Builders’ merchants’ sales up  

June’s Builders Merchant Building Index (BMBI) showed builders’ merchants’ sales were up 3.7% in June 2017 compared with the same month last year, with Ironmongery (+10.2%) the strongest category and Plumbing Heating & Electrical (+6.2%) also doing better.

Total sales in the second quarter were 1.9% ahead of the same three months in 2016 but Plumbing Heating & Electrical (+0.5%) did less well. Average sales per day, which account for there being two less trading days this year, were up 5.3% overall, with Plumbing Heating & Electrical up 3.8%.

The first six months of 2017 were 3.8% ahead of the same period in 2016, with Plumbing Heating & Electrical also up 3.8%. The rolling 12 month period, July 2016 to June 2017, was 4.2% ahead of the same period a year earlier, up from 4.0% last month. Plumbing Heating & Electrical (+3.3%) saw sales increase more slowly.

The BMBI index for June was 120.2 (113.4 adjusted for trading days) with all but two categories having indices over 100. Plumbing Heating & Electrical (110.0) was weaker but followed last year’s seasonal trend.

Paul Rivett, Managing Director Heatrae Sadia, BMBI’s Expert for Water Heating says:

“Trading during Quarter 2 continued the trend set in the first period of 2017, with overall sales out through merchants falling back by 10% when compared to the same period in 2016. Overall this leaves the sector trailing last year by 7.5% for the half year.

“However the picture is more complex than the headline view, with domestic hot water storage cylinders declining more than electric commercial water heating or boiling water dispensers which remained relatively flat.

“Electric boiler sales were however consistent with last year, driven by the trend of replacing gas boilers in flats and apartments with electric powered versions, due to more stringent regulations for installing gas boilers and flues in this type of dwelling. This is a trend that is set to continue, along with the increased use of offsite package solutions. As skilled labour becomes harder to find, these solutions provide the specifier and developer with more control of quality, design and installation cost. The package would typically include a hot water cylinder installed on a painted frame with other products such as pumps, manifolds or controllers depending upon the requirement of the installation.

“In summary, it’s a mixed picture so far this year but good opportunities exist by selling package solutions, and more niche products such as electric boilers and drinking water products.”

BMBI Experts speak exclusively for their markets, explaining trends, issues and opportunities.