PRESS RELEASE

March 2010

Garden Products Market to Grow by £95 Million in 2010

The garden products market will grow by £95 million in 2010, according to a new report from MTW Research, despite ‘garden-grabbing’ loopholes and a range of other factors dampening short-term growth prospects for the industry.

The legacy of the recession lingers on for suppliers and retailers of garden products, though sales growth in 2009 highlighted a healthy underlying resilience in the market, despite ongoing problems relating to low profitability. Demand is forecast to experience moderate rises in both volume and value terms this year across most key product sectors in the garden products market, as positive key market influences continue to outweigh those negative issues which are currently preventing above inflation growth.

2010 growth is forecast at around 2% for the garden products market, though the report points to the threat of substitutes driving price competition in the lower-mid market sectors. MTW describes, “A growing level of pricing pressure, with imports now accounting for more than 50% of the garden products market. Its clear that price deflation is now a serious threat to industry profitability in 2010.”

However, the report goes on to identify a number of key market opportunities and reasons to be optimistic, particularly post 2010 as speculative housebuilding, growth in disposable incomes, rising population age and a host of other issues underpin volume demand - stimulating value growth across most product sectors.

Sales of garden furniture and the barbecue market are set to experience strong growth in 2010, supported by product development and a number of social trends which should boost volume demand in the short term. With current forecasts of a warmer 2010, courtesy of El Nino, the rise in the use of the garden as a place for entertaining should continue in 2010 providing stimulus for a wide range of complementary garden products.

The garden timber market and hard landscaping products lost around £150 million in sales during the recession, according to the 300 page report, as householders postponed garden refurbishment projects in light of the fragile economic landscape in 2008 and 2009. MTW state that as consumer confidence gathers strength later this year, an element of ‘pent-up’ demand should offer good volume growth opportunities for suppliers active in sectors such as the decking market, with porous paving also offering added value opportunities.

Due acknowledgement is also given to the ‘Grow Your Own’ trend by the report, with MTW identifying healthy rates of growth in the seeds market due to consumers not only seeking to save money, but also becoming more adventurous in their choice of vegetables and salads. Kohlrabi & fennel are just 2 varieties identified as growing in popularity as consumers become more knowledgeable and sophisticated in the home grown sector. Whether the ‘GYO’ is more of a fad than a trend remains to be seen, though with uncertainty regarding the UK’s economic health remaining, this sector of the horticultural market is set to remain buoyant in the short term at least.

MTW also examine sales for 250 manufacturers and retailers, analyse future prospects for each product sector to 2014 and industry trends in the garden centres market. The report is available to purchase now from MTW Research for GBP 565 from here or by calling 08456 524324

PRESS RELEASE

February 2010

Kitchen Furniture Market to Grow with Style in 2010

The kitchen furniture market lost £250 million of sales during the recession, according to a new report from MTW Research, though the kitchen industry is optimistic for 2010 as growth in demand starts to return.

With the cost of the recession running to around £10 million per month in the kitchen furniture market, the recent trading environment for kitchen manufacturers and retailers has clearly been difficult. Based on industry sales figures, MTW’s report points to the market having declined by 18% in ‘real terms’ since the start of the economic downturn. The report identifies changes in product share in the last year and how these sectors are likely to perform in the future, with prospects reasonably positive for a return to growth for freestanding kitchen units in 2010, whilst the sinks market is diverging into 3 relatively distinct sectors.

A shift in consumer demand patterns has also provided further complexities for kitchen suppliers, as design trends and consumer preferences have changed fairly rapidly in the last 12-18 months. The report describes “A growing preference toward flecked greens and browns in the kitchen worktops market, as well as bold colour statements in moderation for fitted kitchen furniture. Clean lines continue to remain popular for hygiene and style reasons, though hard angles are giving way to subtle curves as consumers seek to soften their environment.”

The report also discusses the rapid polarisation in terms of quality, styles and designs which have taken place in recent months, with manufacturers and retailers now offering ranges with very clear and distinct market positions. It appears that the recession has prompted kitchen suppliers to re-evaluate and focus their market position in order to maintain a competitive advantage, as well as bring about a host of streamlining and efficiency savings through the kitchen industry.

Independent retailers continue to maintain the majority share of the kitchen furniture market and with this channel now having a more focused approach, MTW suggest that the sector is unlikely to lose any further substantial share in the long term. The DIY multiples, historically having gained share from independent retailers, are now themselves under threat from alternative channels such as Tesco direct, who recently launched their installation service and the final component in their ‘one-stop kitchen shop’. It appears that, rather than gain further share from other channels, the sheds are now likely to be more pre-occupied fighting a rear guard action and seeking to protect their market share.

The inevitable pressure on prices in the kitchen furniture market brought about by the recession is also highlighted in MTW’s report, with imports rising by almost 140% between 2004 and 2009, reflecting the ongoing pressure on the UK manufacturers. However, there is greater optimism on the horizon as the report forecasts import levels to rise more slowly in the medium to longer term, with exports perhaps offering some

growing opportunities for UK kitchen furniture manufacturers to exploit.
 

The report provides a comprehensive review of the UK domestic kitchen furniture market and forecasts sales to 2014, with current and forecast product mix and distribution channel shares, alongside profiles of more than 300 retailers and manufacturers. The 350+ page report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

February 2010

Furniture Market Fights Back for Lost £300 Million

A new report on the dining and occasional furniture market from MTW Research states that the industry is likely to return to modest growth in 2010, following the difficult trading environment of 2009. 

The recession has cost the furniture industry sales of around £300 million according to the report, highlighting the severe impact of the economic downturn on the UK furniture market.  However, sales of domestic furniture should experience acceleration in demand during the second half of 2010, though recovery in the UK economy will remain fragile.  The report highlights a number of key market opportunities which should underpin value growth for a number of sectors, despite volume demand remaining relatively weak in the near term. 

The dining room tables market has lost some share by value during 2009 as the shift toward informal entertaining and dining continued, coupled with a rising threat of substitutes.  However, MTW attributes much of this decline to imported products as pricing pressures intensified in lower value furniture sectors due to the recession.  Polarisation within the market also continued in 2009, though most UK suppliers have now completed their product and market repositioning in order to avoid competing directly with imported furniture.   

Around 60% of domestic furniture market sales are now attributed to lower cost imports, with the report stating that the recession accelerated demand for value, with consumers rating price as an increasingly important influencer on the purchase decision throughout last year.   

Independent furniture retailers account for the largest share of the domestic furniture market by value in 2010, according to MTW, though competing distribution channels have continued to gain market share.  The dining room and occasional furniture market has experienced a rapid change in channel share in recent years, with much of this change due to the shift to a ‘two-tier’ market. As the industry has become increasingly polarised in terms of price, furniture retailers have sought to establish clear strategies and market positions based on volume, quality and price.

More than 30% of the furniture retail sector experienced either static or declining sales during 2009 according to the research, with the report identifying that more than 17% of furniture retailers are now regarded as being ‘at risk’.  However, MTW point to an underlying strength in the furniture retail market overall, with around 70% of retailers having a ‘good’ or ‘fair’ credit rating in early 2010.    The report also forecasts a return to profit growth in 2010, as the demand for lower value products is tempered by quality and design issues returning to prominence, coupled with the likelihood of an element of ‘pent-up’ demand being released as growth in consumer confidence returns. 

The report provides a comprehensive review of the UK domestic dining and occasional furniture market and forecasts sales to 2013, with product mix and end use sector shares, alongside supplier and retailer analysis and profiles.  The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

January 2010

Facilities Management Market Set for Change in 2010

The Facilities Management market will continue to see a dramatic shift toward multi-service provision in 2010, with FM clients following ‘flight to price’ procurement strategies to reduce outsourcing costs. 

The new facilities management report indicates that client loyalty in the FM market is being steadily eroded by price competition in 2010, with many of the commodity sectors within the market, such as property maintenance, office support etc, becoming increasingly price sensitive. MTW found that this trend was fuelled by the recent recession and resulted in multi-service FM providers gaining further share of the market in 2009, with these companies often able to offer greater cost savings than single service FM contractors.

MTW also found that the Facilities Management market has become increasingly characterised by closer relationships between suppliers and contractors, as greater efficiencies and lower procurement costs are sought. During 2009, several FM companies established programmes specifically designed to improve supplier relationships to ensure that material and equipment suppliers were aligned with customer relationship principles and accountable for their own supply chains. According to MTW, these supplier improvement programmes vary in scope, though typically include audits in relation to CRM, sustainable procurement and may even include a ‘best practice’ policy to which suppliers are expected to adhere.

