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12 | Statistics Update: Builders Merchants


Q2 VALUE SALES UP FROM Q1


Latest BMBI figures show Q2 timber and joinery value sales up +5.5% on Q1, but lagged -7.4% year-on-year


SUMMARY


■Q2 timber and joinery sales were -7.4% down year-on-year


■Quarter-on-quarter sales were up ■2023 to 2024 saw fewer than 150,000 housing completions


■Competition for labour and materials could cause some inflation


The latest figures from the Builders Merchants Building Index (BMBI), published in August, show that total value sales for Q2 2024 were down -5.8% compared to Q2 2023, with volume sales down -7.2% and prices up +1.5%. With two extra trading days this year, like-for-like sales (which take the number of trading days into account) were -8.8% lower. Half of the 12 categories sold more in Q2 2024 with work wear and safety wear up +15.6%, but the two largest categories – timber and joinery products (-7.4%) and heavy building materials (-8.4%) – were both down more than total merchants. Quarter-on-quarter, total value sales for Q2 2024 were up +9.5% compared to Q1. Volume sales were +13.8% higher, while prices were -3.8% lower. Timber and joinery products (+5.5%) grew more slowly. With one fewer trading day in the most recent period, like- for-like sales were +11.2% up Q-on-Q. “We have a new Labour government and increasing new build home volumes is at the heart of its plans,” said Simon Woods, European sales, marketing and logistics director at West Fraser and BMBI’s expert for wood-based panels. “This is great news for many of the manufacturers within the construction products arena and for those involved in manufacturing timber related products. If we are to build 300,000 per year – starting now – then we need some considerable change. 2023 to 2024 saw fewer


Above: Simon Woods, West Fraser


than 150,000 completions, so we are looking at a 100% increase in a very short period. “The last time we built 300,000 was around 50 years ago and at that time the local authorities provided approximately half of them, which means that private developers will need to flood the market with double the volume, or local authorities will need to step


back into building social housing – unlikely if we consider the state of public finances. “If we assume that it’s left to the private developers, then they are going to be competing for labour and materials (at least in the short term as manufacturers ramp up), which could cause some level of inflation. “For timber related markets, the ramp up could be more focused than other sectors, as offsite or modern methods of construction could be the route to higher volumes without the stress of finding skilled labour. Many of the major housebuilders have offsite timber frame facilities and it could well be these that are most quickly able to ramp up. “Even so, building 1.5 million new houses seems likely to be a stretch. However, even 80% of that achievement would be a welcome segway to better times for all involved in the industry, including RMI due to the property chains involved.” ■


For the latest reports, expert comments and round table debates, visit www.bmbi.co.uk


Above: Quarterly sales, year-on-year


The Builders Merchant Building Index (BMBI) The BMBI is a brand of the BMF. The BMBI report, which is produced and managed by MRA Research, uses GfK’s Builders Merchant Point of Sale Tracking Data which analyses sales out data from 92% of generalist builders’ merchants’ sales across Great Britain. The full report is on www.bmbi.co.uk


TTJ | September/October 2024 | www.ttjonline.com


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