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The Specialist Industrial Flooring Market consists
of a discreet market of suppliers and contractors covering construction
and refurbishment applications. In volume terms, the market is
estimated at approximately 5 million m2 in total, and is part
of a much wider ready mixed flooring and screed market. The market is
worth an estimated £135m in 2005, though this includes both material and
installation.
In terms of the
mix between product and installation values, the material market is
estimated at approximately £74 million in product sales, with
installation valued at around £60m.
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. As a result, there is a good understanding of
what can be undertaken and many contractors are experienced in using
many different suppliers’ products, with price becoming increasingly
important in the specification and product selection process.
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. Conversely, 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 also been some
underlying 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, new work is estimated to account for around
30-40% of the market, with refurbishment work accounting for the
remaining 60-70% of contracts. It is not anticipated that this ratio
will change to any significant degree over the medium to longer term
future. The industrial flooring industry is likely to benefit from
underlying growth in repair and maintenance, particularly in retail,
commercial, health and education sectors where the government has
committed to further capital expenditure to develop and improve
services.
The market is
supplied by a large number of manufacturing companies, but there
are no large companies who concentrate on supply of resin flooring
products exclusively. The largest supplier in the UK market is
Flowcrete with a turnover of some £21 m in 2004, though exports account
for over 50% of sales.
Suppliers are a
mix of a small number of companies who focus on the market and have a
turnover in excess of £10 million per annum, divisions of multi national
companies which have flooring divisions amongst a wider product range,
and niche product suppliers with annual turnovers of considerably less
than £10 million.
There are
estimated to be around 45-55 suppliers of products. However, there is
some degree of consolidation in the sector and there are fewer
manufacturers compared with 20 years ago.
It is estimated that 90% of sales are 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 and turnovers range from £100,000 pa to £10
million, but the majority of companies fall within a range from £0.5 -
£2.0 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, and there is a good appreciation
by clients and specifiers of the use of these products, reflecting the
relative mature state of the market. However, the suppliers of
cement/anhydrite based materials are likely to increase in number,
reflecting the growth opportunities for these products.
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