Based on sales figures from the industry, the total FM market is currently worth just under £90 billion according to MTW, with operations and maintenance services the largest sector in 2010 and integrated or ‘bundled’ FM service provision now the second largest market segment. The report states that security services provision, which includes CCTV monitoring, access control, security screening etc has grown steadily in recent years. MTW point to a greater emphasis on public safety and anti-terrorist activity supporting buoyant growth in security services demand in 2010 and beyond, with this sector anticipated to outstrip overall FM market growth in the longer term.

MTW’s report also reviews the structure and current health of the facilities management industry, with just over 65% of FM contractors viewed as having either an ‘excellent’ or ‘good’ credit rating, reflecting a core strength in the market in terms of financial standing. However, the impact of the recession is clearly evident, with the report identifying that around 11% of the companies active in the Facilities Management market are viewed as being at imminent risk of failure.

By the end of 2010, the report states that the overall FM market is expected to grow to a value of around £87.7 billion, reflecting sustained public expenditure coupled with a return to stronger growth from the private sector. MTW’s SWOT analysis identifies a number of key market influencers which are expected to further drive the market in 2011, despite increasing uncertainty regarding short and medium term public spending budgets.

The 200 page report provides a comprehensive review of the UK facilities management market in 2010 and forecasts sales to 2013, with product and end use sector shares alongside sales leads for key FM contractors. The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

December 2009

Contract Cleaning Market to 'Replace & Replenish' in 2010

The UK contract cleaning market responded quickly and positively to the recession in 2009, according to a new report from MTW Research, with streamlining activities preventing spiralling declines in profitability and standing the market in good stead for growth in 2010.

Based on sales from the industry, MTW Research indicate that the contract cleaning market is estimated to have returned to values previously experienced in 2004, reflecting the severity of the recent downturn. Price competition, rising labour costs, additional burden from legislation relating to immigration, declining volume demand and a number of additional micro market issues negatively impacted on the market in 2009. However, rising business confidence and a more stable economy should result in a return to value growth for the contract cleaning market during 2010, according to the report.

A rapid reaction by the contract cleaning industry to recessionary pressures resulted in a greater focus on developing more efficient internal systems in 2009, drastically reducing resource wastage throughout the industry and thereby preventing profitability from declining further. One key benefit for cleaning material and equipment suppliers of this streamlining has been much faster decision making processes involved in procurement, with contract cleaners making purchase decisions faster than at any other time.

Whilst many contract cleaners scaled back on capital equipment purchase in 2009, MTW point to the likelihood of a growing ‘pent-up demand’ in early 2010, with capital expenditure likely to rise in the next year as contract cleaners seek to ‘replace and replenish’ following more positive trading conditions in late 2009 and early 2010. With shortened procurement processes and rising demand for cleaning equipment and materials, short term prospects appear increasingly positive for cleaning equipment manufacturers and suppliers.

More optimism for the cleaning industry comes from MTW’s SWOT and PEST analysis of the contract cleaning market, which identified a large number of growth opportunities for contract cleaners in 2010. These include the scope for contract cleaners to develop niche sectors, extend existing contracts and capitalise on current issues such as viruses and hygiene within the workplace. Further opportunities identified by MTW include enhancing added value services such as live audit data, mobile response units, and more specialist service provision amongst others.

One area of concern for the contract cleaning industry is that whilst public expenditure is now set until 2012 for key areas of health and education, it appears increasingly likely that cuts in public sector budgets may dampen growth opportunities in the longer term. However, private spending on contract cleaning is forecast to return to stronger growth and government initiatives such as the additional pot of £270 million for virus and infection control should more than offset any decline in public spending.

The report provides a comprehensive review of the UK contract cleaning market and forecasts sales to 2013, with product and end use sector shares, alongside sales leads for key contract cleaners. The report is available to purchase from GBP565 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

November 2009

Builders Merchants Market Polarises in 2009

A new market report from MTW Research on the UK Builders Merchants market has found that ongoing price sensitivity and product price inflation is dividing builders’ merchants’ opinion in late 2009 with some chasing margins whilst others target lower value, volume contracts. 

The report’s findings, based on 90% of the industry, found that average product price inflation rose by 4% in 2009 as manufacturers sought to protect margins, resulting in a polarisation between those builders merchants who are more willing to operate on a value-led strategy with lower margins; and those operations that have actively avoided less profitable contracts. MTW suggest that increasingly the smaller local and regional merchants are positioning themselves at the lower value end of the market in late 2009, whereas the larger nationals have withstood rising pricing pressure to the extent where they are less inclined to supply to contracts which offer lower margins.

The report highlights a brighter future for the builders’ merchants market, with business and consumer confidence slowly returning in a number of key end use sectors, with demand returning led by public sector projects, domestic RMI activity and increasingly, the housebuilding sector. Nevertheless, MTW highlight the need for cautious optimism, with a number of remaining downsides in the market cited which are likely to dampen any prospect of rapid value growth, particularly given the likelihood of a cut in public capital expenditure in the near term.  According to the report, around 8% of builders merchants remain in the ‘at risk’ category, underlining the fragility of the market in 2009 and into 2010.

During 2009, demand shifted toward lightside building products as the market became more reliant on the domestic and smaller scale commercial RMI sector.  With housebuilders now increasingly opening up ‘mothballed’ sites, MTW point to the likelihood of a relatively rapid return to growth for heavyside products given that many housebuilders ran down their inventories during the latter half of 2008 and will therefore have immediate requirements for replenishing materials.  

According to the report, pricing pressures should ease in the near term as average product inflation falls from current levels of 4% to around 2-3% by early 2010, although profitability is likely to decline by around 25% over the full year. However, much of this contraction is derived from lower performance in the first 3 quarters of the year, with a much improved trading environment likely in Q4 2009 as volume demand returns from some key end use sectors such as housebuilding and RMI.  Whilst there remains some concern that outside the Olympics construction activity, capital expenditure in public sector construction may decline, prospects are for market growth at, or just below inflationary levels for 2010 with a gradual upturn thereafter. 

The report provides a comprehensive review of the UK builders’ merchants market in 2009 and forecasts sales to 2013 and provides sales estimates enabling market share estimation.  The report package also includes mailing, telephone and contact details, providing comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from here where a free sample is available to download or by calling 08456 524324

PRESS RELEASE

July 2009

Kitchen Retailers Market "Double-Dip" Fears Allayed

A new market report from MTW Research on the UK Kitchen Retail market in 2009 has found that whilst fears of a “double-dip” in the market may be growing at present, the research found that the likelihood of a further downturn is unlikely, despite the ongoing fragility of the economy at present.

The new report, based on sales figures from the kitchen products market, identifies a number of key factors which should prevent the UK Kitchen Retailer and Installer market from experiencing further substantial decline in the short term, and identifies areas of opportunity for growth in the future. Lead analyst for the report, Mark Waddy points to “Tentative signs of, if not a recovery, then a cessation of price decline in the housing market, with the most optimistic sign of growth this year as house prices in June rose by 0.9%”. According to MTW, like for like retail sales rose by 4.6% in April 2009 suggesting a relatively rapid return to growth in the wider UK economy and “cautious optimism” for the kitchen products market.

The report also identifies a change in consumer behaviour with buyers of kitchen furniture and appliances reportedly seeking a wider choice of products, coupled with factors such as brand, technology and innovative design becoming increasingly important as consumers seek to ‘trade up’ from lower value products sourced from more price competitive channels such as the DIY multiples. MTW suggest that this trend has underpinned the independent kitchen retailers in terms of value performance in recent years, who are likely to continue to seek to exploit this change in consumer behaviour in the medium to longer term.

MTW claim the report is based on sales from more than 70% of the industry by value and found that the kitchen retail and installation distribution channel remains characterised by a significant level of fragmentation in volume terms, with a large number of independents active in the sector. The report suggests that this in part is due to the ongoing level of assistance for the independents from the manufacturers, particularly in terms of price support. This, coupled with a focus on differentiation in terms of service and product offering suggests a relatively bright future for the independent retail channel in the medium to longer term in terms of maintaining current market share of the UK kitchen products market.

The report provides a comprehensive review of the UK kitchen retailer and installation market in 2009 and forecasts sales to 2013 as well as ranking the retailers and providing sales estimates enabling market share estimation. In addition, MTW have also produced an effective method of profiling each retailer’s financial health and illustrating key financial performance indicators through their ‘at a glance’ charts.

