Wall Cladding Market Report - UK Analysis

Transcription

1 Wall Cladding Market Report - UK Analysis Published: 11/11/2016 / Number of Pages: 81 / Price: Introduction and Overview The 10th edition of the 'Wall Cladding Market Report - UK Analysis' analyses the major cladding solutions for residential and non-residential buildings, including facing bricks, profiled sheets and composite panels, curtain wall and structural glazing systems, external wall insulation and render systems, as well as a range of rainscreen and other product/material cladding. Product sectors covered: Profiled sheets & composite panels. Curtain wall and structural glazing systems. External wall insulation systems. Manufactured renders. Artificial stone products. Facing clay and concrete bricks. Other fascias and rainscreen products - e.g. timber, metal cassettes, high pressure laminates, terracotta tiles, copper & zinc sheeting, fibre cement sheeting, natural stone, precast concrete panels etc. Key areas of insight include: Analysis of key product / material groups in terms of area installed and value. Split by material types where appropriate, variations in performance. Market size and mix by value. Market forecasts for key product sectors up to Review of key end use sectors & distribution channels. Leading suppliers and market share estimates in the key product / material sectors. Supplier reviews by key product types. Detailed market data and insight on the wall cladding market by AMA Research, a leading UK provider of construction

2 market intelligence. Some of the companies included: A. Steadman & Sons, Acheson and Glover, Aggregate Industries, Alsecco, Alumasc Facades, Ash and Lacy Building Systems, Brickability, C A Building Products, Carlton Main Brickworks, Cembrit, Coverworld UK, Euro Clad, Eurobond Laminates, Firth Steels, Formica UK, Forterra Building Products, Forticrete, Ibstock Brick, Interfuse, James & Taylor, Kawneer UK, Kilwaughter Chemical Company, Kingspan Insulated Panels, Lignacite, Marley Eternit, Metal Technology, Michelmersh Brick, Multipanel UK, Parex Ltd, PD Edenhall, Permarock, Plasmor, Plean Precast, Raeburn Brick, Reynaers, Saint-Gobain Weber, Sapa Building Systems, Schueco UK, Senior Architectural Systems, Smart Systems, Sto Ltd, Tarmac Topblock, Tata Steel Building Systems, Taylor Maxwell Group, Techrete (UK), Telling Architectural, The Haddonstone Group, Thomas Armstrong (Concrete Blocks), Thomas Panels & Profiles, Wetherby Building Systems, Wienerberger UK. Market Overview Total wall cladding market analysed by area installed and by value, with key market drivers e.g. general new build output levels in the different end use sectors, new housebuilding, warehousing, commercial offices etc, legislation etc. Forecasts for wall cladding market by area installed to 2020 and underlying factors driving these forecasts. Consideration of the likely impact of Brexit across this period and whether there may be longer terms impacts resulting from the UK withdrawing from the EU. Assessment of recent trends in key end-use markets and impact on wall cladding including construction output Individual sections for - housebuilding output and forecasts for offices, industry, leisure, education, retail and healthcare. Construction forecasts for key end-use sectors assessment of potential market drivers including: new orders, help to buy, energy company obligations, demand for waste management infrastructure & energy from waste plants, the growth in online retailing & the need for extra warehousing. The impact of these changes on the wall cladding market. Product Mix Market mix by product types at 'headline' level by area installed Market value for each main product type. Typical end use mixes for each material type and split by broad end-use application by area installed - housing/nonhousing, new build/rmi etc. as appropriate. Main product sectors covered - facing bricks, external wall insulation systems, manufactured renders, metal profiled & composite panels, artificial stone, curtain wall, others (specialist flat sheet materials e.g. HPL, fibre cement, calcium silicate; zinc, aluminium, copper; brick slips, hanging tiles, terracotta tiles; natural stone; ceramic granite, weatherboarding & timber). For each main product group: definitions - what the section includes and excludes; market size and trends - market size in , assessment of product performance, key areas of application. Forecasts for main product groups by area installed, identification of market drivers, growth/declining sectors, opportunities and threats. Supply and Distribution

