The UK builders and plumbers merchant market is estimated to have grown to £10bn in 2003, according to a new study.
AMA Research said the predicted increase follows a 5% rise in the market during 2002 to £9.5bn.
The rate of growth has been affected by a slowdown in new housebuilding and increases in raw material prices. Timber and timber products have been put under pressure in the past two to three years by depressed demand in the home markets of large producers, including the US and Canada, which has resulted in surplus supply for certain items, affecting average prices.
More competition in the building products sector has also made life difficult for merchants, due to the rise of specialist distributors and the growth of DIY multiples and extension of their product ranges. Manufacturers supplying direct to customers are described as a “major threat”.
Saint Gobain (Jewson), Wolseley, Travis Perkins, BSS and Grafton together were estimated to account for 61% of the market in 2002. Merchants’ share of the timber and wood products market was an estimated 20-25%.
