£3 Billion Sales Boost for FM Market in 2022

A new report on the UK Facilities Management market from MTW Research has found that whilst the cost of Covid-19 will exceed £11 billion in lost revenue by 2026, prospects for the market are positive with a £3 billion sales uplift in 2022.

The 100 page report reviews the legacy of Covid-19, highlighting near term labour, profitability and other operational challenges but places this into context within wider positive FM market trends and opportunities, forecasting double digit growth over the next 4 years.

Proptech represents a key positive FM market trend in 2022 according to MTW, with growth in disruptive technology boosting healthy sales opportunities.  Discussing this trend, MTW’s director Mark Waddy said “Trends in FM technology and process innovation are enabling FM providers to develop an ‘empathic response’ to service provision, boosting added value by more closely integrating with the client and anticipating their needs.”

Public sector FM grew share of the FM market in 2020/21 as commercial demand slowed in response to the pandemic.  MTW identify that this trend is now reversing in 2022 though public spending plans published in March 2022 were further revised upward by 2.8%, on top of a real terms increase of £150bn announced in 2021.  This growth, coupled with a steadily strengthening private FM outsourcing sector underlines a fundamental strength in the FM market for the medium to longer term with MTW forecasting the market will reach 98% of pre-Covid sales in 2022.

Despite high inflation, real term growth is set to return in H2 2022 with full year 2023 growth expected to outpace inflation as international and domestic inflationary pressures steadily ease.  However, MTW also identify a number of issues dampening growth prospects.  One example is the trend of insourcing, with caterers, cleaners, security and maintenance contractors having become so well integrated that they are viewed as the ‘lifeblood’ of the organisation and so are adopted as employees.  This trend is often also supported by unions and so has gained further traction as a result.

The report also highlights growing challenges in the TFM market, with a growing trend of FM contractors focusing on specialism rather than broad spectrum service delivery in order to develop more defined brands and enhance margin opportunities.  More selective tender submissions and enhanced margin protection continue to become increasingly evident across the FM market in 2022 as the quality of service rather than volume of contracts grows in significance.  Nevertheless, bundled FM services continue to dominate the market in 2022, rising by more than 13% over the entire review period. 

Best performing sectors in recent years according to MTW include the contract cleaning market and security sectors whilst the property maintenance and catering markets performed generally in line with the overall FM market.  By 2026, sales from these 4 sectors alone will generate more than £55 billion of sales in cash terms.

The report also identifies some of the more recent mergers and acquisitions and forecasts M&A will grow rapidly in 2022, underpinned by private equity which continues to price trade buyers out of the market.  As private equity continues to grow share of the FM market, M&A activity is set to rise by some 35% in 2022 compared to 2019 levels.   The report is available to purchase from £595 from MTW Research’s website www.marketresearchreports.co.uk where a free sample is available to download or by calling 08456 524324.

Cleaning Equipment Market Growth for 2018

A new report on the Commercial Cleaning Equipment Market from MTW Research has found that sales are exhibiting above inflation growth in 2018, though cleaning manufacturers and distributors face several challenges and shifting product trends.

Brexit Threat to Cleaning Equipment Market

The 270 page report suggests the cleaning equipment market has increased by 15%, boosted by product development - particularly in the powered cleaning machine market. Whilst Brexit represents a key threat to the cleaning equipment market in 2018, forecasts are positive with above inflation growth likely to 2022. MTW suggest the Brexit transition phase should offer stability for the cleaning equipment market, though highlights varying product trends and growth across the market.

Powered Cleaning Equipment Market Boost

Powered cleaning machine sales will outperform the cleaning equipment market in 2018, according to MTW, representing the fastest paced sector of the commercial cleaning market equipment. The hard floor cleaning machine market is exhibiting healthy growth, with volume demand in the vacuum cleaner market and pressure washer market positive in 2018. The market for these products will exceed £300 million for the first time in 2018, exhibiting growth of more than 50% since 2012.

The report reveals a number of positive product trends within the powered cleaning market. MTW Director Mark Waddy commented, “Whilst price deflation remains apparent in the cleaning equipment market, manufacturers are successfully differentiating themselves and their products. Demand for high quality, user friendly cleaning equipment which enhances efficiency continues to underpin growth for the cleaning equipment market, offsetting the threat of lower priced imports.”

Cleaning Chemicals Market Goes Green

The report also reviews the cleaning chemicals market, finding that whilst demand is strong for ‘antibacterial’ chemicals and ‘deep cleaning’, opportunities for growth in the environmentally friendly chemicals sector are significant in 2018. Often perceived as being ‘safer’ for the cleaning contractor and the end user, ‘green’ chemicals and more environmentally friendly cleaning processes are likely to continue to grow share of the cleaning chemicals market in the longer term.

A focus on hygiene across the spectrum of end use sectors continues to underpin the cleaning chemicals sector, with manufacturers of cleaning equipment working more closely with chemical suppliers to offer enhanced cleaning solutions. MTW report a 30% increase in cleaning chemicals over the review period, with growth set to outstrip inflation to 2022.

Easing Austerity Supports Cleaning Equipment Market

MTW also explore the shares by end use sector, with health and education sectors increasing sales as austerity measures ease. Cleaning distribution channel analysis also reveals that direct supply has increased, perhaps in response to tightening margins for many cleaning product suppliers. Internet suppliers in the janitorial equipment market continue to grow share in 2018, with this sector popular with the SME contract cleaning market. Despite some evident pitfalls, prospects are generally positive for cleaning equipment suppliers in 2018, with MTW identifying clear opportunities for growth. MTW’s commercial cleaning equipment market report is available from £595 at www.marketresearchreports.co.uk or by calling 08456 524324.

Shower Market Shuns Brexit Blip in 2018

The new 2018 report on the UK shower market from MTW Research finds that whilst the prospect of Brexit is dampening performance, robust demand continues to support above inflation growth in 2018 for most sectors.

Brexit ‘Blip’ Softened by Millennials & Empty Nesters

The 270 page report identifies the Brexit transition period as providing a relatively stable environment for growth to the end of 2020, with above inflation growth forecast for the next 4 years. Other factors such as housebuilding rising by 16% in H2 2017 and healthy refurbishment demand continue to underpin sales growth for shower manufacturers, distributors and retailers.

The report considers several key target markets such as ‘Millennials’, finding that they are twice as likely as over 50s to move and renovate a new home, boosting volume demand for mid priced showers. The over 50 age group represents a key opportunity to drive value growth, with this more experienced, knowledgeable sector more resistant to pricing pressure.

MTW director Mark Waddy commented, “The Brexit vote has undoubtedly slowed growth for the Showers market but with refurbishment demand from a dwelling stock of almost 29 million, volume demand rising from ‘Millennials’ and value growth underpinned by the 50+ age group there are many reasons to be optimistic for the future.”

Despite the report forecasting a ‘Brexit blip’ in 2019, the overall tone is positive for most end use sectors with real term growth ranging from 1-2% for most product sectors such as the shower controls market, enclosures, screens and trays. Pricing pressure in the shower accessories market remains intense though volume demand is stable, boosted by the popular ‘maximum impact, minimum effort’ ethos.

Digital Shower Market Boosts Sales

The report identifies market size by value and volume for the shower controls market, finding that the digital showers market continues to gain share, albeit at lower rates of growth than previous reports. The high pressure digital shower market represents the fastest paced growth sector in 2018 according to MTW, with 30% growth forecast over the next few years.

The report also reveals that the concealed mixing valve sector is outperforming the showers market with double digit growth forecast to 2022, complementing the trend toward frameless shower enclosures, low profile trays and the wet room market. MTW provide a share for the most popular shower enclosures in terms of shape and design as well as for the shower trays market, highlighting a number of key differentiators used to drive sales and the trend toward larger enclosures in the higher value showers market.

Commercial Showers Market Stable

The commercial showers market size and product mix is also reviewed in the report, and whilst MTW found a slightly less positive scenario in this sector, sales remain positive. The single outlet TMV market continues to gain share from the multi-point TMV market in 2018, with some end use sectors underpinning sales in the refurbishment sector. Demand from the £10 billion FM market is also indicated to be propping up sales for the non-domestic showers market, with a number of PFI funded buildings in the late 1990s / early 2000s now increasingly requiring refurbishment.

Internet Margins Down; Professional Installations Up

Aggressive pricing by Internet retailers continues to characterise the volume end of the showers market, with profitability for some online retailers at less than 1%. The Internet continues to gain share with sales growth of 30% between 2018 and 2022 forecast by MTW. However, the fightback by other channels appears to be gaining traction with trade outlets, led by the merchants, gaining share.

Click here for more details, free samples and online ordering for the 2018 Showers Market Report

Lighting Market Optimism for 2016

A new report on the UK lighting market from MTW Research forecasts healthy growth in 2016 as sales of LED lighting continue to invigorate the market.

With real term growth predicted in the lighting market in the next few years, the report identifies a number of key opportunities for lighting suppliers to grow sales to both domestic and non-domestic sectors, with 4% growth forecast for 2016. Overall, sales in the UK lighting market are set to exhibit above inflation growth to 2020, with LED lighting providing significant impetus.

MTW identify several technologies set to offer growth and new directions to the lighting market in 2016 and beyond. Li-Fi for example uses light to transfer data at very quick speeds, harnessing state of the art light sources to provide lightning quick connectivity. ‘Energy retrofits’ are also set to offer significant growth for lighting supplies in 2016 according to the report. Enhanced efficacy of LED lighting has continued to boost lighting refurbishment, with new build also set to underpin demand growth to 2020.

Based on data from 200 lighting suppliers, MTW’s report presents a positive forecast for the majority of key sectors within the UK lighting market. However, developments in diode technology and increasing consumer confidence surrounding LED’s continue to result in LED lighting outperforming the overall market. In response to the research, MTW’s lead analyst, James Taylor said, “The growth of LEDs and prominence of Internet distribution define the future of the UK lighting market. Consumer confidence has risen significantly, underpinning sustainable growth and offering a promising future for lighting manufacturers and retailers willing to adapt to changing demands and distribution patterns within the market.”

However, whilst the 320 page report highlights numerous opportunities for manufacturers and retailers, MTW also present several key threats to the industry which have the potential to dampen growth in 2016 and beyond. One such threat is the over saturation of the LED market, which has been observed in the US lighting industry in the last few years. Volume demand for LED lighting will increase as manufacturers seek to capitalise on its commercial success, however this could promote rising pricing pressure.

Nevertheless the over-riding tone of MTW’s report is one of positivity with tangible growth forecast for most end use sectors in both domestic and non-domestic applications. The report also provides a share by distribution channel and analyses the independent retail sector in detail since 2010 with forecasts to 2020. The research found that more than 65% of lighting retailers experienced revenue growth in the last 12 months, as well as more than 95% of retailers have a fair-excellent credit rating, highlighting the overall stability within the UK lighting Industry.

The full report, which also includes an optional retailer mailing list & 3 year financial spreadsheets for 200 lighting suppliers, is available to purchase from £595 from MTW Research’s website www.marketresearchreports.co.uk or by calling 08456 524324.

Builders Merchants Market Set for 2016 Boost

A new report on the Builders Merchants market from MTW Research has found that 70% of merchants are experiencing growth in revenue and profitability in 2015, with sales set to rise above inflation in 2016. 

Based on industry sales, the research uncovered sustained growth in heavyside sales during 2015, providing welcome news for building product suppliers.  The report states that since 2014 key growth sectors have included domestic new build and commercial refurbishment, with these continuing to underpin volume and value growth in late 2015.

Despite growth slowing slightly in 2015, demand for building materials remains healthy according to MTW.  An easing of price sensitivity is set to continue in 2016 due to low oil prices, strengthening volume demand and lower global demand for raw materials, particularly from China.  The report forecasts market sales growth to 2019 and whilst there are variations across different markets, the tone is of general optimism for most building product sectors.

The rebalancing of the builders merchants market continued in 2015, with growth in the heavyside sector forecast to slightly outpace lightside products in 2016.  Whilst inflation is forecast to increase steadily next year, MTW indicate that real term growth is still likely across most product sectors, though some end use markets will fare better than others.

Contractors’ expenditure on tools and equipment should also boost the merchants sector in 2016, in addition to rising demand for building materials.  Following sustained ‘buying abstinence’ on behalf of many contractors in recent years, the market is set to receive a boost in relation to rising capital equipment purchase which should underpin continued buoyancy in the builders merchants market.

The 190 page report also reviews the profitability of the top 100 builders merchants and the total builders merchants market profit.  Commenting on the findings, MTW’s director Mark Waddy said, “There are clear indications of strengthening profitability for most merchants, tempered to some extent by rising debt levels.  Nevertheless, our forecast models indicate that merchants profitability will rise by around 30% in the next few years, underlining a fundamental strength in the market for 2016 and beyond.”

Prospects are for builders merchants to benefit from growth in several end use sectors, notably the private house building market and private refurbishment within housing and non-housing applications.  Whilst public expenditure will decline in the current Parliament, MTW indicate that this ‘slack’ will be more than accounted for by growth in the private sector refurbishment and new build sectors.  The report also points to an increase in demand from the industrial construction and refurbishment sector as business confidence strengthens, sustaining demand growth for builders merchants. 

The report forecasts relatively healthy sales growth for the next few years to 2019 and indicates that profitability has now fully recovered from the legacy of the recession when income troughed at 60% of current levels.  Whilst there remains turbulence for some sectors in the builders merchants market, MTW’s report presents a generally positive view of current trading conditions, identifies several opportunities for growth and forecasts positive future prospects for builders merchants and their suppliers.  The 2015 builders merchants report is available now from MTW Research’s website www.marketresearchreports.co.uk for £595 or by calling 08456 524324.

£2 Billion More for Housebuilding Market in 2015

New data on the UK housebuilding market from MTW Research has revealed that housebuilders sales are set for an 8% boost in 2015, with optimism rising amongst building product suppliers and distributors.

Whilst this growth represents a slight slowdown since 2014, the report highlights a wide range of key market drivers boosting new home sales by more than £2 billion in 2015.  Reviewing the social and private house building markets, MTW found private new build exceeding 100,000 units with social housebuilding also remaining robust, despite ongoing austerity and concerns relating to the ‘right to buy’ scheme being extended to cover the housing association market.

Discussing the findings, director of MTW Research Mark Waddy commented, “Despite strengthening further, the house building market is unlikely to return to the pre-recession levels of 219,000 units per year in 2015 or 2016.  However there are a number of fundamental strengths underpinning the UK housing market in 2015 with profitability in the housebuilders market rising by 30% in the last 2 years.

Based on data from 80% of the house building market, the report reviews changes in buying and specification processes, noting that creating value through the provision of differentiated features, fixtures and fittings is becoming increasingly important.  This is providing building product suppliers with clear market opportunities for value growth according to MTW, with housebuilders increasingly willing to specify products which offer enhanced benefits across a broad range of criteria such as functionality, aesthetic, environmental, technological and several other factors.

The report depicts a scenario of severe imbalance between housing supply and demand in the UK in 2015, reporting the need for more than 220,000 additional homes to be built each year to maintain pace with rising demand patterns.  MTW’s forecast models, based on current and intended activity levels, suggest that levels are unlikely to exceed much more than 75% of this target in the longer term.

The 170 page report indicates that sustained demand, low supply and a growing focus on differentiation should offer building product suppliers good opportunities for value growth in the near term.  Organic volume growth is also set to underpin sales growth as planning permissions exceed 200,000 for the first time in 2015 since the recession. 

The research also includes a review of UK house price trends, with growth in 2015 slowing slightly since the recent high of 7% in 2014 though still remaining strong.  MTW’s forecasts of house prices also indicate a clear pattern of optimism for the industry in the longer term, with prices having risen by almost 20% since the recession.

MTW’s analysis found that the housebuilders themselves are generally in good health with 60% having either a ‘good’ or ‘excellent’ credit rating and net worth increasing by 40% in 2014 and 2015.  The report indicates that many housebuilders have now transited from ‘current asset protection’ policies adopted during the turbulent economic period of 2008-2012, toward more speculative building strategies in the last couple of years.  

With MTW forecasting more than 320,000 first time buyers in 2015 – an increase of 50% since 2009, the foundations are strong for rapid growth for building product suppliers and the housebuilders themselves.  The 2015 report is available now from MTW Research’s website www.marketresearchreports.co.uk for £595 or by calling 08456 524324.

Timber Frame Market Set for Growth in 2015

The timber frame market saw profit growth of 0.5% in 2014 according to a new report from MTW Research, with double digit sales growth in the last 2 years boosted by the burgeoning housebuilding market.

Based on sales data from 80 timber frame suppliers, the report states that margins recovered in 2014 and profitability will strengthen in 2015 as demand rises from housebuilding and commercial construction.  However, the report notes that there was some evidence of a deceleration in growth for the timber frame market toward the end of 2014, with more stable trading patterns forecast for 2015.

Discussing the findings, MTW’s director Mark Waddy commented, “Around 20% of timber frame suppliers have closed since 2008, reflecting ongoing challenges in the market.  However, these closures coupled with rising demand in the last 2 years have alleviated the threat of over-supply which was dampening growth prospects for the timber frame market.”  Identifying a number of positive factors the report forecasts sales growth of 20% by 2019, underlining healthy opportunities for the timber frame market.

The drive toward more energy efficient homes and buildings continues to represent a key driver of demand for timber frame construction in 2015.  MTW forecast that closed panels and the SIPS market are likely to gain further share over the open timber panel market as an increasing number of new build homes seek to achieve code 5 status.  Sustainability of the material, lower waste arisings and greater thermal efficiencies amongst others continue to support the specification of timber frame, with the research finding that timber has continued to gain share of the UK construction market.

The 200 page report states that 65% of timber frame suppliers are now reporting growth compared to 40% in 2013, underlining rising optimism for the majority of the timber frame market.  However, MTW also point to a ‘two tier market’ in 2015 whilst 70% of timber frame suppliers have a good or excellent credit rating, some 30% of suppliers are experiencing difficulties in terms of declining sales, tightening margins and pressure on financial liquidity. 

Nevertheless, the research identifies a number of key drivers and opportunities which should underpin growth in the timber frame construction market in the medium term.  The report highlights that housebuilding levels are some 55% higher than they were in 2009, with timber frame sales having risen faster than the overall housebuilding market.  MTW’s research also reviewed the MMC market (modern methods of construction), finding that sales in this sector are set to top £2 billion for the first time in 2018, underpinning further optimism for new building technologies and materials in the future.

The report analyses the timber frame industry in detail and suggests that whilst profitability is rising, the level of M&A activity in the sector is set to increase in the near term.  The research found that an increasing number of higher profile mergers and acquisitions are likely as economies of scale are sought in order to compete with more traditional building methods.  According to MTW, the fragmented timber frame market is also likely to be characterised by ongoing consolidation in the longer term with smaller companies becoming less prevalent in the industry as a result.  The 2015 report is available at https://www.marketresearchreports.co.uk/Timber-Frame-Market/Timber-Frame-Market-Size.htm  for £595 or by calling 08456 524324.

Shower Market Builds Head of Steam for 2015

A new report on the UK shower market from MTW Research has uncovered inflation busting growth returning for some sectors for the first time since 2007, with sales set to strengthen in 2015.  

Based on industry accounts data, the report forecasts that sales of showers will return to pre-recession levels by 2018, suggesting the weak trading environment of recent years has finally been consigned to the history books.  However, MTW found that whilst growth is strengthening in some sectors, some shower products continue to experience lacklustre sales as pricing pressure remains intense.  Despite some high profile closures, Internet retailers have continued to gain share of the showers market, sustaining pressure on independent bathroom retailers and UK suppliers.

Nevertheless, the over-riding tone of the report is optimistic, identifying a number of changes in consumer and trade demand which should boost shower sales in the near to medium term.  According to MTW, modest growth is being led by changing consumer preferences toward higher quality products, though affordability remains a key influencer on the final purchase decision.  The report identifies a slow but steady shift toward demand for a higher value proposition, with this market characteristic set to sustain growth opportunities for higher value sectors such as concealed mixing valves, low profile shower trays, semi-frameless enclosures and digital shower markets.  Discussing the findings, MTW’s director, Mark Waddy commented, “The showers market in late 2014 can be characterised as a sector which is driven by consumers’ aspirations for higher quality, design-led products at an affordable price.”

