Worldwide Business Information and Market Reports
Telephone +44 1404 891528 Fax +44 1404 891717 Email reportfinder @ tiscali.co.uk
ISBN 1-84168-123-7
Editor: Jenny Baxter
This report covers: builders' merchants, diy stores,bricks, roofing tiles, cement, sand, gravel, private contractors, RMI, repair, maintenance, improvement
Companies covered include: Wolseley, meyer International, Travis perkins, Graham Group, Jackson Building Centres, Cooper Clarke Group, Ridgeon Group, WTB Group, William Wilson Holdings, Homebase, Wickes, Focus Do It All

Sales through builders merchants reached an estimated £8.57bn in 1999, following a 4.5 percent increase on 1998. The market is broadly divided into three sectors: heavy side (bricks, cement, drainage pipes, roofing tiles, sand and gravel, timber, etc.); light side (internal fittings and materials for bathrooms, kitchens, heating, plumbing, etc.); and tools and tool hire. Deliveries, stocks and international trade statistics are given for principal product categories.
As builders merchants main customer, the construction market is discussed in terms of its major segments: housebuilding, commercial, industrial, and repair, maintenance and improvement (RMI) work. Structurally, the builders merchants market underwent important changes in 1999/2000. Following the recent acquisition of Graham Group PLC by Meyer International PLC (which owns Jewson Ltd), the market is dominated by three companies Wolseley PLC, Jewson Ltd and Travis Perkins PLC. These companies have a combined UK turnover of £3bn, or 35 percent of the market. In 2000, Meyer International was bought by St Gobain of France.
DIY stores continue to compete with builders merchants for business from small contractors. This forms a large part of the market, since 84 percent of all private contractors (of which there are 135,755) employ fewer than four people. The major DIY stores B&Q, Homebase, Focus Do It All and Wickes continue to grow in terms of turnover, number of outlets and their interest in trade business. There is also the prospect of Home Direct and other huge US DIY stores entering the European market. Environmental regulations and related taxes are now being applied to the construction industry with increasing vigour. At grass roots level, there is a need for builders merchants to be more aware of customer care and to invest in training.
In view of the current downward trend in the housing market, the future for builders merchants is difficult to predict. Key Note forecasts that sales will rise by 4 percent to £8.91bn in 2000 and, thereafter, increase annually to reach £9.98bn in 2004.
|
Executive Summary |
|
|
| INTRODUCTION |
| Heavy Side |
| Light Side |
| Tools and Tool Hire |
| TYPES OF OUTLET |
| Builders Merchants |
| DIY Stores |
| Other Specialist Outlets |
| MARKET POSITION |
| MARKET TRENDS |
| New Construction |
| Housebuilding |
| Table 1: New Housing Output by Value at Current Prices (£m), 1995-1999 |
| Private Sector Industrial Construction |
| (£m), 1995-1999 |
| Private Sector Commercial Construction |
| Current Prices (£m), 1995-1999 |
| Repair, Maintenance and Improvement |
| Current Prices (£m), 1995-1999 |
|
|
| INTRODUCTION |
| Table 5: Construction Output by Value at Current Prices (£m), 1995-1999 |
| THE TOTAL MARKET |
| Table 6: The Builders Merchants Market by Value (£bn), 1995-1999 |
| BY MARKET SECTOR |
| Bricks and Roofing Tiles |
| Cement |
| by Volume (000 tonnes), 1995-1999 |
| Sand and Gravel |
| Table 9: The Sand and Gravel Market by Volume (000 tonnes), 1995-1999 |
| FOREIGN TRADE |
| Exports |
| by Value (£m), 1995-1999 |
| Imports |
| by Value (£m), 1995-1999 |
|
|
| INDUSTRY CONCENTRATION |
| Equipment by Turnover (£000), 1999 |
| HOUSING STARTS AND COMPLETIONS |
| Completions (000), 1995-1999 |
| EMPLOYMENT |
| TRADE ASSOCIATIONS |
| Builders Merchants Federation |
| Construction Products Association |
| Association of Building Component Manufacturers |
|
|
| THE MARKETPLACE |
| (£m), 1998/1999 |
| MARKET LEADERS |
| Wolseley PLC |
| Meyer International PLC |
| Travis Perkins PLC |
| Graham Group PLC |
| Jackson Building Centres Ltd |
| Cooper Clarke Group Ltd |
| Ridgeon Group Ltd |
| WTB Group Ltd |
| William Wilson Holdings Ltd |
| ADVERTISING AND PROMOTION |
| June 1999 and 2000 |
|
|
| STRENGTHS |
| WEAKNESSES |
| OPPORTUNITIES |
| THREATS |
|
|
| PRIVATE CONTRACTORS |
| by Numbers of Employees, 1994-1998 |
| Table 17: Private Contractors in Great Britain by Trade (number and percent), 1998 |
| REGIONAL CONCENTRATION |
| (number of firms), 1995-1998 |
| to the Industry |
| INTRODUCTION |
| MAJOR SUPPLIERS |
| Heavy Side |
| Light Side |
| Tool Hire |
| PRODUCT SOURCING |
| AND MERCHANDISING |
|
|
| THE DIY THREAT |
| B&Q |
| Homebase |
| Wickes |
| Focus Do It All |
| US Stores |
| Dont Do It Yourself |
| MANAGEMENT |
| TRAINING |
| ENVIRONMENTAL ISSUES |
| VAT ON RMI WORK |
| CORPORATE ACTIVITY |
|
|
| THE ECONOMY |
| FORECASTS 2000 TO 2004 |
| Table 19: Forecast Builders Merchants Market by Value (£bn), 2000-2004 |
| NEW CONSTRUCTION |
| Housebuilding |
| Table 20: Forecast Housing Starts and Completions (000), 2000-2004 |
| PRIVATE SECTOR COMMERCIAL CONSTRUCTION |
| by Value (£m), 2000-2004 |
| Other New Work |
| REPAIR, MAINTENANCE AND IMPROVEMENT |
| (£m), 2000-2004 |
|
|
| Jewson Ltd |
| Travis Perkins PLC |
| Wolseley PLC |
|
|
| Associations |
| Periodicals |
| Directories |
| General Sources |
| Bonnier Information Sources |
| Government Publications |
| Other Sources |
|
Key Note Research |
Text © 2000 Key Note
Ariadne - working together with our customers to enhance productivity and increase knowledge
© 2000 www.the-list.co.uk Ariadne
Last updated by Jacob van Eldik 22th November 2000