The report package also includes mailing, telephone and contact details for 90% of the market, providing comprehensive industry analysis and a useful sales & marketing tool. The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

June 2009

INDEPENDENT KITCHEN RETAILERS DOMINANT IN 2009

The UK Kitchen Retailers and Installers Market remains dominated by independents in mid 2009, with over 4,000 kitchen companies employing less than 5 staff, according to a new database from MTW Research.

The findings, based on a quantitative database and mailing list of more than 5,300 kitchen retailers and installers, suggest that the recession has limited growth in terms of the number of staff employed by kitchen retailers and installers as competition in the UK Kitchen market remains fierce.

In mid 2009, MTW found that 50% of the UK market was comprised of retailers with less than £90,000 turnover with a further 40% of the industry comprising companies with between £90,000 and £500,000. The database supports findings that reflect the ongoing importance of targeting smaller independent retailers and installers as well as the regional and multi-nationals.

With around 90% of the Kitchen retailers and installers market reporting a turnover of less than half a million punds, indications are that the market remains in a relatively fragile condition in mid 2009, despite some indications of an upturn in the housing market which should provide some impetus for Kitchen sales in the near term. Further, MTW Research state that 73% of the market is comprised of non-limited companies, suggesting that there remains a large proportion of the market which remains highly exposed to the current downturn.

Nevertheless, there are an increasing number of optimistic signs for Kitchen product manufacturers and associated suppliers as a fragile return to growth in the housing market becomes evident with prices and mortgage approvals on an upward trend. In time, this should stimulate rising consumer confidence which may support value growth for the market, as well as volume growth underpinned by rising levels of housemoving. As such, according to MTW, kitchen product manufacturers are likely to experience positive volume growth through this route to market in the near term, though the importance of effective marketing strategies and relevant mailing lists has become increasingly important in this competitive channel.

The mailing and telemarketing list covering 95% of the UK Kitchen Retailers & Installers market is available now from MTW Research for £350 by calling 08456 524324, with information & free samples available HERE or by e-mailing sales@marketresearchreports.co.uk.
 

PRESS RELEASE

June 2009

Underfloor Heating Market Recovery in 2009

Analysis by MTW Research of the Underfloor Heating Market in May 2009 has found that the industry is set to return to growth in the last quarter of 2009 as a number of key end use markets experience more buoyant conditions as the UK economy begins its ‘u-shaped’ recovery. 

The new report from MTW Research also found that market deterioration in 2008 may not have been as severe as some commentators have suggested, with 53% of underfloor heating suppliers reporting growth in excess of 10%.  Further, the research also found that whilst 7% of the industry is regarded as being ‘at risk’, more than 75% of companies in the market have an excellent or exceptional credit rating, underlining a core, fundamental strength within the UK underfloor heating industry in mid 2009. 

The report also points to a changing dynamic in the underfloor heating industry in recent months, with market growth increasingly reliant on smaller projects within the domestic market.  According to MTW, volume demand has declined substantially in recent months from commercial and non-domestic end use sectors, with suppliers being required to shift focus quickly in order to maintain sales. 

Despite this shift in end use demand patterns, the report, based on quantitative sales figures from the industry, highlights a number of key market influences which should offer opportunities for the sector to return to healthy levels of growth relatively quickly and which should underpin buoyant market performance in the longer term.  One such issue identified by MTW is the increasing emphasis on energy efficiency and the environmental benefits offered by underfloor heating products in contrast to more traditional heating systems.  As energy efficiency becomes more important in the specification process within both domestic and non-domestic applications, the report indicates that this issue should represent a key differentiator for UFH products within the wider HVAC market. 

The report provides a comprehensive review of the UK underfloor heating market, forecasts industry trends for 2009-2013 and analyses the structure of the industry in 2009.   The report also ranks the UFH companies by a number of criteria and provides sales estimates and market share figures.  MTW have also developed a quick and easy method of profiling each company’s financial health through their ‘at a glance’ charts.  The report package also includes mailing, telephone and contact details for the leading players in the market, resulting in a comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

May 2009

£1.6 Billion for Social Housing Repairs in 2009

Spending on refurbishment and improvements to dwellings within the UK social housing market will exceed £1.6 billion for the first time in 2009, according to a new report from MTW Research, providing a much needed boost for the UK building products industry.

More than £700 million is likely to be spent on building products and materials this year by Arms Length Management Organisations (ALMOs), with a substantial backlog of repairs to dwelling stock due to be completed before 2010 in order to achieve the Decent Homes Initiative target. With a step up in housing renovation and repair activity likely within the next couple of years there are clear opportunities for building product suppliers in the short term within this lucrative market.

MTW also found that the ALMOs continue to seek to develop long term relationships with building product suppliers as they seek to develop new roles within the social housing community. Following the completion of the decent homes programme in 2010, it is likely that the ALMOs market will remain a key growth area for building product suppliers both within the refurbishment and new build social housing market. The research for the new report from MTW suggests that the ALMOs are more likely to adopt a role similar in nature to the Housing Associations market in the medium term, as they widen their activities within the UK housing market.

The report states that the sector continues to seek cost saving through contract tenders, with tendering for new RMI contracts with ALMOs becoming increasingly competitive in recent years. Further, building product suppliers are also experiencing greater demands placed on them as assessment processes also become more rigorous.

Given that profitability may become more important in the medium term for ALMOs, MTW believes that the tendering process will become increasingly competitive in the ALMOs sector in 2009, with pricing pressure likely to grow as competition rises. However, the research found that whilst pricing pressure will rise in the medium term for building material and product suppliers, contracts are typically awarded on procurement criteria split of 50% cost and 50% quality. Given that the standard of building work required on a social housing unit is typically higher than that of a private residence, quality is likely to remain a key influencer on procurement.

The report provides a comprehensive review of the social housing ALMOs market, forecasts industry trends for 2009-2013 and analyses the structure of the industry in 2009. The report also ranks the retailers by a number of criteria and provides sales estimates and market share figures. MTW have also developed a quick and easy method of profiling each company’s financial health through their ‘at a glance’ charts.

The report package also includes mailing, telephone and contact details for 90% of the market, resulting in a comprehensive industry analysis and a useful sales & marketing tool. The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

March 2009

£46 Billion Public Boost for Building Contractors in 2009

Recent Government pledges to support vital PFI construction projects will result in more than £46 billion of capital expenditure in 2009, according to a new database & mailing list on public sector building contractors from MTW Research.

More than 1,700 major building contractors should benefit from the rise in public sector construction in the short term, according to the new database, with the recent announcement that £13 billion of PFI investment would be safeguarded. MTW point to substantial capital expenditure and construction activity in a wide range of sectors including Waste Treatment (GBP3.5billion); Transport (GBP 3.1 billion); and Education (GBP 2.4 Billion), which offer should offer strong opportunities in the short term for building contractors and associated suppliers to grow sales.

Capital expenditure on public sector services has increased by 30% since 2005, according to MTW, underlining the level of commitment from the Government to developing longer term opportunities for the construction industry and building material suppliers. PFI expenditure at present typically accounts for around 10% of public capital spending at present according to the research.

With around 110 PFI projects currently in the pipeline, MTW point to this sector being most likely to provide impetus for building contractors in the next 12-18 months. Mark Waddy, lead analyst at MTW, commented that, “The competition amongst contractors to win tenders in this sector is likely to increase rapidly during 2009” highlighting the likelihood of fierce competition in the market in the near term. Waddy also pointed to a “…Clear and growing need for building material suppliers to identify and target more effectively in order to gain or maintain competitive advantage.”

The database identifies the contractors most likely to benefit from the growth in public sector construction activity in the short term, providing a comprehensive insight into what appears to be the only growth area in the construction industry at present.

Designed specifically for companies supplying to the UK construction industry, the mailing list and database is available to purchase directly from MTW Research for GBP450 by calling 08456 524324 with free samples and on-line ordering here.

PRESS RELEASE

February 2009

Bathroom Retailers Market 'Fundamentally Resilient' in 2009

Sales in the domestic bathroom retail market will reach £380 million in 2009, reflecting a period of re-positioning and market adjustment in the industry in the near term, according to a new market report from MTW Research. 

Research for the new report found that whilst a decline in total market revenue was reported during 2008, the industry remains in relatively good health in early 2009 with just 6% of bathroom retailers being at ‘serious risk’ of failure.  MTW also identified more than 60% of independent bathroom retailers having either a low or very low risk rating in early 2009, underlining a fundamental resilience in the market, despite the current downturn. 