The research reviewed the digital shower controls market in some depth and uncovered rapid growth rates in recent years, though in overall terms the actual value of the sector remains small in comparison to the overall shower market.  MTW suggest sales of digital showers are set to offer healthy differentiation and value growth opportunities in 2015 and beyond, in line with changing consumer preferences and declining prices rendering digital showers more accessible to the wider market.  Manufacturers of higher value showers have also found increasing success in changing the trade’s attitude toward digital controls, further boosting sales.  Overall, MTW forecast the digital showers market to grow by around 30% in the next 4 years, highlighting an increasingly rapid adoption of these products following a fairly slow initial take-up.

MTW’s 240 page report discusses a wide range of influencing factors for sales of showers, with the balance of factors being positive, prompting rising optimism for the UK shower market in 2015 and beyond.  MTW point to the 14 million consumers aged 60 or above who offer good growth opportunities, with this target market representing around 30% of all shower purchases in 2014.  The rising UK population is also providing an underlying stimulus, rising by over 400,000 in 2013. 

The report also reviews the commercial shower market, finding that non-domestic shower sales have become increasingly reliant on the private sector in recent years as Government austerity measures have impacted demand for public sector showers, despite some stimulus from the health and education sectors.  With commercial new build and refurbishment set to represent a key growth sector in 2015, MTW forecast an increasingly strengthening commercial showers market in the medium term.  MTW’s report is available from www.marketresearchreports.co.uk or call 08456 524324, priced from £565.

30% Growth for Green Deal & ECO Building Products in 2014

Despite the slow start for the Green Deal in 2013, MTW Research have published new findings that energy saving building product sales are set to rise by 30% in 2014, as Green Deal and ECO measures return to growth.

The new report found that whilst sales of Green Deal & ECO products declined in 2013, prospects for 2014 are significantly more positive.  MTW forecast Green Deal assessments are likely to exceed 20,000 per month in 2014, with the number of measures installed also rising rapidly.

Sales of energy efficient building products through the ECO (Energy Companies Obligation) scheme are also quantified in MTW’s report, with double digit growth forecast as energy providers increase activity in order to meet their obligations.  The report identifies more than 50 product sectors which are likely to benefit from ECO and Green Deal in 2014 onwards.  The research found that providers are likely to widen the scope of measures on offer to households, broadening the range of products which are likely to grow in 2014 and 2015.

The report also underlines the potential for Green Deal and ECO, forecasting key product sales to 2018.  Discussing the findings, MTW’s director Mark Waddy commented, “In terms of market potential, there are clear indications that some 12 million measures installed in 10 million homes is possible - much of this enshrined in law.  The scope for manufacturers, distributors and installers to capitalise on this growth market is significant, with more than £1.2 billion being spent on energy saving products through Green Deal and ECO in the next few years.”

With sales set to increase across a wider range of products, the research found that ECO is likely to provide the single most significant boost to the domestic energy efficient products market in the medium term.   Waddy revealed that “Going forward, ECO and the Green Deal are unlikely to be just about boilers and insulation, though of course these remain very important.  The market will continue to broaden and grow in terms of products being installed, representing a changing market with rapidly increasing opportunities for suppliers and installers.  Our best case scenarios suggest that eco building product sales are forecast to grow by 90% in the next few years.”   

The report offers a detailed perspective into recent events for the Green Deal and ECO, but more importantly forecasts a burgeoning market across a range of building product markets, from lighting, HVAC, showers, taps, controls, doors and windows, microgeneration, CHP, insulation and others.  The report illustrates the very slow start to the Green Deal, but also demonstrates that the tide has turned for the scheme and forecasts a rapidly rising number of ‘live’ Green Deals in the next 12-18 months.  Examining conversion rates of assessments to measures installed, MTW suggest that monthly double digit growth is likely for Green Deal products for some time to come.

The report also provides total UK market sizes for a wide range of energy saving building products, with sales in 2014 topping £5.2 billion and rising fast.  Green Deal and ECO installations are rapidly accounting for a larger proportion of these sales each year according to MTW, reflecting a market that the UK building products industry cannot afford to ignore.

The report and accompanying contractor database is available now from MTW Research’s website www.marketresearchreports.co.uk from £565 or by calling 08456 524324.

Buoyancy for Bathroom Market as Buyers Bounce Back in 2014

A new report from MTW Research on the UK bathroom market suggests that bathroom retailers’ sales will outperform the UK economy in 2014, with inflation-busting growth returning in the second half of the year as footfall strengthens further.

Based on data from 90 leading bathroom retailers, the research found that sales are now £20 million higher than the trough of the market, with rising enquiries from consumers leading to bullish optimism across most sectors of the bathroom market for 2014.  Housing transaction growth, falling unemployment and a sustained vigour from specialist retailers with regard to differentiation of service are just some of the key issues identified by MTW as prompting renewed enthusiasm for growth across much of the bathroom industry in 2014.

Whilst the 180 page report states pricing pressure remains intense for some, the research uncovered a growing resistance to the threat of heavy online discounting with increasing numbers of bathroom retailers successfully navigating away from rising price competition.  Retailers adopting clear market positioning and ‘turn-key’ solutions which include advice, design, supply, installation and post sales support found increasing success in 2013, according to MTW.  Companies developing their competitive advantage have also been increasingly supported by growth in the higher value end of the market, sustained as consumer confidence has steadily returned.  ‘Brand protection’ tactics by an increasing number of bathroom suppliers adopting stricter distribution policies are also beginning to support market growth with this identified as a key driver for future growth.  The days of value-led consumer austerity in the bathroom market appear to be diminishing steadily but surely. 

However, the report clarifies that market recovery remains ongoing, with a large proportion of bathroom retailers, distributors and manufacturers continuing to experience challenging conditions as 2013 draws to a close.   Analysis of the industry found 50% of retailers experienced sales growth in the last 12 months, answering the age old question of which half of the marketing budget was well spent by bathroom manufacturers in 2013.  Credit ratings are also up compared to MTW’s last review of the market, with 70% of bathroom retailers now having a ‘good’ or ‘excellent’ rating, compared to 60% in 2011 

Profitability is steadily rising in the bathroom market according to MTW, as consumers are increasingly spending more time in the bathroom and the focus on wellness and relaxation continues to drive higher value sales.  However, MTW’s director Mark Waddy commented that, “…With industry sales some 11% down on pre-recession levels, there is still some overcapacity in the market with some respondents suggesting that this could be as high as 20%.  However, this scenario is abating and all the signs are increasingly positive for those bathroom suppliers who maintain a keen eye on current trends.”

The report identifies a number of key product sectors which are outperforming the overall market in 2013, and highlights the key target markets where growth is set to return more rapidly.  One example given is that whilst younger consumers have been forced to use all their disposable incomes on deposits for homes in recent years, ‘help to buy’ is now relieving this situation to some extent, giving rise to some opportunities for retailers to target faster paced consumer markets, as well as the more traditional, affluent 50+ age ‘empty nesters’.  The report is available now for £565 from MTW Research’s website www.marketresearchreports.co.uk or by calling 08456 524324

Kitchen & Bathroom Distributors Market to Top £1 Billion

A new report on the kitchen and bathroom distributors market from MTW Research has found that modest growth in 2013 is set to strengthen in 2014, with retail sales nearing £1 billion in the next 12 months. 

Based on financial data from more than 90% of UK distributors, the research uncovered rising sales across most kitchen, shower and bathroom markets in late 2013, with greater optimism emanating from the independent bathroom & kitchen retailers in particular.  The contract market is also growing sales in late 2013 according to MTW, with housebuilding activity underpinning volume growth and demand from merchants also rising.

Despite this encouraging news, the research also uncovered 60% of distributors experiencing declining sales in the last 12 months, with the gap widening between successful and less fortunate distributors.  MTW’s director Mark Waddy pointed to “…A step change in the sophistication of successful distributors, leaving others trailing in their wake.  It is no longer simply about selling products and delivering them on time, a whole host of core competences are vital.  Successful distributors focus on all aspects of customers’ needs, they also recognise their integral role in the supply chain and can uniquely influence and assist suppliers and customers to develop cohesive, effective marketing strategies to grow sales.” 

The industry is clearly still in recovery mode, though with 20% of distributors reporting 10% growth or more, some are certainly driving sales in 2013.  The research examined why these companies are outperforming the market with the report identifying some clear opportunities for manufacturers, retailers and distributors to exploit and grow sales in 2014.

The report also analyses the product mix and trends within the bathroom, shower and kitchen markets, finding that the age of austerity is coming to an end, albeit rather slowly.  Product trends in favour of opulence and more luxurious designs appear to be growing in favour, with the over 50 age group identified by MTW as one growth sector for higher value suppliers.  The recent economic doldrums led to a ‘flight to price’ though this trend is now apparently reversing.  However, a 6 year focus on value has taught consumers how to achieve maximum impact for minimum spend which, according to MTW, is something that much of the K&B market is now addressing.  One example given of how the industry is moving in this direction is the focus on consumer relaxation and wellness in the bathroom which is driving sales in late 2013.

Since their last review, MTW found some 20 distributors have exited the bathroom and kitchen distribution channel, either by closing down due to declining sales, or having moved into direct selling via the internet.   The report discusses the issue of direct internet selling, with the findings suggesting that this tactic does not typically feature in successful distributors’ policies and is unlikely to flourish as a long term business strategy.  However, MTW highlight the continued market pressure with 20% of distributors making a loss on every employee, up to £19,000 in some cases – perhaps one reason why some are seeking quick wins through direct internet selling in 2013.

The full 150 page report provides a comprehensive review of the distributors market, product trends, threats and opportunities and is available from £565 from MTW Research’s website www.marketresearchreports.co.uk or by calling 08456 524324. 

LED Lighting Market Sales Boost in 2014

A new report on the UK lighting market from MTW Research forecasts increasingly buoyant growth in 2014 as sales of LED lighting are set to generate sales in excess of £700 million in the next 4 years. 

With real term growth returning to the overall lighting market in the next 12-18 months, MTW’s report identifies a number of key opportunities for lighting suppliers to grow sales to both domestic and non-domestic markets as the UK economy returns to growth.  Overall, sales in the UK lighting market are set to return to pre-recession levels by 2015, with LED lighting sales growing by more than 85% over the review period. 

Based on financial data from more than 350 lighting manufacturers and retailers, the report presents a broadly positive forecast for the majority of key product sectors within the lamps and luminaires market.  However, developments in optoelectronics and diode technology continue to result in LED lighting gaining share from other lighting product sectors, representing a fundamental shift in the UK lighting market.  In response to the research, MTW’s director, Mark Waddy said, “The traditional hierarchy of the market continues to be challenged by the semi conductor industry who have consistently gained share of the UK lighting market in recent years.  This trend is set to continue as Haitz’s law becomes increasingly relevant with greater efficacy levels and lower costs in LED lighting enhancing both product and market development opportunities.”

However, whilst the 450 page report highlights a number of opportunities for lighting manufacturers and retailers to exploit, MTW also sound a note of caution by identifying several key threats to the industry which are likely to dampen value growth in 2014 and beyond.  One such threat is the continued incidence of counterfeit products entering the UK market, particularly LED modules, which not only restricts value and volume growth but also erodes end user confidence in the technology as well as the possible safety implications.  Whilst there has been a growing impetus to combat plagiarism by many UK lighting suppliers, the growth in drop-shipping and internet selling continues to facilitate this activity. 

Nevertheless, the over-riding tone of MTW’s report is optimistic with growth forecast for a large number of the key end use sectors for domestic and non-domestic applications.  The report also provides a share by distribution channel and analyses the independent retail sector in detail since 2007 with forecasts to 2017.  The research found that more than 40% of lighting retailers experienced revenue growth in the last 12 months, though debt levels have continued to rise as retailers have sought to differentiate themselves from larger multiples in order to reduce the threat of price competition.  The analysis also concludes that more than 60% of retailers have a good-fair credit rating, suggesting that those retailers that weathered the recent economic storm now stand in good stead to take advantage of improving market conditions. 

The full 450 page report, which also includes an optional retailer mailing list & 4 year financial spreadsheets for 360 key lighting product suppliers is available to purchase from £565 from MTW Research’s website www.marketresearchreports.co.uk or by calling 08456 524324. 

£70 Million Boost for Panel Builders Market in 2014

A new report on the 2014 panel builders market from MTW Research suggests that the industry is set to outperform the UK economy this year as volume and value growth continues to strengthen.

Based on sales data from more than 160 leading panel builders, the research found that the panel building market is experiencing above inflation growth with sales set to rise faster than GDP in 2014.  Optimism is growing from the majority of panel builders with MTW indicating that sales are likely to exceed pre-recession levels by 2017 as the industry continues to quickly recover lost ground.

The 240 page report discusses key trends in the panel building market in 2014, identifying a number of opportunities for panel builders and associated component suppliers.  One such opportunity is the rapid growth in ‘strategic fit’ panel building and system design which is enhancing the ability to add value in an increasingly competitive market.  MTW asserts that more successful panel builders are achieving competitive advantage through closer integration with clients and suppliers, resulting in a more complete solution.  Strategic issues such as corporate aims and objectives, ethos, environmental policies etc are increasingly being communicated between client and panel builder in order to facilitate a closer level of integration and ultimately a more suitable solution.

Based on analysis of 80% of the UK panel building market by value, the research found that panel builders and component manufacturers are increasingly focusing on ‘future-proofing’ as a key differentiator, with products and designs which offer a more modular approach also growing rapidly.  However, the report sounds a note of caution by pointing to an element of oversupply in the panel builders market in 2014, with spare capacity of around 10% sustaining pressures in some sectors of the market. 

Nevertheless, the general tone of the report is positive, with £70 million of additional sales forecasted in the next few years for the panel building market.  On balance, the list of opportunities and strengths presented by MTW is longer than the list of weaknesses and threats, with most participants in the research offering an optimistic outlook.  The report indicates that around 60% of panel builders experienced some sales growth in 2013, up by 20% since MTW’s last review of the market in 2011. Further, analysis of the industry’s accounts finds that more than 90% of panel building companies have either a ‘good’ or ‘excellent’ credit rating in 2014, heralding good news for component suppliers and the panel builders themselves.

The report reviews panel builders’ sales by key product sector and whilst some are underperforming at present, the majority of sectors are generating additional sales growth in 2014.  The research also provides share by key end use applications, finding that whilst the public sector now stands at less than 25%, private spending continues to take up the slack with certain key sectors outperforming the market overall, driving market growth.

The report also ranks the leading 160 panel builders in the UK by turnover, profit and assets, presenting some interesting findings in terms of systems integrators continuing to impinge on the traditional panel builders domain.  This characteristic of the market is likely to remain a dominant issue in the future, though it is clear that there are a large number of opportunities for panel builders and component suppliers to explore in order to grow sales in 2014 and beyond.

The report and database is available now from MTW Research’s website www.marketresearchreports.co.uk from £565 or by calling 08456 524324.

Timber Frame Market Targets Real Growth in 2014

The timber frame market lost £1.5 billion in sales due to the recession according to a new report from MTW Research, though demand is strengthening in late 2013 with housebuilding and commercial construction set quickly recover lost ground in 2014.

Whilst more than 40% of timber frame suppliers made a loss in 2012, the report reveals that future prospects are more positive for the timber frame construction market, with growth this year set to strengthen in 2014 driven by the burgeoning house building market.  Nevertheless, the timber frame industry still has some way to go in terms of recovery as sales and profitability remains at historically low levels according to MTW. 

The 200 page report discusses market trends and prospects for the key timber frame market sectors, as well as analysing the industry in terms of financial performance since 2007.  Discussing the findings, MTW’s director Mark Waddy pointed to “…More than £1.5 billion of lost sales in the timber frame market due to the 2008/9 recession and sustained downturn in building activity.  This resulted in a significant overcapacity in the industry, with up to 40% of the timber frame market currently underutilised as volumes contracted by around 30% in the last few years.”

Based on financials from 80% of the industry, the report forecasts healthy growth in most sectors, with profitability returning as volumes rise.  However, sector performance will vary considerably, with open panel forecast to under perform in the near to medium term, for example.  Nevertheless, as demand patterns return to growth, MTW suggest that pricing pressures will ease, feeding through into a number of growing market opportunities identified through the research. 

The study also involved a review of the key end use sectors, with findings providing both optimism and presenting some degree of caution for the timber frame industry.  One such area currently dampening growth prospects is in new build social housing, which incorporates a higher proportion of timber frame than the private sector and is therefore a key driver in the market.  MTW’s analysis found that demand from the social housing market has declined by 20% in the last 4 years as budgets have been slashed from £8 billion to £4.5 billion until 2015.  The findings succinctly underline the need for clearly defined growth strategies by timber frame suppliers in order to grow profitability in the current trading environment.  

The report also reviews the commercial timber frame construction in detail, with forecasts to 2017.  Whilst activity in this sector remains much lower than that in the timber frame housebuilding market, the report identifies some key opportunities for growth as well as providing a generally positive outlook for timber construction.  In terms of value, MTW’s forecast models suggest a 100% increase in non-domestic timber frame construction in the next few years, underpinning a growing sense of optimism in the timber industry generally. 

Margin erosion remains prevalent in some product sectors of the timber frame market according to the report, though this pressure is easing as market conditions are changing in late 2013.  Despite an improving outlook, some 10% of the timber frame industry currently have either a ‘low’ or ‘at risk’ credit rating in late 2013 and more than half the industry have experienced sales declines in the last 12 months, suggesting that some suppliers are still unable to see the wood for the trees. 

The 200 page report is available now from MTW Research’s website www.marketresearchreports.co.uk for £565 or by calling 08456 524324.

Contract Cleaning Market Switches to Specialised in 2013

A new report on the UK contract cleaning market from MTW Research has found that 60% of UK contract cleaners experienced growth in the last 12 months, supporting the recent industry shift toward more specialist cleaning in order to boost revenue.

Based on more than 80% of industry sales, the research found that whilst pressure on contract prices remains significant in 2013, many contract cleaners are successfully enhancing their specialist service portfolio in order to offset margin erosion. In addition, the report identifies an increasing number of contractors easing pricing pressure by offering services which are more closely aligned with the client’s corporate aims and objectives.  Discussing the findings, MTW’s director Mark Waddy commented, “…There is a clear growth in ‘strategic fit’ cleaning, with more focused market positioning also providing growth opportunities in an otherwise challenging environment. Increasingly the contract cleaning market is realising that clients need high quality cleaning services which also fit their organisational and corporate culture, for example – an environmental policy statement could be the clincher between winning a tender or not.”

The 250 page report discusses the part the contract cleaning industry has played in successfully reducing MRSA cases by 85%, but also notes that viral infections will continue to drive demand for high quality cleaning in the longer term.  MTW point to a reported 5,000 deaths from antibiotic resistant ‘gram negative’ superbugs and the new strain of bird flu from China which will ensure that hygiene and cleanliness remains at the forefront of the public’s awareness. 

The research finds that margin erosion has grown in recent years, with the overall industry’s level of profitability experiencing erratic performance during the last 2 recessions.  Debt has risen by £1.6 billion in the last 6 years according to the report, with borrowing now standing at more than 100% of total industry revenue in 2013.  Discussing the impact on product and equipment suppliers, Mark Waddy said “The contract cleaning industry is highly leveraged at present and this continues to dampen capital expenditure and sales of new cleaning equipment.  However, liquidity is increasing throughout much of the sector with spending on new or more specialist equipment likely to grow in the near term as contractors look to enhance their service and efficiency levels in order to offset the impact of pricing pressure.”

The research found that despite ongoing pressures in terms of pricing and lower volumes of cleaning contracts, the number of start-up companies has continued to rise, boosting demand for entry level cleaning equipment and supplies.  The growth in new companies has outpaced the level of business attrition in the cleaning industry in recent months according to MTW, with this trend indicative of a growing sense of optimism in 2013.  However, the report acknowledges that the UK economy and business confidence remains fragile, with ‘real term’ growth in the contract cleaning market unlikely to return before 2014. 

