The building and home improvement products distribution market is a large, mature market and as such tends to experience modest year-on-year change. Market growth has been positive since 2014, with 2014 in particular benefiting from a strong construction industry (both residential and non-residential) as well as good levels of RMI activity.
The market is evenly split between heavyside and lightside products, with each sector having different distribution profiles. Heavyside products are dominated by direct supply and builders’ & plumbers’ merchants, whilst home improvement multiples, retail and trade distributors are stronger in lightside products.
Different products favour different distribution channels, with for example the key channel for heating, plumbing & drainage products being the builders’ merchants; while garden & leisure products are primarily via home improvement multiples and garden centres; and electrical & lighting products are primarily distributed via electrical wholesalers, with the key route to market for cement & plaster being direct supply.
Market prospects for the building and home improvement products distribution market are currently extremely difficult to forecast as developments are highly dependent on the economic environment and the outcome of Brexit negotiations.