Strong Builders’ Merchants’ sales in October

Britain’s roofing and cladding contractors continue to buy more from Builders’ Merchants in October, defying predictions of a post-Brexit slump.

John Newcomb, Managing Director of the BMF, comments: “October’s Builders Merchants Building Index (BMBI), which tracks builders’ merchants’ sales to builders and contractors using GfK’s comprehensive Builders Merchant Point of Sale Tracking Data, reported sales up 1.6% on October 2015, but when adjusted for the difference in trading days merchants’ sales were 6.1% higher.

“Builders’ and contractors’ purchases from merchants have grown in 11 of the past 12 months, and year to date sales are now 4.7% ahead of the same period in 2015, with Landscaping (+9.0%) and Ironmongery (+7.5%) the top performing categories.”

October’s ONS construction figure, which reflects construction as a whole, shows slower growth of 0.7% year on year, but the initial ONS figures are usually based on just 40% of the data and almost always revised up as more data is collected. For example September’s 0.2% growth was later amended to 2.5%.

Steve Durdant-Hollamby, Managing Director Alumasc Water Management Solutions (AWMS), BMBI’s Expert for Civils, Metal Rainwater and Drainage says: “Metal rainwater & drainage grew by around 5% in Q3 and sales to builders and contractors continued strong in October.

“In the short term, fluctuating post-referendum exchange rates and raw material price increases are the key challenges. Will Mr Trump’s election help sterling recover and moderate future price increases?

“Without prompt action by industry and Government, the growing threat of skilled labour shortages will be a drag on project timelines. It’s an opportunity and stimulus to innovative manufacturers to develop new low-skill modular products that are easy and quick to fit, and don’t require multiple trades to install. There are also new opportunities for products that improve flood resilience and protect properties from the increased risk of flooding”.

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Visit www.bmbi.co.uk to see the detailed report.