The report provides a comprehensive review and size of the UK contract cleaning market in 2013, forecasts to 2017 with service and end use sector shares alongside 4 year financial analysis for 170+ leading cleaning contractors.  The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

FM Market Growth Forecast for 2013

A new report on the UK Facilities Management from MTW Research suggests that optimism is strengthening in 2013, following a steadily improving trading environment in 2012, though growth remains fragile for many FM providers.

Based on financials from 60% of the FM market, the research found that despite the economy contracting at the end of 2012, the market continues to offer a number of opportunities for growth in 2013, primarily centred around enhancing core service levels and adding value through differentiation.  Commenting on the research, MTW pointed to “…A growing polarisation of the ‘haves and have nots’, with 50% of FM providers reporting no growth in the last 12 months reflecting a large number of companies still reliant on organic volume growth…which remains somewhat elusive in 2013.”

With value, rather than volume growth being the key watchword in the UK facilities management market in 2013, the research found that FM providers are currently finding success through the use of tactics such as more closely matching service provision to the client’s corporate aims, objectives and culture.  This ‘strategic integration’ offers good opportunities for value growth in the near to medium term according to MTW, offering some relief to the lack of real term growth in contract prices. 

Whilst multi-service FM has grown share to more than 30% of the UK FM market in 2013, research for the report also uncovered an apparent growing level of disillusionment with some ‘bundled FM’ service providers.  This appears to be a growing trend in the FM industry with clients increasingly suggesting that some multi-service providers are unable to live up to expectations in terms of providing better value for money or level of service than single service providers.  MTW point to clients having indicated that in some cases, they are more often able to achieve better service levels at similar contract prices through the procurement of single service contracts.  The report also discusses an apparent growing preference for single service providers boosted by the perception of a greater ‘leverage’ a client may have over a smaller FM provider. 

The report forecasts performance of the facilities management market to 2017 split by key application with the private sector set to lead growth in the medium term.  Discussing the share between private and public demand, MTW suggest that, “…The government is less than 10% through their budget deficit programme with more than £100 billion of public spending being removed from the economy before 2015. Whilst this is unlikely to result in a significant contraction in FM public sector expenditure, it will almost certainly limit any real term growth in the medium term.”

MTW’s report discusses a wide range of strengths and weaknesses in the UK FM market in 2013 and identifies a number of key opportunities which should stimulate FM value growth in the near term whilst volume demand remains flat.  One such opportunity identified is the provision of energy management services with an integrated approach to energy procurement, management & efficiency integrated within a corporate environmental policy offering healthy opportunities in 2013.  Move management services are also mooted by MTW to hold significant potential for growth in the medium term, particularly as the commercial property market returns to stronger growth. 

The report provides a comprehensive review of the UK FM market in 2013, forecasts to 2017 with product and end use sector shares alongside 4 year financial analysis for the key FM contractors.  The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

Floor Coverings Market to Grow in 2013

A new report from MTW Research on the UK floorcoverings market suggests that the double-dip recession has cost floor covering suppliers more than £1 billion in lost sales during the last 5 years, though growth is expected to strengthen in 2013 as macro-economic conditions slowly improve.  

Based on industry data from more than 190 companies, the research for the report found that whilst industry assets have remained static in the last 3 years almost one third of floor covering suppliers have exhibited strong sales growth in the last 12 months.  Commenting on the figures, MTW suggested that, “Following a difficult few years, retailers growth rates reflect an increasingly positive trend in the domestic floor coverings market in late 2012, this will be strengthened by steady growth in business investment stimulating higher demand in the contract floor coverings market from mid 2013 onwards.” 

In the last 2-3 years, the commercial floor coverings market has experienced a particularly difficult trading environment as business investment has remained low across a wide range of key sectors for non-domestic floorcoverings.  MTW’s 270 page report finds that investment levels by commodity goods retailers have exhibited modest growth in recent years though higher value retail and service sector applications have experienced lower demand for floorcoverings as a result of declining activity in terms of both new build and refurbishment activity.

Whilst public sector cuts are set to dampen demand for floorcoverings as austerity continues to bite, private sector demand in the contract floorcoverings market is forecast to strengthen in key target sectors such as commodity retail and leisure in 2013, with demand from higher value retail and service sectors likely to grow in real terms during 2014.  According to MTW, growth from commercial markets coupled with some moderate rises in industrial floor coverings should offset public sector declines from mid-late 2013 onwards, prompting greater optimism for the non-domestic floor coverings sector.  

Following flat trading conditions in the last 2 years, the domestic floor coverings market is set to offer moderate growth in 2013, though MTW sound a note of caution that demand is likely to be modest at best as ‘big ticket’ home improvement spending returns to growth slowly.  In addition, a lacklustre domestic new build sector coupled with historically low house-moving activity levels continue to present challenges in the floor coverings industry in late 2012, with conditions only likely to improve from mid 2013 onwards as the economy slowly returns to real term growth. 

Despite sales of floor-coverings remaining flat in the last couple of years, MTW point to a core strength in the floor covering retailer channel with more than 90% of companies reportedly having either a ‘good’ or ‘fair’ credit rating in late 2012, underlining that the industry is ready to meet the demands of growing market demand in the near to medium term.  However, the report also identifies that just under 10% of retailers are currently considered ‘at risk’ of imminent failure, as margins remain under pressure due to ongoing price sensitivity in a number of key sectors in the floor coverings market. 

The report identifies market size and trends for each of the key floorcovering product sectors and finds that the carpets market has lost some share as pricing pressure remains a key issue influencing carpet specification and purchase.  Sales of laminate and wood floor coverings have now stabilised in 2012 according to MTW, with laminate and wood flooring suppliers not anticipating any substantial further movements in terms of product share.  Product development and innovation in the ceramic flooring market is offering some growth opportunities for tile manufacturers and distributors with developments in ultra thin tiles, glazing innovations and metallic finishes all providing healthy value added opportunities for the sector.

MTW’s qualitative and quantitative review of the UK floorcoverings market provides reasonably positive forecasts for the market overall to 2016, though the report sounds a note of caution that these forecasts are subject to the ongoing fragility in the UK and European economies in late 2012.  Nevertheless, the near to medium term future appears increasingly positive for floor covering suppliers, with the industry’s longstanding optimism and expectations of growth slowly being realised. 

Garden Products Market Remains Upbeat in 2012

A review of the Garden Products Market in 2012 from MTW Research suggests that the double-dip recession and inclement weather has not yet resulted in a sales decline for the overall garden products industry, though tangible growth remains elusive. 

The report, which includes data from garden product suppliers with combined sales of more than £5 billion, found that sales are likely to continue to grow in 2012, albeit at levels unlikely to exceed inflation.  MTW point to some growth despite lacklustre consumer confidence, the wettest April on record, the ‘double-dip’ recession, high unemployment and a stagnant housing market.  The report also discusses the somewhat disappointing Jubilee bank holiday weekend as well as the negative impact of Government austerity and the ongoing Euro crisis which continue to hamper sales performance for garden retailers.    

However, there remain optimistic notes in the report with growth expected to return to above inflationary levels by mid 2013 stimulated by a wide range of key market influences.  Growth within the garden centre market is also likely to offer some impetus for garden product sales in the medium term.  Lead analyst Charlotte Jones asserts, “There is a clear trend of garden centres returning to their ‘roots’ at present which should offer additional opportunities for these retailers to add value and drive sales growth.  Their depth of product knowledge, expertise in procurement and excellent sales service means that they can more easily add value to their core offering and generate enhanced perceived value for their customers.”  When asked about the garden Internet retail market, Jones stated, “The Internet is a great leveller in terms of enabling independent retailers to compete with the multiples and the web does have its place.  However, a lack of differentiation amongst many internet retailers and their pre-occupation on price continues to dampen value growth opportunities for the overall garden products market.”

Lower consumer confidence has resulted in many householders postponing larger landscaping projects for a number of years, with MTW suggesting that there is a growing element of ‘pent-up demand’.  Whilst this demand is unlikely to be released in 2012, the market remains more optimistic for 2013 with a number of key macro and micro market factors identified in the report which should offer more buoyant sales performance in the medium term.  By 2016, MTW forecast that sales of garden products will have grown by some 15%, reflecting healthy growth and, perhaps more importantly, more stable demand patterns in the overall garden products market. 

Pricing pressure remains a key influencer on the garden products market at present, with imports continuing to outstrip overall market sales according to the report, driven in part by the value focused Internet retailers.  However, some sectors, such as the barbecues market, garden furniture market and horticultural market continue to offer greater resistance to pressure on margins than other sectors, though the research suggest that volumes are likely to remain relatively flat in 2012, dampening opportunities for growth to some extent. 

The report also reviews the leading garden centres market in terms of recent performance and their financial health.  Just under 30% of garden centres have either an ‘excellent’ or ‘good’ credit rating, reflecting reasonable strength in the market in terms of financial standing.  The sector is dominated by companies that are more than 15 years old with around 70% of companies falling into this category in 2012, reflecting a mature industry with an established trading history and experience. 

The report offers a comprehensive review of the UK garden products market in 2012, forecasts to 2016 with product and distribution channel shares alongside 4 year financial analysis and rankings for over 100 leading garden centres.  The report and optional 1700 garden centre mailing list is available to purchase from GBP565 from MTW Research’s website www.marketresearchreports.co.uk where a free sample is available to download or by calling 08456 524324.

Bedroom Furniture Market To Spring Forward in 2013

A new report on the UK bedroom furniture market from MTW Research suggests that rigid bedroom furniture and fitted solutions are set to drive market growth in late 2012, with prospects increasingly positive from Q2 2013 onwards.      

Based on financial input from more than 120 suppliers, the new report found that whilst lower value bedroom furniture products dominate at present, the higher value bedroom furniture market is set to provide some impetus for growth in the near term.  Sales of bedroom furniture products are expected to exceed £600 million in 2012, though prospects vary across the different sectors.  MTW suggest that higher value imports, fitted bedroom furniture and value growth opportunities in the rigid sector are now offering some relief to the industry following a difficult few years, with these trends set to offer real term growth in the medium term. 

The report identifies a number of market opportunities which are likely to offer some impetus for sales of bedroom furniture, with some reasonably compelling arguments for value growth in the medium to longer term.  Whilst not being overly optimistic, MTW point to the changing demographic of the UK population which should drive organic growth, coupled with an increasing number of ‘middle-late aged’ consumers who are increasingly adopting the ‘improve, don’t move’ mantra.  This relatively affluent target market has been less affected by the recent recessions and generally consumer preferences in this sector focus on higher value, quality products such as fitted bedroom solutions, hardwood rigid bedroom furniture as well as encompassing an element of ‘trading-up’.

Despite a growing sense of optimism, output from UK manufacturers has declined by more than 20% in the last 6 years as the bedroom furniture industry has clearly experienced a significant shift toward the lower value and import sectors in recent years, evidenced by the increasing use of ranges which have been branded to focus on their value for money.   The report suggests that names such as ‘Essential’ and ‘Essence’ clearly point to ongoing pricing pressure in the freestanding bedroom furniture market, with consumers continuing to focus on price above all else in the lower-mid value sector of the market.  Homogenisation of design and a rationalisation in product ranges by many bedroom furniture suppliers have also characterised the market in recent years, though MTW’s research suggests that this trend should slowly reverse from mid 2013 onwards. 

Since 2009, the bedroom furniture industry has experienced a ‘flight to price’, with product innovation and enhanced features having increasingly taken a back seat in favour of pricing and the need to offer consumers value for money.  The report suggests that with an upturn in the macro-economy from Q2 2013 onwards, bedroom furniture trends should increasingly focus on design and innovation, rather than being all about price.  MTW identify a number of key product trends in the report, such as the current preference for oak in the freestanding sector and the reduction in the range of colours currently available in the mass market, as well as discussing the differences in trends between the higher value fitted and price-led freestanding sectors which have polarised the market in recent years. 

MTW’s analysis also includes a review of the furniture retail industry with the report finding that the majority of furniture retailers continue to have either and ‘excellent’ or ‘good’ credit rating, despite ongoing pressures in the market in recent years.  However, the impact of flat volume sales coupled with intense price sensitivity in a number of bedroom furniture markets has resulted in just over 10% of the market currently being viewed as having a ‘poor’ rating or being at ‘risk of immediate failure’. 

Overall, MTW’s report offers a comprehensive qualitative and quantitative review of the UK bedroom furniture market in 2012 with forecasts to 2016 of product and distribution market sizes. The 220 page report and optional 3,000 furniture retailer mailing list is available to purchase from GBP565 from MTW Research’s website www.marketresearchreports.co.uk where a free sample is available to download, or by calling 08456 524324.

Education Construction & Refurbishment to Grow in 2012

Over £9 billion will be spent on education construction and improvement in 2012 according to a new report from MTW Research, with new build and refurbishment activity in schools offering substantial opportunity for growth for manufacturers and contractors targeting this sector.  

Following the scrapping of the Building Schools for Future programme, the Government has pledged more than 600 schools will be built or refurbished, with real term increases in the education budget promised each year until 2015.  MTW report that a substantial repair backlog coupled with the growing demand for new schools is set to drive the sector in the next few years, with PFI and central funding offering good opportunities for the building products market. 

Education spending increased by more than 20% in the last 6 years and despite current austerity measures, funding is set to rise in real terms until 2015 according to the report, with Government expenditure on schools rising by more than £2 billion in the next 4 years.  MTW also point to the need for an additional 350 new primary schools each year due to the rapid growth in birth rates, with this also set to grow demand for building products and provide healthy stimulus for the UK construction industry overall.  

The 140 page report also identifies and discusses the significant changes in the education sector which took place this month, with funding responsibilities now coming under a new Government organisation.  Discussing these changes, MTW said that “The recent changes will significantly impact on how education funding is distributed as well as influencing specification of building products and services.  These changes are of vital importance to the UK building industry and its clear that procurement processes will change in the near term.”  The report also points out that PFI activity is now under the umbrella of this new funding regime, with a further £2-£3 billion of expenditure to be spent on new school facilities in the next few years. 

The research also included analysis of 60 of the largest contractors active in the UK education new build and RMI sector and the report’s prognosis appears positive with these contractors estimated to have achieved a combined turnover of more than £30 billion in 2011.  MTW indicate that just under £1 billion will be spent on improving and maintaining UK schools and universities in 2012.  Within the £280 million academies refurbishment programme, the report identifies £75 million of spending on projects each worth more than £100,000, underlining the substantial levels of investment ongoing in the education sector. 

The controversial policy of universities increasing tuition fees is also highlighted by MTW as a likely stimulus of refurbishment and new build activity in the higher education sector.  By 2016, the report forecasts total revenue by universities will reach just under £26 billion, reflecting growth of more than 40% since 2006 when revenue stood at just under £18 billion.  In 2012, tuition fees will represent around 30% of income according to MTW, with the UK universities currently recording a surplus of around £1 billion, underlining the healthy condition of the university sector at present.  Under these conditions, MTW suggest that new build and RMI activity will increase relatively rapidly as higher education establishments enhance their facilities and accommodation in order to entice students and grow numbers.

Overall, prospects for the education construction and refurbishment sector are positive according to MTW, with short term moderate growth likely to translate into more healthy opportunities from 2013 onwards.  The report is available now from MTW Research’s website www.marketresearchreports.co.uk for £565 or by calling 08456 524324.

Timber Frame Construction To Outperform Housebuilding Market in 2012

Low-Carbon Regulations Among Key Drivers for Demand

Wood for Good and the Timber Trade Federation have welcomed a report from independent market research firm MTW Research, which shows that the timber frame building market is set to grow by 9% and exceed £400 million in 2012 – outstripping pace of growth in other areas of the construction market.

The report forecasts that timber frame sales will have grown by 60% in volume and 80% in value by 2016 suggesting a rapid expansion phase is imminent.

MTW highlight increased market share in housebuilding as the main area for timber frame growth, but also show non-residential projects in health and education will drive demand.

Low-carbon regulations such as the Code for Sustainable Homes are cited by the report as key drivers where the timber frame industry is responding well and meeting changing market demand patterns and influences, with timber recognised as the least carbon intensive building material.

While the report shows that the recession has hit the timber frame market, it also shows that sector is in good financial health, with 60% of manufacturers having “good” or “excellent” credit ratings, and just 4% of suppliers currently regarded as being at immediate risk of failure.

David Hopkins, Head of External Affairs at Wood for Good said: “This report shows that the timber frame sector has a lot to look forward to. As low-carbon and environmental regulations get ever tighter, developers are looking for the lowest-carbon and highest-performance materials on the market and that’s where timber products stand out. When coupled with faster construction times, less waste, reduced CO2 consumption and of course, lower costs, timber has a natural advantage. We are working to build on this and help educate the wider construction market of the benefits of putting wood first.”

Mark Waddy, Director of MTW Research said: “Construction and its related industries are often hard hit during economic downturns, but our research shows that the timber industry is faring remarkably well. The challenge is to ensure that customers have a clear understanding of the benefits of building with timber, rather than being put off by the myths.”

MTW Research based their report on financial data from 80% of the industry. It showed high levels of optimism amongst the UK timber frame suppliers, with more positive signs of investment from commodity retail, leisure and other commercial applications.

The report states that sales of timber frame, SIPS, and volumetric timber buildings increased by some £30 million in 2011 with much of the demand coming from share growth in housebuilding and minimal additional demand from organic growth or non-residential sectors. However, demand patterns are likely to shift from mid-2012 onwards as commercial construction regains ground.

 According to MTW, there are also a number of market-led initiatives which should boost value growth in the near term. Increasingly, manufacturers are seeking to establish closer relationships between client and supplier, with turn-key solutions offering healthy opportunities for value growth. Concerted efforts by the industry to ensure a focus on the efficiency of the building fabric, before any other sustainable products are introduced, are also paying dividends in terms of differentiation and enhancing the core product offered by timber frame suppliers, prompting further optimism for the future.

Overall, report predicts growth across all sectors of the timber frame construction market in the near to medium term, underlining rising levels of optimism throughout most of the industry.

The 160 page report is available from MTW Research’s website for £565:

www.marketresearchreports.co.uk

Housing Associations Market Boosts Building in 2012

A new report on the UK housing association market from MTW Research suggests that kitchen, bathroom and building product suppliers will benefit from £2.5 billion of capital expenditure on social housing refurbishment in 2012.  In addition, a further £10 billion will be spent by local authorities and ALMOs on housing refurbishment and new build in the next 5 years. 

The research also found that housing associations are increasingly utilising buying groups in order to achieve value for money and enhance buying power.  MTW identifies members of 14 procurement consortia and states that these groups have now spent more than £2 billion on behalf of UK social housing providers.  The report suggests that whilst these consortia may be increasing pricing pressure for products and services to some extent, manufacturers, distributors and contractors are benefiting from a more focused, defined and structured market on which to target their marketing. 

The report highlights optimism in the market, despite ongoing restraints on public expenditure and illustrates that there remain significant opportunities for kitchen, bathroom and building product suppliers.  New build activity is also set to increase with housing associations increasing housebuilding by 5% in 2012 and 30% in the next 5 years.  MTW also indicate that the housing association market will build more than 90% of the 170,000 affordable new homes planned by 2015, underlining the ongoing potential for the building industry to grow sales to the social housing market in the medium to longer term. 

Arms Length Management Organisations or ALMOs are also identified and reviewed by MTW who point to these organisations’ key role in ensuring completion of the Decent Homes Standard programme.  The report identifies individual ALMOs budgets to 2016, with more than £1.6 billion of planned expenditure on making homes decent in the next 4 years. 

Accounting for more than 60% of social housing in 2012, the housing association market continues to represent the largest potential for growth for the building products and service industry.  The report provides an estimated annual budget to 2016 for each of the largest 800 housing associations that in total will spend some £7 billion on operating, maintaining and building new homes in 2012. 

Grants for disabled adaptations are also likely to continue to represent a growing stimulus for building product suppliers and contractors in 2012 and beyond.  According to MTW, an average of £7,000 is spent per dwelling on disabled facilities, with kitchens and bathrooms taking a large share of this as well as other general works such as ramps, wider doorways and lighting and electrical work.  The report segments the current levels of disabled grants by region, the North West coming top of the list with more than £60 million of spending on disabled facilities in this region alone.  Disabled adaptation grants increased by more than 8% last year, underlining the growing importance of this sector to the UK building products industry. 

