Builders Merchants Market Report – UK 2024-2028
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The latest edition of the ‘UK Builders’ Merchants Market Report – 2024-2028′ offers a comprehensive analysis of the UK builders’ merchants’ sector, detailing its structure, key market trends, and factors driving growth. The report provides a thorough evaluation of the competitive landscape, highlighting both national and regional players, alongside a detailed review of core product sectors such as timber, plumbing, and HVAC. It also addresses the ongoing economic challenges impacting market dynamics, including supply chain disruptions and rising material costs, while exploring future growth prospects across both trade and DIY sectors.
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The UK Builders’ Merchants Market Report 2024-2028 presents a detailed summary of the current state and future outlook of the builders’ merchants’ sector. The market, valued at £19.75 billion in 2024, has shown steady growth following a challenging period of economic uncertainty and supply chain disruptions. Builders’ merchants account for approximately 80-85% of the UK’s construction material supply, playing a key role in both residential and non-residential construction, including repair, maintenance, and improvement (RMI) activities.
The market is driven by increased demand for sustainable products and energy-efficient materials, influenced by environmental regulations and the push toward net-zero targets. Diversification of product ranges to cater to both trade professionals and the growing DIY market is also a major trend. However, rising competition from e-commerce platforms and alternative distribution channels is reshaping the landscape, with digital transformation becoming increasingly important for market players to remain competitive.
Looking forward, the market is projected to continue growing, with significant opportunities in retrofitting, housing development, and infrastructure projects, although economic factors such as interest rates and construction output will remain key influences on future growth.
Market Structure and Size
Analysis of national and regional operators, their market shares, and contribution to the UK construction industry.
Product Diversification
Insights into core product categories like timber, HVAC, plumbing, and the shift towards light side products catering to both trade and DIY customers.
Economic Impact
Examination of supply chain disruptions, rising material costs, and inflationary pressures affecting merchant operations and margins.
Competitive Landscape
Assessment of leading players, emerging regional competitors, and the influence of digital platforms and e-commerce on the sector.
Economic Conditions
The overall state of the economy, including GDP growth, inflation, interest rates, and consumer spending, plays a major role in influencing demand for building materials. Economic downturns or slowdowns can reduce construction activity, particularly in the residential and commercial sectors, impacting sales through builders’ merchants.
Construction Output
Growth in housebuilding, infrastructure projects, and repair, maintenance, and improvement (RMI) work are critical drivers for the market. Increased government investment in infrastructure and housing development projects significantly boosts demand for building materials.
Environmental Legislation
The push towards sustainability and achieving net-zero targets has driven demand for energy-efficient materials and systems, such as low-carbon heating solutions and retrofitting projects. This shift is expected to continue as environmental regulations become stricter, encouraging builders’ merchants to offer more eco-friendly products.
Supply Chain Challenges
Disruptions in the global supply chain, especially in sourcing key materials like timber, concrete, and HVAC systems, have caused price volatility and material shortages. These challenges affect pricing strategies and availability, influencing customer demand and purchasing behaviour.
Competition and Digital Transformation
Growing competition from e-commerce platforms and home improvement retailers is reshaping customer expectations, with many buyers now using online channels to research, compare prices, and make purchases. Builders’ merchants must adapt to digitalization and offer online services, such as Click & Collect, to stay competitive.
Housing Demand and Demographics
Rising demand for housing, influenced by population growth, urbanization, and demographic shifts, drives the need for building materials. Factors such as home improvement trends and a growing DIY market also contribute to increased sales through builders’ merchants.Top of Form
Product Sector Performance
Detailed analysis of high-demand product sectors such as timber, plumbing, HVAC equipment, and concrete, and their contribution to market growth.
E-Commerce Growth
The rise of online platforms and the impact of digital transformation on traditional builders’ merchants, including shifts in customer buying behavior and the adoption of Click & Collect services.
England Dominates the Market
The majority of builders’ merchants are concentrated in England, accounting for 86% of all enterprises in 2023. Large urban centers, particularly London and the South-East, are key hubs for builders’ merchants, driven by high construction activity, significant housing demand, and major infrastructure projects.
High-Growth Areas
Regions such as the North-West and the Midlands have experienced notable growth in the number of builders’ merchants, fueled by a rise in regional construction projects and urban development. London continues to see significant demand due to ongoing commercial and residential developments.
Regional vs. National Players
While national players like Travis Perkins and Screwfix maintain a strong presence across the country, regional merchants have been expanding their geographical footprint, particularly in high-demand areas. Mergers and acquisitions have allowed some regional operators to grow their market share, with companies like Huws Gray transitioning into more national roles.
Rural and Less Populated Areas
In more rural and less populated regions, smaller, locally based builders’ merchants dominate the landscape, serving a smaller, more focused customer base. These merchants are crucial in supporting local construction and renovation projects but face increasing competition from digital platforms and larger chains expanding into these areas.
Regional Economic Conditions
Economic conditions vary by region, influencing construction output and, subsequently, the demand for building materials. Areas with strong economic growth, infrastructure investment, and housing development are more likely to see robust demand for builders’ merchants, while regions with economic challenges may experience slower market growth.
Timber and Glazing Products
Timber remains one of the most significant product categories, used in a wide range of construction applications. Glazing products, including windows and doors, are also essential components, particularly in housing and refurbishment projects.
Bricks, Blocks, and Concrete Products
These Heavyside materials are fundamental for structural construction, particularly in housebuilding, commercial, and infrastructure projects. Demand for these materials tends to correlate with overall construction activity.
HVAC Equipment
Heating, ventilation, and air conditioning (HVAC) products have become increasingly important, particularly with the growing focus on energy efficiency and environmental sustainability. Low-carbon heating systems and energy-efficient ventilation products are key drivers within this category.
Plumbing and Drainage Materials
Plumbing products, including pipes, fittings, and drainage solutions, are essential for both new buildings and renovation projects. This category has seen growth, particularly in response to increased housing development and the rise in DIY plumbing work.
Cement and Plaster
Cement, plaster, and related products are widely used in all forms of construction, from large infrastructure projects to smaller residential developments. These materials are vital for foundation work and interior finishing.
Bathrooms and Kitchens
This light side product category is driven by the growing DIY market and demand for home improvement. Bathrooms and kitchens are key areas where consumers seek upgrades, contributing significantly to merchant sales.
Product Category
Roofing Materials
Roofing products, including tiles, slates, and insulation, are crucial in both new builds and refurbishment projects. They also play a role in energy efficiency, particularly in retrofitting older properties.
Insulation Material
Driven by energy efficiency regulations and retrofitting needs, insulation products are increasingly in demand. This category includes thermal and acoustic insulation used in various residential and commercial projects.
Decorating Products
Although a smaller segment compared to others, decorating products such as paints, coatings, and finishes are also sold by builders’ merchants, with many items appealing directly to DIY customers and home improvement enthusiasts.
Structural Steel and Metal Products
Used in large commercial projects and infrastructure, these materials are essential for frameworks and structural supports, particularly in industrial and large-scale building work.
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- Analysis by product group – market size, product mix, sector trends etc.