3 Review of supply and distribution structures - clay facing bricks, renders & external wall insulation systems, metal profiled & composite panels, masonry facing products (i.e. artificial stone, architectural precast concrete panels & precast concrete blocks), curtain wall, others - specialist flat sheet materials e.g. HPL, fibre cement, calcium silicate, zinc, aluminium, copper, brick slips, hanging tiles, terracotta tiles, natural stone; ceramic granite, weatherboarding & timber. Channel mixes - where possible assessment of product distribution channels & identification of key manufacturers/suppliers and market shares. Manufacturer / supplier reviews - brick makers, distributors & factors; metal panel manufacturers; curtain wall suppliers & contractors; render systems suppliers; cast stone & precast concrete panel manufacturers; suppliers of rainscreen cladding systems etc. Report Summary The UK market for wall cladding has increased by around 18% in total between 2012 and 2015/16, driven by strong growth in new build and major refurbishment activity in key sectors, such as housebuilding, offices, schools & higher education, hotels & leisure, transport buildings, waste treatment facilities and online retail warehousing. Construction output in 2013 and 2014 was helped by the relatively good summer weather, with private housebuilding, social housing refurbishment, waste management infrastructure and the Central London office development sub-sector all showing solid growth. With improving levels of housebuilding output, driven largely by the Help to Buy scheme and a shift back from flats to houses, demand for facing bricks outpaced supply, with imports needed to make up the shortfalls. However, by 2015, UK brick deliveries improved, so driving up completions. Energy efficiency legislation and initiatives (e.g. ECO) and requirements of Part L of the Building Regulations have driven up demand for cladding products and systems with higher energy efficiency properties e.g. render coated external wall insulation systems and composite panels. The wetter than average weather in the summer of 2015 did, however, appear to hold back the overall rate of growth in demand for bricks and certain other cladding products. However, the range of cladding types is broad and the supply chain diversified and fragmented, the result being that demand for the various cladding types tends to vary, depending on the relative buoyancy of their main end-use markets. Clay facing bricks constitute the largest product group, with demand recently having been driven up by increasing housing output. Other main types of cladding used on housing included cast stone, timber/weatherboarding and render on blockwork and EWI. Clay facing bricks are also used on non-domestic applications, but demand in key areas, in particular out-of-town retail new build, has constrained growth rates here. In the commercial sector, the return to growth in office development and high end apartment blocks in key city locations has largely underpinned demand for curtain wall and rainscreen cladding systems. In the industrial sector steel and aluminium profiled and composite wall panels typically dominate demand for cladding, key areas of use being warehousing, out-of-town retail 'sheds', waste management and utilities facilities and factories. The impact of the recession on the retail and industrial sectors had reduced demand for metal cladding, but demand has recovered driven by increasing demand for online retail warehousing, data centres and energy-from-waste plants. Forecasts for lower growth from 2017 are mainly driven by uncertainty following the 'Brexit' referendum. Although modest annual growth levels are currently forecast to 2020, the medium-term outlook will be dependent upon the path taken to exit the EU and the type of trade and legislative deals formulated. Over the period ending March 2019, when Britain is scheduled to leave the EU, at the very least, the uncertainty created by the situation is likely to create more volatility in the construction market at large. As a result, our view is that demand for cladding will decline modestly during this time in volume terms. Our reasons for this view are due to lack of confidence among property investors and business owners, a weakening of Sterling against the Euro and the US dollar and endemic problems concerning skills shortages in key areas. Other factors that are expected to contribute towards slower growth include the cutting or ending of subsidies for certain products and development programmes. For example, the government's Energy Company Obligation - to help with installing energy efficiency measures for the less well off - is to expire next April.

4 List of Report Contents Contents Listing 1. INTRODUCTION BACKGROUND 6 2. SUMMARY MARKET BACKGROUND MARKET PROSPECTS 9 3. ECONOMIC ENVIRONMENT GDP INFLATION & INTEREST RATES UNEMPLOYMENT HOUSEHOLD CONSUMPTION HOUSING & CONSTRUCTION STERLING POPULATION PROFILE CONCLUSIONS THE UK WALL CLADDING MARKET DEFINITIONS MARKET SIZE AND TRENDS Current Market Situation Market Prospects PRODUCT MIX OVERVIEW KEY MARKET FACTORS Housebuilding Activity Housing RMI NON RESIDENTIAL CONSTRUCTION 27

