Builders and Plumbers Merchants Market - UK 2010-2014

The eleventh edition of the report ‘Builders and Plumbers’ Merchants’ Market – UK 2010-2014’ provides an informed and up-to-date review of this market and, with over 110 pages, includes a review of recent market trends and forecasts over the next few years.

The report contains:
- DETAILED ASSESSMENT OF THE MARKET – analysis of the market structure and recent developments in the market.
- FORECASTS OF MARKET DEVELOPMENTS TO 2014.
- DETAILED INFORMATION – market size, influencing market factors, key
- players and merchants’ customers.
- MARKET ANALYSIS – key characteristics of market and SWOT analysis.
- ANALYSIS BY PRODUCT GROUP - market size, product mix, sector trends and merchants’ market share.

Of particular interest are the following:-
- Analysis of market performance during economic downturn to 2009.
- Forecast of market performance in 2010 and through to 2014.
- Factors affecting the market and analysis of key market characteristics.
- Product group analysis – market sizes, influences, trends and merchants’ shares.
- Identification of key customer groups in merchants’ market.
- Review of market structure – lightside and heavyside product distribution.

Builders and Plumbers Merchants included:-

A Thompson & Son, A W Lumb, Alsford Timber, Beesley and Fildes, Bradfords Building Supplies, BSS Group Plc, Burdens, C&W Berry, Carvers Building Supplies Cooper Callas, Crossling, David Cover, EH Smith, Elliott Brothers, Grafton Group Haldane Fisher, HPS (Heating Plumbing Supplies), Huws Gray, James Burrell, James Hargreaves, John A Stephens, John Nicholls, Joseph Parr Group, JT Dove, Kent Blaxill & Co, Lawsons (Whetstone), LBS Builders’ Merchants, MKM Building Supplies, MP Moran & Sons, Naylor-Myers, Nicholls & Clarke Group, Parker Building Supplies, Rawle Gammon & Baker, Ridgeons Ltd, Robert Price, Saint-Gobain Building Products Distribution (Including Jewson and Graham) Sydenhams, Travis Perkins, Walter Tipper, Wolseley UK.

Key areas of coverage in the report include:-

THE MERCHANTS
- Leading national merchants – turnover, company structure, review of recent performance, market share.
- Regional merchants – identification of key players, turnover, main product areas and branch numbers.
- Buying groups – increasing importance in the merchants’ market and identification of the main groups.
- Merchants characteristics – products ranges, profitability, debtors, turnover per employee.
- Strengths, weaknesses, opportunities and threats in the merchant sector.

THE MARKET
- The merchants’ market – key characteristics of the market, analysis by value from 2004-2009, trends and forecasts to 2014.
- Market trends and major factors influencing market development.
- The market infra-structure – suppliers, distributors, contractors, specifiers and end-users.
- Identification of merchants’ main customers.
- Product pricing trends in the industry.

PRODUCTS AND SUPPLIERS
- Product groups reviewed: roofing & insulation, bricks, blocks, clay & concrete products, cement & plaster materials, boards & timber, plumbing materials, decorating materials, heating & ventilation products, kitchen equipment and ironmongery & miscellaneous products.
- Estimated shares in 2009 of main product groups.
- Analysis by product group - market size 2004-2009 and product mix within each sector. Review of products including recent trends and factors affecting sector.
- Main suppliers in each product group.

FUTURE PROSPECTS
- Forecast of expected market development – short term prospects in 2010 and medium term prospects up to 2014.
- Positive and negative factors affecting the market – performance of UK economy, housebuilding, consumer confidence & spending.
- Outlook for the builders and plumbers’ merchants’ market through to 2014.

