Page 52 - HW June NEW 2022

global eyes
Uncertainty looks certain to dampen UK building activity
BOTH THE BUILDERS Merchant Federation and the Construction Products Association have recently expressed concern that a combination of geo- political issues, cost inflation and reduced activity will stymie the broad growth that’s been seen in recent times across the UK building industry.
The merchants are holding their own, for now – Q1 2022 was a bumper quarter for UK builders’ merchants, according to the latest BMBI data
from MRA Research and the Builders Merchant Federation.
Thanks in part to a record-breaking March, Britain’s builders’ merchants clocked up the highest ever total sales in the history of the BMBI.
However, this was driven once again more by price inflation (+16.0%) than volume growth (+1.5%).
Quarter 1 2022’s total sales were 17.7% up by value on Q1 2021, and all bar one product category (Workwear & Safetywear, which was flat) sold more.
Renewables & Water Saving (+29.3%) did best, followed by Kitchens & Bathrooms (+26.3%) which also recorded its best-ever quarterly sales.
Timber & Joinery Products (+21.4%) and Heavy Building Materials (+17.4% in value) grew more slowly while Plumbing, Heating & Electrical (+16.4%) and Miscellaneous (+12.8%) both recorded best-ever quarterly sales.
Comparing Q1 2022 with pre- pandemic Q1 2019, total value sales were +24.7%, and all categories sold more including Landscaping (+51.4%) and Timber & Joinery Products (+40.6%), which did particularly well.
Heavy Building Materials (+18.9%), Kitchens & Bathrooms (+17.8%) and Plumbing, Heating & Electrical (+11.2%) all grew more slowly.
All this growth must however be
set against a general background of uncertainty, according to Mike Rigby, CEO of MRA Research which produces this report: “It’s been an uncertain start to 2022 with the outbreak of war in Ukraine
further impacting energy costs and inflation.
“But the quarterly figures suggest that – for now at least – the building sector is holding its resolve.
“With rising costs and another round of energy price increases looming, there may be clouds on the horizon but with geopolitical circumstances changeable, there is little way of knowing exactly what Q2 will bring.”
UK construction activity slows “dramatically” as issues bite – Far more negative than the views expressed above, in its latest quarterly forecast the UK’s Construction Products Association (CPA) has already recorded a dramatic slowing in growth, with more uncertainty ahead as global issues start to affect the UK building sector.
In previous years, the predicted
2.8% growth in construction output anticipated by the CPA would be cause for celebration. However, this is a sharp revision down from the 4.3% growth
50 NZHJ | JUNE 2022
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