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UK
Commercial Washrooms Market by Value (£m MSP)
 The
UK commercial washrooms market is estimated to be worth some £313
million at Manufacturers Selling Prices (MSP) in 2010. This
represents a decrease of around 2% when compared to the market size
in 2009 and reflects the continued impact of the UK economic
downturn on the non-domestic construction market.
The education,
entertainment/leisure and health are the key end-use sectors for
the commercial washrooms market. In recent years the education
sector has experienced good growth supported by major capital
programmes such as Building Schools for the Future (BSF). However,
the outlook for the education sector is currently unclear, with the
recent suspension or cancellation of the BSF programme. Annual
budgets are set to decline by 60% over the next 5 years and
although the Coalition has pledged support for the provision of 600
new/replacement schools – the Government is seeking cost savings of
up to 40% on such projects. Entertainment and leisure has been
supported to some degree by the 2012 Olympic Games construction
programme, combined with major hotel upgrade programmes,
particularly in London. Health construction output has been boosted
by some large hospital projects and a number of new local
facilities for GP’s and clinics though decline is anticipated, with
a greater emphasis on the provision of social care and funding of
more essential treatments and chronic disease prevention.
Estimated at £126
million in 2010, washroom panel systems were the largest sector of
the market. This was followed by sanitaryware (£95m), brassware
(£45m), showers/mixers (£39m) and baths (£7m).
It is estimated that
75% of commercial washroom products are distributed via trade
channels such as builders/plumbers merchants and distributors. The
remainder represents mainly direct sales from supplier to end-user.
With cuts to public
spending budgets announced under the CSR in 2010, the development
of the UK commercial washrooms market will become more reliant on
private sector investment in the short-medium term. As such, future
market stabilisation and return to growth is likely to be
underpinned by returning confidence in the private sector and the
corresponding recovery in non-domestic RMI.
The trend towards
prefabrication and off-site construction is likely to continue.
Growth in washroom panel systems is likely to be supported by this
trend, with a greater demand for higher value pre-plumbed panels.
The level of cheaper imports and their components are expected to
remain high, from lower cost sources such as China and the Far
East. This will lead to higher levels of price competition and
restrict value growth in some product sectors.
The outlook for the UK
commercial washrooms market remains uncertain in 2011. Forecasts
indicate that the commercial washrooms market is likely to decline
by 4% in 2011, with a further decline of 1% in 2012. This reflects
further capital spending cuts in the public sector though this
should partially be offset by a gradual recovery in private
commercial markets. By 2015 the market value is forecast to be some
£327m at MSP, which would represent an increase of 9% compared to
the estimated market size in 2011. |
