BMBI data shows strong start to 2017 for merchants

The Builders Merchants Building Index (BMBI) tracks builders’ merchants’ actual sales to builders and contractors using GfK’s Builders’ Merchant Point of Sale Tracking Data. The BMBI represents over 80% of the value of the builders’ merchants’ market.

Its latest figures (Source: GfK Builders’ Merchant Point of Sale Tracking Data July 2014 – Jan 2017) reveal that a drier climate and additional working day on last year also contributed to a strong start to 2017.

January highlights:

+7.2% on January 2016
+22.8% on December 2016
-0.6% on December 2016, when adjusted for trading days

Particularly strong January performances were seen in Renewables & Water Management, Workwear & Safetywear, and Timber & Joinery.

Additionally, in its monthly analysis for January, the BMBI noted that an additional trading day over January 2016 was a key driver for the 7.2% year on year sales value growth. When adjusting for trading days, growth was 2.1% year on year. Although a little cooler, January was much drier compared to 2016 benefitting external projects and contributing to the stronger growth in Landscaping (+8.8%) and Heavy Building Materials (+7.7%).

The growth in these two areas was driven by a strong performance in the following sub-categories: Bricks & Blocks, Lintels, Roofing Products, Insulation, Builders Metalwork, Garden Walling/Paving & Driveways/Block Paving/Kerbs.

Four other categories also saw sales growth greater than the total channel, including Tools (+8.7%), Timber & Joinery (+8.2%) and Plumbing, Heating & Electrical (+7.9%). Unsurprisingly, sales of Workwear & Safetywear did not benefit from this year’s drier climate with sales values 2.8% down on a much wetter January 2016.

Month on previous month

Total sales value in January was up 22.8% on December 2016 but down 0.6% when adjusted for trading days (17 in December 2016 and 21 in January 2017). Although Renewables & Water Management and Workwear & Safetywear make up less than 1% of all sales through the generalist merchants they saw the greatest month on month growth (+60.4% and +50.8% respectively).

Timber & Joinery (+30.2%) was the biggest category to see growth ahead of the total channel.

Click here for the full January 2017 report.

Visit www.bmbi.co.uk to see the latest monthly or quarterly report. Read trends, analysis and industry issues from BMBI’s panel of construction industry experts.

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