The report, based on sales from 75% of the industry, also found that just over 20% of the bathroom retail market reported sales growth during the last 12 months, suggesting that there remain some opportunities for growth for bathroom retailers and manufacturers.  However, according to MTW Research, competition and pricing pressure is likely to accelerate in the near term with just under 80% of the industry reporting less optimistic trading conditions in early 2009 as the recession further undermines consumer confidence. 

MTW go on to identify that the rate of borrowing by bathroom retailers has risen substantially in recent months, with debt likely to further erode the financial strength of the industry overall in the short to medium term.  However, the report states that current debt to sales ratios suggest a reasonable degree of health underpinning the market at present, though manufacturers are becoming more targeted in their sales and marketing activities in order to identify those retailers who continue to outperform the market. 

Following a period of adjustment and re-positioning by many retailers in the domestic bathroom products market, MTW forecast a return to growth by mid 2010, with growth at, or just above inflationary levels likely by 2011.  However, the report also found that market growth is increasingly reliant on lower value projects in the domestic bathroom products market, with volume demand becoming increasingly important, as opposed to value growth opportunities. 

The report provides an informed review of the independent bathroom retail market, forecasts industry trends for 2009-2013 and analyses the structure of the industry as of early 2009.   The report also ranks the retailers by a number of criteria and provides sales estimates and market share figures.  MTW have also developed a quick and easy method of profiling each company’s financial health through their ‘at a glance’ charts.  The report package also includes mailing, telephone and contact details for 80% of the market, resulting in a comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website Here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

December 2008

Lighting Retailers Market to Transform in 2009

A new report from MTW Research on the UK Lighting Market forecasts that whilst independent lighting retailers may lose some market share in 2009, a period of rapid transition and market re-positioning should result in a more healthy lighting distribution channel from 2010 onwards. 

The report, based on company sales from 70% of the market, found that lighting retailers are facing an increasingly difficult and complex trading environment in late 2008, with rising pressure on sales and profitability likely to characterise the channel in 2009 as DIY, home improvement and refurbishment activity slows.  Whilst the recent 2.5% VAT reduction may offer some light relief to lighting retailer margins, MTW’s report forecasts that the sector will undergo a period of rapid transformation in the coming 12-18 months, as retailers re-position themselves in order to avoid further pricing pressures. 

MTW also identify the implications for lighting manufacturers and suppliers as the independents seek to differentiate themselves from competing channels such as the DIY ‘Sheds’.  The research also found that the lighting retail market continues to polarise, with 20% of independent retailers recorded as being ‘at serious risk’, with the report suggesting that those lighting companies with a less well defined market position will feel the full force of the downturn in 2009. 

However, the report also provides a degree of optimism, with market growth forecast for the medium term and more than 70% of the industry regarded as being a ‘low or below average risk’.  The report authors point to the growing necessity for lighting product manufacturers to understand current market conditions and identify those companies who are best placed to weather the economic downturn in order to sustain sales in the UK domestic lamps and luminaires market. 

MTW also indicate that suppliers to the independent lighting stockists are likely to experience an increasingly competitive environment where retailers are progressively seeking to implement cost cutting measures.  Sources indicate that retailers will inevitably look to suppliers to achieve this cost saving to some extent, with pricing pressures feeding through to the lighting manufacturers as a result. 

The report provides a comprehensive review of the independent lighting retail market and forecasts industry trends for 2009-2012 as well as ranking the lighting companies and providing sales estimates enabling market share estimation.  In addition, MTW have also produced an effective method of profiling each company’s financial health and illustrating their key financial performance indicators through their ‘at a glance’ charts. 

The 'ultimate report package' also includes mailing, telephone and contact details for 90% of the market, providing comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

November 2008

Contract Cleaning Market Boost from Public Sector in 2009

A new report from MTW Research on the UK Contract Cleaning Market has found that 45% of contract cleaning companies experienced growth during the last 12 months, despite the worsening economic climate.  Despite the likelihood of tougher trading conditions in 2009, rising investment in the public sector should offer some optimism for the market in the near term, particularly from RMI and new build construction projects within the Health and Education sectors. 

The new market report, based on sales returns from 80% of the industry, found that the contract cleaning industry in 2009 is likely to be characterised by a decline in capital expenditure and spending on equipment coupled with a growing ‘squeeze’ on assets as sales revenues contract over the next 12-18 months.  For suppliers to the contract cleaning market the report highlights the growing need for more focused marketing in order to target those contract cleaners who are continuing to perform well in the industry at present. 

MTW Research also found that 30% of contract cleaning companies are considered ‘at risk’ in late 2008, with the report highlighting the growing problem of customer retention.  Customer loyalty is becoming less prevalent according to MTW, and clients of contract cleaners are increasingly seeking more competitive prices before renewing contracts.  This growing trend in the market is driving price competition in a sector where volume demand is now declining as smaller and medium sized firms in particular are internalising certain cleaning duties, rather than outsourcing. 

With business confidence at a particularly low ebb in a number of key markets at present, indications are that suppliers to the contract cleaning sector will experience more difficult trading conditions as contractors are less willing to invest in capital equipment during a period of sustained low demand.  Despite the likelihood of a downturn, however, there is likely to be some continuation of capital investment by the industry, albeit at much lower levels than recently experienced, with total assets forecast to rise by just under 4% in 2009.  The report goes on to forecast a recovery in mid-late 2010, with the market set to experience a relatively fast paced return to ‘real term’ growth, followed by a rising level of expenditure on capital goods and equipment. 

The industry in general remains in good financial health with borrowing levels representing around 35% of total revenue, reflecting a relatively low ratio and one which is likely to be sustained in the long term.  Longer term prospects are more positive for the contract cleaning sector, with more optimistic growth forecast by 2012 as the industry regains some ground lost in 2008 and 2009. 

The report provides a comprehensive review of contract cleaning market and industry trends in late 2008 as well as ranking the cleaning companies and providing sales estimates enabling market share estimation.  In addition, MTW have also produced an effective method of profiling each company and illustrating their key financial performance indicators through their ‘at a glance’ charts.  The report also includes mailing, telephone and contact details for each company providing comprehensive industry analysis and a useful sales & marketing tool.  The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

October 2008

Tool Hire Market Recovery Forecast by 2010

Analysis of the UK Tool Hire Market by MTW Research in late 2008 has found that rapid changes in terms of rising pricing pressure and cost saving measures will dominate the market in 2009, according to a report prepared for the UK Tool & Equipment industry.

The new market report, based on sales returns from 95% of the industry, found that Tool and Equipment suppliers are increasingly feeling the pinch of a downturn in demand for tool hire from a number of key end use sectors, resulting in falling volume demand and rising price competition. MTW points to a more difficult trading period in the next 12-18 months, with a slowdown in capital expenditure by tool hire companies resulting in rising price competition amongst tool manufacturers who supply to this sector. The report forecasts a decline of some 25% in capital expenditure during 2009, reflecting the wider slowdown in construction activity and subsequent impact on demand for tools throughout the supply chain.

Cost reduction and efficiency measures are likely to dominate the tool hire market in 2009 as the economic slowdown deepens, with redundancies and ‘scaling down programmes’ by the tool hire companies likely to become increasingly common. However, the report suggests that whilst there is likely to be some pain in the short term, the focus on profitability by the industry now, should assist the market in the medium term by facilitating a faster return to profitability growth than many other sectors in the construction industry. As such, MTW forecast that by early 2010, the hire industry will be in a strong financial position to raise capital and is likely to increase spending on tools and equipment in order to meet the anticipated rise in demand later in 2010 and into 2011.

For the short term, however, MTW point to the public sector as crucial for underpinning some market demand and preventing further substantial declines in volume and value. In addition, with contractors less willing (or able) to invest in capital equipment, tool and equipment hire becomes an increasingly attractive proposition, sustaining the market to some extent during the next 1-2 years. MTW identify the tool hire operations able to meet this changing demand, enabling manufacturers to target those companies who are best placed to continue to perform reasonably well in 2009 and beyond.

However, whilst there remains some element of optimism for some companies, MTW Research’s analysis of the tool hire market found that almost 25% of tool hire companies are considered to be ‘at risk’, reflecting the difficult trading environment at present. With a low number of new market entrants identified by MTW in the last 12 months, the need for focused, effective and targeted marketing is crucial for tool and equipment manufacturers to increase sales at present.

