BMBI

BMBI: Merchant July sales edge up +0.9% year-on-year

  • 26 Sep 2024

The latest Builders Merchant Building Index (BMBI) report shows builders’ merchants’ value sales edged up +0.9% in July compared to the same month in 2023. There was a small increase in volume sales too (+0.6%) while prices remained flat (+0.3%). But with two more trading days this year, like-for-like value sales were down -7.9%.

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Year-on-Year

Compared to July 2023, eight of the twelve categories performed better than Total Merchants, with Workwear & Safetywear (+27.7%), Tools (+9.8%) and Decorating (+8.8%) doing the best. The two largest categories – Heavy Building Materials (-0.2%), Timber & Joinery Products (-0.6%) – were virtually flat. Renewables & Water Saving (-28.4%) was the weakest category.

BMBI

Month-on-Month

July total value sales were +11.6% higher than June, with volume sales increasing by +11.7% and little movement in price (-0.1%). Eight of the twelve categories outperformed Total Merchants including Workwear & Safetywear (+19.8%), Plumbing, Heating & Electrical (+15.5%), Ironmongery (+15.2%) and Renewables & Water Saving (+13.7%). The two biggest categories also outperformed Total Merchants – Timber & Joinery Products (+12.5%) and Heavy Building Materials (+12.7%). Kitchens & Bathrooms (+8.0%) and Landscaping (+3.3%) grew more slowly. With three extra trading days in July, like-for-like value sales were down -3.0%.

Latest 12 months

In the 12 months August 2023 to July 2024, total value sales were -5.8% lower than the same period the year before (August 2022 to July 2023). Volume sales were down -9.1% and prices up +3.7%. With four extra trading days in the most recent 12-month period, like-for-like value sales were -7.3% lower. Categories which fared better than Total Merchants included Workwear & Safetywear (+11.1%), Miscellaneous (+5.3%) and Decorating (+5.1%). The two largest categories – Heavy Building Materials (-7.4%) and Timber & Joinery Products (-9.5%) – declined by more than Total Merchants.

Ian Doherty, Chief Executive of Hexstone and the Owlett-Jaton brand, and BMBI’s Expert for Fastener & Fixings, comments:

“With the majority of the products in the fastener and fixings sector being imported from the Far East, increased shipping costs are fuelling cost price increases. The continued use of the longer Cape of Good Hope route, because of the Red Sea issues and risks to shipping, has continued to attract surcharges, though these have been largely absorbed by importers. However, the capacity reduction on the routes to and from the Far East, around 25%, caused by the longer journey times both out and back, has resulted in limited capacity and shipping lines moving costs up markedly.

BMBI

“Container prices, including Cape surcharges, were around $1,500 at the beginning of the year and surged to over $6,000 by July, though they have fallen back slightly from those peaks. These dramatic moves have added around 15% to cost prices for importers, which will add to inflationary pressures.

‘Complex supply chain’

“The increasing demand for environmental information, particularly the carbon content of products, is not unique to the fastener and fixings sector. The manufacture of these products involves a complex supply chain, not only with several processing steps but often with these steps undertaken by a number of separate companies.

“Collating this information from Far East suppliers across the many thousands of products in fastener and fixing ranges to meet the needs of an increasing number of reports and standards, including Environmental Product Declarations, Carbon Border Adjustment Measures and the Code for Construction Product Information, is proving very challenging.

“It has also highlighted a lack of consistency in the scope and detail of information required for the various applications. Carbon accounting is certainly on its way, but there is a need for a common standard across all applications.”

BMBI Experts speak exclusively for their markets, explaining trends, issues and opportunities. For the latest reports, Expert comments and Round Table videos, visit www.bmbi.co.uk.

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