5 4.5.1 Overview Education Offices Industrial & Infrastructure Retail Leisure and Entertainment REGULATIONS SKILLS SHORTAGES AND REQUIREMENTS FACING BRICKS INTRODUCTION AND DEFINITIONS MARKET SIZE AND TRENDS MARKET MIXES DISTRIBUTION MIX Supply Chain Share Manufacturers and Other Suppliers PROFILED AND INSULATED METAL PANELS INTRODUCTION AND DEFINITION MARKET SIZE AND TRENDS Retail Warehousing Data centres Waste Management MARKET MIXES PRODUCT SUPPLY CHAIN EXTERNAL WALL INSULATION AND RENDER SYSTEMS INTRODUCTION AND DEFINITIONS MARKET SIZE AND TRENDS 51

6 7.2.1 External Wall Insulation (EWI) Systems Rendered Blockwork Pebbledash and Roughcast Render SUPPLIERS ARTIFICIAL STONE BLOCKS AND PANELS INTRODUCTION AND DEFINITIONS MARKET SIZE AND TRENDS SUPPLY CURTAIN WALL AND STRUCTURAL GLAZING INTRODUCTION AND DEFINITIONS MARKET SIZE AND TRENDS MARKET MIXES PRODUCT SUPPLY CHAIN Systems companies Systems Fabricators - Installers Turnkey Contractors NICHE CLADDING PRODUCTS SUMMARY FLAT SHEETS Composite Boards High Pressure Laminates Fibre Cement Calcium Silicate TIMBER NATURAL STONE HIGHER SPECIFICATION METAL/COMPOSITE CLADDING 78

7 10.6 CLAY CLADDING PRODUCTS PRECAST CONCRETE PANELS 80 Tables & Charts TABLE 1 UK WALL CLADDING MARKET BY AREA INSTALLED (MILLION SQ METRES) TABLE 2 GDP DATA KEY CONSTITUENT ELEMENTS 12 CHART 3 INTEREST RATES AND INFLATION (CPI) FROM CHART 4 PDI & SAVINGS RATIO AT CURRENT PRICES TABLE 5 EXCHANGE RATE FLUCTUATIONS STERLING TO THE DOLLAR, AND THE EURO, SPOT RATES 16 TABLE 6 UK TOTAL WALL CLADDING MARKET AREA INSTALLED MILLION METRES SQUARED 19 CHART 7 UK WALL CLADDING MARKET BY PRODUCT TYPE BY AREA INSTALLED (BRICKS, METAL PANELS, RENDER SYSTEMS, CURTAIN WALL, ETC) BY AREA INSTALLED 22 TABLE 8 HOUSING NEW BUILD AND RMI = CONTRACTORS OUTPUT BY VALUE ( BN AT CURRENT PRICES) CHART 9 NEW HOUSING STARTS AND COMPLETIONS (GB) 2011 TO BY VOLUME ( '000 DWELLINGS) 24 CHART 10 HOUSEBUILDING COMPLETIONS IN ENGLAND BY MIX OF HOUSES/FLATS FINANCIAL YEARS TO % VOLUME 25 CHART 11 RMI HOUSING OUTPUT AND FORECASTS BY VALUE ( M AT CURRENT PRICES) 26 TABLE 12 HOUSING RMI REGIONAL ANALYSIS (GB) BY VALUE ( M) AND % BY REGION CHART 13 NON-RESIDENTIAL CONSTRUCTION OUTPUT NEW WORK AND RMI QUARTERLY ANALYSIS Q TO Q BY VALUE ( BILLION AT CURRENT PRICES) 28 CHART 14 NON-RESIDENTIAL CONSTRUCTION OUTPUT ANALYSIS BY SECTOR 2015 AND H % BY VALUE 28 CHART 15 UK OFFICE STOCK BY REGIONAL BY GIFA 30 CHART 16 UK ENTERTAINMENT MARKET - SHARE OF REVENUE BY SECTOR - FOOD SERVICE, HOTELS, PUBS, HEALTH CLUBS ETC. 32 TABLE 17 TRADES AND NUMBER IN EMPLOYMENT TABLE 18 UK MARKET FOR FACING BRICKS BY AREA INSTALLED TABLE 19 UK MANUFACTURERS BRICK SALES AND TOTAL MARKET BY VALUE ( M MSP) 2010 TO