The report provides a useful review of tool hire market and industry trends in late 2008 as well as ranking the tool hire companies and providing sales estimates enabling market share estimation. In addition, MTW have also produced an effective method of profiling each company and illustrating their key financial performance indicators through their ‘at a glance’ charts. The report also includes mailing, telephone and contact details for each company providing comprehensive industry analysis and a useful sales & marketing tool. The report is available to purchase from GBP375 from MTW Research’s website here where a free sample is available to download or by calling 08456 524324.

PRESS RELEASE

October 2008

Facilities Management Market Tops £28 Billion

The UK Facilities Management market is set to reach a value of GBP28 billion in 2008, according to MTW Research, with the market continuing to experience growth against a backdrop of a worsening economic climate. The findings from the new report based on company sales, highlight an industry which has continued to benefit from a growth in outsourcing and has experienced positive performance in recent years. Annual growth for the market is recorded at between 6-8% since 2004, reflecting a generally buoyant sector with demand derived from a broad spectrum of key end use sectors within public and private markets.

The current contraction in the UK economy and the ongoing impact on business confidence is now indicated to be dampening the facilities management sector in late 2008, as new commercial construction and RMI projects in particular are postponed. Whilst there remains some optimism in the market derived from public sector spending, particularly health and education, the impact of the government’s GBP 37 billion bail out of the UK’s three largest banks in October 2008 is likely to result in a decline in public expenditure in the medium term, with a subsequent negative impact on demand for FM services. Nevertheless, the report forecasts some growth in the market in the short term, albeit at relatively low levels in 2009 and 2010, before a return to stronger growth in 2011.

According to MTW, the implications for companies targeting FM companies are clear, with the credit crisis compounding growing pricing pressure in the market in the short term. The findings also point to the likelihood of a relatively fast paced rise in borrowing in the industry, with debt rising to more than 60% of sales by 2009, further exacerbating the issue of price sensitivity in terms of purchasing by the FM companies. These, and other issues suggest a more complex trading environment for manufacturers, contractors and suppliers to the FM industry in the short term and highlight the need for a clear and coherent strategy with which to weather the coming financial difficulties.

During the last 12 months, MTW Research found that 47% of the FM industry experienced growth in sales revenue, although those companies reporting growth in 2008 experienced substantially lower sales than in 2007, reflecting a downturn in volume demand, and expectations are that the number of companies reporting static sales will increase substantially in the short term. The report highlights the mixed scenario in terms of trading conditions in the FM market at present, with sales increasingly reliant on a decreasing number of larger companies in the industry, with those more able to service public sector applications now indicated to be primarily supporting market growth.

The report also illustrates the performance of individual FM providers for the last 4 years, with turnover estimates provided for every company, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify market shares and those companies most likely to grow in 2009. In addition, the report also includes full mailing address details and senior decision maker contact details for the FM providers, providing relevant sales leads. The report, available now, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering here, where a free sample is also available to download.

PRESS RELEASE

September 2008

Panel Builders Market Reports Growth in 2008

Findings from MTW Research on the UK Panel Builders Market indicate that 50% of companies reported a rise in sales in the last 12 months to September 2008, despite the dramatic downturn in construction activity over the same period.  A further 16% of panel builders indicated steady sales trends over the last 12 months, further illustrating a continued reasonable level of demand for specialist skills within the UK Building Industry. 

MTW’s new database highlights the substantial and continued level of fragmentation in 2008, coupled with a large number of independent companies active in the industry.  The database, which covers more than 90% of the UK Panel Builders market, also finds that around 40% of the industry is comprised of companies with less than 5 employees, highlighting the need for effective and accurate marketing tools in order for electrical product and component manufacturers to successfully grow sales to this sector. 

Whilst the UK Panel Builders market is set to experience a more difficult trading environment in the next 18-24 months from the decline in construction, a number of key end use sectors should continue to support the market in the short to medium term, according to MTW Research.  The utilities and energy sectors remain important markets for panel builders alongside public sector construction, all of which should underpin the market during the current economic downturn. 

MTW’s analysis also finds that more than 80% of the Panel Builders market is currently rated as ‘below average risk’, in terms of credit worthiness, reflecting the relative optimism in the industry at present despite the worsening macro-economic environment.  The Panel Builders industry overall remains in apparent good health and ready to weather more difficult trading conditions in the coming months. 

The new for 2008 database and mailing list is supplied as multi-use with full mailing and telemarketing details alongside senior purchasing information, employee bands, company and office type.  The listing is unique to MTW and represents a comprehensive marketing tool for increasing sales to the control panel building industry.  The database is available to purchase now for GBP 350 by calling 08456 524324, with further information & free samples available by clicking here

PRESS RELEASE

September 2008

Electrical Wholesale Market Switches Focus

MTW Research have found that UK Electrical Wholesalers are now increasingly re-focusing their attention on achieving turnover as volume demand slows in mid-late 2008, and away from the recent trend of ‘cherry-picking’ more profitable projects. 

The new report, based on sales returns of more than 90% of the UK electrical wholesaler industry, found that whilst the market rose by just over 1% in 2007 profitability increased by almost 8%, in part reflecting the adoption by wholesalers of the phrase ‘turnover is vanity, profit is sanity’.  However, in 2008 indications are that this trend is reversing as housebuilding and commercial construction activity slows.  The contraction in construction and RMI activity is resulting in weaker volume demand for electrical products and accessories giving rise to less opportunity for wholesalers to ‘cream off’ the more profitable supply contracts. 

The implications for electrical product manufacturers and distributors of these findings are clear, with this trend compounding growing pricing pressure in the market in the short term.  Report publishers MTW Research also point to the likelihood of a relatively fast paced rise in borrowing in the industry, with debt rising to around 40% of sales by 2009, further exacerbating the issue of price sensitivity in terms of purchasing by the wholesalers.  These, and other issues suggest a more complex trading environment for electrical product manufacturers in the short term and highlight the need for a clear and coherent strategy with which to weather the coming financial difficulties. 

MTW go on to develop possible future scenarios for the UK electrical wholesale market, with optimism returning to the market by 2010.  However, the short term future is not necessarily as bleak as some fear, with assets continuing to rise in 2008 throughout the industry, though variations in individual performance mean that manufacturers must increasingly target and focus on those companies who continue to perform well at present. 

The report illustrates the performance of key individual electrical wholesalers for the last 4 years, identifying the most lucrative targets for manufacturers to target in this increasingly competitive trading environment.  Turnover estimates are provided for every company, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify those companies most likely to grow in 2008/9.  In addition, the report also includes full mailing address details and senior decision maker contact details for the electrical wholesalers, providing relevant sales leads for manufacturers.  

The report, available immediately, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here.

PRESS RELEASE

September 2008

Garden Centres Market Strong Under Pressure

Findings from an independent research study have revealed that the UK Garden Centres Market remains fundamentally strong and with industry assets set to top £1 billion in 2008, is in a robust position from which to weather the current economic downturn. 

The new report from MTW Research, based on actual sales figures, finds that Garden Centres sales will remain static in 2008, before a likely contraction in value during 2009 for the first time in a number of years.  Any downturn is likely to be relatively short-lived, however, with the Garden Centres market having strong underlying asset growth, enabling Garden Centres to focus on turnover during difficult trading periods, rather than maximising profitability. 

For manufacturers and suppliers to the Garden Centres market, MTW warn of an increasingly competitive environment in the coming 12-18 months, with price erosion likely in many sectors of the market.  However, the report’s longer term forecasts are more optimistic, with sales set to grow by around £45 million between 2009 and 2012, reflecting a number of positive underlying issues evident in the market. 

The report goes on to review the Garden Centres themselves and finds that industry consolidation continues with the top 10 now accounting for more than 50% of the total market value in 2008.  Despite this, however, there remain a large number of smaller independent garden centres, with MTW identifying around 2,400 separate companies active in the market at present. 

Reviewing the market in more detail, MTW Research go on to illustrate that the garden centre market has experienced reasonably positive performance in terms of industry value in recent years.  With garden centres now adopting tighter controls on borrowing, indications are that the industry is well placed to resist pressure from the forecast slowdown in sales in the short term. 

The report tracks the performance of the individual Garden Centres, identifying those best placed to weather the current financial storm and providing an effective list of key targets for garden products suppliers to target in this increasingly competitive trading environment.  Turnover estimates are provided for every company to illustrate market share, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify those companies most likely to grow in 2008/9.  In addition, the report also includes full mailing address details and senior decision maker contact details for the garden centres, providing relevant sales leads for manufacturers, distributors and suppliers.  

The report, available now, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here, where a free sample is available to download.