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1. INTRODUCTION
1.2 SOURCES OF INFORMATION

2. SUMMARY & FUTURE PROSPECTS
2.1 SUMMARY
2.2 FUTURE PROSPECTS

3. ECONOMIC ENVIRONMENT
3.1 GDP
3.2 INFLATION & INTEREST RATES
3.3 UNEMPLOYMENT
3.4 HOUSEHOLD CONSUMPTION
3.5 STERLING
3.6 POPULATION PROFILE
3.7 CONCLUSIONS

4. THE BUILDERS AND PLUMBERS’ MERCHANTS’ MARKET
4.1 DEFINITION
4.2 PRODUCTS
4.2.1 Product Range
4.3 MARKET STRUCTURE
4.3.1 Lightside Product Distribution
4.3.2 Heavyside Product Distribution
4.4 MARKET SIZE
4.4.1 Recent Performance – 2004 to 2009
4.4.2 Future Prospects – 2010 to 2014
4.5 MERCHANTS’ SHARE OF CONSTRUCTION OUTPUT
4.6 BUILDING AND CONSTRUCTION MARKET INFLUENCES
4.6.1 Overall Construction Market
4.6.2 The Housing Market
4.6.3 Additional Factors Influencing the Merchants’ Market

5. THE BUILDERS & PLUMBERS’ MERCHANTS
5.1 MARKET SHARE
5.2 MERCHANT COMPANIES
5.2.1 National Merchants
5.2.2 Large Regional Merchants
5.2.3 Small and Medium Size Regionals
5.2.4 Local Merchants
5.2.5 Buying Groups
5.3. CHARACTERISTICS OF BUILDERS & PLUMBERS’ MERCHANTS
5.3.1 Product Range
5.3.2 Profitability
5.3.3 Debtors
5.3.4 Turnover Per Employee
5.3.5 Pricing and Prices
5.4 MERCHANTS’ MARKET – SWOT ANALYSIS

6. MERCHANTS' CUSTOMERS
6.1 BUILDERS
6.1.1 House Builders/General Builders
6.1.2 Commercial Construction
6.1.3 Civil Engineering
6.2 PLUMBING AND HEATING CONTRACTORS
6.3 MECHANICAL AND ELECTRICAL CONTRACTORS
6.4 OTHER CONTRACTORS
6.5 CONSUMERS
6.6 LOCAL AUTHORITIES, PUBLIC BODIES INCLUDING HA/RSL/ALMOS
6.7 OTHER

7. PRODUCTS
7.1 PRODUCT MIX
7.2 MERCHANT SHARES BY PRODUCT
7.3 PRODUCT TRENDS
7.3.1 Roofing & Insulation Materials
7.3.2 Bricks, Blocks and Concrete Materials
7.3.3 Cement & Plaster Materials
7.3.4 Timber Products
7.3.5 Plumbing and Drainage Materials
7.3.6 Decorating Materials
7.3.7 Heating and Ventilation
7.3.8 Kitchen Products
7.3.9 Ironmongery & Miscellaneous Products

