Market Report

Strong demand in 2022

The latest figures from the Builders Merchant Building Index (BMBI), published in March, reveal that year-on-year value sales to builders and contractors by Britain’s builders’ merchants were 24.1% up in January 2022 compared to the same month in the previous year.

The Builders Merchant Building Index (BMBI)

The BMBI is a brand of the BMF. The BMBI report, which is produced and managed by MRA Research, uses GfK’s Builders Merchant Point of Sale Tracking Data which analyses sales out data from over 80% of generalist builders’ merchants’ sales across Great Britain. The full report is on www.bmbi.co.uk V alue sales to builders rose significantly in the opening month of 2022, when compared with January 2021. However, this increase has been primarily driven by price inflation (+15.1%) rather than volume growth (+7.8%).

All bar one category sold more than the same month in the previous year with Renewables & Water Saving (+35.8%), Timber & Joinery Products (+31.5%), Landscaping (+28.9%) and Kitchens & Bathrooms (+28.8%) outperforming merchants generally. Seven categories grew more slowly including Heavy Building Materials (+21.4%), Decorating (+19.1%) and Plumbing Heating & Electrical (+18.1%).

Compared to January 2019, a pre-pandemic year, total merchant value sales were 15.1% higher in January 2022, with two less trading days this year. Over the same period, prices increased at a faster rate (+19.8%), while volume sales were down 3.9%.

Ten of the 12 categories sold more with Landscaping (+32.5%) and Timber & Joinery Products (+31.9%) again leading the charge. Only Decorating (-1.5%) and Tools (-3.2%) sold less. Total like-for-like value sales were 26.6% higher than January 2019.

Rolling 12-months

Total Merchants sales in February 2021 to January 2022 were 32.8% higher than in the same 12 months a year earlier, with no difference in trading days. All categories sold more but Timber & Joinery Products (+53.9%) was significantly higher than other categories. Landscaping (+32.7%), Tools (+28.8%) and Kitchens & Bathrooms (+28.1%) were next-strongest.

Mathew Whitehouse, Marketing Director at Bostik UK and BMBI’s Expert for Adhesives and Sealants commented: “Although the increase in raw material costs has flattened slightly, supply chains are still experiencing bottlenecks. Many chemical companies are placing customers on allocation or calling force majeure, and, historically, slim manufacturing margins have meant further price rises. Coupled with rising energy costs, further price increases are inevitable.

“One option to help the industry take action is the use of alternative technologies. From architects to builders through to merchants and the entire supply chain, we all have a vital role to play if we’re to reach the Government’s target of becoming Net Zero by 2050.

“The volatile nature of business we’ve all become accustomed to in the past 1824 months provides us with an opportunity to challenge the ‘business as usual’ approach. Can we convince end users to favour more environmentally friendly technologies? Are we able to use more recyclable materials in our packaging? Can we consolidate deliveries to reduce the number of lorries on the road?

“Signing up to collaborative schemes like the CLC’s Construct Zero will help, but let’s ensure these conversations are happening at every step in the supply chain. Let’s not do ‘business as usual’.”

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