 |
ROOFING AND INSULATION MATERIALS MARKET 2009 - £ MILLION AT MERCHANT SELLING PRICES |
86 |
| CHART 35 |
UK MARKET FOR BRICKS, BLOCKS AND CONCRETE GOODS 2005 TO 2009 - £ MILLION AT MERCHANT SELLING PRICES |
88 |
| CHART 36 |
MIX OF BRICKS, BLOCKS & CONCRETE PRODUCTS 2009 BY VALUE £ MILLION AT MERCHANT SELLING PRICES |
89 |
| TABLE 37 |
PRODUCTION, STOCKS & DELIVERIES OF ALL BRICK TYPES (MILLIONS) 2004 TO 2009 |
90 |
| TABLE 38 |
PRODUCTION, STOCKS & DELIVERIES OF ALL CONCRETE BUILDING BLOCKS (‘000 SQ. METRES) 2004 TO 2009 |
91 |
| CHART 39 |
THE UK MARKET FOR CEMENT AND PLASTER MATERIALS 2004 TO 2009 - BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
93 |
| TABLE 40 |
CEMENT AND READY MIXED CONCRETE PRODUCTION 2004 TO 2009 (‘000 TONNES) |
94 |
| TABLE 41 |
SALES OF AGGREGATES IN GREAT BRITAIN 2004 TO 2009 (‘000) TONNES |
95 |
| CHART 42 |
UK MARKET FOR TIMBER PRODUCTS 2004 TO 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
96 |
| CHART 43 |
TIMBER SALES BY MAJOR PRODUCT GROUPS 2009 - BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
98 |
| CHART 44 |
UK MARKET FOR PLUMBING AND DRAINAGE MATERIALS 2004 TO 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
100 |
| CHART 45 |
BATHROOM PRODUCTS MARKET BY END USE SECTOR 2009 - % BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
101 |
| CHART 46 |
PRODUCT MIX FOR PLUMBING AND DRAINAGE MATERIALS MARKET 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
102 |
| CHART 47 |
UK DECORATING MATERIALS MARKET 2004 TO 2009 – BY VALUE (£ MILLION AT MERCHANT SELLING PRICES) |
104 |
| CHART 48 |
PRODUCT MIX WITHIN THE DECORATING MATERIALS MARKET 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
106 |
| CHART 49 |
THE HEATING AND VENTILATION MARKET 2004 TO 2009 – BY VALUE - £MILLION AT MERCHANT SELLING PRICES |
107 |
| CHART 50 |
PRODUCT MIX HEATING AND VENTILATION PRODUCTS 2009 - % BY VALUE (£ MILLION AT MERCHANT SELLING PRICES) |
109 |
| CHART 51 |
THE DOMESTIC KITCHEN FURNITURE MARKET 2004 TO 2009 – BY VALUE - £ MILLION AT MERCHANT SELLING PRICES |
111 |
| CHART 52 |
KITCHEN PRODUCT SALES BY MAJOR PRODUCT GROUPS 2009 - BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) |
113 |
| CHART 53 |
MARKET FOR IRONMONGERY AND MISCELLANEOUS PRODUCTS 2009 % BY VALUE (MERCHANTS SELLING PRICES) |
115 |