Total builders merchants value sales to builders, contractors, and timber trades in October 2018 were the highest of any month since the start of BMBI data in July 2014, helped by October having 22 trading days (most months have 20-22 trading days). Sales were up 6.8% compared with October 2017.
Eleven of the 12 categories sold more, led by timber and joinery products (+10.3%), which also had its best-ever month. Five other categories recorded record sales in October, including decorating (+7.9%). However kitchens and bathrooms (+1.9%) was among five categories that grew more slowly.
Total sales in October were 11.4% higher than September, helped by two more trading days. Eight categories did better, including plumbing, heating and electrical (+17.2%). Timber joinery products (+10.1%) was just off the pace. Average sales a day in October, which takes trading day differences into account, were 1.3% ahead of September. Timber and joinery sales were flat.
The first 10 months of 2018 were 4.3% ahead of the same period in 2017. Plumbing heating and electrical (+8.3%) did best, with timber joinery products (+7.6%) the secondstrongest.
October’s Builders Merchant Building Index was 131.8, helped by one more trading day, with timber and joinery products 137.2. The average sales a day index was 124.3 (timber and joinery 129.4).
“The third quarter of 2018 continued to see strong year-on-year growth for timber and panel products reflected in the BMBI statistics, influenced by good weather and strong demand from the construction sector,” said Nigel Cox, Timbmet managing director and BMBI’s expert for timber and panel products.
“Hardwood timber supply over the major species is generally good with stable pricing, although exchange rate fluctuations remain a concern. North American supply is still a concern following the US/China trade war but wood is available.
“The African supply situation remains difficult, with internal transport and shipping costs impacting on availability.
“Demand has increased for larch cladding rather than cedar due to high cedar prices over the last 12 months. Prime European oak continues to be popular for high quality joinery and mouldings; lower grade character oak has seen growth in other market sectors.
“Ash, maple and walnut are very much back in vogue in kitchens with good demand. Hardwood decking has performed well this season as a popular alternative to composite decking options.
“Engineered timber for windows and doors in softwood, red hardwood and European oak is continuing to see good growth, with customers recognising the cost benefits.”
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