Industry News

BMBI Q2/2018: Sales of Timber and Joinery products up 9.5% against 2017

Sales through UK builders merchants bounced back in Q2 2018, with the BMF’s Builders Merchants Building Index (BMBI) reporting 7.2% growth in sales value over Q2 2017. There was one more trading day during Q2 this year, adjusting for this the average daily sales growth year on year was 5.5%. The strong performance in Q2 contrasts markedly to a weather-hindered performance in the first quarter of the year.

The Timber and Joinery category had a major impact on total sales value growth in Q2, up 9.5% year on year. Within this the Sheet Materials sub category was a big contributor.

Heavy Building Materials, the largest product category, also showed strong growth in Q2 2018, up 6.3% on the same period last year.

Looking at the year to date, which takes into account two very different quarters of construction activity, total builders merchants sales in the first six months of 2018 increased by 4.0% over the same six months in 2017.

The BMBI uses GfK’s point of sale tracking data drawn from over 80% of builders merchants’ sales throughout the country, making it the most reliable source of data for the sector.  The full Q2 report can be downloaded at www.bmbi.co.uk

Commenting on the figures, John Newcomb, BMF CEO said: “For the second quarter running the impact of the weather on construction output – and builders merchants sales – is clear to see. The warm, dry weather through much of Q2 has enabled construction work to catch up on sites that had stalled earlier in the year.  The merchant industry will be buoyed by Q2 sales and, with above average temperatures forecast into the autumn, we remain confident of continued growth this year.” 

Richard Frankcom, Client Insight Director at GfK said: “Following the dramatic weather in Q1 delaying the usual end of quarter external work kick off, we had been expecting a strong Q2 performance, and these results did not disappoint. Midway through April the weather improved and May and June delivered strong growth in almost every category. That said, price inflation and one extra trading day in Q2 2018 over the same period in 2017 also had an effect on growth, but we should be content that the builders merchant sector remains in good health.”

 

[News URL: http://cti-timber.org/content/bmbi-q22018-timber-and-joinery-products-sales-95-against-2017]

Construction buoyant despite Brexit fears and ONS stats, show BMF Statistics

There are few signs that Brexit has negatively impacted the construction industry according to the latest figures from the Builders Merchant Building Index (BMBI). 

As shown by the BMF Statistics, timber and joinery products are among the best performing products, reporting a 11.8% sales increase. 

Overall like-for-like sales (allowing for two extra trading days) were up 2.8%. Year to date sales grew 5.4%.

ONS statistics, released today, suggest construction output decreased by 1.5% in August.  Whilst these are a different and broader measure of the construction sector, the contrast with BMBI figures, which relate to building materials, is startling.  

BMF Managing Director, John Newcomb, commented: "We are surprised by the ONS figures as they do not reflect what we see happening in the building materials industry.  We believe that the BMBI figures more accurately show the strength of the sector as they correlate to future output.  Put simply, for a brick to be laid, it first has to be supplied and purchased."

“There is lots of speculation on the impact of Brexit on the economy as a whole and on construction, so we are very encouraged to see sales growth of over 13% in August, which shows that our industry is still strong and in robust health”.

Below you can find a summary table of BMBI statistics for August 2016 and year to date.  

 

[News URL: http://cti-timber.org/content/construction-buoyant-despite-brexit-fears-and-ons-stats-show-bmf-statistics]

Building materials market growing strongly, BMF KPI Report shows

The Builders Merchants Federation (BMF) has issued its 2016 Key Performance Indicators Report.

The publication gives a picture of how builders merchants’ businesses fared during the twelve months ending April 2016.

According to the report, the building materials market during the period of this report has experienced strong growth. The BMF Sales Indicators reported that for the 12 months ended April 2016 compared with the previous 12 month period, total sales by merchants had increased by 6.2%.

Compared to April 2015, output in the construction industry decreased by 3.7% in April 2016. The underlying pattern as suggested by the 3 month on 3 month movement in output in the construction industry decreased by 2.1%. There was a decrease of 3.3% in all repair and maintenance compared with the same period last year; housing and non-housing repair and maintenance reported decreases of 4.2% and 2.5% respectively.

However on the year, total housing increased by 0.9% compared with April 2015. The main contributor was private new housing which increased by 5.8%, offset by public new housing which decreased by 20.7%. This was the 12th consecutive period of year-on-year decreases in public new housing. 

John Newcomb, Managing Director of the BMF, commented: “Economic and political uncertainty in the run-up to the EU referendum was expected to cause a slow-down in the construction sector. However, sales data from our builders’ merchant members is telling a very different story. 2015/16 sales were up on last year and the merchant market experienced an 8.4% increase between April 2016 and April 2015. We are confident that our members will continue to perform strongly, and the BMF will work with the Government to ensure the best outcomes for our members as the Brexit deal is negotiated.”

To request a copy of the report, contact Richard Ellithorne, BMF Membership Services Director, at [email protected].

 

[News URL: http://cti-timber.org/content/building-materials-market-growing-strongly-bmf-kpi-report-shows]

BMF opens first Regional Centre of Excellence in Nottingham

The Builders Merchants Federation (BMF) has opened its first Regional Centre of Excellence as part of a localisation programme designed to strengthen the organisation’s regional presence and add to the support it offers members in their geographic area.

The BMF will establish up to 24 Centres of Excellence, two in each of its twelve regions, in the coming months.

The first Centre of Excellence is at The Green Energy Centre at John A Stephens in Nottingham. Opened just ten years ago, the £2m centre will be used as a regional hub and centre for BMF training in the East Midlands.  As such it will host regional meetings and forums as well as training courses for members in that area.

The BMF will be run its first Regional Training Programme, comprising three different training courses, at the Green Energy Centre In November. The next East Midlands Regional Meeting will also be held there.

Sites for BMF Centres of Excellence have already been identified in Scotland, Northern Ireland, North West, Eastern, South West and West Midland Regions.  Details of these will be announced at Members Day on 21st September.

Commenting on the new initiative, BMF MD, John Newcomb said: “We have been working with members to identify appropriate spaces as regional hubs where local groups can come together for meetings and training.  The Green Energy Centre is a superb example and I’m sure it will play an important role in servicing the needs of our members in the East Midlands.”

Mr Newcomb added: "Localisation is an important strategy for the BMF going forward. With a network of Regional Centres of Excellence alongside our enhanced Regional Management team we are in an excellent position to engage with our growing membership on their home ground.” 

 

[News URL: http://www.cti-timber.org/content/bmf-opens-first-regional-centre-excellence-nottingham]

BMJ / BMF Young Achiever Award: Call for entries to close in few days

Entries for BMJ / BMF Young Achiever Award will close on Monday 1 August 2016.

The award was launched by the Builders Merchants Journal (BMJ) along with the Builders Merchants Federation (BMF) in 2013 to recognise and encourage the achievements of younger members of staff within merchanting.

Sponsored by SCA Timber and Bostik, the award was joined in 2014 by the Young Supplier Achiever Award to recognise that suppliers play a huge part in the success of a business relationship. 

The winner will receive a cheque for £2,500 and trip to Sweden, courtesy of SCA Timber, the runner-up an iPad, courtesy of Bostik. 

To download the entry form click here.

 

[News URL: http://www.cti-timber.org/content/bmj-bmf-young-achiever-award-call-entries-close-few-days]

Pages