PRESS RELEASE

July 2008

UK House Builders Lose £5.5 Billion

As an increasing number of large scale redundancies in the house building market are announced, research for a new report has found that £5.5 billion is set to be wiped off the value of the housebuilding industry in 2008, reflecting the largest single annual decline ever recorded.    

Specialist research publisher MTW Research has found that rapid growth in borrowing in recent years, coupled with a collapse in demand for new housing due to the ‘credit crunch’ is likely to result in the house builder market losing more than 75% of its value over a 2 period to 2009.  Rising pressure on margins due to higher than average inflation in many of the key materials sectors, as well as fuel and labour costs, have also sustained pressure on the industry, all of which result in a particularly gloomy short term outlook for house builders and their suppliers. 

However, whilst MTW Research highlights the difficult period ahead in the short term from a rapid contraction in sales, the report also points to a the likelihood of a recovery in the market by late 2009 / early 2010, providing some longer term optimism for the housing market and suppliers to the house builders industry.  A number of key issues are identified by MTW as likely to underpin market growth from 2010 onwards, though these remain dependent on wider issues within the global financial markets.  The UK housing market is often linked to the US housing market, with issues relating to Fannie Mae and Freddie Mac underlining the ongoing lack of confidence in general, despite the Senate Banking Chairman recently declaring the companies as “fundamentally strong”. 

MTW’s report also reveals the strong trend of rising debt in the industry in recent years, with average housebuilders’ liabilities more than doubling since 2004.  In 2008, liabilities represented more than 84% of the industry’s total sales turnover, reflecting the high level of risk in the market at present.  Whilst the report suggests that this ratio is set to decline in the medium term, the industry is likely to face some difficult problems in the coming months as turnover slows dramatically and cash flow becomes increasingly restricted. 

The report tracks the performance of the individual housebuilders, identifying those best placed to weather the current financial storm and providing an effective list of key targets for building products suppliers to target in this increasingly competitive trading environment.  Turnover estimates are provided for every company, alongside industry rankings for sales, profitability and net worth, enabling the reader to identify those companies most likely to grow in 2008/9.  In addition, the report also includes full mailing address details and senior decision maker contact details for the house builders, providing relevant sales leads for manufacturers.  

The report, available immediately, is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here, where a free sample is available to download.

PRESS RELEASE

July 2008

UK DIY Market Tops £8 Billion in 2008

As housebuilders and the construction industry increasingly experience the full impact of the downturn in the UK housing market, research for a new report has found that the UK DIY market is set to exceed £8 billion for the first time in 2008.

Report publishers MTW Research have revealed that whilst the effects of the ‘credit crunch’ are likely to result in lower sales growth in the next couple of years for the DIY market, the lack of activity in the housing market should offer some short term impetus for DIY purchases as householders seek to ‘improve, rather than move’.

Despite a degree of optimism for the DIY industry, MTW also point to a degree of fragility in the market, as profitability growth remains subdued. For suppliers to the DIY sector, the report highlights the ongoing resistance by DIY retailers to accept price rises from manufacturers and a reluctance to pass rising costs on to the consumer. This issue is likely to remain a key dampener for suppliers to the DIY industry for some time to come, as they are forced to absorb the impact of rising fuel, labour and raw material costs.

Nevertheless, MTW also highlight a number of positives for the DIY market to 2012 with one such issue being that the DIY industry remains reasonably ‘cash rich’ with borrowing remaining relatively stable in recent years. Whilst the research for the report identified the likelihood of a slight rise in average debt in the next couple of years, the underlying foundation for the industry is one of reasonable health. As such, the DIY market is reasonably well equipped to meet the demands from an increasingly competitive trading environment in the next few years.

The DIY multiples remain a dominant force in the DIY retail market, with the four largest players in the market having a strong influence on the overall performance of the industry. The market shares accounted for by the DIY multiples represent a substantial proportion of the sector in 2008, with these retailers’ influence continuing to dominate key market trends.

The report goes on the identify and rank the DIY retailers active in the market at present, with their respective turnover, profitability and other key performance indicators. MTW also provide a useful key performance indicator chart enabling the reader to quickly gauge a company’s recent performance in the market. In addition, the report also includes full mailing address details and senior decision maker contact details for the DIY retailers, providing relevant targets for manufacturers.

The report is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by clicking here where a free sample is available to download, alongside further details on this and other markets in the building and construction industry.

PRESS RELEASE

June 2008

UK Hotel Market Slowdown

With the CBI recently announcing that the Economy will rise in 2009 by the lowest level in 17 years, a new report has found that lower levels of consumer and business confidence are resulting in an increasingly competitive UK hotel market.  The impact of the credit crunch is clearly being felt in the hotel industry in 2008, though report publisher MTW Research also points to signs of a downturn in the market long before the tightening of fiscal policies by many of the UK banks. 

MTW Research’s report “UK Hotel Market Leaders Rank & Profile” has found that the market has risen by around 14% since 2004, with expectations of a relatively slow paced sector in the short to medium term focussed on the lower value ‘budget hotel’ sector.  Given recent trends toward a preference for the lower value sector by many businesses and consumers and the likelihood of this preference continuing as the economy slows, MTW point to relatively static profit margins which are now depressing the market’s overall net worth.  In addition, rising costs of food, fuel and labour have also dampened the industry’s ability to generate any real growth in profitability, with this set to continue for some time to come. 

Against a backdrop of static profitability, the report identifies rising levels of debt taken on by the hotel market leaders, despite falling property prices impacting on fixed assets.  In 2008, total liabilities exceeded £10 billion for the first time, reflecting an increase of 20% since 2004.  This growth in debt clearly outpacing sales which grew by around 18% according to MTW Research.  In addition, MTW also suggest that the trend toward rising borrowing will continue in the short to medium term, particularly in the South and South East with a rise in construction and refurbishment investment demanded by the build-up to the Olympic Games, mostly funded by borrowing. 

In addition to highlighting key market trends in the hotel industry, MTW’s report also provides illustrations from 2004-2012 of average turnover, profitability and other key financial ratios.  The research for the report found that whilst there is likely to be a period of ‘re-adjustment’ in the market in the near term, future prospects in general are relatively optimistic for the sector in terms of average performance. 

The report goes on the identify and rank the leading hotel companies active in the market at present, with their respective turnover, profitability and other key performance indicators.  MTW also provide a useful key performance indicator chart enabling the reader to quickly gauge a company’s recent performance in the market.  In addition, the report also includes full mailing address details and senior decision maker contact details for the leading hotels. 

The report is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering on MTW Research’s website, where a free sample is available to download, alongside further details on this and other markets in the building and construction industry. 

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PRESS RELEASE

June 2008

Crunch Time for Builders Merchants

As the effects of the credit crunch continue to reverberate throughout the construction industry, research for a new report on the UK Builders Merchants market has found that the sector remains on a good footing to withstand the more difficult trading conditions forecast for 2008 and 2009.

Whilst growth has now clearly slowed for the builders merchants compared with recent performance, the industry is set to increase sales turnover in 2008 and 2009, according to a new report from MTW Research. In addition, a return to stronger growth in the medium to longer term is forecast, underlining the market’s resilience in overall terms.

At present, however, MTW suggest that there is likely to be a ‘tightening of belts’ by many of the merchants in 2008/9, due to the impact of the credit crunch and subsequent ‘softening’ of construction activity in a number of key end use sectors. Profitability has remained under pressure in recent years and a downward trend is likely to be sustained in the coming months as merchants focus on maintaining or growing turnover share, rather than protecting profit margins. Acquisition activity may also become more prevalent in the short term according to the report, as smaller merchants become more susceptible to takeover bids from the larger players seeking to consolidate their market position.

MTW’s “Builders Merchants Rank & Profile Report 2008” points to the strong likelihood of a return to profit growth by 2010, with pent up demand likely to support profit margins in the medium term, following the postponement of construction projects in 2008/9. Overall, therefore prospects remain positive for the merchants in the longer term, with more difficult 2008/9 market conditions to be regarded as a ‘hurdle’, rather than any significant pessimism for the industry.

Another key issue identified in the report is that average liability levels have remained relatively steady in recent years, with most merchants’ debt representing a reasonably comfortable 30% of turnover. Whilst MTW have forecast growth to 2012 for total and average debt levels, it is clear that the industry stands in good stead to withstand a reasonable degree of pressure from the decline in business confidence in 2008.

Alongside both the industry overview and ‘average’ merchant illustrations, MTW also provide a useful financial profile for the UK Builders Merchants, each with a key performance indicator chart enabling the reader to quickly gauge a competitor’s or customer’s recent performance in the market. In addition, the report also includes full mailing address details and senior decision maker contact details for the builders merchants.

