Builders merchants maintain strong growth in 2017

Builders' Merchant Building IndexNew data from the Builders Merchant Building Index (BMBI) shows that builders’ merchants across the UK have experienced continued strong sales in 2017.  

The BMBI contains data from GfK’s Builders Merchants Panel, which analyses data from over 80% of generalist builders’ merchants’ sales throughout the UK. It found that year on year sales were up 8.5% in May 2017 and adjusted for one extra trading day, average daily sales were 3.3% ahead of May 2016.  

Kitchens and Bathrooms saw the largest increase in sales at +13%. It was the third-warmest May in 50 years and the good weather is seen as a contributing factor to strong sales performances in Timber and Joinery products (+10.1%) and Landscaping (+6%).  

The BMF has previously reported that builders’ merchants were optimistic about 2017, and these predictions appear to be becoming true with year to date sales being 3.8% ahead of the 2016. The BMF states that the strong performance of their members demonstrates that builders’ merchants are delivering the vital materials required to support construction and growth across the UK.  

John Newcomb, Chief Executive of the BMF, said: “Builders’ merchants and their SME builders’ customers have continued 2016’s strong growth into 2017 and we remain optimistic for the coming months.  

“It is clear that builders’ merchants have a vital role to play in delivering local growth across the UK. As a country we need to build many more homes, but these cannot be built without the materials and products that BMF members make, stock and deliver, on a daily basis, to where they are needed. There are also thousands of households wanting to repair, extend or adapt their home, and again they rely on builders’ merchants to provide the materials to do this.  

“Despite this, there are still some challenges facing our sector such as the potential for the price of materials to increase due to higher commodity prices and fluctuations in exchange rates. We also want to see the Government press ahead with its proposals contained in the Housing White Paper, as this will bring a welcome boost to housebuilders”.  

Ricky Coombes, Channel Account Manager at GfK said: “Over the short to medium term we expect the builders’ merchants to continue their year on year growth. However future spending plans for consumers within the repairing, extending or adapting homes sector is expected to slow during the second half of 2017 as consumers’ confidence, as measured by GfK, and real term wealth decline. June saw GfK’s long-running Consumer Confidence Index decrease five points to -10, with the unsettling influences of a snap General Election, its inconclusive outcome and the start of Brexit negotiations being likely contributors.”
Builders' Merchant Building Index