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The 6th edition of the building and home improvement products
distribution market provides a comprehensive analysis of the
structure of the market, and reviews the main distribution channels
including builders’ merchants, DIY multiples, independents hardware
stores, specialist distributors, electrical wholesalers and garden
centres. The distributors’ main product sectors are analysed
including the product market sizes, mixes, trends and distributors
shares. The report also provides a forecast of market prospects up
to 2015.
The health of the
building & home improvement products distribution 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 annual growth
rates of 3-4%% in the distributors’ market between 2005/07,
reaching an estimated £47.4bn in 2007. In 2008 the UK economy
entered a period of more difficult trading due to the effects of
the ‘credit crunch’ causing the market to decline to around
£45.5bn. The economic recession in 2009 caused further significant
deterioration of the market due to the contraction of the core
end-use sectors. In 2010 it is estimated that the distributors’
market was worth around £39.6bn at merchants selling prices, with
the market remaining essentially static in 2010. This change in
fortunes of the market was primarily due to the recovery of the
housebuilding sector and continued strong performance in the
infrastructure sector as well as public new work.
The building & home
improvement products distribution merchant market is highly
fragmented with 8 dominant national organisations competing in the
market place with many regional and local distributors. This
leading group now comprises 4 builders & plumbers’ merchants and 4
DIY multiples. The merchants’ sector saw a significant change in
the market place at the end of 2010 as Travis Perkins, the leading
player, acquired BSS Group, one of the other key players. Other
important channels include the independent hardware/DIY stores,
electrical wholesalers, garden centres and specialist distributors.
The distributors’
product range is large and varied, with merchants tending to
focusing on supplying products to tradesmen whilst DIY multiples
supply products, generally lightside products, to homeowners;
although there continues to be a blurring of this distinction. The
largest product category in the market is the timber and glazing
sector, with other key sectors being plumbing, heating & drainage
and garden products.
In 2011 it is expected
that there will be contrasting performances from private and public
sector construction, with the former recovering and the latter
falling sharply. The building & home improvement products
distribution market is expected to recover and show growth in 2012,
reaching a market size of £44.5bn in 2015. |