The report is priced from GBP 375 and can be purchased from MTW Research by calling 08456 524324 or by ordering online here, where a free sample is available to download, alongside further details on this and other markets in the building and construction industry.

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PRESS RELEASE

May 2008

Kitchen & Bathroom Distributors Market: Debt Surges

Research for a new report on the Kitchen and Bathroom Distributors market has found that the industry is set to experience tougher trading conditions in 2008/9, despite signs that the market should continue to experience positive performance in terms of overall sales turnover.

The industry has experienced positive levels of asset growth in recent years and this has continued in 2007/8 according to specialist publisher, MTW Research. However, the report also identifies that a substantial proportion of this asset growth may have been heavily subsidised by rising levels of borrowing by the industry. In 2007, the combined assets of the Kitchen and Bathroom Distributors grew by around 4%, whilst borrowing rose by 5%.

Whilst rising levels of debt taken on by the distributors may present pessimistic reading, MTW also point to the fact that industry liabilities remain at a relatively comfortable 30% of total turnover. However, this ratio has continued to climb from 24% in 2004 and is forecast to reach around 34% by 2012, highlighting the likelihood of a more difficult trading environment, particularly against a backdrop of static profit levels.

The research also found that that whilst positive growth in turnover since 2004 is likely to have sustained a degree of optimism in the market, this has in part been at the expense of profit margins. MTW’s 100+ page review of the industry indicates that profitability is likely to remain static in the longer term and potentially decline in 2008/9, reflecting the current economic climate.

The in-depth report goes on to find that an ‘average’ distributor’s turnover has risen by around 7% since 2004, reflecting growth at, or slightly below, inflationary levels in recent years. Forecasts for turnover, profitability, asset and debts are provided by MTW to 2012, with a number of reasons for the industry to be reasonably cheerful in the longer term, though the report also highlights a clear need for caution in terms of borrowing.

Alongside both the industry overview and ‘average’ distributor illustrations, MTW also provide a useful financial profile for the kitchen and bathroom distributors, each with a key performance indicator chart enabling the reader to quickly gauge a competitor’s or customer’s recent performance in the market. In addition, the report also includes full mailing address details and senior decision maker contact details for manufacturers wishing to increase their sales through these companies.

This unique and insightful report is priced from GBP 375 and can be purchased exclusively from MTW Research by calling 08456 524324 or by ordering online by clicking here, where a free sample is available to download.

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PRESS RELEASE

April 2008

Rainwater Harvesting Market Tops £8 Million

A new report published on the UK Rainwater Harvesting market reveals the industry has experienced triple digit growth in the last 3 years and is set to reach in excess of GBP8 million in 2008, exceeding many expectations within the industry.  The report, published by specialist research agency MTW Research also forecasts continued strong growth to 2012, with penetration levels rising consistently to 2020. 

The study consisted of a comprehensive review of the market by value and volume and also provides a detailed analysis of numerous positive and negative influences driving the rainwater harvesting market at present.  New announcements in 2008 of particular importance include the adoption of the Code for Sustainable Homes and the recent Water Strategy announcements in February 2008, though the report also identifies a large number of other issues impacting the sector. 

MTW have also provided regional estimates for the rainwater harvesting market, as well as providing product and sector shares for commercial and domestic applications.   In addition a full PEST analysis offers good insight into the market in terms of enabling the reader to quickly understand the key dynamics of the market.  The result being a unique and comprehensive review of a new, dynamic market in a fast growth life cycle stage. 

Key applications and uses for rainwater harvesting products for both the domestic and non-domestic sectors are also identified by MTW.  Within the non-domestic sector, the research found that Education, Retail and Warehousing represent substantial sectors, with the Prisons sector also driving demand in recent months.  MTW suggest that this trend is set to continue as more projects come on stream.

The report goes on to review the major players in the market, with more than 40 pages in this 90+ page report dedicated to profiling the key manufacturers and distributors.  MTW provide competitor analysis for 50 companies, including profiles, balance sheets for the last 3 years and a financial health indicator chart for each company. 

Priced from £565, the report is available to purchase by calling 08456 524324 or by ordering online at MTW Research’s website here, where a free sample is available to download. 

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PRESS RELEASE

March 2008

New Email Listing for Builders Merchants Market

The UK Builders Merchants Market represents a vital distribution channel for the UK building and construction products industry in 2008, with widely reported sales of more than £11 billion per year.

However, recent signs are that the sector has tightened since 2006 and the need for more focused and effective methods of marketing have grown in importance. In recognition of this, specialist construction research publishers MTW Research have launched a brand new, uniquely focused database covering the UK Builders Merchants Market in 2008.

The listing is designed specifically for building product manufacturers and distributors to grow their sales through the Builders Merchants market in 2008 and beyond. MTW’s database offers a traditional mailing list with more than 2,000 senior or purchasing contact names, alongside full TPS / MPS screened address and telephone data. In addition, MTW also include more than 330 email addresses for head offices and single sites, providing companies with a highly cost effective method of marketing to these distributors.

The multi-use, no restrictions database is priced at just 23 pence per record, reflecting excellent value for money. By focusing on head offices and single sites, MTW’s database also provides a more focused cost effective marketing tool, by removing the need to target branches which have little or no purchasing power.

Available to purchase now from MTW’s website for GBP450, the Builders Merchants Market Database 2008 is available in a range of formats and is compatible for all software or CRM applications. A free sample is also available to download from the website, or by calling 08456 524324. 

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PRESS RELEASE

March 2008

Access Equipment Industry Worth £1 Billion in 2008

The UK Access Equipment Industry is likely to be worth in excess of £1 billion in 2008, up by more than 10% since 2007, according to a new independent report.  Since 2004, the access equipment industry has grown in value by 40% to exceed £1 billion for the first time, reflecting a continued underlying strength and general optimism in the sector.  The 150-page report also points to continued high levels of profitability for many of the key suppliers of Access Equipment in the UK. 

The research for this independent report, published by construction research specialists MTW Research, also found that whilst debt levels in the industry continued to rise by around 2-3% each year, growth in assets has generally outstripped this rise, resulting in relatively buoyant market conditions since 2004.  MTW indicate that this trend should continue, though liabilities are likely to top £2.5 billion by 2012, highlighting the importance of continued growth in demand for access equipment products. 

MTW go on to state that average sales growth has tended to outperform inflation in recent years, with a reasonably optimistic forecast to 2012, albeit against a backdrop of rising inflation in 2008.  In addition, there has been continued growth in average profitability levels in recent years, suggesting that the industry stands in good stead to weather any short term difficulties in the UK economy. 

MTW have ranked more than 120 companies by a variety of financial indicators, such as sales, profit levels, assets, net worth and liabilities.  The result is a non-complex report which could be used in a strategic management review or as a key tool in developing an effective understanding of the access equipment industry and developing key marketing objectives. 

The remainder of MTW’s report provides a 1 page financial profile, including a financial indicator chart, for each of the 120 companies.  This useful feature means that the reader is able to quickly gauge the performance of their competitors and provides a comprehensive review of this industry overall.  The report is available to purchase by calling 08456 524324 or by ordering online MTW Research’s website, where a free sample is available to download. 

PRESS RELEASE

March 2008

Underfloor Heating Industry Set To Top £300 Million

A contemporary report on the UK Underfloor Heating Industry, from specialist publisher MTW Research, has found that the sector is set to exceed a net worth of £300 million in 2008.  Buoyant growth in assets, coupled with a continued decline in debt levels by the majority of underfloor heating suppliers, continued to boost the industry during 2007.  According to MTW, this healthy level of growth is also likely to continue at least until 2012. 

The research for this new report, competitively priced at £375, also found that sales revenue grew by 10% in 2007.  Despite forecasts of a slight slowdown, MTW predicts that turnover growth should remain reasonably strong in the short to medium term.  In addition, the industry also experienced substantial growth in profitability during 2007, with profit levels set to rise faster than inflation in 2008, despite current predictions of a slowdown in the UK economy, and against a backdrop of rising inflation.

The report goes on to find that the total assets of the underfloor heating industry are set to top £730 million in 2008, having grown from £620 million in 2004, underlining the positive performance in terms of the industry’s net worth.  MTW’s report also states that debt levels should continue to fall to below £390 million by 2012. 

MTW’s original report also reviews average sales, profit levels and other financial indicators in the report, with figures provided since 2004, and forecasts to 2012.  These figures highlight the continued fragmentation in the market in terms of supply, with average sales revenue only recently reaching double digits.