STATISTICS

CHART 1: UK BUILDERS AND PLUMBERS’ MERCHANTS’ MARKET 2004 TO 2014 – BY VALUE £ BILLION AT MERCHANTS SELLING PRICES 9
CHART 2: INTEREST RATES AND INFLATION (CPI) FROM 1992-2014 15
CHART 3: PDI & SAVINGS RATIO AT CURRENT PRICES 1992-2014 17
TABLE 4: EXCHANGE RATE FLUCTUATIONS 2004-2010 - STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 18
CHART 5: AGE DISTRIBUTION OF THE RESIDENT UK POPULATION MID-2008 (‘000) 19
CHART 6: DISTRIBUTION STRUCTURE - LIGHTSIDE 24
TABLE 7: UK BUILDING & PLUMBING MERCHANTS’ MARKET 2004 TO 2014 – BY VALUE (£ MILLION AT MERCHANT SELLING PRICES) 27
TABLE 8: MERCHANTS SHARE OF UK CONSTRUCTION OUTPUT 2004 TO 2009 (£ BILLION CURRENT PRICES) 32
CHART 9: UK CONSTRUCTION OUTPUT BY SECTOR, ANNUAL TOTALS, INDEX 2002 = 100 34
CHART 10: HOUSING COMPLETIONS 2004 TO 2008 – UK (‘000) 36
TABLE 11: NUMBER OF RESIDENTIAL PROPERTY TRANSACTIONS IN ENGLAND AND WALES 2002-2009 (MILLIONS) 38
CHART 12: MERCHANTS’ MARKET SHARES 2009 41
CHART 13: NATIONAL MERCHANTS MARKET SHARE COMPARISON 1997 AND 2009 42
TABLE 14: CHANGING PERCENTAGE SHARE OF THE NATIONAL MERCHANTS 1997-2009 43
CHART 15: MIX OF MERCHANTS BY TYPE 2009 43
TABLE 16: KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – TRAVIS PERKINS PLC 45
TABLE 17: KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – WOLSELEY UK 47
TABLE 18: KEY INDICATORS UK BUILDERS’ MERCHANTS MARKET – SAINT GOBAIN BUILDING DISTRIBUTION (JEWSON & GRAHAM) 49
TABLE 19: KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – GRAFTON UK BUILDING PRODUCTS DISTRIBUTION- 51
TABLE 20: KEY INDICATORS UK BUILDERS’ MERCHANTS’ MARKET – BSS GROUP PLC 53
TABLE 21: LEADING SMALLER REGIONAL MERCHANT COMPANIES 2008 62
CHART 22: MERCHANTS BY TURNOVER - 2009 63
TABLE 23: MERCHANTS PROFITABILITY 2004 TO 2008 66
TABLE 24: MERCHANTS DEBTORS LEVELS 2004 TO 2008 68
TABLE 25: MERCHANTS TURNOVER PER EMPLOYEE 2004 TO 2008 69
TABLE 26: PERCENTAGE CHANGE OF PRICE INDICES OF CONSTRUCTION MATERIALS 2005-2009 (%) 70
TABLE 27: MERCHANTS’ MARKET - SWOT ANALYSIS 72
TABLE 28: ENTERPRISES INVOLVED IN THE CONSTRUCTION OF BUILDINGS REGISTERED FOR VAT BY EMPLOYMENT BAND SIZE 2009 74
TABLE 29: PLUMBING, HEATING AND AIR CONDITIONING INSTALLERS REGISTERED FOR VAT BY TURNOVER BAND 2009 76
CHART 30: BUILDERS’ MERCHANTS’ AND DIY MULTIPLES’ SALES 2004-2009 (2000=100) 78
CHART 31: BUILDERS AND PLUMBERS’ MERCHANTS’ MARKET PRODUCT MIX 2009 81
TABLE 32: BUILDERS & PLUMBERS’ MERCHANTS SHARE OF THE MARKET SECTORS 2009 AT MERCHANT SELLING PRICES 83
CHART 33: UK ROOFING AND INSULATION MATERIALS MARKET 2004-09 £ MILLION MERCHANT SELLING PRICES 84
CHART 34: ROOFING AND INSULATION MATERIALS MARKET 2009 - £ MILLION AT MERCHANT SELLING PRICES 86
CHART 35: UK MARKET FOR BRICKS, BLOCKS AND CONCRETE GOODS 2005 TO 2009 - £ MILLION AT MERCHANT SELLING PRICES 88
CHART 36: MIX OF BRICKS, BLOCKS & CONCRETE PRODUCTS 2009 BY VALUE £ MILLION AT MERCHANT SELLING PRICES 89
TABLE 37: PRODUCTION, STOCKS & DELIVERIES OF ALL BRICK TYPES (MILLIONS) 2004 TO 2009 90
TABLE 38: PRODUCTION, STOCKS & DELIVERIES OF ALL CONCRETE BUILDING BLOCKS (‘000 SQ. METRES) 2004 TO 2009 91
CHART 39: THE UK MARKET FOR CEMENT AND PLASTER MATERIALS 2004 TO 2009 - BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 93
TABLE 40: CEMENT AND READY MIXED CONCRETE PRODUCTION 2004 TO 2009 (‘000 TONNES) 94
TABLE 41: SALES OF AGGREGATES IN GREAT BRITAIN 2004 TO 2009 (‘000) TONNES 95
CHART 42: UK MARKET FOR TIMBER PRODUCTS 2004 TO 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 96
CHART 43: TIMBER SALES BY MAJOR PRODUCT GROUPS 2009 - BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 98
CHART 44: UK MARKET FOR PLUMBING AND DRAINAGE MATERIALS 2004 TO 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 100
CHART 45: BATHROOM PRODUCTS MARKET BY END USE SECTOR 2009 - % BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 101
CHART 46: PRODUCT MIX FOR PLUMBING AND DRAINAGE MATERIALS MARKET 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 102
CHART 47: UK DECORATING MATERIALS MARKET 2004 TO 2009 – BY VALUE (£ MILLION AT MERCHANT SELLING PRICES) 104
CHART 48: PRODUCT MIX WITHIN THE DECORATING MATERIALS MARKET 2009 – BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 106
CHART 49: THE HEATING AND VENTILATION MARKET 2004 TO 2009 – BY VALUE - £MILLION AT MERCHANT SELLING PRICES 107
CHART 50: PRODUCT MIX HEATING AND VENTILATION PRODUCTS 2009 - % BY VALUE (£ MILLION AT MERCHANT SELLING PRICES) 109
CHART 51: THE DOMESTIC KITCHEN FURNITURE MARKET 2004 TO 2009 – BY VALUE - £ MILLION AT MERCHANT SELLING PRICES 111
CHART 52: KITCHEN PRODUCT SALES BY MAJOR PRODUCT GROUPS 2009 - BY VALUE (£ MILLION AT MERCHANTS SELLING PRICES) 113
CHART 53: MARKET FOR IRONMONGERY AND MISCELLANEOUS PRODUCTS 2009 % BY VALUE (MERCHANTS SELLING PRICES) 115

