The Quarter 2 2020 Builders Merchant Building Index, from the Builders Merchants Federation, MRA Marketing and GfK, has been published.
At the end of Q1 the sector was down by -6.7% in value, with Q2 down by -38.6%. Individually, April, May and June couldn’t have been more different. April, with almost a full lockdown, saw a year on year decline of -76.5% as most merchants only provided essential deliveries to active trade account holders. May recovered to -39.9% as restrictions were relaxed, while June grew 2.2% thanks to a combination of relaxed restrictions, good weather and a booming Landscaping category.
Landscaping surged with June to June growth of 50.3%, while the other core categories of Heavy Building Materials and Timber & Joinery saw increases of 0.2% and 1.4% respectively. Landscaping growth was driven by Garden Walling / Paving, Fencing & Gates, and Decking, which more than doubled in value from June to June.
Our Marketing to Builders Merchants feature provides comprehensive information on the key communication channels,
major buying groups and access to our downloadable database of named buyers at the UK’s major merchant chains
Year to date Heavy Building Materials and Timber & Joinery decreased -23.9% and -25.9% respectively against 2019. The former’s June recovery was driven by strong Cement, Aggregates and Roofing performance, while the latter had a strong Timber performance in June. All of this provides a glimmer of hope for the remainder of the year.
Looking ahead the good summer weather could lead to further growth, but the ever-present threat of a second wave remains. The next couple of months will be crucial in helping the sector recover most of the losses incurred during April and May. Continued development of digital platforms across the sector provides a potential roadmap for the future, hopefully offering a solution to the second wave threat. The remainder of the year is impossible to predict, but we all know this is going to be a very bumpy ride.
Click here to download the report.
The Construct UK Sales & Marketing Directory hosts over 75 articles, 1,000 construction events and 30 different databases for download. The annual £195 (+VAT) subscription fee provides unlimited access to all resources on the site.
Keep up to date with the latest construction marketing news by registering for our regular free construction sales and marketing e-bulletin here.
Follow us on Twitter
