Positive start to 2017 continues: Builders Merchants’ February sales up on last year

February sales were 1.1% down on February 2016 but average sales per day were 3.9% up when adjusted for a difference in trading days.

Six product categories saw marginal gains this February, including Tools (+1.8%) and Plumbing Heating & Electrical (+1.1%).

Month on previous month

February sales were up 6.1% on January (+11.4% adjusting for trading days). Despite February being wetter than January, Landscaping was the top performer, up 23.5%. Other categories out-performing total merchants included Kitchens & Bathrooms (+12.3%) and Heavy Building Materials (+6.5%). Plumbing Heating & Electrical grew more slowly (+1.0%).

Index

February’s Builders Merchant Building Index was 100.5 (104.2 adjusted), up from 94.7 in January. Plumbing Heating & Electrical, influenced by seasonal factors, had the highest index (116.1).

Paul Rivett, Managing Director Heatrae Sadia, BMBI’s Expert for Water Heating says: “Quarter 1 sales in the hot water sector were mixed. Domestic unvented cylinders slipped 10% on the same period last year, hit by slower private housing starts and the growth of combi boilers in small to medium size houses.

“Sales of electric storage water heaters are flat and in line with last year. However, new commercial products, updated for ErP (Energy Rated Products) compliance with new features such as BMS connectivity, pasteurisation cycle to prevent Legionella and smart heating controls are doing well.

“Drinking water, particularly hot tap dispensers are growing at a fast rate due to market expansion in both commercial and domestic sectors.

“Electric boilers continue to grow despite lower oil prices in off-gas areas, as gas boilers in flats and apartments are replaced to comply with gas boiler and flue regulations. This is a trend that we expect will accelerate.

“As we enter Quarter 2 with cautious optimism, the General Election, an increased squeeze on consumer spending and the disconcerting protracted two year BREXIT negotiations could sap confidence. But uncertainty is becoming the backdrop to personal and business decisions, and people can become used to anything.

“After a dip in spending and confidence at the start of the year consumers seem to have started spending again. GfK’s Consumer Confidence Index reports that although the Overall Index Score remains in negative territory, and dipped in April, consumers are positive about their personal finances and say now is a good time to buy. Their confidence may be short lived, but we are entering new territory here!”

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