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AMA Research has published a new report covering the building and
home improvement products distribution market. Available for
purchase at £625 from www.amaresearch.co.uk, the report provides a
comprehensive analysis of the structure of the market and details
the main distribution channels including builders’ merchants, DIY
multiples, independents hardware stores, specialist distributors,
electrical wholesalers and garden centres. The main building
product sectors are analysed including the product market sizes,
mixes and distribution. The report also provides market forecasts
to 2013.
The building and home improvement products distribution
market is a highly fragmented market with a small number of large
organisations competing with many regional and local organisations. The
market is dominated by a leading group of 5 builders and plumbers’
merchants and 4 DIY multiples. Indeed the merchants and DIY multiple
channels account for 41% of the market with all other individual channels
accounting for no more than 3% of the market. Other important
distribution channels include the independent hardware/ DIY stores,
specialist distributors, electrical wholesalers and garden centres.
The market is very complex serving the construction and
RMI markets, thus the health of the distribution market is highly
dependent on the performance of the construction industry as well as the
prevailing economic conditions and consumer confidence. It is a large,
mature market that tends to experience moderate growth rates with the
various sectors within the market faring differently reflecting the
construction and RMI sectors’ performances. The market experienced
sustained growth to 2007, supported by a buoyant housing market, low
inflation and strong consumer spending as well as growth in the public
sector’s performance, in particular in the health and education sectors.
Heavyside products are important to the market performance and the new
construction projects and RMI helped to boost the market. The garden
product sector is also important and good growth in 2003/05 supported the
market, although the sector’s performance declined in 2006/07, primarily
influenced by the weather conditions.
The building and home improvement products distribution
market grew to a market size of £48 billion in 2007. The very difficult
trading conditions in 2008 severely impacted on the market resulting in a
decline of -4% to a value of £46 billion with prospects deteriorating for
2009/10. However, the market is anticipated to begin recovery in 2011 and
reach an estimated market size of £47.7 billion by 2013. Forecasting at
this time is extremely difficult and should the recession be longer and
deeper than expected, this forecast could prove to be optimistic.
The product range carried by the distributors is large
and varied. The timber and glazing sector dominates the market with
heating, plumbing & drainage and garden products being important sectors.
Different products favour different distribution channels; for instance
electrical and lighting products is primarily via the electrical
wholesalers, garden and leisure via the DIY multiples and bathrooms via
the builders’ merchants. |
