Latest BMBI report shows strong Builders Merchants sales

  • 3 Jan 2017

Britain’s builders and contractors continue to buy more from Builders Merchants, defying predictions of a post-Brexit slump.

 bmbi-october-yr-on-yr-inc-trading-daysBMBI October Sales

john-newcomb-md-builders-merchant-federation

John Newcomb, MD Builders Merchant Federation

John Newcomb, Managing Director of the BMF:

October’s Builders Merchants Building Index (BMBI), which tracks builders’ merchants’ sales to builders and contractors using GfK’s comprehensive Builders Merchant Point of Sale Tracking Data, reported sales up 1.6% on October 2015, but when adjusted for the difference in trading days merchants’ sales were 6.1% higher.

Builders’ and contractors’ purchases from merchants have grown in 11 of the past 12 months, and year to date sales are now 4.7% ahead of the same period in 2015, with Landscaping (+9.0%) and Ironmongery (+7.5%) the top performing categories.”

October’s ONS construction figure, which reflects construction as a whole, shows slower growth of 0.7% year on year, but the initial ONS figures are usually based on just 40% of the data and almost always revised up as more data is collected. For example September’s 0.2% growth was later amended to 2.5%.

crystal-direct-group-md-steve-halford

Crystal Direct Group MD Steve Halford

Steve Halford, Group Managing Director Crystal Direct, BMBI’s Expert for PVC-U Windows and Doors:

“Builders’ merchants’ third quarter sales of PVC-U windows and doors were nearly 10% up on Q2 2016. We expect this fast growth to continue as builders’ merchants gain share of the over £5 billion windows, doors and conservatories market, and they convince builders to buy their windows and doors where it is easiest and most convenient.

While Q3 sales were around 10% ahead of Q2, the growth in builder enquiry values feeding that sales growth was just over 30% in the same period. Putting this in context, over the same Q3 period the overall PVC-U windows and doors market hardly grew at all. Consumer confidence, weakened initially by the shock and confusion following the EU referendum result, took its time to recover, so builders’ merchants’ strong growth means that merchants are gaining market share.”

BMBI Experts speak exclusively for their markets, explaining trends, issues and opportunities in construction.

Visit www.bmbi.co.uk to see the detailed report.

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