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AMA RESEARCH MARKET REPORT : Commercial Glazing : January 2005

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BRIEF DESCRIPTION

AMA Research has just published the 4th edition of the ‘Commercial Glazing Systems Market - UK 2005’ report.  Incorporating original input and primary research, the report represents an up to date and informed review of all sectors within the commercial glazing market, with particular emphasis on the curtain walling sector.

Key areas in the report: -

UK Commercial Glazing Systems Market – size, recent trends and key influences, forecasts and future trends.

Analysis by Market Sector – Commercial Windows, Façade Glazing, Ground Floor Treatments and Roof Glazing – size, trends and influences, product mix within each sector, mix by application area.

Market Structure – review of market structure, breakdown of market sectors with major players, company profiles, anticipated future developments.

End Use Application Areas – analysis of major end use sectors for commercial glazing systems, key growth areas, potential opportunities.

The commercial glazing systems market exhibited strong growth between the late 1990’s and 2002, fuelled by a buoyant commercial construction sector.  More recently, the market has been adversely affected by the downturn in commercial office construction, although it has continued to be supported by growing levels of construction output in sectors including retail, health and education.  The report contains a detailed assessment of the market with interpretation of major developments and future trends by product.

EXECUTIVE SUMMARY

The UK market for commercial glazing systems is valued at around £1791m in 2004. The market is heavily influenced by levels of commercial construction, with this contributing to good levels of growth in the late 1990’s and through to 2002.  More recently, the market has been adversely affected by a marked decline in private office developments between 2002 and 2004, influenced by an oversupply of office space, particularly in London and the South East.  The downturn in demand for commercial glazing products has however been less dramatic, with the market continuing to be supported by construction projects in the retail, education and health sectors in particular.

Trends in design and specification have also acted to support the market.  The last few years have seen increasing emphasis on aesthetics and maximising natural daylighting , encouraging use of increasingly large areas of glazed facades and roofing.  Legislation has also had an impact, with the introduction of Part L of the building Regulations in 2002 resulting in increased usage of added-value products, particularly Low Emissivity glass.

The outlook for the market is one of only modest growth in 2005 and 2006, potentially improving in the medium to longer term,  whilst a downturn in consumer spending is likely to impact on construction in the retail sector, early indications suggest that the amount of vacant office space in London may be starting to reduce, with this expected to stimulate an upturn in commercial office developments.  However, bearing in mind the time taken to plan and construct such projects, this is unlikely to feed through to a significant upturn in demand before 2007/08 at the earliest.  In addition, key application areas likely to provide demand over the next few years will be in the health and education sectors, benefiting from a growing commitment from the government in terms of expenditure.

The UK commercial glazing market is defined to incorporate 4 subsectors: commercial windows, ground floor treatments, façade glazing and roof glazing.

The commercial window market is the largest sector, accounting for approximately 40% of the total market.  This sector achieved rapid growth between 2000 and 2002, although sales have subsequently fallen back due to the downturn in private office construction.  Aluminium and aluminium composite framed windows represent the largest sector with a share of around 57% by value, although less in volume terms due to their comparatively higher cost in relation to other frame materials. However, the last few years has seen an increased share taken by PVC-U windows which are widely specified in the education and healthcare sectors.  Steel and timber framed products account for much smaller shares, largely finding usage in niche sector application areas.

In contrast to the overall commercial glazing market, the ground floor treatments segment has continued to exhibit growth over the last few years, albeit at a slower rate than in 2000 and 2001.  The sector is estimated to account for around 30% of the market by value, however it is difficult to analyse owing to the wide range of applications.  Demand has been largely driven by new build and refurbishment projects in the retail sector, encouraged by the boom in consumer spending.  The outlook is therefore less positive in the short to medium term, although regeneration projects will continue to support sales.

