Merchant sales down in April but sales per day reach a new high

April’s Builders Merchant Building Index (BMBI) showed builders’ merchants’ sales to roofers, builders and contractors were 6.3% lower than in April 2016, due to three fewer trading days. All but two categories sold less. However average sales per day in April were 9.3% up, the highest year-on-year increase since the BMBI started 22 months ago. All categories showed gains.

With a difference of five trading days between April and March, absolute sales dropped 13.1% month-on-month but average sales per day were 11.1% higher. Heavy Building Materials, the largest category, was in line with merchants overall.

The BMBI index for April was 106.7. Six categories had indices over 100, led by Landscaping (138.1). Adjusted for trading days, April’s Index was 123.0. All but two categories exceeded 100.

Andy Williamson, Group MD IKO PLC and the BMBI Expert for Roofing Products, says: “The lack of the UK’s usual winter storms in the first quarter of 2017 means there’s been a lot less demand for roofing felt in the domestic market, with the result that this sector is significantly down year-on-year. However housebuilding has remained resilient and the milder weather has allowed some commercial specification RMI work to start earlier than it would do normally.

“According to RICS, the construction industry could lose nearly 200,000 workers from the EU if we fail to maintain access to the single market. EU workers make up around 8% of the construction industry – possibly more in roofing. They make up a much higher proportion in central London too, so this could threaten some major infrastructure projects and exacerbate our current skills crisis.

“We’re seeing a growing trend in the market for flame-free flat roofing solutions, particularly for self-adhesive options. This trend could be linked to the skills shortage, as general builders are being asked to tackle projects that might typically have come under a specialist roofer’s remit.

“Finally, despite the re-emergence of inflation, stagnating wages and anxiety over over-enthusiastic borrowing, consumer confidence has remained surprisingly stable in the UK in the past year, but it is a concern moving forward. GfK’s long-running Consumer Confidence Index dropped in April, with forecasts for personal finances and the general economic situation down year-on-year.”

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