The UK market for commercial glazing is estimated to be worth around £2.9 billion in 2008, with the development of the market illustrated in the chart left. Within the context of this report, the UK commercial glazing market is defined as comprising 4 sub-sectors - commercial windows, ground floor treatments, curtain walling and roof glazing, The commercial window sector is the largest, estimated to account for over 50% of the commercial glazing market. Curtain walling (including frameless structural glazing) accounts for approximately 18% of the market by value, with aluminium framed systems dominant. Demand for ground floor treatments (shopfronts and entrance systems) - which account for around 23% of the market by value – has been severely impacted by the recession in the retail and office newbuild sectors. Roof glazing is the smallest sector, accounting for an estimated 7% share of the market.    

In general terms, demand for commercial glazing systems is largely determined by activity levels in commercial office, education, retail and high-rise residential newbuild. Buoyant construction activity in these sectors in recent years have underpinned strong growth in output in the commercial glazing industry over the 2005-08 period in particular. Other factors contributing towards growth in this period include; increases in the prices of primary aluminium and glass, and specification of added-value products such as low-emissivity glass, driven by requirements of Part L of the Building Regulations

Although orders for new work have been in sharp decline since mid-2008, the severity of the impact of the downturn on demand for commercial glazing will lag behind the general trend in the construction sector as there are major installations on office and mixed use developments in London, Manchester, Glasgow etc, that are not scheduled for completion until the second half of 2009. From 2010, education and healthcare developments will, to some extent mitigate the impact of the recession in the commercial sector, but after 2011 demand is expected to decline due to the pressures on Government spending. Whatever the outcome of the 2010 General Election, public sector expenditure will inevitably be curbed, including Government investment on infrastructure projects, schools and hospitals.

There is a consensus among trade and professional organisations across the construction industry that conditions in the commercial sector are unlikely to start improving until 2011 at the earliest. As glazing systems are installed after the completion of the shell and core elements, there is likely to be a lag of at least a year, following a significant upturn in new orders, until demand shows a general improvement. Therefore, we would not expect to see a return to growth in the commercial glazing market until 2012.

The fabrication/installation industry is highly fragmented due to low barriers to entry and no significant economies of scale. However, since 2003 several large contractors and many smaller concerns have ceased trading and some consolidation over the next 3 years is inevitable as the competition for the declining number of projects increases, resulting in falling tender prices and weakening margins.

In general terms, demand for commercial glazing systems is largely determined by activity levels in commercial office, education, retail and high-rise residential newbuild. Buoyant trading conditions in these sectors in recent years have underpinned strong growth in output in the commercial glazing industry. Up until mid 2008, other factors contributing towards growth included; increases in the prices of primary aluminium and glass and specification of added-value products such as low-emissivity glass, driven by requirements of Part L of the Building Regulations

Although orders for new work have been in sharp decline since mid-2008, the severity of the impact of the downturn on demand for commercial glazing will lag behind the general trend in the construction sector as there are major installations on office and mixed use developments in London, Manchester and Glasgow that are not scheduled for completion until the second half of 2009. From 2010, education and healthcare developments will, to some extent mitigate the impact of the recession in the commercial sector, but after 2011 demand is expected to decline due to the pressures on Government spending. Whatever the outcome of the 2010 General Election, public sector expenditure will be curbed, including Government investment on infrastructure projects including schools and hospitals.

There is a consensus among trade and professional organisations across the construction industry that conditions in the commercial sector are unlikely to start improving until 2011 at the earliest. As glazing systems are installed after the completion of the shell and core elements, there is likely to be a lag of at least a year, following a significant upturn in new orders, until demand shows a general improvement. Therefore, we would not expect to see a return to growth in the commercial glazing market until late 2012. The general industrial products distribution market is a highly fragmented sector valued at £1.75 billion within the report definition. Distributor involvement varies significantly, with some distributors operating in all product sectors defined in the report, whilst others focus on a more limited number of product sectors.