Façade glazing accounts for some 21% of the market by value, with aluminium the most commonly specified frame material.  Whilst the sector has benefited from the trend towards buildings featuring increasingly large areas of façade glazing, it is heavily dependant upon private office construction levels which have had a negative impact on market growth in 2003 and 2004.  However, the outlook is more positive, particularly in the medium to longer term as the commercial office construction market recovers, with sales set to benefit from a significant number of highrise building planned over the next few years.

Roof-glazing is the smallest sector, accounting for an estimated 9% share of the market.  This sector received a boost between 1999 and 2001from a number of Millennium projects, as well as the impact of Railtrack’s station upgrade programme.  Whilst growth has subsequently slowed, sales have been supported by trends in the retail sector, as well as some demand from the leisure, education and health sectors.

The aluminium systems sector can be broadly divided into bespoke and systems segments although there are some companies that cover both markets.  The bespoke sector is characterised by low-volume high-cost façade glazing projects, which have a considerable influence upon total market performance, while the systems sector consists of systems companies that sell aluminium profiles to fabricators, which in turn manufacture and usually install the glazing systems. The market leaders in the systems sector are Kawneer, Sapa and Schuco, together accounting for over 40% of the market.  Other major players include Comar, Smart Systems, Kaye and Universal Architectural Components.

The fabrication/installation sector is highly fragmented, partly due to low barriers to entry and no significant economies of scale. Leading companies include Solaglas, Dane Architectural, AC Yule, Parry Bowen, Fabricated Aluminium Services, Charles Henshaw and SLW Architectural Aluminium.

Large European companies have become the main contractors, having increasingly targeted the UK market due to the more difficult economic conditions on the continent.  These companies mainly focus on high-rise curtain wall and large atrium glazing projects, with leading players including Permasteelisa which is also the majority share holder of  Josef Gartner, as well as Focchi, Schmidlin, Structal and Seele. Other European companies that have been expanding their presence in the UK market include Waagner Biro, GIG Fassadenbau, BUG Alu-technik, Metallbau Frueh and Eiffel. Many of these companies have a global presence, with experience of installations on high rise buildings worldwide, with this likely to aid their bid to secure contracts on many of the prestigious high rise buildings planned for development over the next few years.

LIST OF COMPANIES MENTIONED

Solaglas, Dane Architectural, Charles Henshaw, Glamalco, SLW Architectural, Aliminium, Parry Bowen, Permasteelisa, Josef Gartner, Focchi, Schmidlin, Structal, Seele, Waagner Biro, GIG Fassadenbau, BUG Alu-technik, Metallbau Frueh, Eiffel, Nordan UK, Dempsey Dyer, Bennett Windows, Van Dam UK, Kawneer UK Ltd, Sapa Building Systems, Schuco International, Smart Systems, Aye Hinchcliffe, Universal Aliminium Systems, AWS Group, Anaco Systems, Senior Aliminium Group, Technal, Alcoa Systems, Hueck UK, Parkside Group, Reynaers Aluminium Systems, Reynolds Aluminium Systems, Stoakes Systems, Wicona, Lonsdale Metal, Klil, Universal Architectural Aluminium Systems, Kaye Aluminium Ltd, Smart Systems, AWS Group, Alcoa Systems (UK) Limited, Comar Architectural Aluminium Systems, Anaco Systems, English Architectural Glazing, Baco Contracts, AC Yule, CAP Aluminium Systems, Charles Henshaw and Sons, Contano Aluminium, Dane Group, Exterior Profiles Ltd, Fabricated Aluminium Services, Glamorgan Aluminium Co, McNeill McManus Group, Norking Aluminium, SLW Architectural Aluminium, Pilkingtons Planar, McMullen Architectural Systems, Duplus Domes, West Leigh, The Alumayer Group, Alu-Glass, Architectural Glazed Facades, 3D Aluminium Plas, Bennett Architectural Aluminium Solutions, Bonam & Berry, Crown Aluminium, Everglaze Installations, Intercity Glazing Services, Kjelstrup Olsen, Pendant Aluminium, Salisbury Glass, SIAC Architectural, Structura UK, Stockport Roofing, Spa Aluminium, HW Spectus, Plastmo, Kommerling, Eurocell Profiles, Deceuninck, WHS Halo, Profile 22, AWS Group, LB Plastics, Eurocell Profiles Ltd, Pilkington, IDE Contracting, Pilkington Architectural, Hansen Glass, Crittall Windows, Federated Windows and Doors, Albann-McKinney Window Co. Ltd, D N S Window Ltd, Metal Casements Ltd, Monk Metal Windows Ltd, NSB Casements Ltd, Rea Metal Windows Ltd, Senlac Windows and Doors Ltd, Smith Bros. Ltd, City Aluminium, Vista-Brunswick Lbaydale, Josef Gartner, Waagner Biro, GIG Fassadenbau, MBM Fabri-clad, James Gibbons, Kjelstrup Olsen, Schmidlin UK, Space Decks, Eiffel UK, Focchi Group, Mero UK plc, Metallbau Fruh, Hischer Glass Construction, Cox Building Products, Xtralite, Glidevale Metro, Brett Martin roofing Products, Stoakes Systems, Hartington Conway, Hambleside Danelaw, Ubbink (uk), Astrofade, Twinfix, Clear Span, SSI Group, Stadium Skylights, Vitral (UK), Building Product Design L:imited, Hartington Conway, Horton Automatics, Ingersoll Rand Dor-o-matic, Glaverbel.

