Worldwide Business Information and Market Reports
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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

In 1998, sales through builders' merchants in the
UK were estimated at £8.2bn -- an increase of 3.8 percent on the figure of
£7.9bn for 1997.
The products covered by this report include heavy
side (bricks, cement, roofing tiles, lintels, plaster, etc.), light side
(heating, plumbing, floor/ceiling tiles, kitchen, bathroom, etc.), and tools
and tool hire. The market for these products is discussed in relation to
housing, industrial construction, commercial construction, and repair,
maintenance and improvement (RMI). The latter is particularly important, on
account of its large market size and its significance to contractors, requiring
a wide range of items to be stocked by builders' merchants. Deliveries and
stocks for a range of building materials are also given, together with
international trade data.
The overall number of contractors shows a
continued downward trend, but there has been an increase in the number of
contractors at both ends of the company size spectrum, i.e. self-employed
contractors and large companies.
There have been changes in company
ownership, with the larger companies continuing to acquire smaller ones in
order to boost their geographical and product coverage. The market is now
dominated by five companies: Wolseley PLC, Travis Perkins PLC, Graham Group
PLC, Jewson Ltd and Keyline Builders' Merchants Ltd. With the recently
announced acquisition of Keyline by Travis Perkins, the market will be
dominated by four companies with a combined turnover of £3.07bn
(excluding Wolseley's international activities) -- around 37 percent of the total
market by value, and very much more in terms of numbers of outlets.
Builders' merchants are challenged in the small contractor market by `do it
yourself' (DIY) stores -- especially by the larger companies, such as B&Q,
Homebase, Do-It-All and Wickes. In order to contain any further encroachment
from this sector, and in an effort to achieve greater retail sales, builders'
merchants are examining their appeal to the smaller company end of the market.
Jewson has just launched an advertising campaign, including promotion on
television.
The future for the construction industry is somewhat unsettled
at present, but Key Note forecasts a continuous growth in builders' merchants
sales: from £8.3bn in 1999, to £9.6bn in 2003.
Text © 1999 Key Note
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Last updated by Jacob van Eldik 22th January 2000