The report also discusses a number of issues relating to changing practices in terms of specification and procurement by social housing providers, finding that procurement models and procurement consortia continue to change the dynamic of building product procurement within social housing.  The need for suppliers to keep up to date with current best practice procurement remains crucial according to MTW, as budgets remain constrained and value for money becomes increasingly important in the social housing market.  The 160+ page report is available now from MTW Research’s website www.marketresearchreports.co.uk for £565 or by calling 08456 524324.

Pump Market Primed for Growth in 2012

A new report on the UK pump market from MTW Research has identified a number of opportunities for pump manufacturers to exploit in 2012, prompting optimism for growth in a number of key end use markets for pumps by the end of the year. 

Against a backdrop of above-inflation growth forecast from 2013, the report discusses the changing nature of the pump market in recent years, suggesting that manufacturers continue to identify and react quickly to the changing market conditions.  MTW highlight this as a key industry strength and with the recent swings in terms of public investment significantly impacting pump manufacturers’ marketing strategies, the need for suppliers to be able to adapt quickly to market volatility remains vital. 

Despite moderate growth forecast for this year, MTW admit that the UK economy is not out of the woods yet with GDP growth unlikely to offer any real stimulus for the pump market until late 2012.  However, the report reviews 11 end use sectors in some detail and identifies a number as offering some opportunity for either value or volume growth in the near–medium term.   Opportunities identified by MTW include the WaSCs transfer of 30,000 pumping stations in the water supply & treatment sector; the impact of the 2^nd Annual Energy Statement in November 2011 on the electricity generation sector; and the 8,500 new products which are introduced each year by food and drink manufacturers to name but a few.  Within the oil and gas sector, the report suggests that both volume and value growth should be derived from smaller field applications, further impacting on the dynamics of the established market. 

Pump procurement and specification has undergone some significant changes in recent years, and MTW points to computers and software having an increasing impact on what was historically a mechanical industry.  The growth in VSDs which offer greater control and efficiency and the use of enhanced software for pump specification are just two of the key issues identified.  These are set to grow in significance in the near term and will either enhance or diminish a manufacturers’ ability to add value – depending on how these changes are embraced by the pump market. 

Based on industry sales, the report finds that 75% of pump manufacturers experienced some growth in the last 12 months, prompting optimism in the industry overall and suggesting that liquidity and profitability is improving throughout the industry.  Some 86% of UK pump manufacturers have either a ‘good’ or ‘excellent’ credit rating according to MTW, though the report also sounds a note of caution by highlighting high borrowing levels throughout much of the pump market.  Total borrowing by the UK pump industry currently stands at an estimated £1.1 billion in 2012.  Between 2006 and 2012, overall debt increased by 51%, which MTW suggest reflects the rapid demand in borrowing requirements as profitability and sales came under increasing pressure. 

Nevertheless, the report offers much in the way of optimism for the UK pump market with a more positive trading environment and growing demand from a number of end use application sectors forecast for the near term.  The market is set to strengthen further in the medium to longer term, stimulated by a number of political, environmental, technological and economic influences with MTW forecasting sales of pumps to grow by around 10% over the next 5 years.  The 130+ page report is available now from MTW Research’s website www.marketresearchreports.co.uk for £565 or by calling 08456 524324.

Underfloor Heating Market Growth Set for 2012

A new report on the electric underfloor heating market from MTW Research suggests that growth will return to the industry in mid 2012, with real term rises from early 2013 as product development and volume demand stimulate sales in the sector, following a relatively lacklustre 2011. 

The research for the new report finds that whilst the market recovered somewhat in 2010, sales in 2011 have since suffered as a result of a decline in domestic refurbishment projects, declining consumer confidence and a host of other negative issues dampening market prospects for the underfloor heating industry.  However, the report identifies a number of key strengths and opportunities in the UK electric underfloor heating market in late 2011, with future prospects more positive for the market in the medium term. 

MTW forecast modest growth in 2012, followed by above inflationary growth from the first half of 2013 onwards with the market likely to rise by around 4% on annualised terms.  Stronger growth from 2014 onwards should characterise the market, according the report, as inflation eases and more tangible volume demand returns to the market.   By 2015, sales of electric underfloor heating are expected to experience buoyant growth with the report also forecasting healthy shares for foil mats, carbon mats, single cable systems, thermostats and cable mat underfloor heating. 

The 100 page report which reviews market and product trends, suggests that price competition is likely to remain a key dampener of growth in the low-mid market sectors in the near term.  Nevertheless, MTW also identifies a large number of positive factors and opportunities for growth of underfloor heating sales in the medium to longer term, including rising consumer awareness of the many benefits of underfloor heating.  The increasing ability for manufacturers to add value to their product portfolio should also offer good opportunities for both volume & value growth and underpin the market in the medium term.

Growing environmental concerns and energy efficiency are also discussed by MTW who state that these issues are becoming increasingly important in the specification process for electric underfloor heating.  The report goes on to say that this issue is set to enhance opportunities for manufacturers to develop differentiation and add value to their electric under floor heating products.  Another key driver identified in the market at present stems from electric underfloor heating increasingly being employed for primary heating purposes as homes become more thermally efficient as a result of changing building regulations.  In addition, MTW point to ongoing product development providing greater flexibility in terms of a wider range of floor coverings that may now be specified in conjunction with underfloor heating which is also enhancing market opportunities.

MTW suggest that despite difficult trading conditions at present, UFH suppliers who are able to differentiate their products in the relatively crowded marketplace are expected to sustain sales growth in the medium to long term, prompting reasonable optimism for the future of the underfloor heating market.  According to the report as of December 2011, around 60% of electric underfloor heating suppliers are regarded as having either a ‘good’ or ‘excellent’ credit rating, representing a healthy proportion of the market and underlining a key strength in the industry overall. The comprehensive report is available now from MTW’s website for £565, or by calling 08456 524324.

Press Release November 2011

Builders Merchants Market Optimism for 2012

A new report on the builders merchants market from MTW Research suggests that whilst growth has been erratic in 2011 sales of building products have continued to grow, with above inflation growth set to return in mid-late 2012 as government stimulus plans and refurbishment activity prompt growing optimism. 

MTW describe the builders merchants market as having experienced ‘4 distinct phases’ since 2008, with the market troughing at 60% of its normal volume by mid 2009 followed by a stabilisation of market demand during H2 2009, modest yet tangible growth returned in 2010 followed by more erratic trading conditions in 2011.  The report forecasts continued difficulties in the market for the first half of 2012 though highlights a number of opportunities and strengths which should underpin more positive performance from mid-late 2012 onwards. 

Builders merchants have endured a challenging trading period since 2008, with more than £1.8 billion being wiped off the market value since its peak in late 2007 / early 2008 in real terms, according to the report.  In addition, MTW state that customer characteristics and needs have changed significantly in the last 3 years, with a rapid shift toward a more ‘lightside’ product bias as contractors’ work increasingly comprised of second fix activity rather than new build projects.   This change in market characteristics has had a dramatic impact and reinforced the need for merchants to respond quickly to these changing demands, as well as having immediate implications for building product manufacturers and distributors. 

The report forecasts that the builders merchants market will grow in real terms from mid-late 2012 onwards, reflecting more positive demand patterns in terms of volume coupled with less price sensitivity across the industry.  However, the report clearly illustrates that the builders merchants market of 2012 will have very distinct characteristics to the ‘pre-recession’ market.  Critical success factors such as management flexibility, branch level decision making, enhanced service levels, back office efficiencies, organic growth, and higher levels of imports are considered pre-requisites by the report in order for merchants to maintain profit & sales growth in the challenging environment expected in the near term. 

In terms of longer term prospects, the builders merchants market is forecast to gain momentum from 2013 onwards, as macro-economic conditions continue to improve and consumer and business confidence strengthens alongside an improving construction market.  Sales of building products and equipment through builders merchants are set to be worth some £2.4 billion more by 2015 than current levels, with MTW forecasting steady increases in terms of both value and volume performance during the next 4 years. 

Despite the report’s assurances that the worst is over, a note of caution is raised with a review of the builders merchants industry finding that some merchants are unlikely to survive the current climate of low profitability.  The research found that 5% of UK builders merchants remain in the ‘low or at risk’ credit rating category in late 2011, suggesting that further business closures are likely in the sector in the short term.  However, MTW also point to the fact that more than 70% of merchants have a ‘good or excellent’ credit rating and that more than 90% of the industry have healthy balances sheets and are well placed to take advantage of the upturn in market conditions in 2012 and beyond.  The 220+ page report is available now from MTW Research’s website www.marketresearchreports.co.uk for £565 or by calling 08456 524324.

Press Release - August 2011

Facilities Management Market Strengthens in 2011

A new report on the Facilities Management market from MTW Research has found that most sectors within the FM market are experiencing positive demand patterns in 2011, though average profitability of less than 4% of turnover reflects an industry still under pressure.  

The research, based on more than 60% of industry sales, suggests that the FM market has now turned a corner in terms of performance in 2011, with ‘total facilities management’ services set to underpin market growth followed by an upsurge in demand for single service and ‘niche’ FM providers.  By 2015, the report forecasts market growth of 12% led by a number of key sectors in the private commercial market.  The 200 page report also highlights optimistic trends in terms of public sector demand, with health, education and transport spending unlikely to contract in the near term, despite the rapid public sector spending cuts by the coalition government.  

MTW point to a wide range of factors impacting on market performance in the near term with public expenditure, climate change, migration, security, health and safety, economic growth, an ageing population and terrorism just some of the issues discussed in the report.  A number of key strengths, weaknesses, opportunities and threats are also identified with the balance of factors suggesting a more positive scenario for 2012 onwards as the UK economy recovers and outsourcing demand increases. 

The report segments the FM market by service type with forecasts of share growth in a number of sectors including multi-service outsourcing and security.  Some single service providers may lose share in the medium term as larger clients seek to reduce their costs further and move toward a preference for ‘bundled service provision’.  MTW suggest that one market reaction to this is likely to be a growing polarisation in the market, with smaller single service providers seeking to develop more targeted, niche strategies in the SME sector in order to avoid competition with the larger FM companies.  MTW point to the Government remaining firmly focused on the private sector for growth by introducing a number of initiatives and funding opportunities for SMEs in 2011 which should also provide some optimism for single service providers targeting smaller contracts.  

The research found that just over 60% of the industry is viewed as having either an ‘excellent’ or ‘good’ credit rating in mid 2011, reflecting a core strength in the market in terms of financial standing.  Following a rising number of business failures in 2009 and 2010, the number of single and multi service FM companies considered as being at ‘immediate risk’ of failure has declined since MTW’s last research study and now stands at around 2%, reflecting a significantly more healthy industry overall.  

The report provides a comprehensive review of the UK FM market in 2011, forecasts to 2015 with product and end use sector shares alongside 4 year financial analysis for the key FM contractors.  With real term growth forecast in the market from 2013 onwards, there is an apparent tangible sense of optimism in the industry overall with healthy prospects for the majority of FM contractors and their suppliers from 2012 onwards.  The report is available to purchase from GBP565 from MTW Research’s website www.marketresearchreports.co.uk where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

July 2011

Bathroom Market Recovery Led by Retailers in 2011

New market research on the UK bathroom market has found that bathroom retailers are set to benefit from shifting preferences toward higher value bathrooms, with product development and sustainability also driving growth in 2011 and beyond.

The 180 page research report suggests that the recession resulted in a loss of £250 million for bathroom retailers, reflecting a cost of around £7 million per month over the last 3 years.  MTW assert that without the recession, the market would now be worth around £1 billion – 35% more than the current market value, underscoring the impact of the economic downturn. 

According to the report, pricing pressures remain intense due to rising imports and the threat of competitive distribution channels such as the Internet, DIY multiples and supermarkets.  In addition, MTW point to the growing trend of consumers being increasingly forceful in negotiating discounts as well as having a clearer concept of their requirements, design and budgets.  These issues, coupled with other market influences such as the threat of substitutes and lower volume demand overall, have continued to drive pricing pressure in the majority of sectors for bathroom retailers during the last 12 months. 

Despite these factors, the report suggests that the demand for higher quality bathrooms is now growing and is indicative of likely future prospects in the market in the near-medium term.  The shift toward higher quality products is also increasingly supported by installers seeking to enhance their reputation by specifying, procuring and installing higher quality bathrooms.  The report suggests that that the number of problems which arise during installation is directly linked to the quality of the product and as such installers generally prefer to promote higher value products in order to protect margins. 

The bathroom retailers market is somewhat polarised at present in terms of design according to MTW.   Minimalist, ‘pure’ design cues in white and lighter shades remain the most popular choice though consumers are becoming increasingly bold in their choice of opulent and rich dark colours.  The ‘retro’ trend toward flower patterns and glamorous décor may be a short term fad, though is driving added value opportunities for retailers seeking to offer a more ‘decadent’ bathroom design option.

Bathroom manufacturers point to a need for enhanced communication to consumers of the benefits of sustainable products and this is likely to result in the closer collaboration of manufacturers, distributors, retailers and installers according to MTW.  The report adds that sustainability should offer opportunities for growth in the future, though environmentally friendly features are likely to become pre-requisite in the longer term, potentially diminishing opportunities in the longer term.  MTW also point to consumers’ negative perceptions relating to reduced flow rates which may reduce opportunities for water saving products, with some installers being asked to remove flow regulators to improve performance. 

However, MTW identify a number of opportunities for bathroom retailers able to design, supply and install intelligent & comprehensive environmentally friendly bathroom solutions.  The development of comprehensive solutions, rather than the supply and fit of a bathroom, is indicated to hold significant opportunity for the future in the higher value bathroom retail market.  The report is available now by clicking here. 

PRESS RELEASE

April 2011

Ceramic Tiles Market Optimism for 2011

A new report on the ceramic tiles market from MTW Research has found that UK tile suppliers are continuing their fight against lower price imports with a focus on differentiation generating optimism for growth in 2011 and beyond.

Based on sales from more than 70% of the retail industry, the report has found that demand patterns and market trends are shifting in 2011, with volume demand and average values set to rise in the next 2-3 years. Considering likely near term trends, MTW point to, “…A strong likelihood that consumers will increasingly specify higher value tiles in line with current trends, whilst rising volume demand from non-domestic refurbishment should also underpin volume growth from 2011 onwards.” As such, the report forecasts modest growth in 2011, with real term growth feeding through in 2012.

In terms of current product trends for ceramic tiles, MTW’s lead analyst for the report Charlotte Jones suggests, “…It’s clear that larger format tiles, thinner grout lines, ‘tactile’ tiles and the use of bold colours on feature walls are currently en vogue, particularly in the domestic sector. Whilst these trends don’t appear to be feeding through into non-domestic applications just yet, more innovative design cues should prompt some growth in average order values in the near to medium term.”

Despite this, the report continues to identify around 60% of the market accounted for by lower cost imports, with import activity rising faster than overall market growth in 2010. By 2014, MTW forecasts imports to reach almost £300 million, with this issue continuing to represent a key threat to UK suppliers. However, an increasing number of tile retailers are adopting lower cost procurement strategies through importing their own products, with this enhancing profitability opportunities for some suppliers. The report highlights price as a key specification criteria at present, suggesting that many retailers are offering the right products at the right price in this ‘post recession’ environment. With so many retailers currently focused on offering lower value products, MTW suggest that there is room for value growth in the near term as consumer and business confidence returns slowly.

The 140 page research report suggests that the recession cost the ceramic tile industry in the region of £75 million in terms of lost sales, reflecting a cost of around £4-5 million per month since the beginning of 2008. Indications are that the majority of sectors in the market stabilised in mid 2010 with a modest rise as the economy slowly improved. An improvement in the housing market and rising levels of consumer confidence should underpin some moderate growth for the ceramic tile market in 2011. An accelerated pattern of growth is forecast for the industry from 2012 onwards as MTW point to a relatively wide range of positive factors underpinning market demand.

Based on quantitative sales from the industry, just over 20% of tile retailers are viewed as having either an ‘excellent’ or ‘good’ credit rating. However, the impact of the recession continues to linger with 10% of retailers active in the Ceramic Tile market viewed as being at immediate risk of failure.

MTW Research’s report is available to purchase for GBP 565 from here or by calling 08456 524324

PRESS RELEASE

March 2011

Panel Builders Market Surge in 2011?

A new market research survey on the UK panel builders market from MTW Research has found that demand patterns and market trends are shifting in 2011, prompting greater optimism in the market. 

The 1^st edition, 200 page research report suggests that the panel builders market is likely to exhibit stronger growth in the second half of 2011, stimulated by a range of key strengths and opportunities.  One such market opportunity is highlighted as the growing demand for replacement applications such as the installation of variable speed, rather than fixed speed drives which offer more efficient operation and control. 

Based on quantitative sales information from the industry, the report discusses a wide range of issues impacting the panel builders and electrical components market.  One notable market influence identified is the change in direction for many sectors of the UK manufacturing industry – a key customer market for panel builders.  MTW point to, “…A gradual shift toward more focused ‘niche production’ and away from ‘mass manufacturing’ which is changing the dynamics of the Panel Builders market in 2011 as well as stimulating new market opportunities such as greater efficiency requirements.”

The report goes on to provide market sizes and specification criteria for the key components used in panels such as drives, cables, power, enclosures, HMI etc., as well as identifying key trends in each of the product sectors.  For example, MTW state that the uninterruptible power supply market is continuing to benefit from the growing demand for greater efficiency and integration of systems, with unit size, power consumption, reliability and total cost of ownership identified as being key issues in the specification of these products by panel builders and their customers.  Opportunities identified in the UPS market include a reference to the development of kinetic storage which offers enhanced efficiency and should support longer term growth in this sector. 

4 years of financials for over 120 companies is provided for each panel builder, alongside turnover and profit estimates which enable MTW to rank the companies by sales, profitability and a number of other indicators in the report.  The analysis of this data found that around 19% of UK panel builders are currently considered to have a ‘low’ credit rating, 21% of which are considered to be at immediate risk of failure.  Clearly, whilst there is more optimism in the market in 2011, trading conditions are still difficult for many panel builders and associated component manufacturers and distributors. 

The research also included analysis of end use sectors for panels and MTW have provided a market share for the key customer groups in the report, as well as a mix for private and public sector applications.  The report identifies a number of fairly significant changes in demand from several end use sectors which are likely in the medium to longer term, and highlights the need for panel builders to re-focus their marketing in order to maintain growth in an increasingly dynamic market place. 

As the panel building industry looks forward to improved performance in the second half of 2011, MTW’s report suggests that the threat of a ‘double-dip’ is diminishing rapidly and reasonable growth is now the most likely prospect for the remainder of 2011 and into 2012. 

MTW Research’s report is available to purchase for GBP 565 from here or by calling 08456 524324 

PRESS RELEASE

November 2010

Pet Accessories Market Growth Set for 2011

A new report on the UK pet accessories market from MTW Research forecasts increasingly buoyant growth for sales of pet accessories in 2011, buoyed by reptiles, pet care and stronger growth for higher value products.

Average spending rose to almost £550 per household on pet products in 2010 according to the new report, with consumer expenditure on pet accessories such as leads, pet care, grooming and pet toys exceeding £12 million per week for the first time. The increasing perception of pets as ‘family members’ coupled with product and market development resulted in the market maintaining current price growth throughout the recession, despite declining pet ownership levels. The report goes on to review many of the key market influences which are likely to drive the market forward in 2011 and beyond, with a wide range of factors identified including consumers’ changing perceptions of ‘luxury’ and ‘commodity’.

However, whilst factors such as the growth of in-store services and rise in import activity by the larger multiple pet retailers have boosted the lower value pet accessories market of late, MTW also point to an increasing ‘squeeze’ on manufacturer margins and declining ability of smaller pet stores to compete on price and increasingly, service levels. The report identifies this as a key theme of the pet accessories market at present, with buoyant sales growth through the pet multiples not necessarily being illustrative of the entire market. The report’s editor, Mark Waddy suggests that, “Many smaller UK independent manufacturers and retailers are suffering as a result of the growth in own label import activity, with a step change in market positioning needed to combat this growing threat.”

