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The overall market for roofing products is heavily dependent on
the level of new build and RMI activity within the construction sector. Recent
growth in the market has been steady although the market has experienced a
volatile past, in common with many other building materials markets.
The total market for roofing products was worth an estimated
£1.4 billion at manufacturers prices in 2004, with indications of further
growth in the short-medium term to reach over £1.6 billion by 2008. Over the
period 2000-2008, the overall roofing market will have increased by around 40%
in value terms.
The currently buoyant RMI sector is underpinning growth within
the sector, although moderate levels of new house building activity and volatile
commercial / industrial work have restricted annual growth rates. The most
buoyant sector in the 2002-05 period is public sector new build, with the
Government’s substantial investment programme in building or renovating and
facilities in Health and Education has provided a major boost to a wide range of
building materials, including roofing.
New housebuilding has been a major disappointment for roofing
material suppliers. Despite expectations of an increase in output to meet
demand, volume completions have remained relatively static in recent years. 2004
has seen a modest growth in output, but stable and uncertain house price
movements have resulted in a reversal in 2005, but longer term prospects should
be more favourable as the Government’s commitment and support for affordable
housing feeds through into building activity.
The major change in the housebuilding sector is the rapid change
in mix towards flats which now account for over 40% of completions, compared to
less than 20% just 5 years ago, and has obvious implications for the
specification of alternative roofing systems.
The RMI sector has been buoyant in recent years with a trend
towards higher value replacement products for roofing products. However,
prospects for the RMI sector look more uncertain as growth in consumer credit
begins to slow down as a result of falling confidence levels. However, the first
reduction in interest rates in August 2005 for 2 years may provide a boost to
consumer spending.
The roofing
products sector comprises roof tiling systems, roofing membranes &
felts, metal roofing and roof glazing. Roof tiling products dominates the
sector, accounting for an estimated 44% of the sector with an estimated
value of around £600 million, followed by metal roofing with 34%,
membranes & felts and roof glazing account for the remaining 20-25%.
Roof tiling
is dominated by concrete roofing tiles, which accounted around 60% value
share of the sector in 2004. However, the use of higher value clay tiles
and slates, particularly within the new house building sector has meant
that concrete tiles have lost some share to these two during recent
years. Cheap imports from Spain, China and South America have had a major
impact in the natural slate sector.
Moderate
growth has been seen within the membranes and felts sector helped by the
introduction of better quality, higher value products. The increasing
popularity of single ply roofing is also a boost to the market. Metal
roofing systems are showing relatively good signs of growth and continued
to gain share at the expense of other roofing sectors. Roof glazing has
also shown signs of growth in recent years, currently benefiting from the
trend for use of natural daylight in buildings and strong growth in key
end use markets.
There has
been significant change in the supply structure for roofing products
industry in recent years. Corporate activity in terms of acquisitions has
underpinned the trend towards the creation of larger European/global
groups involved in supplying all types of roofing products.
Distribution
for roofing is focussed around the specialist distributors, direct supply
and builders merchants. SIG dominate the specialist roofing merchant
sector, while direct supply is far more prominent in metal roofing and
roof glazing where there is a much greater emphasis on bespoke designs.
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