A positive May for builders’ merchants

May’s Builders Merchant Building Index (BMBI) showed builders’ merchants’ sales to roofers, builders and contractors were up 8.5% in May 2017 compared with the same month last year, assisted by one extra trading day and the third-warmest May in 50 years. Timber & Joinery Products (+10.1%) and Heavy Building Materials (9.4%) both did better, achieving their second-highest sales in the last 12 months.

Adjusted for one extra trading day, average daily sales were 3.3% ahead of May 2016.

Year-to-date sales strengthened on the back of a robust May. The first five months of 2017 were 3.8% ahead of the same period in 2016 – up from +2.6% YTD in April. The rolling 12 month period, June 2016 to May 2017, was 4.0% ahead of the same period a year earlier, on the same number of trading days.

The BMBI index was 121.1 (119.6 adjusted for trading days) and all categories except one had indices over 100.

John Duffin, Managing Director Keylite Roof Windows, BMBI’s Expert for Roof Windows says: With so many political and economic factors completely up in the air at present it’s fair to say ‘change’ has become the new normal.  At this time it makes sense for the industry to react by becoming more actively engaged with customers and in tune with their changing needs.

The good news is that the BMBI index continues to show modest growth in 2017. Roof Windows are doing better than the index average with growth into double figures for both the quarter and year to date, reflecting the relative strength of RMI.

The double whammy of an aging construction work force and likely Brexit restrictions on future labour movement represents a challenge going forward. For example, Keylite is reacting by developing new, highly efficient roof window products which are simple to install and meet the enhanced performance needs of end users. We believe that launching new added value products is the best way to make a positive impact in the market and innovation should be the industry’s prime focus.

For roofers, these new, added value products represent a chance to engage and stay relevant with customers in the drive to continually raise standards of service from the industry. 

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