The 130 page report highlights a growing polarisation in pet accessories retail at present, with independent pet stores seeking to avoid price competition by creating differentiation through improved service levels and higher value product portfolios. This trend is likely to become more evident in the longer term as low margins focus the larger retailers on increasing import activity to improve profitability whilst UK manufacturers and smaller retailers re-position at a higher value market position.

This trend toward a higher value pet products market is likely to increasingly complement consumer demand in the future according to MTW, as pet owners are continuing to increase their average ‘spend per pet’. The report identifies many new opportunities brought about as a result of this trend, including pet ‘holidays’ increasingly favoured over ‘kennelling’ and the growth in preventative health-care such as pet vitamins and pro-biotics for example.

Whilst there is much optimism in the report, MTW also point to a cluster of retailers who are increasingly experiencing the pressure of competitive pricing, with the research finding that 9% of pet stores are currently at risk of ‘immediate failure’, reflecting some 180-200 individual companies at present. Pricing pressure in the industry is likely to be exacerbated by the rising level of import activity by the larger DIY & pet multiples with this issue identified in the report as a key threat to rapid market growth in the medium to longer term in the lower value sector of the pet product industry.

The full report, which also includes an optional 2,000+ pet store mailing list is available to purchase here. 

PRESS RELEASE

August 2010

Floorcovering Market To Grow Slowly in 2010

The recession of 2008 & 2009 cost the floorcoverings industry around £400 million according to MTW, with retailers and distributors rapidly reigning in their spending as a consumer ‘flight to price’ and postponement of domestic & commercial renovation projects ravaged the industry.  With some product sectors experiencing sales declines of 20%, the floorcoverings market troughed in Q3, 2009 and would have experienced a greater contraction in sales if it were not for public sector spending underpinning the industry through schemes such as Building Schools for Future and Kickstart. 

Despite a fragile recovery in consumer confidence, the proposed 25% cut in public sector spending is likely to dampen short term growth prospects for sales of floorcoverings.  MTW also indicate that ‘…Growth forecasts remain subdued for the remainder of 2010 and H1 2011,  with consumers’ discretionary spending thus far remaining lacklustre”.  Despite this, the report identifies a number of key opportunities for growth in the floorcoverings market, highlighting scope for optimism within the carpets, wood and ceramic tile floorcovering sectors.

The report identifies a number of key product features & design trends likely to drive the market forward in 2010 & 2011, listing product benefits such as functionality, ease of installation and durability as offering retailers and manufacturers the opportunity to enhance the perceived value of their products.  In terms of design trends, the research for the report found that floorcoverings which offer ‘tactile’ features are growing in popularity, alongside other key trends such as the use of bolder colours in moderation and the use of darker colours to create a more comforting environment.  

The report includes a review of the share for each distribution channel and whilst the research found that the specialist retailers continue to dominate, this sector is continuing to lose share.  During the last 12 months, MTW analysis of the retail industry sales found that whilst around 30% of floorcovering retailers experienced healthy rates of growth, almost 60% of the industry saw sales decline, highlighting the particularly difficult trading conditions in recent history.  However, the research also found that more than 60% of the sector continues to boast healthy credit ratings, despite the drop in profitability in recent years. 

A SWOT analysis of the floorcoverings industry undertaken by MTW identifies a number of ongoing strengths in the industry overall and illustrates a number of key areas where growth should prevail in the short to medium term.  One such strength is indicated to be the relatively high levels of investment in manufacturing facilities by floorcoverings suppliers in recent years which should stand the industry in good stead to meet the anticipated rising level of demand in H2, 2010 and into 2011. 

The over-riding theme of the report is one of optimism for the future, particularly for those manufacturers and retailers who reacted quickly to the changing market demands of the last 2 years.  The 220 page report is available from MTW Research’s website here.    

PRESS RELEASE

June 2010

Kitchen & Bathroom Distributors Optimistic for 2010

Optimism is growing in the Kitchen & Bathroom Distributors market in 2010, according to a new report from MTW Research, as sales of kitchen and bathroom products continue to stabilise in a number of key customer segments. 

The recession has cost Kitchen and Bathroom Distributors £250 million over the last 2 years, as kitchen and bathroom retailers rapidly reigned in their spending on new stock during 2008 and 2009 as a consumer ‘flight to price’ and postponement of domestic renovation projects ravaged the industry.  Despite this, the report identifies a core segment of the market who were not as badly affected, with just under 50% of the market having grown sales over the last 12 months. 

Based on industry sales, the report points to a cluster of distributors who reacted quickly or were well positioned in terms of product portfolio & customer composition and able to meet the changing market demands more quickly.  MTW suggest that “…Market positioning and product portfolio apparently had more influence on a distributor’s fortunes during the recession than the undoubtedly rapid decline in volume demand.”

Whilst the 0.5% increase in house prices during May should sustain the tentative growth in consumer confidence, the proposed swingeing cuts in public expenditure remain a key concern for the kitchen and bathroom market overall.  The distributors are likely to be the first to feel the cuts in certain key customer segments, according to MTW, such as the withdrawal of the Kickstart housebuilding programme and likely decline in social housing expenditure perhaps indicating a need to refocus on retailers rather than the lower value demand from publicly funded sectors which did much to sustain the distributors in 2009. 

Despite several threats to short term growth identified, the report also points to a number of specific opportunities for kitchen and bathroom distributors and retailers in 2010 and beyond, with a clear thread of optimism developing through the industry. 

Opportunities discussed by MTW include the recent switch to bathroom and kitchen ‘makeover’ rather than renovation, specific product developments, key design trends and the crucial importance of understanding and targeting those customer sectors that are expressing greater optimism for the short to medium term. 

The research for the report found that the market for kitchen and bathroom distributors is becoming increasingly polarised in 2010, between the ‘haves’ and the ‘have-nots’.  The ‘have-nots’ appear to be less defined in terms of strategic direction and the impact of this is made clear by MTW who identify 30% of the industry as having a poor credit rating.  The tide may be turning slowly, but there appear to be a number of distributors unable to catch the break.  The report goes on to identify 15% of the kitchen and bathroom distributors market is presently at immediate risk of failure, highlighting the ongoing fragility in the kitchen and bathroom products market in mid 2010. 

Nevertheless, the report is forecasting growth in 2010, albeit at relatively nominal levels, driven by those distributors who have matched their product and service portfolios with current market demands.  Whilst much of this growth will be lost through inflation, there are clearly more reasons to be cheerful this summer for the kitchen and bathroom industry.  MTW Research’s report is available to purchase from for GBP 565 from here.

PRESS RELEASE

May 2010

Rainwater Harvesting Market Trends for 2010

Sales in the rainwater harvesting market will grow strongly in 2010, according to a new report from MTW Research, though market demand is likely to shift again this year as capital expenditure trends in private and public sector markets change rapidly.

Research for the new report has found that there were a number of fundamental changes in the rainwater harvesting market during 2009 in terms of demand, with a rapid shift from the private sector toward a greater reliance on the public sector. MTW identify the markets which have driven volume growth of rainwater harvesting products by more than 850% in the last 5 years, but say that demand from these sectors may shift in the near-medium term as private and capital expenditure patterns continue to evolve.

Whilst sales in 2009 were lower than that experienced prior to the recession the market has remained buoyant, MTW report that “…We are forecasting double digit growth for rainwater harvesting in value and volume terms for 2010, though there is clearly a degree of polarisation between those suppliers targeting sectors where demand is rising, and those less able to identify key growth markets.” According to the report, 60% of companies active in the rainwater harvesting industry increased their sales in the last 12 months, though 40% of the market experienced more difficult trading conditions with sales remaining either static or declining.

The report goes on to identify new challenges for the rainwater harvesting market in the near to medium term, as demand patterns shift and market trends change in this steadily maturing industry. As part of the research, MTW undertook an industry-wide SWOT and PEST analysis, identifying a number of new opportunities and threats which are likely to become increasingly evident. Some examples of these include the threat of rising pricing pressure in some end use sectors, the threat of rising imports and likely decline in public capital expenditure in 2011.

Commenting on these trends, MTW stated, “Its clear from the rising level of foreign companies contacting us about this market that the threat of imports is growing rapidly. The more established rainwater harvesting companies from Europe and further afield have substantially more experience than many UK suppliers and are increasingly seeking to target the UK market as demand grows for these products.”
However, the report also identifies a number of opportunities for growth in the rainwater harvesting market, underlining an optimistic outlook for the industry in the medium to longer term for suppliers who are able to keep pace with increasingly complex market trends.

The report provides market size from 2004 to 2014 for each of the key product sectors of tanks, filters, accessories, pumps & controls and from the report it is clear that the shares by these sectors are likely to change in the medium term.  Full details of this report are available here.

PRESS RELEASE

April 2010

Housebuilding Market Growth for 2010

The UK housebuilding market will rise by 154,000 homes in 2010, according to a new report from MTW Research, though housebuilder expenditure remains under tight control as social housing investment slows and business confidence returns slowly.

Based on industry sales, the new report identifies a growing optimism amongst housebuilders in April 2010, with house prices stabilising in the first quarter of 2010 and demand returning as the mortgage market eases and lending increases. Sales of new homes will exceed £25 billion in 2010, according to MTW, with the housebuilding industry forecast to grow sales to more than £29 billion in 2011 as the UK economy gathers strength.

The social housing market has underpinned the housebuilding industry during the last 2 years, with new affordable housing built for housing associations now accounting for almost 20% of the UK housebuilding market in 2010, up from 11% in 2004. MTW also point to government schemes such as the £500 million ‘Kickstart’ programmes as having supported the industry, generating an additional 5,000 new social homes by the end of 2012. The report also identifies a number of fundamental changes in the social housebuilding market in 2010, such as a return to more traditional 2 storey house building, enabling housebuilders to maintain tighter control of costs and decrease build times.

Timber frame housebuilding, prefabrication and the use of modern methods of construction is identified as critical to the future of the UK housebuilding market in the research, with the report stating that “Timber frame continues to gain popularity, accounting for around 17% of completions in 2010. This trend is likely to continue in the medium to longer term, with the sector reaching around 21% of all completions by 2014.” The growing use of prefabrication offers enhanced efficiencies for housebuilders by reducing on-site labour costs. MTW state that this trend should offer clear differentiation opportunities for suppliers to housebuilders and enhance their ability to add value, by assisting housebuilders to build new homes faster and more effectively.

The rate of growth this year will vary across the UK, according to MTW. Housebuilding activity in England is forecast to rise by around 5%, though levels are still well below the peak of 152,500 recorded in 2007. Scotland is the second largest country in the UK housebuilding market, accounting for around 11% of the total UK market with housebuilders in Scotland set to increase output by around 4% in 2010. Domestic new build activity in Northern Ireland is currently estimated at around 7,300 units, reflecting a forecast increase of around 3% to year end December 2010, highlighting the slower levels of growth forecast in this country than other UK regions. Completions in Wales are set to rise by 5% in 2010, having declined by some 40% since the peak in 2006 of just under 9,000 units.

MTW also examine sales and profitability for 250 leading housebuilders, analyse future prospects for each sector to 2014 and industry trends in the housebuilders market. The report is available to purchase from MTW Research for GBP 565 from www.marketresearchreports.co.uk (Click Here) or by calling 08456 524324

PRESS RELEASE

March 2010

New Bedroom Furniture Report for 2010

The bedroom furniture market fell by an average of £5 million per month during the recession, according to a new report from MTW Research, though is set to grow by around £15 million in 2010 as demand returns, led by childrens bedroom furniture.

The recession clearly had a significant impact on the bedroom furniture industry, with a large number of business failures evident across the manufacturing and retail sector during the last 2 years. However, MTW point to renewed optimism in the market for mid 2010 onwards, as the UK economy improves, consumer confidence returns and expenditure rises. Based on sales data from the industry, the report forecasts the market to rise by 13% between 2010 and 2014, reflecting stronger demand patterns across most sectors of the bedroom furniture market.

However, imports continue to gain share of bedroom furniture sales in 2010, with this trend posing an increasing threat to the ability of UK manufacturers and retailers to add value and grow revenue. The report states, “UK manufacturing currently accounts for around 48% of the UK market. Output by UK manufacturers has declined from a peak of £499 million in 2006, to current levels of £371 million, reflecting a contraction of some 26% over a 4 year period. “ MTW point out that retailers and suppliers active in the lower value or volume oriented channels are unlikely to achieve any real term growth in turnover, with profitability in this segment of the market likely to come under increasing pressure.

However, despite a relatively bleak outlook for lower value bedroom furniture products, MTW’s research highlights optimism for independent retailers and UK manufacturers operating in the higher value sector of the market in 2010 and beyond. Rising population age, declining unemployment, ‘trading-up’ and a host of other factors are identified in the report as boosting demand for higher value products and, more specifically the fitted bedroom furniture sector, which has outperformed the overall market in recent years. With market penetration strategies set to account for 60% of the growth to 2014, the importance of consumers ‘trading up’ will grow in significance in the near to medium term for the fitted bedroom furniture market.

The report also reviews key specification criteria which influence the childrens bedroom furniture market - a sector which has experienced buoyant performance in recent years having grown share of the overall market during the recession. MTW identifies a wide range of important issues for the end user and the purchaser of childrens furniture, including design, materials, price, functionality and brand perceptions. Following a slight decline in 2009 as consumers reigned in spending, the childrens bedroom furniture sector is set to rise in 2010 by just under 3%, reflecting the only sector likely to return to ‘real term growth’ during 2010.

Alongside product mix and trends for both fitted and freestanding wardrobes, drawer chests, dressing tables and bedside cabinets, MTW also examine sales for more than 130 manufacturers and retailers and analyse future prospects and style trends in the bedroom furniture market. The report is available to purchase now from MTW Research for GBP 565 from here or by calling 08456 524324

PRESS RELEASE

March 2010

Garden Products Market to Grow by £95 Million in 2010

The garden products market will grow by £95 million in 2010, according to a new report from MTW Research, despite ‘garden-grabbing’ loopholes and a range of other factors dampening short-term growth prospects for the industry.

The legacy of the recession lingers on for suppliers and retailers of garden products, though sales growth in 2009 highlighted a healthy underlying resilience in the market, despite ongoing problems relating to low profitability. Demand is forecast to experience moderate rises in both volume and value terms this year across most key product sectors in the garden products market, as positive key market influences continue to outweigh those negative issues which are currently preventing above inflation growth.

2010 growth is forecast at around 2% for the garden products market, though the report points to the threat of substitutes driving price competition in the lower-mid market sectors. MTW describes, “A growing level of pricing pressure, with imports now accounting for more than 50% of the garden products market. Its clear that price deflation is now a serious threat to industry profitability in 2010.”

However, the report goes on to identify a number of key market opportunities and reasons to be optimistic, particularly post 2010 as speculative housebuilding, growth in disposable incomes, rising population age and a host of other issues underpin volume demand - stimulating value growth across most product sectors.

Sales of garden furniture and the barbecue market are set to experience strong growth in 2010, supported by product development and a number of social trends which should boost volume demand in the short term. With current forecasts of a warmer 2010, courtesy of El Nino, the rise in the use of the garden as a place for entertaining should continue in 2010 providing stimulus for a wide range of complementary garden products.

The garden timber market and hard landscaping products lost around £150 million in sales during the recession, according to the 300 page report, as householders postponed garden refurbishment projects in light of the fragile economic landscape in 2008 and 2009. MTW state that as consumer confidence gathers strength later this year, an element of ‘pent-up’ demand should offer good volume growth opportunities for suppliers active in sectors such as the decking market, with porous paving also offering added value opportunities.

Due acknowledgement is also given to the ‘Grow Your Own’ trend by the report, with MTW identifying healthy rates of growth in the seeds market due to consumers not only seeking to save money, but also becoming more adventurous in their choice of vegetables and salads. Kohlrabi & fennel are just 2 varieties identified as growing in popularity as consumers become more knowledgeable and sophisticated in the home grown sector. Whether the ‘GYO’ is more of a fad than a trend remains to be seen, though with uncertainty regarding the UK’s economic health remaining, this sector of the horticultural market is set to remain buoyant in the short term at least.

MTW also examine sales for 250 manufacturers and retailers, analyse future prospects for each product sector to 2014 and industry trends in the garden centres market. The report is available to purchase now from MTW Research for GBP 565 from here or by calling 08456 524324

PRESS RELEASE

February 2010

Kitchen Furniture Market to Grow with Style in 2010

The kitchen furniture market lost £250 million of sales during the recession, according to a new report from MTW Research, though the kitchen industry is optimistic for 2010 as growth in demand starts to return.

With the cost of the recession running to around £10 million per month in the kitchen furniture market, the recent trading environment for kitchen manufacturers and retailers has clearly been difficult. Based on industry sales figures, MTW’s report points to the market having declined by 18% in ‘real terms’ since the start of the economic downturn. The report identifies changes in product share in the last year and how these sectors are likely to perform in the future, with prospects reasonably positive for a return to growth for freestanding kitchen units in 2010, whilst the sinks market is diverging into 3 relatively distinct sectors.

A shift in consumer demand patterns has also provided further complexities for kitchen suppliers, as design trends and consumer preferences have changed fairly rapidly in the last 12-18 months. The report describes “A growing preference toward flecked greens and browns in the kitchen worktops market, as well as bold colour statements in moderation for fitted kitchen furniture. Clean lines continue to remain popular for hygiene and style reasons, though hard angles are giving way to subtle curves as consumers seek to soften their environment.”

The report also discusses the rapid polarisation in terms of quality, styles and designs which have taken place in recent months, with manufacturers and retailers now offering ranges with very clear and distinct market positions. It appears that the recession has prompted kitchen suppliers to re-evaluate and focus their market position in order to maintain a competitive advantage, as well as bring about a host of streamlining and efficiency savings through the kitchen industry.

Independent retailers continue to maintain the majority share of the kitchen furniture market and with this channel now having a more focused approach, MTW suggest that the sector is unlikely to lose any further substantial share in the long term. The DIY multiples, historically having gained share from independent retailers, are now themselves under threat from alternative channels such as Tesco direct, who recently launched their installation service and the final component in their ‘one-stop kitchen shop’. It appears that, rather than gain further share from other channels, the sheds are now likely to be more pre-occupied fighting a rear guard action and seeking to protect their market share.

The inevitable pressure on prices in the kitchen furniture market brought about by the recession is also highlighted in MTW’s report, with imports rising by almost 140% between 2004 and 2009, reflecting the ongoing pressure on the UK manufacturers. However, there is greater optimism on the horizon as the report forecasts import levels to rise more slowly in the medium to longer term, with exports perhaps offering some

growing opportunities for UK kitchen furniture manufacturers to exploit.
 

The report provides a comprehensive review of the UK domestic kitchen furniture market and forecasts sales to 2014, with current and forecast product mix and distribution channel shares, alongside profiles of more than 300 retailers and manufacturers. The 350+ page report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

February 2010

Furniture Market Fights Back for Lost £300 Million

A new report on the dining and occasional furniture market from MTW Research states that the industry is likely to return to modest growth in 2010, following the difficult trading environment of 2009. 

The recession has cost the furniture industry sales of around £300 million according to the report, highlighting the severe impact of the economic downturn on the UK furniture market.  However, sales of domestic furniture should experience acceleration in demand during the second half of 2010, though recovery in the UK economy will remain fragile.  The report highlights a number of key market opportunities which should underpin value growth for a number of sectors, despite volume demand remaining relatively weak in the near term. 

The dining room tables market has lost some share by value during 2009 as the shift toward informal entertaining and dining continued, coupled with a rising threat of substitutes.  However, MTW attributes much of this decline to imported products as pricing pressures intensified in lower value furniture sectors due to the recession.  Polarisation within the market also continued in 2009, though most UK suppliers have now completed their product and market repositioning in order to avoid competing directly with imported furniture.   

Around 60% of domestic furniture market sales are now attributed to lower cost imports, with the report stating that the recession accelerated demand for value, with consumers rating price as an increasingly important influencer on the purchase decision throughout last year.   

Independent furniture retailers account for the largest share of the domestic furniture market by value in 2010, according to MTW, though competing distribution channels have continued to gain market share.  The dining room and occasional furniture market has experienced a rapid change in channel share in recent years, with much of this change due to the shift to a ‘two-tier’ market. As the industry has become increasingly polarised in terms of price, furniture retailers have sought to establish clear strategies and market positions based on volume, quality and price.

