Continued positivity in August for builders’ merchants

August’s Builders Merchant Building Index (BMBI) showed builders’ merchants’ sales to roofers, builders and contractors were up 5.8% in August 2017 compared with the same month last year. Seven categories did better including Kitchens & Bathrooms (+11.1%).  Growth for Timber & Joinery Products was weaker than merchants generally (+4.8%).

The three summer months (June, July and August) were 5.5% ahead of the same period in 2016, with Timber & Joinery Products (+5.3%) in line with merchants overall. Year to date sales strengthened, with the first eight months of 2017 4.5% ahead of the same period in 2016 – up from +4.3% YTD in July.

The rolling 12 month period, September 2016 to August 2017, was 4.6% ahead of the same period a year earlier. Timber & Joinery Products (+5.0%) did better. August’s Builders Merchant Building Index was 120.5 (113.6 adjusted for trading days) and all categories except one had indices over 100.

Andy Williamson, Group MD IKO PLC and the BMBI Expert for Roofing Products, comments: “Although builders’ merchants overall sales are holding well, roofing sales at best are flat and have been for much of the year. Housebuilding is still showing growth but slowing and commercial projects continue to be affected by delays. Raw material price rises – partly due to shortages and partly the result of increases in fuel and energy costs – and Euro currency inflation have started to hit the market, which affects sales volumes. Skills shortages remain a concern in RMI and commercial sectors, and with continuing uncertainty over Brexit, this is likely to get worse.

“Earlier this year the roofing industry welcomed the new NFRC (National Federation of Roofing Contractors) guidelines on safe practice when using gas torches. The Safe2Torch campaign is the result of two years’ work and will directly affect at least 50% of all the flat roofs installed in the UK. It aims to put safety first at the design stage. Although the guidelines aren’t mandatory, ensuring fire risks are identified at the survey stage and factored into specifications is a great contribution to safety in roofing. Developed with contractor and manufacturer NFRC members, it should significantly reduce the risk of roof fires when using gas torches, either to dry out roofs or to install torch-on membranes. That can only be a good thing for the industry, end-clients and the market.”

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