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The Specialist Industrial Flooring market is worth approximately £69
million in product sales and a similar amount for application. The
specialist industrial flooring market consists of a discreet market of
suppliers and contractors covering construction and refurbishment
applications. It is approximately 4.5 million m2 in total and is part of a
much wider ready mixed flooring, and screed market.
It is not anticipated that there will be any significant growth in the
market size or change in market prices in the short-term future,
reflecting the facts that the industry is relatively mature and technical
development is relatively long term. In addition, the modest growth in
demand forecast through to 2007 also reflects the low level of
expectations for the industrial sector, balanced to some extent by more
positive expectations in certain commercial and public sectors.
There is concern from within the industry about the current size of the
industry and why resin flooring in particular has failed to capture a
greater market share and more importantly, what resin flooring
practitioners can do to improve their performance in the future.
The market is supplied by a large number of manufacturing companies, but
there are no large companies who concentrate purely on supply of resin
flooring products alone, the largest is Flowcrete with a turnover of some
£15m per annum in the UK. The suppliers can be classified as follows:
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A small number of companies who focus on the market and have a turnover
in excess of £10 million per annum.
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Divisions of multi national companies, which have flooring divisions
amongst a wider product range, which in turn often covers the whole of the
construction and building industries.
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Much smaller companies who make specific products for the market, and
most of these companies have annual turnovers of considerably less than
£10 million per annum.
There are fewer manufacturers compared with 20 years ago, although there
is no shortage of manufacturing capability. There are some 45-55 suppliers
of products.
The distribution and supply of resin products has traditionally been from
the manufacturer to the contractor; very little sales have been through
distributors.
Indeed an estimated 90% of sales is direct from the manufacturer to the
contractor, who works either directly for the client or is a sub
contractor. There are approximately 250 contractors operating in the
market, turnovers range from £100,000 pa to £10 million, but the
majority of companies fall within a range from £0.5 - £1.5 million.
It is not anticipated that there will be any significant changes in the
distribution and application of resin type floors, there are no great
technical innovations on the horizon, there is a good appreciation by
clients and specifiers of the use of these products, so it can be fairly
described as a reasonably mature market. However the suppliers of
cement/anhydrite based materials are likely to increase in number,
reflecting the growth opportunities for the products.
The history of the development of resin flooring in the UK is rather
chequered with relatively 'haphazard' introduction of technologies,
leading to low barriers to entry, in both the manufacturing and
contracting sectors.
The relative maturity of the market means that resin products are
increasingly regarded as commodities, there is a good understanding of
what can be done, and many contractors are experienced in using many
different suppliers' products. This can lead to a greater reliance on
price as the main marketing tool.
The trade association for the industry (FERFA) recognises that neither
resin or polymer based cementitious systems are widely used in the UK
compared with mainland Europe, where there is a larger use and many more
applications, including some domestic use.
There has been a growth in the use of decorative resin systems, and it is
anticipated that this part of the market will continue to grow.
There has also been a growth in decorative products and all the resin
suppliers have a range of Epoxy or Urethane based Terrazzo finishes, and
it is anticipated that this part of the market will continue to show
growth.
In terms of application areas, refurbishment work accounts for 60-70% of
contracts, and the remainder is new construction. It is not anticipated
that this ratio will change to any significant degree over the medium to
longer term future.
The industrial flooring industry may benefit from growth in repair and
maintenance, depending on where the expenditure is made, for example in
retail sectors, or commercial centres or in the health and education
sectors where the government has committed to further capital expenditure
to develop and improve services.
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