More than 30% of the furniture retail sector experienced either static or declining sales during 2009 according to the research, with the report identifying that more than 17% of furniture retailers are now regarded as being ‘at risk’.  However, MTW point to an underlying strength in the furniture retail market overall, with around 70% of retailers having a ‘good’ or ‘fair’ credit rating in early 2010.    The report also forecasts a return to profit growth in 2010, as the demand for lower value products is tempered by quality and design issues returning to prominence, coupled with the likelihood of an element of ‘pent-up’ demand being released as growth in consumer confidence returns. 

The report provides a comprehensive review of the UK domestic dining and occasional furniture market and forecasts sales to 2013, with product mix and end use sector shares, alongside supplier and retailer analysis and profiles.  The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

January 2010

Facilities Management Market Set for Change in 2010

The Facilities Management market will continue to see a dramatic shift toward multi-service provision in 2010, with FM clients following ‘flight to price’ procurement strategies to reduce outsourcing costs. 

The new facilities management report indicates that client loyalty in the FM market is being steadily eroded by price competition in 2010, with many of the commodity sectors within the market, such as property maintenance, office support etc, becoming increasingly price sensitive. MTW found that this trend was fuelled by the recent recession and resulted in multi-service FM providers gaining further share of the market in 2009, with these companies often able to offer greater cost savings than single service FM contractors.

MTW also found that the Facilities Management market has become increasingly characterised by closer relationships between suppliers and contractors, as greater efficiencies and lower procurement costs are sought. During 2009, several FM companies established programmes specifically designed to improve supplier relationships to ensure that material and equipment suppliers were aligned with customer relationship principles and accountable for their own supply chains. According to MTW, these supplier improvement programmes vary in scope, though typically include audits in relation to CRM, sustainable procurement and may even include a ‘best practice’ policy to which suppliers are expected to adhere.

Based on sales figures from the industry, the total FM market is currently worth just under £90 billion according to MTW, with operations and maintenance services the largest sector in 2010 and integrated or ‘bundled’ FM service provision now the second largest market segment. The report states that security services provision, which includes CCTV monitoring, access control, security screening etc has grown steadily in recent years. MTW point to a greater emphasis on public safety and anti-terrorist activity supporting buoyant growth in security services demand in 2010 and beyond, with this sector anticipated to outstrip overall FM market growth in the longer term.

MTW’s report also reviews the structure and current health of the facilities management industry, with just over 65% of FM contractors viewed as having either an ‘excellent’ or ‘good’ credit rating, reflecting a core strength in the market in terms of financial standing. However, the impact of the recession is clearly evident, with the report identifying that around 11% of the companies active in the Facilities Management market are viewed as being at imminent risk of failure.

By the end of 2010, the report states that the overall FM market is expected to grow to a value of around £87.7 billion, reflecting sustained public expenditure coupled with a return to stronger growth from the private sector. MTW’s SWOT analysis identifies a number of key market influencers which are expected to further drive the market in 2011, despite increasing uncertainty regarding short and medium term public spending budgets.

The 200 page report provides a comprehensive review of the UK facilities management market in 2010 and forecasts sales to 2013, with product and end use sector shares alongside sales leads for key FM contractors. The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

December 2009

Contract Cleaning Market to 'Replace & Replenish' in 2010

The UK contract cleaning market responded quickly and positively to the recession in 2009, according to a new report from MTW Research, with streamlining activities preventing spiralling declines in profitability and standing the market in good stead for growth in 2010.

Based on sales from the industry, MTW Research indicate that the contract cleaning market is estimated to have returned to values previously experienced in 2004, reflecting the severity of the recent downturn. Price competition, rising labour costs, additional burden from legislation relating to immigration, declining volume demand and a number of additional micro market issues negatively impacted on the market in 2009. However, rising business confidence and a more stable economy should result in a return to value growth for the contract cleaning market during 2010, according to the report.

A rapid reaction by the contract cleaning industry to recessionary pressures resulted in a greater focus on developing more efficient internal systems in 2009, drastically reducing resource wastage throughout the industry and thereby preventing profitability from declining further. One key benefit for cleaning material and equipment suppliers of this streamlining has been much faster decision making processes involved in procurement, with contract cleaners making purchase decisions faster than at any other time.

Whilst many contract cleaners scaled back on capital equipment purchase in 2009, MTW point to the likelihood of a growing ‘pent-up demand’ in early 2010, with capital expenditure likely to rise in the next year as contract cleaners seek to ‘replace and replenish’ following more positive trading conditions in late 2009 and early 2010. With shortened procurement processes and rising demand for cleaning equipment and materials, short term prospects appear increasingly positive for cleaning equipment manufacturers and suppliers.

More optimism for the cleaning industry comes from MTW’s SWOT and PEST analysis of the contract cleaning market, which identified a large number of growth opportunities for contract cleaners in 2010. These include the scope for contract cleaners to develop niche sectors, extend existing contracts and capitalise on current issues such as viruses and hygiene within the workplace. Further opportunities identified by MTW include enhancing added value services such as live audit data, mobile response units, and more specialist service provision amongst others.

One area of concern for the contract cleaning industry is that whilst public expenditure is now set until 2012 for key areas of health and education, it appears increasingly likely that cuts in public sector budgets may dampen growth opportunities in the longer term. However, private spending on contract cleaning is forecast to return to stronger growth and government initiatives such as the additional pot of £270 million for virus and infection control should more than offset any decline in public spending.

The report provides a comprehensive review of the UK contract cleaning market and forecasts sales to 2013, with product and end use sector shares, alongside sales leads for key contract cleaners. The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

November 2009

Builders Merchants Market Polarises in 2009

A new market report from MTW Research on the UK Builders Merchants market has found that ongoing price sensitivity and product price inflation is dividing builders’ merchants’ opinion in late 2009 with some chasing margins whilst others target lower value, volume contracts. 

The report’s findings, based on 90% of the industry, found that average product price inflation rose by 4% in 2009 as manufacturers sought to protect margins, resulting in a polarisation between those builders merchants who are more willing to operate on a value-led strategy with lower margins; and those operations that have actively avoided less profitable contracts. MTW suggest that increasingly the smaller local and regional merchants are positioning themselves at the lower value end of the market in late 2009, whereas the larger nationals have withstood rising pricing pressure to the extent where they are less inclined to supply to contracts which offer lower margins.

The report highlights a brighter future for the builders’ merchants market, with business and consumer confidence slowly returning in a number of key end use sectors, with demand returning led by public sector projects, domestic RMI activity and increasingly, the housebuilding sector. Nevertheless, MTW highlight the need for cautious optimism, with a number of remaining downsides in the market cited which are likely to dampen any prospect of rapid value growth, particularly given the likelihood of a cut in public capital expenditure in the near term.  According to the report, around 8% of builders merchants remain in the ‘at risk’ category, underlining the fragility of the market in 2009 and into 2010.

During 2009, demand shifted toward lightside building products as the market became more reliant on the domestic and smaller scale commercial RMI sector.  With housebuilders now increasingly opening up ‘mothballed’ sites, MTW point to the likelihood of a relatively rapid return to growth for heavyside products given that many housebuilders ran down their inventories during the latter half of 2008 and will therefore have immediate requirements for replenishing materials.  

According to the report, pricing pressures should ease in the near term as average product inflation falls from current levels of 4% to around 2-3% by early 2010, although profitability is likely to decline by around 25% over the full year. However, much of this contraction is derived from lower performance in the first 3 quarters of the year, with a much improved trading environment likely in Q4 2009 as volume demand returns from some key end use sectors such as housebuilding and RMI.  Whilst there remains some concern that outside the Olympics construction activity, capital expenditure in public sector construction may decline, prospects are for market growth at, or just below inflationary levels for 2010 with a gradual upturn thereafter. 

The report provides a comprehensive review of the UK builders’ merchants market in 2009 and forecasts sales to 2013 and provides sales estimates enabling market share estimation.  The report package also includes mailing, telephone and contact details, providing comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from here where a free sample is available to download or by calling 08456 524324

PRESS RELEASE

July 2009

Kitchen Retailers Market "Double-Dip" Fears Allayed

A new market report from MTW Research on the UK Kitchen Retail market in 2009 has found that whilst fears of a “double-dip” in the market may be growing at present, the research found that the likelihood of a further downturn is unlikely, despite the ongoing fragility of the economy at present.

The new report, based on sales figures from the kitchen products market, identifies a number of key factors which should prevent the UK Kitchen Retailer and Installer market from experiencing further substantial decline in the short term, and identifies areas of opportunity for growth in the future. Lead analyst for the report, Mark Waddy points to “Tentative signs of, if not a recovery, then a cessation of price decline in the housing market, with the most optimistic sign of growth this year as house prices in June rose by 0.9%”. According to MTW, like for like retail sales rose by 4.6% in April 2009 suggesting a relatively rapid return to growth in the wider UK economy and “cautious optimism” for the kitchen products market.

The report also identifies a change in consumer behaviour with buyers of kitchen furniture and appliances reportedly seeking a wider choice of products, coupled with factors such as brand, technology and innovative design becoming increasingly important as consumers seek to ‘trade up’ from lower value products sourced from more price competitive channels such as the DIY multiples. MTW suggest that this trend has underpinned the independent kitchen retailers in terms of value performance in recent years, who are likely to continue to seek to exploit this change in consumer behaviour in the medium to longer term.

MTW claim the report is based on sales from more than 70% of the industry by value and found that the kitchen retail and installation distribution channel remains characterised by a significant level of fragmentation in volume terms, with a large number of independents active in the sector. The report suggests that this in part is due to the ongoing level of assistance for the independents from the manufacturers, particularly in terms of price support. This, coupled with a focus on differentiation in terms of service and product offering suggests a relatively bright future for the independent retail channel in the medium to longer term in terms of maintaining current market share of the UK kitchen products market.

The report provides a comprehensive review of the UK kitchen retailer and installation market in 2009 and forecasts sales to 2013 as well as ranking the retailers and providing sales estimates enabling market share estimation. In addition, MTW have also produced an effective method of profiling each retailer’s financial health and illustrating key financial performance indicators through their ‘at a glance’ charts.

The report package also includes mailing, telephone and contact details for 90% of the market, providing comprehensive industry analysis and a useful sales & marketing tool. The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

June 2009

INDEPENDENT KITCHEN RETAILERS DOMINANT IN 2009

The UK Kitchen Retailers and Installers Market remains dominated by independents in mid 2009, with over 4,000 kitchen companies employing less than 5 staff, according to a new database from MTW Research.

The findings, based on a quantitative database and mailing list of more than 5,300 kitchen retailers and installers, suggest that the recession has limited growth in terms of the number of staff employed by kitchen retailers and installers as competition in the UK Kitchen market remains fierce.

In mid 2009, MTW found that 50% of the UK market was comprised of retailers with less than £90,000 turnover with a further 40% of the industry comprising companies with between £90,000 and £500,000. The database supports findings that reflect the ongoing importance of targeting smaller independent retailers and installers as well as the regional and multi-nationals.

With around 90% of the Kitchen retailers and installers market reporting a turnover of less than half a million punds, indications are that the market remains in a relatively fragile condition in mid 2009, despite some indications of an upturn in the housing market which should provide some impetus for Kitchen sales in the near term. Further, MTW Research state that 73% of the market is comprised of non-limited companies, suggesting that there remains a large proportion of the market which remains highly exposed to the current downturn.

Nevertheless, there are an increasing number of optimistic signs for Kitchen product manufacturers and associated suppliers as a fragile return to growth in the housing market becomes evident with prices and mortgage approvals on an upward trend. In time, this should stimulate rising consumer confidence which may support value growth for the market, as well as volume growth underpinned by rising levels of housemoving. As such, according to MTW, kitchen product manufacturers are likely to experience positive volume growth through this route to market in the near term, though the importance of effective marketing strategies and relevant mailing lists has become increasingly important in this competitive channel.

The mailing and telemarketing list covering 95% of the UK Kitchen Retailers & Installers market is available now from MTW Research for £350 by calling 08456 524324, with information & free samples available HERE or by e-mailing sales@marketresearchreports.co.uk.
 

PRESS RELEASE

June 2009

Underfloor Heating Market Recovery in 2009

Analysis by MTW Research of the Underfloor Heating Market in May 2009 has found that the industry is set to return to growth in the last quarter of 2009 as a number of key end use markets experience more buoyant conditions as the UK economy begins its ‘u-shaped’ recovery. 

The new report from MTW Research also found that market deterioration in 2008 may not have been as severe as some commentators have suggested, with 53% of underfloor heating suppliers reporting growth in excess of 10%.  Further, the research also found that whilst 7% of the industry is regarded as being ‘at risk’, more than 75% of companies in the market have an excellent or exceptional credit rating, underlining a core, fundamental strength within the UK underfloor heating industry in mid 2009. 

The report also points to a changing dynamic in the underfloor heating industry in recent months, with market growth increasingly reliant on smaller projects within the domestic market.  According to MTW, volume demand has declined substantially in recent months from commercial and non-domestic end use sectors, with suppliers being required to shift focus quickly in order to maintain sales. 

Despite this shift in end use demand patterns, the report, based on quantitative sales figures from the industry, highlights a number of key market influences which should offer opportunities for the sector to return to healthy levels of growth relatively quickly and which should underpin buoyant market performance in the longer term.  One such issue identified by MTW is the increasing emphasis on energy efficiency and the environmental benefits offered by underfloor heating products in contrast to more traditional heating systems.  As energy efficiency becomes more important in the specification process within both domestic and non-domestic applications, the report indicates that this issue should represent a key differentiator for UFH products within the wider HVAC market. 

The report provides a comprehensive review of the UK underfloor heating market, forecasts industry trends for 2009-2013 and analyses the structure of the industry in 2009.   The report also ranks the UFH companies by a number of criteria and provides sales estimates and market share figures.  MTW have also developed a quick and easy method of profiling each company’s financial health through their ‘at a glance’ charts.  The report package also includes mailing, telephone and contact details for the leading players in the market, resulting in a comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

May 2009

£1.6 Billion for Social Housing Repairs in 2009

Spending on refurbishment and improvements to dwellings within the UK social housing market will exceed £1.6 billion for the first time in 2009, according to a new report from MTW Research, providing a much needed boost for the UK building products industry.

More than £700 million is likely to be spent on building products and materials this year by Arms Length Management Organisations (ALMOs), with a substantial backlog of repairs to dwelling stock due to be completed before 2010 in order to achieve the Decent Homes Initiative target. With a step up in housing renovation and repair activity likely within the next couple of years there are clear opportunities for building product suppliers in the short term within this lucrative market.

MTW also found that the ALMOs continue to seek to develop long term relationships with building product suppliers as they seek to develop new roles within the social housing community. Following the completion of the decent homes programme in 2010, it is likely that the ALMOs market will remain a key growth area for building product suppliers both within the refurbishment and new build social housing market. The research for the new report from MTW suggests that the ALMOs are more likely to adopt a role similar in nature to the Housing Associations market in the medium term, as they widen their activities within the UK housing market.

The report states that the sector continues to seek cost saving through contract tenders, with tendering for new RMI contracts with ALMOs becoming increasingly competitive in recent years. Further, building product suppliers are also experiencing greater demands placed on them as assessment processes also become more rigorous.

Given that profitability may become more important in the medium term for ALMOs, MTW believes that the tendering process will become increasingly competitive in the ALMOs sector in 2009, with pricing pressure likely to grow as competition rises. However, the research found that whilst pricing pressure will rise in the medium term for building material and product suppliers, contracts are typically awarded on procurement criteria split of 50% cost and 50% quality. Given that the standard of building work required on a social housing unit is typically higher than that of a private residence, quality is likely to remain a key influencer on procurement.

The report provides a comprehensive review of the social housing ALMOs market, forecasts industry trends for 2009-2013 and analyses the structure of the industry in 2009. The report also ranks the retailers by a number of criteria and provides sales estimates and market share figures. MTW have also developed a quick and easy method of profiling each company’s financial health through their ‘at a glance’ charts.

The report package also includes mailing, telephone and contact details for 90% of the market, resulting in a comprehensive industry analysis and a useful sales & marketing tool. The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

March 2009

£46 Billion Public Boost for Building Contractors in 2009

Recent Government pledges to support vital PFI construction projects will result in more than £46 billion of capital expenditure in 2009, according to a new database & mailing list on public sector building contractors from MTW Research.

More than 1,700 major building contractors should benefit from the rise in public sector construction in the short term, according to the new database, with the recent announcement that £13 billion of PFI investment would be safeguarded. MTW point to substantial capital expenditure and construction activity in a wide range of sectors including Waste Treatment (GBP3.5billion); Transport (GBP 3.1 billion); and Education (GBP 2.4 Billion), which offer should offer strong opportunities in the short term for building contractors and associated suppliers to grow sales.

Capital expenditure on public sector services has increased by 30% since 2005, according to MTW, underlining the level of commitment from the Government to developing longer term opportunities for the construction industry and building material suppliers. PFI expenditure at present typically accounts for around 10% of public capital spending at present according to the research.

With around 110 PFI projects currently in the pipeline, MTW point to this sector being most likely to provide impetus for building contractors in the next 12-18 months. Mark Waddy, lead analyst at MTW, commented that, “The competition amongst contractors to win tenders in this sector is likely to increase rapidly during 2009” highlighting the likelihood of fierce competition in the market in the near term. Waddy also pointed to a “…Clear and growing need for building material suppliers to identify and target more effectively in order to gain or maintain competitive advantage.”

The database identifies the contractors most likely to benefit from the growth in public sector construction activity in the short term, providing a comprehensive insight into what appears to be the only growth area in the construction industry at present.

Designed specifically for companies supplying to the UK construction industry, the mailing list and database is available to purchase directly from MTW Research for GBP450 by calling 08456 524324 with free samples and on-line ordering here.

PRESS RELEASE

February 2009

Bathroom Retailers Market 'Fundamentally Resilient' in 2009

Sales in the domestic bathroom retail market will reach £380 million in 2009, reflecting a period of re-positioning and market adjustment in the industry in the near term, according to a new market report from MTW Research. 

Research for the new report found that whilst a decline in total market revenue was reported during 2008, the industry remains in relatively good health in early 2009 with just 6% of bathroom retailers being at ‘serious risk’ of failure.  MTW also identified more than 60% of independent bathroom retailers having either a low or very low risk rating in early 2009, underlining a fundamental resilience in the market, despite the current downturn. 

The report, based on sales from 75% of the industry, also found that just over 20% of the bathroom retail market reported sales growth during the last 12 months, suggesting that there remain some opportunities for growth for bathroom retailers and manufacturers.  However, according to MTW Research, competition and pricing pressure is likely to accelerate in the near term with just under 80% of the industry reporting less optimistic trading conditions in early 2009 as the recession further undermines consumer confidence. 

MTW go on to identify that the rate of borrowing by bathroom retailers has risen substantially in recent months, with debt likely to further erode the financial strength of the industry overall in the short to medium term.  However, the report states that current debt to sales ratios suggest a reasonable degree of health underpinning the market at present, though manufacturers are becoming more targeted in their sales and marketing activities in order to identify those retailers who continue to outperform the market. 

Following a period of adjustment and re-positioning by many retailers in the domestic bathroom products market, MTW forecast a return to growth by mid 2010, with growth at, or just above inflationary levels likely by 2011.  However, the report also found that market growth is increasingly reliant on lower value projects in the domestic bathroom products market, with volume demand becoming increasingly important, as opposed to value growth opportunities. 

The report provides an informed review of the independent bathroom retail market, forecasts industry trends for 2009-2013 and analyses the structure of the industry as of early 2009.   The report also ranks the retailers by a number of criteria and provides sales estimates and market share figures.  MTW have also developed a quick and easy method of profiling each company’s financial health through their ‘at a glance’ charts.  The report package also includes mailing, telephone and contact details for 80% of the market, resulting in a comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website Here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

December 2008

Lighting Retailers Market to Transform in 2009

A new report from MTW Research on the UK Lighting Market forecasts that whilst independent lighting retailers may lose some market share in 2009, a period of rapid transition and market re-positioning should result in a more healthy lighting distribution channel from 2010 onwards. 

