The latest Builders Merchant Building Index (BMBI) report reveals that builders’ merchants’ value sales were up +0.8% in February compared to the same month in 2022. However, this growth was driven exclusively by price inflation (+14.9%) as volume sales fell -12.2%. There was no difference in trading days.
Nine of the twelve categories sold more in February 2023 compared to February 2022. Renewables & Water Saving (+58.9%) was again the strongest performing category, while Decorating (+15.0%), Plumbing, Heating & Electrical (+13.3%), Workwear & Safetywear (+10.1%) and Ironmongery (+8.5%) also increased. Timber & Joinery Products (-13.9%), Landscaping (-12.5%) and Services (-2.1%) all sold less.
Month-on-month, total merchant sales were +8.2% higher in February 2023 than the previous month. Volume sales were +13.4% higher than January, while prices were down -4.6%. With one less trading day in February, like-for-like sales were up +13.6%. Month-on-month the strongest category was Landscaping (+27.6%), followed by Heavy Building Materials (+10.9%). Workwear and Safetywear (-6.5%) was the weakest performing category.
Year-on-year
Total merchant sales in the twelve months from March 2022 to February 2023 were +3.8% up on the same period a year ago. Price inflation reached +16.6% while volumes were down -11.0%.
With two less trading days in the most recent period, like-for-like sales were +4.7% higher. Ten of the twelve categories sold more with Renewables & Water Saving (+35.0%) continuing to lead the field. Kitchens & Bathrooms (+16.1%), Plumbing, Heating & Electrical (+14.6%), Workwear & Safetywear (+13.8%), Decorating (+11.5%) and Heavy Building Materials (+9.5%) all did better than merchants overall. Landscaping (-5.1%) and Timber & Joinery Products (-7.6%) both sold less.
Mike Rigby, CEO of MRA Research which produces this report, said: “Twenty twenty-three has so far evaded recession, but it’s teetering between still rapidly rising prices and falling volumes.
“It’s a strange time with the economy caught between a Government pleased to welcome growth and a central bank keen to discourage it in its battle against inflation. Global financial markets wobbled after the collapse of Silicon Valley Bank and the hurried bundling of Credit Suisse into UBS. We can expect more bank failures, although few people are predicting a serious meltdown.
Mike continued: “GfK’s Consumer Confidence Index remains in strongly negative territory, but it has improved to -36 in March from the battering it took in September under the previous Prime Minister when it fell to -49. The Major Purchase Index, an important component of GfK’s overall Consumer Confidence Index improved +4 points to -33 in March but it’s still nine points down from the same month last year. This index is based on asking consumers: ‘In view of the general economic situation, do you think now is the right time for people to make major purchases such as furniture or electrical goods?’
“Yet the improvement in private housing repair and maintenance surprised most commentators who were quick to write it off. It grew +5.0% in February according to the ONS, with the rebound attributed to various factors including an improvement in the weather, the return of the ‘improve, not move’ trend, and the ‘Haves’ carrying on regardless and continuing to spend on improving their homes. The Haves, generally older, mortgage-free homeowners account for the bulk of Britain’s savings and are better known as the Bank of Mum and Dad.”
Developed and run by MRA Research, the BMBI – a brand of the Builders Merchants Federation – is a monthly index of builders’ merchant sales, and the most reliable, up-to-date measure of Repair, Maintenance, and Improvement (RMI) activity in the UK. The index is based on actual sales from GfK’s Builders’ Merchant Point of Sale Tracking Data, which captures value sales out to builders from generalist builders’ merchants, accounting for over 80% of total sales from builders’ merchants throughout Great Britain. An in-depth review, which includes commentary by sector experts, is provided each quarter.
February’s BMBI report, published in April, is available to download at www.bmbi.co.uk.
The latest figures from the Plumbing & Heating Merchant Index (PHMI) report show total value sales for February 2023 through specialist plumbing and heating merchants were +8.6% higher than February last year. Growth came exclusively from increasing prices (+9.6%) as volumes fell slightly (-0.9%) during the period.
Month-on-month, February value sales were -3.5% behind January’s. Volume sales dipped -4.4% and prices edged up +0.9%. With one less trading day in February, like-for-like sales were +1.3% higher.
Total value sales over the last three months, December 2022 to February 2023, were +12.8% higher than the same period a year ago. Volume sales were up +1.2% and prices rose +11.4%. There was no difference in trading days.
Year-on-year
Plumbing & Heating merchants’ value sales in the last 12 months (March 2022 to February 2023) were +9.2% higher than the previous twelve-month period (March 2021 to February 2022). Volumes were flat (-0.6%) but there was marked price inflation (+9.9%). With two less trading days in the latest period, like-for-like sales were +10.1% higher.
The PHMI index for January was 104.1. With one less trading day, the like-for-like index was 107.6.
Mike Rigby, CEO of MRA Research, which produces the report, said: “Energy prices are never far from the headlines and in February there was plenty to discuss: an increase in the Energy Price Cap, a 20% rise in the Energy Price Guarantee and the end of the Energy Bills Support Scheme, collectively leaving already stretched households and businesses fearful of how they would make ends meet in the months ahead. While some of those proposals have since been postponed, there will be no early easing in the cost of living crisis and energy is at its core.
“Plumbing and heating merchants are at the centre of this national energy crisis – advising and supplying the products that can make a major difference to household bills where Government policy can only soften the blow. That isn’t yet being reflected in the total sales values, but that day is surely coming.”
Mike added: “This energy crisis will moderate in the short term, but energy efficiency will be a continuing concern for years to come as the UK attempts to play catchup with its poorly performing housing stock. Investing in products that reduce energy costs in the home shouldn’t only be a go-to when energy bills are unmanageable. It should be a proactive response which not only helps country and climate but futureproofs homes from the pain of unpredictable but inevitable energy crises in the future.
“As inflation and bills ease over the course of the year, there will be the means and will to invest in greener, resource-friendly technologies and the UK’s plumbing and heating merchants will have the opportunity to lead.”
The Plumbing & Heating Merchant Index (PHMI) is the first to analyse point of sales data collated from specialist plumbing & heating merchants with combined annual sales of £3bn, to chart their performance month-to-month.
Based on data from GfK’s Plumbing & Heating Merchant Panel, which represents over 70% of the market by value, the report provides reliable data and a platform and voice for the industry, as well as for leading plumbing & heating brands. It is produced by MRA Research for the Builders Merchants Federation.
There is no overlap or double counting between PHMI and the Builders Merchants Building Index (BMBI) sales data.
To download the latest report, visit www.phmi.co.uk.