The 11th edition of the report "Builders and Plumbers Merchants Market" provides a comprehensive analysis of the structure of the market, and key players within it. The merchants' main product sectors are also analysed including the product market sizes, mixes, trends and merchant shares. The report also provides a forecast of market prospects up to 2014.

The health of the builders and plumbers’ merchants’ market is directly related to the performance of the UK building and construction sector, influenced by both new-build and repair, maintenance and improvement activities. Until late 2007/early 2008, the UK economy experienced an unprecedented period of growth, underpinned by a buoyant housing market, low inflation and strong consumer spending. This buoyant market facilitated an average annual growth rate of around 5% in the merchants’ market between 2004/07, reaching an estimated £13bn in 2007. In 2008 the UK economy entered a period of more difficult trading due to the effects of the ‘credit crunch’ causing the merchants’ market to decline to around £12bn. The economic recession in 2009 caused further deterioration of the market due to the contraction of the core end-use sectors. In 2009 it is estimated that the merchants’ market was worth around £10.5bn at merchants selling prices, with prospects in the short term remaining challenging.

The builders and plumbers’ merchant market is highly fragmented with 5 dominant national organisations competing in the market place with many regional and local merchants. The recent tough trading conditions saw many organisations undertaking cost-cutting exercises, freezing their capital expenditure, changing spending plans and cutting jobs.

The merchants’ product range is large and varied, with some merchants focusing on heavyside products, others on lightside products and some are mixed merchants offering ranges of both types of product. The extremely difficult trading conditions of 2009 saw the market sizes all of the product groups decline, although the rate of decline varied with each product group. The best performing product category was plumbing & drainage, whilst the cement & plaster group suffered the most, mainly due to its high dependence on the housebuilding sector.
The merchants are likely to benefit from a new generation of products that are expected to come to market with more radical technology for sustainability in the home such as grey-water flushing systems and forced air ventilation. These are likely to be higher ticket items that should boost the merchants’ market.

- A Thompson & Son
- A W Lumb
- Alsford Timber
- Beesley and Fildes
- Bradfords Building Supplies
- BSS Group Plc
- Burdens
- C&W Berry
- Carvers Building Supplies Cooper Callas
- Crossling
- David Cover
- EH Smith
- Elliott Brothers
- Grafton Group Haldane Fisher
- HPS (Heating Plumbing Supplies)
- Huws Gray
- James Burrell
- James Hargreaves
- John A Stephens
- John Nicholls
- Joseph Parr Group
- JT Dove
- Kent Blaxill & Co
- Lawsons (Whetstone)
- LBS Builders’ Merchants
- MKM Building Supplies
- MP Moran & Sons
- Naylor-Myers
- Nicholls & Clarke Group
- Parker Building Supplies
- Rawle Gammon & Baker
- Ridgeons Ltd
- Robert Price
- Saint-Gobain Building Products Distribution (Including Jewson and Graham) Sydenhams
- Travis Perkins
- Walter Tipper
- Wolseley UK