Pavestone Comment: Q1 2023

After a slow start, Q1 started to gather momentum in March as better weather laid the groundwork for a boost in paving sales.

A lot has been reported in the media about the cost-of-living crisis, but consumer finances look to be in better shape than we anticipated. Measured by GfK’s Consumer Confidence Index, consumer confidence has also been steadily improving since it dropped to -49 in September, its lowest point, to -30 this April. The major purchase index component of it also improved +5 points from March to -28 in April.

High-end landscapers are reportedly busy, however those working in the mid to lower end of the market, where the cost of living increases are more keenly felt, are seeing a drop in demand. There is also an increasing disparity between budgets and aspirations – the upshot being, will more people opt to DIY their patio to save on the labour element?

Paving product prices continue to fall thanks to the decrease in shipping costs, which are now back to pre-Covid levels. We didn’t see the usual ‘stock up’ preseason this year as merchants have been flushing through more expensive stock, bought when shipping prices were higher.

Porcelain continues to grow in popularity while sandstone sales are rolling backwards. As a premium product with premium benefits, homeowners will pay more for porcelain. Disappointingly though, we are already seeing a race to the bottom on pricing and quality.

We recently identified an issue with paving products mis-claimed as porcelain. This fake product is not fired at high enough temperatures, so it is porous, therefore susceptible to algae and staining, and it’s not scratch or slip resistant. To avoid a flood of unhappy customers returning when problems inevitably begin to surface, we are doing some education work with merchants around this growing issue, ensuring they are comparing apples with apples when making purchasing decisions.

Lighter colours are trending for 2023, including greige. We are offering a new porcelain with a marble pattern which is selling out fast, as customers seek out something different for their outdoor spaces.

Share this article:

Categories

View All (887)

Archive