UK Builders and Plumbers’ Merchants’ Market

                                   2007 to 2014  

The 11th edition of the report "Builders and Plumbers Merchants Market" provides a comprehensive analysis of the structure of the market, and key players within it. The merchants' main product sectors are also analysed including the product market sizes, mixes, trends and merchant shares. The report also provides a forecast of market prospects up to 2014.

The health of the builders and plumbers’ merchants’ market is directly related to the performance of the UK building and construction sector, influenced by both new-build and repair, maintenance and improvement activities. Until late 2007/early 2008, the UK economy experienced an unprecedented period of growth, underpinned by a buoyant housing market, low inflation and strong consumer spending. This buoyant market facilitated an average annual growth rate of around 5% in the merchants’ market between 2004/07, reaching an estimated £13bn in 2007. In 2008 the UK economy entered a period of more difficult trading due to the effects of the ‘credit crunch’ causing the merchants’ market to decline to around £12bn. The economic recession in 2009 caused further deterioration of the market due to the contraction of the core end-use sectors. In 2009 it is estimated that the merchants’ market was worth around £10.5bn at merchants selling prices, with prospects in the short term remaining challenging.

The builders and plumbers’ merchant market is highly fragmented with 5 dominant national organisations competing in the market place with many regional and local merchants. The recent tough trading conditions saw many organisations undertaking cost-cutting exercises, freezing their capital expenditure, changing spending plans and cutting jobs.

The merchants’ product range is large and varied, with some merchants focusing on heavyside products, others on lightside products and some are mixed merchants offering ranges of both types of product. The extremely difficult trading conditions of 2009 saw the market sizes all of the product groups decline, although the rate of decline varied with each product group. The best performing product category was plumbing & drainage, whilst the cement & plaster group suffered the most, mainly due to its high dependence on the housebuilding sector.

The merchants are likely to benefit from a new generation of products that are expected to come to market with more radical technology for sustainability in the home such as grey-water flushing systems and forced air ventilation. These are likely to be higher ticket items that should boost the merchants’ market.