Total sales of the 75 UFH suppliers ranked by MTW are forecast to exceed £1 billion for the first time in 2008, reflecting the ongoing strength and demand for UFH products.  The report, available to purchase exclusively from MTW’s website or by calling 08456 524324, also ranks the suppliers by profit, assets, net worth & number of employees as well as including a 1 page financial profile and ‘health indicator chart’ for each company.  Further information and a free sample of the report is available to download from MTW’s website. 

PRESS RELEASE

February 2008

Housing Groups Exceed 1 Million Social Homes

A new 2008 database on Housing Associations and Social Landlords highlights how building product suppliers and contractors are needing to adapt their marketing techniques in order to successfully grow sales in the UK social housing market.  The growing significance of buying groups and a continued consolidation in the market in terms of housing stock is highlighted by publishers MTW Research in this new database.

MTW, a specialist independent building research company, has found that Housing Groups are becoming increasingly important in social housing refurbishment and construction.  These co-operative groups, formed by Housing Associations to achieve greater purchasing power and more effective economies of scale, now account for over 1.1 million social dwellings in 2008.  The database identifies the 60 groups and their 200 members, representing more than 70% of the UK Housing Association market in 2008. 

MTW are known for their relevant, added value databases, with this listing providing the dwelling stock owned by each housing group as well as the largest 450 Housing Associations, split by England, Wales, Northern Ireland and Scotland.  This neat additional feature should provide suppliers and contractors with the ability to identify and target associations with higher levels of stock and larger budgets, resulting in a more effective marketing campaign.

The bulk of the database includes address, telephone and contact name details for more than 4,700 Housing Associations and has been assembled by MTW in an easy to use, ‘no-nonsense’ manner.  Exporting to other database applications or merging to printed documents is therefore simple and offers building products suppliers of all sizes the ability to target this sector in a cost effective manner.

As with all MTW’s databases, this listing is offered to purchase rather than rent, and is ‘multi-use’ with no restrictions on its’ usage.  The database is available to purchase immediately for GBP450 by calling 08456 524324 or through the company’s website.  Further information and a free sample of the Housing Associations and Social Landlords Database – UK 2008 is available to download from the MTW Research website.

PRESS RELEASE

February 2008

Independent Electrical Wholesalers Maintain 50% Share

MTW Research have published a brand new 2008 database and mailing list encompassing more than 90% of UK Electrical Wholesalers and Distributors, emphasising that this channel remains a vital and significant route to market for the UK Electrical Products and Components Industry. 

MTW, a specialist independent building research company, has found that whilst consolidation in many sectors in the UK Electrical Products market continues, 50% of all Electrical Wholesalers and Distributors have a turnover of less than £1 million.  The database supports findings that reflect the ongoing importance of targeting smaller independent wholesalers as well as the regional and multi-nationals.  As such, suppliers are likely to continue to experience positive volume growth through this route to market, though the importance of effective marketing strategies and relevant mailing lists will become increasingly important in this competitive channel.

The database, which includes turnover estimates for each company, highlights that there is a clear market distinction and growing polarisation in terms of sales in this channel, with over 1200 electrical wholesalers and distributors achieving a turnover of less than £1 million.  MTW’s new database highlights the need for accurate and detailed mailing lists in this sector in order that manufacturers and distributors may effectively increase sales in a cost effective manner through this route to market. 

New for 2008, MTW’s multi-use, no restrictions database includes full company name, address, telephone number and turnover estimates for more than 2,500 Electrical Wholesalers and Distributors, representing more than 90% of this channel’s sales in the Electrical Products market.  With more than 2,300 senior decision maker/head of purchasing contact name records, the database provides instant, quality sales leads and is invaluable for companies who are seeking to grow sales to the Electrical Wholesale market.   The database is available to purchase now for £450.

PRESS RELEASE

January 2008

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Editorial Preface

MTW Research are a brand new, independent publisher of market research reports & databases for the UK Construction & Building Products Industry.  The following is an article based on the publication of a new database on Bathroom Retailers & Installers.  Please use this press release as required, though we would appreciate the inclusion of the database price (£450), website (www.marketresearchreports.co.uk) and/or telephone number 08456 524324 in any editorial printed.  For more information please email us at sales@marketresearchreports.co.uk.

Bathroom Retailers & Installers Channel Remains Attractive Target in 2008

MTW Research have published a brand new 2008 database and mailing list encompassing more than 80% of UK Bathroom Retailers & Installers, which finds that this channel remains a vital and significant route to market for the UK Bathroom Products Industry. 

MTW, a specialist independent building research company, has found that whilst consolidation in many sectors in the UK Bathroom market continues, the Bathroom Retailers & Installers channel remains dominated by independents.  As such, manufacturers and distributors are likely to continue to experience positive volume growth through this route to market, though the importance of effective marketing strategies and relevant mailing lists will become increasingly important in this competitive channel. 

The database, which includes turnover estimates for each company, highlights that there is a clear market distinction in terms of size in this channel, with over 70% of bathroom retailers & installers achieving a turnover of less than £100,000.  At the opposite end of the revenue scale, companies achieving sales of more than £500,000 represent around 5% of all companies, highlighting the need for accurate and detailed databases in this sector which not only provide address and contact details, but also turnover indicators. 

Rising raw material prices and continued pressure on margins means that bathroom products manufacturers and distributors in the industry are increasingly seeking more effective ways of reaching their chosen target market.  The ability to segment a target market by turnover is now not merely a luxury, but a necessity, in order to focus a sales force and develop more profitable marketing techniques.   

New for 2008, MTW’s database includes full company name, address, telephone number and turnover estimates for more than 1,700 Bathroom Retailers and Installers, representing more than 80% of this channel’s sales in the Bathroom products market.  With more than 1,450 senior decision maker/head of purchasing contact names, the database provides instant, quality sales leads and is invaluable for companies who are seeking to grow sales to bathroom retailers and installers.   The database is available to purchase now for £450, with information & free samples available from www.marketresearchreports.co.uk or by e-mailing sales@marketresearchreports.co.uk.

PRESS RELEASE

December 2007

Editorial Preface

Full Details & A Free Report Sample is Available by Clicking Here:-

Click Here to View Full Report Details & Free Sample

£3 Billion Commonwealth Boost for Scotland Construction

A new, independent report published by MTW Research has found that the recent successful bid by Glasgow to host the 2014 Commonwealth Games is likely to result in more than £3 billion of expenditure on private and public construction and refurbishment in the area between now and 2014.  

The potential market for building products suppliers, contractors and other companies is substantial and likely to grow significantly until 2010, though high levels of public and private investment will sustain a strong demand in the market until at least 2014.  Many of the plans for the new venues in Glasgow will be published in the OJEU (Official Journal for the European Union) in the next few months and companies will need to react quickly if they are to establish a meaningful presence in this market. 

MTW’s report, which is available to purchase for £450, reviews the venues and profiles for each project with spending plans and timescales provided.  The report also quantifies the level of RMI and new build activity by hotels in Glasgow to 2014, as well as reviewing the existing planned transport infrastructure developments to 2014 which are likely now to be linked more closely with the Games.  Spending on these sectors will average almost £400 million per year until 2014. 

The Athletes Village will be the centrepiece of the Games, accommodating more than 8,000 athletes and officials.  This new build project, currently budgeted at more than £245 million, will include a cinema, retail outlets, restaurants, a gymnasium and fitness centre as well as the accommodation units.  Legacy plans are for the units to be converted to 1-4 bedroom homes which will be sold over a phased period for both public and private housing. 

Whilst the invitations to tender have not yet been published, MTW has also identified some key contractors and architectural practices which are likely to be involved in the construction and RMI activity for the Glasgow Games in 2014.  This being of particular relevance for manufacturers and sub contractors seeking to take advantage of the construction activity leading to the Games in 2014.

In terms of specification and procurement, MTW Research found that sustainability and environmental considerations are likely to be of significance for the ‘car free’ Games, with the Athletes Village making full use of its location next to the River Clyde, adoption of WRAP’s recycled material content in construction recommendations; and low or zero carbon output living being just some examples included in MTW’s report. 

Following sustained growth in turnover by many of the larger contractors in recent years, the announcement of the Glasgow Commonwealth Games in 2014 should continue to drive demand for building products and construction related services in the medium to longer term, further buoying overall optimism in the construction industry.  For more information on this report, priced at £450, view the full details and download the free sample at www.marketresearchreports.co.uk.