The report, based on company sales from 70% of the market, found that lighting retailers are facing an increasingly difficult and complex trading environment in late 2008, with rising pressure on sales and profitability likely to characterise the channel in 2009 as DIY, home improvement and refurbishment activity slows.  Whilst the recent 2.5% VAT reduction may offer some light relief to lighting retailer margins, MTW’s report forecasts that the sector will undergo a period of rapid transformation in the coming 12-18 months, as retailers re-position themselves in order to avoid further pricing pressures. 

MTW also identify the implications for lighting manufacturers and suppliers as the independents seek to differentiate themselves from competing channels such as the DIY ‘Sheds’.  The research also found that the lighting retail market continues to polarise, with 20% of independent retailers recorded as being ‘at serious risk’, with the report suggesting that those lighting companies with a less well defined market position will feel the full force of the downturn in 2009. 

However, the report also provides a degree of optimism, with market growth forecast for the medium term and more than 70% of the industry regarded as being a ‘low or below average risk’.  The report authors point to the growing necessity for lighting product manufacturers to understand current market conditions and identify those companies who are best placed to weather the economic downturn in order to sustain sales in the UK domestic lamps and luminaires market. 

MTW also indicate that suppliers to the independent lighting stockists are likely to experience an increasingly competitive environment where retailers are progressively seeking to implement cost cutting measures.  Sources indicate that retailers will inevitably look to suppliers to achieve this cost saving to some extent, with pricing pressures feeding through to the lighting manufacturers as a result. 

The report provides a comprehensive review of the independent lighting retail market and forecasts industry trends for 2009-2012 as well as ranking the lighting companies and providing sales estimates enabling market share estimation.  In addition, MTW have also produced an effective method of profiling each company’s financial health and illustrating their key financial performance indicators through their ‘at a glance’ charts. 

The 'ultimate report package' also includes mailing, telephone and contact details for 90% of the market, providing comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

November 2008

Contract Cleaning Market Boost from Public Sector in 2009

A new report from MTW Research on the UK Contract Cleaning Market has found that 45% of contract cleaning companies experienced growth during the last 12 months, despite the worsening economic climate.  Despite the likelihood of tougher trading conditions in 2009, rising investment in the public sector should offer some optimism for the market in the near term, particularly from RMI and new build construction projects within the Health and Education sectors. 

The new market report, based on sales returns from 80% of the industry, found that the contract cleaning industry in 2009 is likely to be characterised by a decline in capital expenditure and spending on equipment coupled with a growing ‘squeeze’ on assets as sales revenues contract over the next 12-18 months.  For suppliers to the contract cleaning market the report highlights the growing need for more focused marketing in order to target those contract cleaners who are continuing to perform well in the industry at present. 

MTW Research also found that 30% of contract cleaning companies are considered ‘at risk’ in late 2008, with the report highlighting the growing problem of customer retention.  Customer loyalty is becoming less prevalent according to MTW, and clients of contract cleaners are increasingly seeking more competitive prices before renewing contracts.  This growing trend in the market is driving price competition in a sector where volume demand is now declining as smaller and medium sized firms in particular are internalising certain cleaning duties, rather than outsourcing. 

With business confidence at a particularly low ebb in a number of key markets at present, indications are that suppliers to the contract cleaning sector will experience more difficult trading conditions as contractors are less willing to invest in capital equipment during a period of sustained low demand.  Despite the likelihood of a downturn, however, there is likely to be some continuation of capital investment by the industry, albeit at much lower levels than recently experienced, with total assets forecast to rise by just under 4% in 2009.  The report goes on to forecast a recovery in mid-late 2010, with the market set to experience a relatively fast paced return to ‘real term’ growth, followed by a rising level of expenditure on capital goods and equipment. 

The industry in general remains in good financial health with borrowing levels representing around 35% of total revenue, reflecting a relatively low ratio and one which is likely to be sustained in the long term.  Longer term prospects are more positive for the contract cleaning sector, with more optimistic growth forecast by 2012 as the industry regains some ground lost in 2008 and 2009. 

The report provides a comprehensive review of contract cleaning market and industry trends in late 2008 as well as ranking the cleaning companies and providing sales estimates enabling market share estimation.  In addition, MTW have also produced an effective method of profiling each company and illustrating their key financial performance indicators through their ‘at a glance’ charts.  The report also includes mailing, telephone and contact details for each company providing comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

October 2008

Tool Hire Market Recovery Forecast by 2010

Analysis of the UK Tool Hire Market by MTW Research in late 2008 has found that rapid changes in terms of rising pricing pressure and cost saving measures will dominate the market in 2009, according to a report prepared for the UK Tool & Equipment industry.

The new market report, based on sales returns from 95% of the industry, found that Tool and Equipment suppliers are increasingly feeling the pinch of a downturn in demand for tool hire from a number of key end use sectors, resulting in falling volume demand and rising price competition. MTW points to a more difficult trading period in the next 12-18 months, with a slowdown in capital expenditure by tool hire companies resulting in rising price competition amongst tool manufacturers who supply to this sector. The report forecasts a decline of some 25% in capital expenditure during 2009, reflecting the wider slowdown in construction activity and subsequent impact on demand for tools throughout the supply chain.

Cost reduction and efficiency measures are likely to dominate the tool hire market in 2009 as the economic slowdown deepens, with redundancies and ‘scaling down programmes’ by the tool hire companies likely to become increasingly common. However, the report suggests that whilst there is likely to be some pain in the short term, the focus on profitability by the industry now, should assist the market in the medium term by facilitating a faster return to profitability growth than many other sectors in the construction industry. As such, MTW forecast that by early 2010, the hire industry will be in a strong financial position to raise capital and is likely to increase spending on tools and equipment in order to meet the anticipated rise in demand later in 2010 and into 2011.

For the short term, however, MTW point to the public sector as crucial for underpinning some market demand and preventing further substantial declines in volume and value. In addition, with contractors less willing (or able) to invest in capital equipment, tool and equipment hire becomes an increasingly attractive proposition, sustaining the market to some extent during the next 1-2 years. MTW identify the tool hire operations able to meet this changing demand, enabling manufacturers to target those companies who are best placed to continue to perform reasonably well in 2009 and beyond.

However, whilst there remains some element of optimism for some companies, MTW Research’s analysis of the tool hire market found that almost 25% of tool hire companies are considered to be ‘at risk’, reflecting the difficult trading environment at present. With a low number of new market entrants identified by MTW in the last 12 months, the need for focused, effective and targeted marketing is crucial for tool and equipment manufacturers to increase sales at present.

The report provides a useful review of tool hire market and industry trends in late 2008 as well as ranking the tool hire companies and providing sales estimates enabling market share estimation. In addition, MTW have also produced an effective method of profiling each company and illustrating their key financial performance indicators through their ‘at a glance’ charts. The report also includes mailing, telephone and contact details for each company providing comprehensive industry analysis and a useful sales & marketing tool. The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

October 2008

Facilities Management Market Tops £28 Billion

The UK Facilities Management market is set to reach a value of GBP28 billion in 2008, according to MTW Research, with the market continuing to experience growth against a backdrop of a worsening economic climate. The findings from the new report based on company sales, highlight an industry which has continued to benefit from a growth in outsourcing and has experienced positive performance in recent years. Annual growth for the market is recorded at between 6-8% since 2004, reflecting a generally buoyant sector with demand derived from a broad spectrum of key end use sectors within public and private markets.

The current contraction in the UK economy and the ongoing impact on business confidence is now indicated to be dampening the facilities management sector in late 2008, as new commercial construction and RMI projects in particular are postponed. Whilst there remains some optimism in the market derived from public sector spending, particularly health and education, the impact of the government’s GBP 37 billion bail out of the UK’s three largest banks in October 2008 is likely to result in a decline in public expenditure in the medium term, with a subsequent negative impact on demand for FM services. Nevertheless, the report forecasts some growth in the market in the short term, albeit at relatively low levels in 2009 and 2010, before a return to stronger growth in 2011.

According to MTW, the implications for companies targeting FM companies are clear, with the credit crisis compounding growing pricing pressure in the market in the short term. The findings also point to the likelihood of a relatively fast paced rise in borrowing in the industry, with debt rising to more than 60% of sales by 2009, further exacerbating the issue of price sensitivity in terms of purchasing by the FM companies. These, and other issues suggest a more complex trading environment for manufacturers, contractors and suppliers to the FM industry in the short term and highlight the need for a clear and coherent strategy with which to weather the coming financial difficulties.

During the last 12 months, MTW Research found that 47% of the FM industry experienced growth in sales revenue, although those companies reporting growth in 2008 experienced substantially lower sales than in 2007, reflecting a downturn in volume demand, and expectations are that the number of companies reporting static sales will increase substantially in the short term. The report highlights the mixed scenario in terms of trading conditions in the FM market at present, with sales increasingly reliant on a decreasing number of larger companies in the industry, with those more able to service public sector applications now indicated to be primarily supporting market growth.

The report also illustrates the performance of individual FM providers for the last 4 years, with turnover estimates provided for every company, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify market shares and those companies most likely to grow in 2009. In addition, the report also includes full mailing address details and senior decision maker contact details for the FM providers, providing relevant sales leads. The report, available now, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering here, where a free sample is also available to download.

PRESS RELEASE

September 2008

Panel Builders Market Reports Growth in 2008

Findings from MTW Research on the UK Panel Builders Market indicate that 50% of companies reported a rise in sales in the last 12 months to September 2008, despite the dramatic downturn in construction activity over the same period.  A further 16% of panel builders indicated steady sales trends over the last 12 months, further illustrating a continued reasonable level of demand for specialist skills within the UK Building Industry. 

MTW’s new database highlights the substantial and continued level of fragmentation in 2008, coupled with a large number of independent companies active in the industry.  The database, which covers more than 90% of the UK Panel Builders market, also finds that around 40% of the industry is comprised of companies with less than 5 employees, highlighting the need for effective and accurate marketing tools in order for electrical product and component manufacturers to successfully grow sales to this sector. 

Whilst the UK Panel Builders market is set to experience a more difficult trading environment in the next 18-24 months from the decline in construction, a number of key end use sectors should continue to support the market in the short to medium term, according to MTW Research.  The utilities and energy sectors remain important markets for panel builders alongside public sector construction, all of which should underpin the market during the current economic downturn. 

MTW’s analysis also finds that more than 80% of the Panel Builders market is currently rated as ‘below average risk’, in terms of credit worthiness, reflecting the relative optimism in the industry at present despite the worsening macro-economic environment.  The Panel Builders industry overall remains in apparent good health and ready to weather more difficult trading conditions in the coming months. 

The new for 2008 database and mailing list is supplied as multi-use with full mailing and telemarketing details alongside senior purchasing information, employee bands, company and office type.  The listing is unique to MTW and represents a comprehensive marketing tool for increasing sales to the control panel building industry.  The database is available to purchase now for GBP 350 by calling 08456 524324, with further information & free samples available by clicking here

PRESS RELEASE

September 2008

Electrical Wholesale Market Switches Focus

MTW Research have found that UK Electrical Wholesalers are now increasingly re-focusing their attention on achieving turnover as volume demand slows in mid-late 2008, and away from the recent trend of ‘cherry-picking’ more profitable projects. 

The new report, based on sales returns of more than 90% of the UK electrical wholesaler industry, found that whilst the market rose by just over 1% in 2007 profitability increased by almost 8%, in part reflecting the adoption by wholesalers of the phrase ‘turnover is vanity, profit is sanity’.  However, in 2008 indications are that this trend is reversing as housebuilding and commercial construction activity slows.  The contraction in construction and RMI activity is resulting in weaker volume demand for electrical products and accessories giving rise to less opportunity for wholesalers to ‘cream off’ the more profitable supply contracts. 

The implications for electrical product manufacturers and distributors of these findings are clear, with this trend compounding growing pricing pressure in the market in the short term.  Report publishers MTW Research also point to the likelihood of a relatively fast paced rise in borrowing in the industry, with debt rising to around 40% of sales by 2009, further exacerbating the issue of price sensitivity in terms of purchasing by the wholesalers.  These, and other issues suggest a more complex trading environment for electrical product manufacturers in the short term and highlight the need for a clear and coherent strategy with which to weather the coming financial difficulties. 

MTW go on to develop possible future scenarios for the UK electrical wholesale market, with optimism returning to the market by 2010.  However, the short term future is not necessarily as bleak as some fear, with assets continuing to rise in 2008 throughout the industry, though variations in individual performance mean that manufacturers must increasingly target and focus on those companies who continue to perform well at present. 

The report illustrates the performance of key individual electrical wholesalers for the last 4 years, identifying the most lucrative targets for manufacturers to target in this increasingly competitive trading environment.  Turnover estimates are provided for every company, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify those companies most likely to grow in 2008/9.  In addition, the report also includes full mailing address details and senior decision maker contact details for the electrical wholesalers, providing relevant sales leads for manufacturers.  

The report, available immediately, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here.

PRESS RELEASE

September 2008

Garden Centres Market Strong Under Pressure

Findings from an independent research study have revealed that the UK Garden Centres Market remains fundamentally strong and with industry assets set to top £1 billion in 2008, is in a robust position from which to weather the current economic downturn. 

The new report from MTW Research, based on actual sales figures, finds that Garden Centres sales will remain static in 2008, before a likely contraction in value during 2009 for the first time in a number of years.  Any downturn is likely to be relatively short-lived, however, with the Garden Centres market having strong underlying asset growth, enabling Garden Centres to focus on turnover during difficult trading periods, rather than maximising profitability. 

For manufacturers and suppliers to the Garden Centres market, MTW warn of an increasingly competitive environment in the coming 12-18 months, with price erosion likely in many sectors of the market.  However, the report’s longer term forecasts are more optimistic, with sales set to grow by around £45 million between 2009 and 2012, reflecting a number of positive underlying issues evident in the market. 

The report goes on to review the Garden Centres themselves and finds that industry consolidation continues with the top 10 now accounting for more than 50% of the total market value in 2008.  Despite this, however, there remain a large number of smaller independent garden centres, with MTW identifying around 2,400 separate companies active in the market at present. 

Reviewing the market in more detail, MTW Research go on to illustrate that the garden centre market has experienced reasonably positive performance in terms of industry value in recent years.  With garden centres now adopting tighter controls on borrowing, indications are that the industry is well placed to resist pressure from the forecast slowdown in sales in the short term. 

The report tracks the performance of the individual Garden Centres, identifying those best placed to weather the current financial storm and providing an effective list of key targets for garden products suppliers to target in this increasingly competitive trading environment.  Turnover estimates are provided for every company to illustrate market share, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify those companies most likely to grow in 2008/9.  In addition, the report also includes full mailing address details and senior decision maker contact details for the garden centres, providing relevant sales leads for manufacturers, distributors and suppliers.  

The report, available now, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here, where a free sample is available to download.

PRESS RELEASE

July 2008

UK House Builders Lose £5.5 Billion

As an increasing number of large scale redundancies in the house building market are announced, research for a new report has found that £5.5 billion is set to be wiped off the value of the housebuilding industry in 2008, reflecting the largest single annual decline ever recorded.    

Specialist research publisher MTW Research has found that rapid growth in borrowing in recent years, coupled with a collapse in demand for new housing due to the ‘credit crunch’ is likely to result in the house builder market losing more than 75% of its value over a 2 period to 2009.  Rising pressure on margins due to higher than average inflation in many of the key materials sectors, as well as fuel and labour costs, have also sustained pressure on the industry, all of which result in a particularly gloomy short term outlook for house builders and their suppliers. 

However, whilst MTW Research highlights the difficult period ahead in the short term from a rapid contraction in sales, the report also points to a the likelihood of a recovery in the market by late 2009 / early 2010, providing some longer term optimism for the housing market and suppliers to the house builders industry.  A number of key issues are identified by MTW as likely to underpin market growth from 2010 onwards, though these remain dependent on wider issues within the global financial markets.  The UK housing market is often linked to the US housing market, with issues relating to Fannie Mae and Freddie Mac underlining the ongoing lack of confidence in general, despite the Senate Banking Chairman recently declaring the companies as “fundamentally strong”. 

MTW’s report also reveals the strong trend of rising debt in the industry in recent years, with average housebuilders’ liabilities more than doubling since 2004.  In 2008, liabilities represented more than 84% of the industry’s total sales turnover, reflecting the high level of risk in the market at present.  Whilst the report suggests that this ratio is set to decline in the medium term, the industry is likely to face some difficult problems in the coming months as turnover slows dramatically and cash flow becomes increasingly restricted. 

The report tracks the performance of the individual housebuilders, identifying those best placed to weather the current financial storm and providing an effective list of key targets for building products suppliers to target in this increasingly competitive trading environment.  Turnover estimates are provided for every company, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify those companies most likely to grow in 2008/9.  In addition, the report also includes full mailing address details and senior decision maker contact details for the house builders, providing relevant sales leads for manufacturers.  

The report, available immediately, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here, where a free sample is available to download.

PRESS RELEASE

July 2008

UK DIY Market Tops £8 Billion in 2008

As housebuilders and the construction industry increasingly experience the full impact of the downturn in the UK housing market, research for a new report has found that the UK DIY market is set to exceed £8 billion for the first time in 2008.

Report publishers MTW Research have revealed that whilst the effects of the ‘credit crunch’ are likely to result in lower sales growth in the next couple of years for the DIY market, the lack of activity in the housing market should offer some short term impetus for DIY purchases as householders seek to ‘improve, rather than move’.

Despite a degree of optimism for the DIY industry, MTW also point to a degree of fragility in the market, as profitability growth remains subdued. For suppliers to the DIY sector, the report highlights the ongoing resistance by DIY retailers to accept price rises from manufacturers and a reluctance to pass rising costs on to the consumer. This issue is likely to remain a key dampener for suppliers to the DIY industry for some time to come, as they are forced to absorb the impact of rising fuel, labour and raw material costs.

Nevertheless, MTW also highlight a number of positives for the DIY market to 2012 with one such issue being that the DIY industry remains reasonably ‘cash rich’ with borrowing remaining relatively stable in recent years. Whilst the research for the report identified the likelihood of a slight rise in average debt in the next couple of years, the underlying foundation for the industry is one of reasonable health. As such, the DIY market is reasonably well equipped to meet the demands from an increasingly competitive trading environment in the next few years.

The DIY multiples remain a dominant force in the DIY retail market, with the four largest players in the market having a strong influence on the overall performance of the industry. The market shares accounted for by the DIY multiples represent a substantial proportion of the sector in 2008, with these retailers’ influence continuing to dominate key market trends.

The report goes on the identify and rank the DIY retailers active in the market at present, with their respective turnover, profitability and other key performance indicators. MTW also provide a useful key performance indicator chart enabling the reader to quickly gauge a company’s recent performance in the market. In addition, the report also includes full mailing address details and senior decision maker contact details for the DIY retailers, providing relevant targets for manufacturers.

The report is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by clicking here where a free sample is available to download, alongside further details on this and other markets in the building and construction industry.

PRESS RELEASE

June 2008

UK Hotel Market Slowdown

With the CBI recently announcing that the Economy will rise in 2009 by the lowest level in 17 years, a new report has found that lower levels of consumer and business confidence are resulting in an increasingly competitive UK hotel market.  The impact of the credit crunch is clearly being felt in the hotel industry in 2008, though report publisher MTW Research also points to signs of a downturn in the market long before the tightening of fiscal policies by many of the UK banks. 

MTW Research’s report “UK Hotel Market Leaders Rank & Profile” has found that the market has risen by around 14% since 2004, with expectations of a relatively slow paced sector in the short to medium term focussed on the lower value ‘budget hotel’ sector.  Given recent trends toward a preference for the lower value sector by many businesses and consumers and the likelihood of this preference continuing as the economy slows, MTW point to relatively static profit margins which are now depressing the market’s overall net worth.  In addition, rising costs of food, fuel and labour have also dampened the industry’s ability to generate any real growth in profitability, with this set to continue for some time to come. 

