Following several years of strong growth, it is estimated that the UK market for commercial glazing systems increased to around £2.9 billion at installed prices in 2008, but then declined substantially to an estimated £2.2bn by 2010. Following the onset of the financial crisis in 2008, construction activity and related commercial glazing work reduced sharply and quickly, in the office and high rise housing sector in particular.

In 2009/10, the market was to some extent supported by public sector spending, in particular in the education sector. However, from 2011 the coalition government has severely curtailed spending in this sector, and this will see the value of construction in the schools sector significantly reduce.

New orders for office and retail sectors, and in the residential sector, in particular have been low. Bright spots in this market are to be found in the retail grocery sector and in the development of budget hotels. There is, in 2011, still some impetus in the leisure market from building work related to the Olympics.

In terms of product sectors, we estimate that the largest segment by value is commercial windows, worth in the region of £1.2bn in 2010. Curtain walling and ground floor treatments we estimate to be worth around £400m and £450m respectively in 2010. The smallest sector is roof glazing, estimated to be worth some £165m in 2010. The reduced level of activity in this market is reflected in the lower turnovers reported by many of the companies operating in the sector. Some companies have already exited the market and there may be further casualties as the sector downsizes in capacity if the recovery is as slow as currently anticipated.

Whilst there is some degree of optimism in 2011 for the commercial glazing market, a return to the levels of growth seen in the mid-2000s is unlikely in the short-medium term. Prospects are for muted growth in line with a slow and steady improvement in the general economy and construction in particular.

The severe spending cuts made by the coalition government will affect the new build and RMI markets across the public sector. In particular, the schools building programme will reduce significantly with the Building Schools for the Future programme already stopped. Other areas of public spending which will see funding for new and RMI construction reduce include health and leisure.

The private sector leisure market is also expected to reduce over the medium term, partly as the boost to this market given by the Olympics disappears and partly because of reduced consumer confidence, which is likely to persist until general economic recovery improves.

However, there are some areas of optimism in the commercial glazing market - in particular, the office sector is expected to improve over the medium term. 2011 has seen some announcements regarding major schemes in response to a perceived shortage of premium office space by 2014-15. In addition, certain segments within the retail and hotel sectors look set to do well in the medium term.