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ISBN 1-85765-581-8

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

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Executive Summary

Table of Contents

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TABLE OF CONTENTS

Executive Summary

Market Definition

INTRODUCTION

MARKET POSITION

MARKET TRENDS

Table 1: Value of New Housing Output at Current Prices (£m), 1990-1995

Table 2: Value of Industrial Construction Output at Current Prices (£m), 1990-1995

Table 3: Value of Commercial Construction Output at Current Prices (£m), 1990-1995

Table 4: Value of Repairs, Maintenance and Improvement at Current Prices (£m), 1990-1995

Table 5: Renovation Grants under Local Government and Housing Acts in Great Britain at Current Prices (£000), 1990-1994

Market Size

INTRODUCTION

THE TOTAL MARKET

MARKET SECTORS

Table 6: Construction Output in the UK at Current Prices (£m), 1990-1995

Table 7: Estimated Market Size of Builders Merchants (£bn), 1991-1995

Table 8: Delivery and Stocks of Bricks and Tiles (million and million m2), 1990-1995

Table 9: Delivery and Stocks of Cement (000 tonnes), 1990-1995

Table 10: Sales of Sand and Gravel (000 tonnes), 1990-1995

Table 11: Value of Exports Trade in Selected Building Materials (£m), 1990-1995

Table 12: Value of Imports Trade in Selected Building Materials (£m), 1990-1995

Industry Background

NUMBER OF BUILDERS MERCHANTS

HOUSING STARTS

EMPLOYMENT

TRADE ASSOCIATIONS

Table 13: Number of Builders Merchants by Turnover Size, 1995

Table 14: Number of Housing Starts and Completions (000), 1990-1995

Table 15: Employees in Timber and Building Materials (000), 1990-1995

Competitor Analysis

INTRODUCTION

ADVERTISING AND PROMOTION

Table 16: Leading Builders Merchants in the UK (£m), 1994/1995

Table 17: Main Media Advertising Expenditure by DIY Stores and Builders Merchants (£000), 1994 and 1995

Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS

WEAKNESSES

OPPORTUNITIES

THREATS

Buying Behaviour

PRIVATE CONTRACTORS

MANUFACTURERS SALES TO BUILDERS MERCHANTS

BUILDERS MERCHANTS SALES TO CUSTOMERS

COMPETITION FROM DIY STORES

Table 18: Number of Private Contractors in Great Britain 1990-1994

Table 19: Regional Concentration of Private Contractors in Great Britain (by number of firms), 1990-1994

Outside Suppliers to the Industry

INTRODUCTION

MAJOR SUPPLIERS

RECENT TRENDS

Current Issues

THE ECONOMY

DIY SUPERSTORES

ACQUISITIONS

THE CHANGING MARKET

Forecasts

THE ECONOMY

THE HOUSING MARKETS

PROSPECTS FOR BUILDERS MERCHANTS

Table 20: Housing Starts and Completions (000), 1996-2000

Table 21: Expenditure on Repairs, Maintenance and Improvement at 1995 prices (£m), 1996-2000

Table 22: Forecast UK Market Size for Builders Merchants at 1995 prices (£bn), 1996-2000

Company Profiles

INTRODUCTION

DEFINITIONS

FURTHER INFORMATION

Further Sources

ASSOCIATIONS

PERIODICALS

DIRECTORIES

GENERAL SOURCES

HBI UK INFORMATION SOURCES

GOVERNMENT PUBLICATIONS

OTHER SOURCES

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EXECUTIVE SUMMARY

In 1995, total builders' merchants sales in the UK are estimated by Key Note to have reached £7.9bn, which represents an increase of 6.8 percent on sales of £7.4bn in 1994. This was achieved despite general weakness in construction activity and increasing competition from the large DIY stores for the professional builder's custom. It includes the last contribution from Wickes PLC (UK turnover £450.4m) as a builders' merchant before the company sold all its builders' merchants' interests to become a pure retailer in 1996.

The industry's turnover is based on sales of all building raw materials, manufactured products and services such as:

* sand, gravel and timber; manufactured commodities such as bricks, concrete blocks, cement, plaster, roofing tiles, timber sections, sawn and planed wood, flat glass and insulation materials; underground drainage systems, pipes, traps, etc.; other manufactured products which include all plumbing fittings, sanitaryware, domestic central heating equipment, kitchens, bathrooms, paints and decorating materials, ironmongery, fixings and electrical equipment; income from tool hire.

The recent steep downturn in construction activities, which affected all market sectors, caused immense problems for builders' merchant because of their excess stock levels when demand withered, and the increase in bad debts as many customers were unable to honour their lines of credit.

There have since been many improvements, with builders' merchants cutting back on stock levels as their suppliers are expected to deliver

`Just-in-time', computer systems have been installed to give management better operational controls and restrictions on extending credit to new customers have been tightened. Market prospects have also slowly started to improve as the national economic recovery is making an impact on demand in the sectors where builders' merchants are most active, i.e. in new housing, repairs, maintenance and improvement.

Key Note forecasts show a total increase in sales value, at 1995 prices, from an estimated £7.9bn in 1995, to £9.2bn in the year 2000. This is a relatively modest growth rate of 16.5 percent over the whole period, which reflects the prospect of only a slow recovery in construction activities, the increasing intensity of competition from the DIY stores, which now include Wickes PLC, and the need for a more determined effort to attract custom from the serious DIY builder with more advertising and other promotions.

Text © 1996 Key Note

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