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UK Market for Commercial and Industrial Doors 2006 -2013 £m MSP –
Current
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The
commercial and industrial doors and shutters sector experienced
relatively healthy levels of commercial and industrial new build,
which stimulated market growth between 2001 and 2007, underpinned
by a buoyant UK economy and rising demand for new commercial and
industrial space. Despite the “credit crunch” of 2008, and the
decline in new warehouse developments, demand continued to grow
from on-going legacy work before finally starting to show
significant signs of a fall-off in demand with the recession of
2009. The performance of 2008 is now regarded as the industry’s
‘last good year” with the market peaking and will serve as a
benchmark for future growth measurement and comparison.
The value of the UK
market for industrial and commercial doors is estimated at around
£394m in 2010. The market has experienced a significant fall in
demand attributed to the recession, an oversupply of office space
and reduced investment in new build. Retail trends are helping to
shore up that side of the market but the outlook in the near term
is flat with slow recovery after 2011.
The
personnel doors sector, incorporating timber doors, hinged steel
doors; aluminium framed manual entrance doors and automated
pedestrian doors, is estimated at £243m MSP and accounts for around
62% of the market. The ‘industrial’ doors sector covers sectional
overhead doors, high-speed doors, roller shutters, sliding &
folding doors and flexible doors, and is currently valued at around
£151m, some 38% of the total market and down from around 40% in
2008. |
The market
for industrial doors is slowly in decline, but has also suffered the same
fate as commercial doors during and after the recession, with a current
excess of warehouse and factory space, the fall in investment in new
build, and a general slow recovery in the UK markets overall. The supply
of commercial and industrial doors and shutters remains a very fragmented
sector, with the larger suppliers supplying larger construction firms and
RMI contractors, and the smaller suppliers focusing on local and
specialist sectors. Despite the presence of some larger companies with
annual turnover in excess of £25m, the supply market is still dominated
by many small-medium sized companies operating throughout the UK.
In terms
of replacement and refurbishment, the Fire Safety regulations and the
Corporate Manslaughter Bill, helped to influence investment in
replacement and refurbishment doors and shutters during this period. The
Disability Discrimination Act 2004 has also been a major driver of growth
in demand for retrofit and replacement with power-assisted and automatic
doors and door controls. The legislation will continue to serve as a
stimulus but, with most buildings fitted with the necessary requirements,
the effect will be felt much less dramatically.
Indications are that the market for commercial and industrial doors will
continue to decline in 2011 by around 1 – 2%. It is already operating at
a much lower base and is an estimated 16% below 2008 levels. Some
recovery is forecast in 2012 - although minimal allowing for inflation -
and the real recovery is unlikely until 2013-2015 when it will return to
more modest rates of growth of around 3.5-5%. |