8 CHART 20 UK MARKET FOR FACING BRICKS % END USE MIX BY AREA INSTALLED (NEW HOUSING / NON-HOUSING, NEW BUILD / RMI) CHART 21 UK DISTRIBUTION MIX FOR CLAY BRICKS % BY VALUE CHART 22 UK MARKET FOR BRICKS MARKET SHARE FOR KEY SUPPLIERS - % 41 CHART 23 UK MARKET FOR STEEL & ALUMINIUM WALL CLADDING PANELS CHART 24 UK MARKET FOR COMPOSITE WALL PANELS END USE APPLICATION MIX 47 CHART 25 UK MARKET FOR TWIN SKIN METAL WALL PANELS - ESTIMATED END USE MIX 2015 (COMMERCIAL / INDUSTRIAL, NEW BUILD / RMI) 48 CHART 26 SHARE OF THE 3.5 MILLION DWELLINGS SUITABLE FOR EXTERNAL WALL INSULATION BY TYPE OF OWNERSHIP 52 TABLE 27 TOTAL SOLID WALL INSULATION MEASURES INSTALLED UNDER ECO TABLE 28 UK MARKET FOR EXTERNAL WALL INSULATION BY AREA INSTALLED (MILLION M²) CHART 29 EWI SYSTEMS -TYPICAL END USE MIX BY VOLUME (COMMERCIAL, PRIVATE HOUSING, SOCIAL HOUSING) 55 TABLE 30 UK MARKET FOR RENDERED BLOCK BY AREA INSTALLED (MILLION M²) CHART 31 UK MARKET FOR RENDERED BLOCKWORK - TYPICAL END USE MIX BY AREA INSTALLED BY APPLICATION - HOUSING, COMMERCIAL / PUBLIC SECTOR 56 CHART 32 UK MARKET FOR RENDERED BLOCKWORK - BY ANNUAL AREA INSTALLED BY REGION 57 TABLE 33 UK MARKET FOR ARTIFICIAL STONE BLOCKS AND PANELS BY AREA INSTALLED CHART 34 ARTIFICIAL STONE CLADDING - END USE MIX BY AREA INSTALLED PRIVATE, SOCIAL HOUSING, COMMERCIAL - NEW BUILD / REFURBISHMENT 61 CHART 35 UK CURTAIN WALL MARKET SIZE AND FORECASTS BY AREA INSTALLED (MILLION M2) CHART 36 UK MARKET FOR CURTAIN WALL BY AREA INSTALLED BY END USE SECTOR - OFFICES, FLATS, RETAIL & LEISURE, ETC CHART 37 UK CURTAIN WALL MARKET BY CONTRACT SIZE BY % OF INSTALLED VALUE CHART 38 SYSTEM COMPANIES OVERALL MARKET SHARE ESTIMATES CHART 39 APPROXIMATE END USE MIX FOR FIBRE CEMENT SHEETING 75 CHART 40 UK TIMBER CLADDING MARKET - END USE MIX BY AREA INSTALLED (COMMERCIAL NEW BUILD, RMI, HOUSING) 76

9 CHART 41 UK NATURAL STONE CLADDING MARKET - END USE MIX BY AREA INSTALLED (COMMERCIAL NEW BUILD, RMI, PRIVATE HOUSING NEW BUILD/RMI) 77 CHART 42 ARCHITECTURAL PRECAST PANELS -TYPICAL END USE MIX BY AREA INSTALLED (COMMERCIAL/PUBLIC SECTOR NEW BUILD, RMI, HIGH RISE RESIDENTIAL NEW BUILD) 80 The'Wall Cladding Market Report - UK Analysis' costs 845+VAT (if applicable) for a PDF version. Other formats are available - click here for a information about available report formats. All AMA reports are sold with a single user licence as standard. For more information about AMA licences click here. About AMA Research Established in 1989, AMA Research is widely recognised as the leading specialist provider of market research to the UK building and construction industries. AMA s research and analysis goes beyond the more commonly available range of statistical and company information to provide expert, informed commentary and in-depth market analysis, making the reports a valuable and relevant resource for understanding the UK s construction and associated markets. We offer the following: Consultancy and bespoke research projects Published research reports high quality, detailed research reviews covering a wide range of environmental, building and construction products. Our extensive experience and in-house research database enables us to offer specialised and flexible bespoke research services, as well as giving excellent value for money. Our experienced in-house team of researchers are experts in their fields and adept in conducting original and relevant research for reports or bespoke projects, and key decision makers across the building and construction industries, both in the UK and abroad, frequently use our high-quality reports as their primary source of market data. To find out more about AMA Research, visit: or call us on