Paul Rivett, Managing Director Heatrae Sadia is BMBI’s Expert for Water Heating.

The performance of the water heating market in quarter four was somewhat mixed compared to Q4 2016. Products such as electric heating boilers and boiling water dispensers (Hot taps) performed well with recent increased consumer interest. It was more of a challenging performance for electric commercial water heaters and hot water cylinders.

Package solutions containing storage water heaters, heating interface units and system manifolds among other products for multi occupancy dwellings grew strongly however. Such pre-plumbed system packages can offer a welcome solution to the skilled labour shortage. They offer a robust, quality-assured method of delivering water heating which is less reliant on the skills of the individual installer. The industry continues its struggle with labour pressures from both long-term issues such as an ageing workforce where large numbers can be expected to retire within a few years, as well as more recent pressures from Brexit and departing foreign workers. Product systems that are factory assembled and pre-designed off site – in all industry sectors – will become increasingly sought by contractors.

Recent press focus on reducing plastic waste offers opportunities to increase interest in ‘Hot tap’ products: those that can deliver instant boiling and /or chilled and filtered water. Several campaigns have started to encourage consumers to refill personal water bottles at home and on the high street – rather than create waste with single-use bottles. These campaigns have been boosted by the announcement that the Queen has added her weight with the phasing out of single-use plastic containers on royal estates.

The campaigns could encourage more homeowners, shops and commercial premises to offer chilled and /or filtered water ‘on tap’. The product ranges in this sector all offer environmental, cost-saving, and time-saving benefits. They are attractive, high added-value products for domestic and commercial kitchens that offer innovative market opportunities serving aspirational buyers.

Looking forward, Brexit negotiations continue to create uncertainty in the construction sector, and overall the market remains challenging. In water heating, however, we see strong growth developing in the new areas of opportunities such as package solutions for multi occupancy dwellings and Hot taps.