LIST OF CONTENTS

1	INTRODUCTION
2	SUMMARY
3	ECONOMIC ENVIRONMENT
3.1	GDP
3.2	INFLATION & INTEREST RATES
3.3	UNEMPLOYMENT
3.4	HOUSEHOLD CONSUMPTION
3.5	HOUSING & CONSTRUCTION
3.6	STERLING
3.7	POPULATION PROFILE
3.8	CONCLUSIONS
4	THE MARKET
4.1	MARKET DEFINITION
4.2	MARKET SIZE AND OVERVIEW
4.3	CONSTRUCTION ACTIVITY LEVELS
4.3.1	Office Construction
4.3.2	Retail Sector
4.3.3	Leisure sector
4.3.4	The Public Sector – Health
4.3.5	The Public Sector – Education
4.3.6	Infrastructure Sector
4.4	ARCHITECTURAL SPECIFICATIONS AND PRODUCT DEVELOPMENT
4.5	MATERIAL PRICES
4.6	BAD DEBTS
4.7	URBAN REGENERATION AND ‘THE LONDON PLAN’
4.8	DEVELOPMENT OF TALL BUILDINGS
4.9	ENERGY AND ENVIRONMENT LEGISLATION
5	MARKET MIX
5.1	COMMERCIAL WINDOWS
5.1.1	Aluminium Windows
5.1.2	PVC-U Windows
5.1.3	Timber Windows
5.1.4	Steel Windows
5.2	FAÇADE GLAZING
5.2.1	Aluminium Curtain Wall
5.2.2	Bespoke Curtain Wall
5.2.3	Standard Curtain Wall
5.2.4	Curtain Wall – Other Frame Materials
5.2.5	Structural Glazing
5.3	GROUND FLOOR TREATMENTS
5.4	ROOF-GLAZING
5.4.1	Atrium/Mall Roof-glazing
5.4.2	Pre-Fabricated Rooflights and Skylights
5.4.3	Patent Glazing
6	SUPPLY AND DISTRIBUTION
6.1	ALUMINIUM GLAZING PRODUCTS
6.1.1	Aluminium Systems Companies
6.1.2	Aluminium Systems Fabricators
6.2	PVC-U SYSTEMS
6.3	STRUCTURAL GLAZING
6.4	STEEL GLAZING SYSTEMS
6.5	BESPOKE/OWN-DESIGN
6.6	ROOFLIGHT MANUFACTURERS
6.7	AUTOMATIC DOOR SYSTEMS
6.8	MAIN GLASS MANUFACTURERS
7	FUTURE PROSPECTS

Tables and Charts

Text © 2005 AMA Research

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Last updated by Amanda Porteous 2005