Against a backdrop of static profitability, the report identifies rising levels of debt taken on by the hotel market leaders, despite falling property prices impacting on fixed assets.  In 2008, total liabilities exceeded £10 billion for the first time, reflecting an increase of 20% since 2004.  This growth in debt clearly outpacing sales which grew by around 18% according to MTW Research.  In addition, MTW also suggest that the trend toward rising borrowing will continue in the short to medium term, particularly in the South and South East with a rise in construction and refurbishment investment demanded by the build-up to the Olympic Games, mostly funded by borrowing. 

In addition to highlighting key market trends in the hotel industry, MTW’s report also provides illustrations from 2004-2012 of average turnover, profitability and other key financial ratios.  The research for the report found that whilst there is likely to be a period of ‘re-adjustment’ in the market in the near term, future prospects in general are relatively optimistic for the sector in terms of average performance. 

The report goes on the identify and rank the leading hotel companies active in the market at present, with their respective turnover, profitability and other key performance indicators.  MTW also provide a useful key performance indicator chart enabling the reader to quickly gauge a company’s recent performance in the market.  In addition, the report also includes full mailing address details and senior decision maker contact details for the leading hotels. 

The report is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering on MTW Research’s website, where a free sample is available to download, alongside further details on this and other markets in the building and construction industry. 

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PRESS RELEASE

June 2008

Crunch Time for Builders Merchants

As the effects of the credit crunch continue to reverberate throughout the construction industry, research for a new report on the UK Builders Merchants market has found that the sector remains on a good footing to withstand the more difficult trading conditions forecast for 2008 and 2009.

Whilst growth has now clearly slowed for the builders merchants compared with recent performance, the industry is set to increase sales turnover in 2008 and 2009, according to a new report from MTW Research. In addition, a return to stronger growth in the medium to longer term is forecast, underlining the market’s resilience in overall terms.

At present, however, MTW suggest that there is likely to be a ‘tightening of belts’ by many of the merchants in 2008/9, due to the impact of the credit crunch and subsequent ‘softening’ of construction activity in a number of key end use sectors. Profitability has remained under pressure in recent years and a downward trend is likely to be sustained in the coming months as merchants focus on maintaining or growing turnover share, rather than protecting profit margins. Acquisition activity may also become more prevalent in the short term according to the report, as smaller merchants become more susceptible to takeover bids from the larger players seeking to consolidate their market position.

MTW’s “Builders Merchants Rank & Profile Report 2008” points to the strong likelihood of a return to profit growth by 2010, with pent up demand likely to support profit margins in the medium term, following the postponement of construction projects in 2008/9. Overall, therefore prospects remain positive for the merchants in the longer term, with more difficult 2008/9 market conditions to be regarded as a ‘hurdle’, rather than any significant pessimism for the industry.

Another key issue identified in the report is that average liability levels have remained relatively steady in recent years, with most merchants’ debt representing a reasonably comfortable 30% of turnover. Whilst MTW have forecast growth to 2012 for total and average debt levels, it is clear that the industry stands in good stead to withstand a reasonable degree of pressure from the decline in business confidence in 2008.

Alongside both the industry overview and ‘average’ merchant illustrations, MTW also provide a useful financial profile for the UK Builders Merchants, each with a key performance indicator chart enabling the reader to quickly gauge a competitor’s or customer’s recent performance in the market. In addition, the report also includes full mailing address details and senior decision maker contact details for the builders merchants.

The report is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here, where a free sample is available to download, alongside further details on this and other markets in the building and construction industry.

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PRESS RELEASE

May 2008

Kitchen & Bathroom Distributors Market: Debt Surges

Research for a new report on the Kitchen and Bathroom Distributors market has found that the industry is set to experience tougher trading conditions in 2008/9, despite signs that the market should continue to experience positive performance in terms of overall sales turnover.

The industry has experienced positive levels of asset growth in recent years and this has continued in 2007/8 according to specialist publisher, MTW Research. However, the report also identifies that a substantial proportion of this asset growth may have been heavily subsidised by rising levels of borrowing by the industry. In 2007, the combined assets of the Kitchen and Bathroom Distributors grew by around 4%, whilst borrowing rose by 5%.

Whilst rising levels of debt taken on by the distributors may present pessimistic reading, MTW also point to the fact that industry liabilities remain at a relatively comfortable 30% of total turnover. However, this ratio has continued to climb from 24% in 2004 and is forecast to reach around 34% by 2012, highlighting the likelihood of a more difficult trading environment, particularly against a backdrop of static profit levels.

The research also found that that whilst positive growth in turnover since 2004 is likely to have sustained a degree of optimism in the market, this has in part been at the expense of profit margins. MTW’s 100+ page review of the industry indicates that profitability is likely to remain static in the longer term and potentially decline in 2008/9, reflecting the current economic climate.

The in-depth report goes on to find that an ‘average’ distributor’s turnover has risen by around 7% since 2004, reflecting growth at, or slightly below, inflationary levels in recent years. Forecasts for turnover, profitability, asset and debts are provided by MTW to 2012, with a number of reasons for the industry to be reasonably cheerful in the longer term, though the report also highlights a clear need for caution in terms of borrowing.

Alongside both the industry overview and ‘average’ distributor illustrations, MTW also provide a useful financial profile for the kitchen and bathroom distributors, each with a key performance indicator chart enabling the reader to quickly gauge a competitor’s or customer’s recent performance in the market. In addition, the report also includes full mailing address details and senior decision maker contact details for manufacturers wishing to increase their sales through these companies.

This unique and insightful report is priced from GBP 375 and can be purchased exclusively from MTW Research by calling 08456 524324 or by ordering online by clicking here, where a free sample is available to download.

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PRESS RELEASE

April 2008

Rainwater Harvesting Market Tops £8 Million

A new report published on the UK Rainwater Harvesting market reveals the industry has experienced triple digit growth in the last 3 years and is set to reach in excess of GBP8 million in 2008, exceeding many expectations within the industry.  The report, published by specialist research agency MTW Research also forecasts continued strong growth to 2012, with penetration levels rising consistently to 2020. 

The study consisted of a comprehensive review of the market by value and volume and also provides a detailed analysis of numerous positive and negative influences driving the rainwater harvesting market at present.  New announcements in 2008 of particular importance include the adoption of the Code for Sustainable Homes and the recent Water Strategy announcements in February 2008, though the report also identifies a large number of other issues impacting the sector. 

MTW have also provided regional estimates for the rainwater harvesting market, as well as providing product and sector shares for commercial and domestic applications.   In addition a full PEST analysis offers good insight into the market in terms of enabling the reader to quickly understand the key dynamics of the market.  The result being a unique and comprehensive review of a new, dynamic market in a fast growth life cycle stage. 

Key applications and uses for rainwater harvesting products for both the domestic and non-domestic sectors are also identified by MTW.  Within the non-domestic sector, the research found that Education, Retail and Warehousing represent substantial sectors, with the Prisons sector also driving demand in recent months.  MTW suggest that this trend is set to continue as more projects come on stream.

The report goes on to review the major players in the market, with more than 40 pages in this 90+ page report dedicated to profiling the key manufacturers and distributors.  MTW provide competitor analysis for 50 companies, including profiles, balance sheets for the last 3 years and a financial health indicator chart for each company. 

Priced from £565, the report is available to purchase by calling 08456 524324 or by ordering online at MTW Research’s website here, where a free sample is available to download. 

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PRESS RELEASE

March 2008

New Email Listing for Builders Merchants Market

The UK Builders Merchants Market represents a vital distribution channel for the UK building and construction products industry in 2008, with widely reported sales of more than £11 billion per year.

However, recent signs are that the sector has tightened since 2006 and the need for more focused and effective methods of marketing have grown in importance. In recognition of this, specialist construction research publishers MTW Research have launched a brand new, uniquely focused database covering the UK Builders Merchants Market in 2008.

The listing is designed specifically for building product manufacturers and distributors to grow their sales through the Builders Merchants market in 2008 and beyond. MTW’s database offers a traditional mailing list with more than 2,000 senior or purchasing contact names, alongside full TPS / MPS screened address and telephone data. In addition, MTW also include more than 330 email addresses for head offices and single sites, providing companies with a highly cost effective method of marketing to these distributors.

The multi-use, no restrictions database is priced at just 23 pence per record, reflecting excellent value for money. By focusing on head offices and single sites, MTW’s database also provides a more focused cost effective marketing tool, by removing the need to target branches which have little or no purchasing power.

Available to purchase now from MTW’s website for GBP450, the Builders Merchants Market Database 2008 is available in a range of formats and is compatible for all software or CRM applications. A free sample is also available to download from the website, or by calling 08456 524324. 

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PRESS RELEASE

March 2008

Access Equipment Industry Worth £1 Billion in 2008

The UK Access Equipment Industry is likely to be worth in excess of £1 billion in 2008, up by more than 10% since 2007, according to a new independent report.  Since 2004, the access equipment industry has grown in value by 40% to exceed £1 billion for the first time, reflecting a continued underlying strength and general optimism in the sector.  The 150-page report also points to continued high levels of profitability for many of the key suppliers of Access Equipment in the UK. 

The research for this independent report, published by construction research specialists MTW Research, also found that whilst debt levels in the industry continued to rise by around 2-3% each year, growth in assets has generally outstripped this rise, resulting in relatively buoyant market conditions since 2004.  MTW indicate that this trend should continue, though liabilities are likely to top £2.5 billion by 2012, highlighting the importance of continued growth in demand for access equipment products. 

MTW go on to state that average sales growth has tended to outperform inflation in recent years, with a reasonably optimistic forecast to 2012, albeit against a backdrop of rising inflation in 2008.  In addition, there has been continued growth in average profitability levels in recent years, suggesting that the industry stands in good stead to weather any short term difficulties in the UK economy. 

MTW have ranked more than 120 companies by a variety of financial indicators, such as sales, profit levels, assets, net worth and liabilities.  The result is a non-complex report which could be used in a strategic management review or as a key tool in developing an effective understanding of the access equipment industry and developing key marketing objectives. 

The remainder of MTW’s report provides a 1 page financial profile, including a financial indicator chart, for each of the 120 companies.  This useful feature means that the reader is able to quickly gauge the performance of their competitors and provides a comprehensive review of this industry overall.  The report is available to purchase by calling 08456 524324 or by ordering online MTW Research’s website, where a free sample is available to download. 

PRESS RELEASE

March 2008

Underfloor Heating Industry Set To Top £300 Million

A contemporary report on the UK Underfloor Heating Industry, from specialist publisher MTW Research, has found that the sector is set to exceed a net worth of £300 million in 2008.  Buoyant growth in assets, coupled with a continued decline in debt levels by the majority of underfloor heating suppliers, continued to boost the industry during 2007.  According to MTW, this healthy level of growth is also likely to continue at least until 2012. 

The research for this new report, competitively priced at £375, also found that sales revenue grew by 10% in 2007.  Despite forecasts of a slight slowdown, MTW predicts that turnover growth should remain reasonably strong in the short to medium term.  In addition, the industry also experienced substantial growth in profitability during 2007, with profit levels set to rise faster than inflation in 2008, despite current predictions of a slowdown in the UK economy, and against a backdrop of rising inflation.

The report goes on to find that the total assets of the underfloor heating industry are set to top £730 million in 2008, having grown from £620 million in 2004, underlining the positive performance in terms of the industry’s net worth.  MTW’s report also states that debt levels should continue to fall to below £390 million by 2012. 

MTW’s original report also reviews average sales, profit levels and other financial indicators in the report, with figures provided since 2004, and forecasts to 2012.  These figures highlight the continued fragmentation in the market in terms of supply, with average sales revenue only recently reaching double digits.

Total sales of the 75 UFH suppliers ranked by MTW are forecast to exceed £1 billion for the first time in 2008, reflecting the ongoing strength and demand for UFH products.  The report, available to purchase exclusively from MTW’s website or by calling 08456 524324, also ranks the suppliers by profit, assets, net worth & number of employees as well as including a 1 page financial profile and ‘health indicator chart’ for each company.  Further information and a free sample of the report is available to download from MTW’s website. 

PRESS RELEASE

February 2008

Housing Groups Exceed 1 Million Social Homes

A new 2008 database on Housing Associations and Social Landlords highlights how building product suppliers and contractors are needing to adapt their marketing techniques in order to successfully grow sales in the UK social housing market.  The growing significance of buying groups and a continued consolidation in the market in terms of housing stock is highlighted by publishers MTW Research in this new database.

MTW, a specialist independent building research company, has found that Housing Groups are becoming increasingly important in social housing refurbishment and construction.  These co-operative groups, formed by Housing Associations to achieve greater purchasing power and more effective economies of scale, now account for over 1.1 million social dwellings in 2008.  The database identifies the 60 groups and their 200 members, representing more than 70% of the UK Housing Association market in 2008. 

MTW are known for their relevant, added value databases, with this listing providing the dwelling stock owned by each housing group as well as the largest 450 Housing Associations, split by England, Wales, Northern Ireland and Scotland.  This neat additional feature should provide suppliers and contractors with the ability to identify and target associations with higher levels of stock and larger budgets, resulting in a more effective marketing campaign.

The bulk of the database includes address, telephone and contact name details for more than 4,700 Housing Associations and has been assembled by MTW in an easy to use, ‘no-nonsense’ manner.  Exporting to other database applications or merging to printed documents is therefore simple and offers building products suppliers of all sizes the ability to target this sector in a cost effective manner.

As with all MTW’s databases, this listing is offered to purchase rather than rent, and is ‘multi-use’ with no restrictions on its’ usage.  The database is available to purchase immediately for GBP450 by calling 08456 524324 or through the company’s website.  Further information and a free sample of the Housing Associations and Social Landlords Database – UK 2008 is available to download from the MTW Research website.

PRESS RELEASE

February 2008

Independent Electrical Wholesalers Maintain 50% Share

MTW Research have published a brand new 2008 database and mailing list encompassing more than 90% of UK Electrical Wholesalers and Distributors, emphasising that this channel remains a vital and significant route to market for the UK Electrical Products and Components Industry. 

MTW, a specialist independent building research company, has found that whilst consolidation in many sectors in the UK Electrical Products market continues, 50% of all Electrical Wholesalers and Distributors have a turnover of less than £1 million.  The database supports findings that reflect the ongoing importance of targeting smaller independent wholesalers as well as the regional and multi-nationals.  As such, suppliers are likely to continue to experience positive volume growth through this route to market, though the importance of effective marketing strategies and relevant mailing lists will become increasingly important in this competitive channel.

The database, which includes turnover estimates for each company, highlights that there is a clear market distinction and growing polarisation in terms of sales in this channel, with over 1200 electrical wholesalers and distributors achieving a turnover of less than £1 million.  MTW’s new database highlights the need for accurate and detailed mailing lists in this sector in order that manufacturers and distributors may effectively increase sales in a cost effective manner through this route to market. 

New for 2008, MTW’s multi-use, no restrictions database includes full company name, address, telephone number and turnover estimates for more than 2,500 Electrical Wholesalers and Distributors, representing more than 90% of this channel’s sales in the Electrical Products market.  With more than 2,300 senior decision maker/head of purchasing contact name records, the database provides instant, quality sales leads and is invaluable for companies who are seeking to grow sales to the Electrical Wholesale market.   The database is available to purchase now for £450.

PRESS RELEASE

January 2008

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Editorial Preface

MTW Research are a brand new, independent publisher of market research reports & databases for the UK Construction & Building Products Industry.  The following is an article based on the publication of a new database on Bathroom Retailers & Installers.  Please use this press release as required, though we would appreciate the inclusion of the database price (£450), website (www.marketresearchreports.co.uk) and/or telephone number 08456 524324 in any editorial printed.  For more information please email us at sales@marketresearchreports.co.uk.

Bathroom Retailers & Installers Channel Remains Attractive Target in 2008

MTW Research have published a brand new 2008 database and mailing list encompassing more than 80% of UK Bathroom Retailers & Installers, which finds that this channel remains a vital and significant route to market for the UK Bathroom Products Industry. 

MTW, a specialist independent building research company, has found that whilst consolidation in many sectors in the UK Bathroom market continues, the Bathroom Retailers & Installers channel remains dominated by independents.  As such, manufacturers and distributors are likely to continue to experience positive volume growth through this route to market, though the importance of effective marketing strategies and relevant mailing lists will become increasingly important in this competitive channel. 

The database, which includes turnover estimates for each company, highlights that there is a clear market distinction in terms of size in this channel, with over 70% of bathroom retailers & installers achieving a turnover of less than £100,000.  At the opposite end of the revenue scale, companies achieving sales of more than £500,000 represent around 5% of all companies, highlighting the need for accurate and detailed databases in this sector which not only provide address and contact details, but also turnover indicators. 

Rising raw material prices and continued pressure on margins means that bathroom products manufacturers and distributors in the industry are increasingly seeking more effective ways of reaching their chosen target market.  The ability to segment a target market by turnover is now not merely a luxury, but a necessity, in order to focus a sales force and develop more profitable marketing techniques.   

New for 2008, MTW’s database includes full company name, address, telephone number and turnover estimates for more than 1,700 Bathroom Retailers and Installers, representing more than 80% of this channel’s sales in the Bathroom products market.  With more than 1,450 senior decision maker/head of purchasing contact names, the database provides instant, quality sales leads and is invaluable for companies who are seeking to grow sales to bathroom retailers and installers.   The database is available to purchase now for £450, with information & free samples available from www.marketresearchreports.co.uk or by e-mailing sales@marketresearchreports.co.uk.

PRESS RELEASE

December 2007

Editorial Preface

MTW Research are a brand new, independent publisher of market research reports for the UK Construction & Building Products Industry.  The following is an article based on the findings of a new report on the planned construction and refurbishment for the Glasgow Commonwealth Games in 2014.  Please use this press release as required, though we would appreciate the inclusion of the report price (£450), website (www.marketresearchreports.co.uk) and/or telephone number 08456 524324 in any editorial printed.  For more information or to receive an editorial copy of the report, please email us at sales@marketresearchreports.co.uk.

Full Details & A Free Report Sample is Available by Clicking Here:-

Click Here to View Full Report Details & Free Sample

£3 Billion Commonwealth Boost for Scotland Construction

A new, independent report published by MTW Research has found that the recent successful bid by Glasgow to host the 2014 Commonwealth Games is likely to result in more than £3 billion of expenditure on private and public construction and refurbishment in the area between now and 2014.  

The potential market for building products suppliers, contractors and other companies is substantial and likely to grow significantly until 2010, though high levels of public and private investment will sustain a strong demand in the market until at least 2014.  Many of the plans for the new venues in Glasgow will be published in the OJEU (Official Journal for the European Union) in the next few months and companies will need to react quickly if they are to establish a meaningful presence in this market. 

MTW’s report, which is available to purchase for £450, reviews the venues and profiles for each project with spending plans and timescales provided.  The report also quantifies the level of RMI and new build activity by hotels in Glasgow to 2014, as well as reviewing the existing planned transport infrastructure developments to 2014 which are likely now to be linked more closely with the Games.  Spending on these sectors will average almost £400 million per year until 2014. 

The Athletes Village will be the centrepiece of the Games, accommodating more than 8,000 athletes and officials.  This new build project, currently budgeted at more than £245 million, will include a cinema, retail outlets, restaurants, a gymnasium and fitness centre as well as the accommodation units.  Legacy plans are for the units to be converted to 1-4 bedroom homes which will be sold over a phased period for both public and private housing. 

Whilst the invitations to tender have not yet been published, MTW has also identified some key contractors and architectural practices which are likely to be involved in the construction and RMI activity for the Glasgow Games in 2014.  This being of particular relevance for manufacturers and sub contractors seeking to take advantage of the construction activity leading to the Games in 2014.

In terms of specification and procurement, MTW Research found that sustainability and environmental considerations are likely to be of significance for the ‘car free’ Games, with the Athletes Village making full use of its location next to the River Clyde, adoption of WRAP’s recycled material content in construction recommendations; and low or zero carbon output living being just some examples included in MTW’s report. 

Following sustained growth in turnover by many of the larger contractors in recent years, the announcement of the Glasgow Commonwealth Games in 2014 should continue to drive demand for building products and construction related services in the medium to longer term, further buoying overall optimism in the construction industry.  For more information on this report, priced at £450, view the full details and download the free sample at www.marketresearchreports.co.uk.