Following good
growth in 2015-16, the UK market for commercial glazing has reportedly been
less buoyant in 2017 as the private commercial sector reacted to the climate of
uncertainty surrounding Brexit.
This resulted in
only marginal growth, at best, for 2017. The commercial glazing sector is
particularly reliant on the offices and retail sectors which have both seen
reductions in new order values in 2016-17 as expansion and investment plans for
some organisations have been deferred.
Current forecasts
indicate that the market is likely to flatten in 2018-19, followed by modest
annual growth rates of around 2-3% to 2021.
Within the
commercial glazing market, the largest segment by value is reportedly
commercial windows, with an estimated share of 56%, followed by curtain wall
and ground floor treatments, while roof glazing accounts for the smallest
share.
The level of demand
for ground floor treatments has been affected by structural changes within the
retail sector towards online shopping and ‘click and collect’ services, whilst
the trend for the grocery multiples to build ‘express’ type outlets has also
affected the average value of contracts. In terms of frame materials, aluminium
is said to dominate, but timber, PVCu, steel and composites all have reasonable
shares and sector strengths.
Following the higher
levels reached in 2016, the market is estimated to show marginal growth in 2017
with no real growth 2018-19. Trends follow those in key construction markets
with office, retail and education construction forecast to weaken during this
period.
Jane Tarver of AMA
Research commented: “Commercial glazing suppliers will continue to derive gains
from RMI particularly in those sectors showing lower annual growth in new
construction work, such as education and healthcare.
"Increasing
average prices are likely to be a characteristic of the market into the
medium-term which will result in some value growth, but with the volume of
commercial glazing opportunities likely to decline.”
Key to the
medium-term prospects for the commercial glazing market in the UK are the
levels of business confidence and investment, which remain uncertain at present
and will depend on the outcome of the Brexit negotiation process.
In addition, the
strength of the private commercial sector construction output will be key, with
some regions benefitting from a strong pipeline of work, e.g. London and the
south east, but with other regions likely to be less buoyant.
The issue of pricing
will also be affecting the performance of Sterling on the foreign exchange
markets since the UK is a significant importer of some glazing systems, as well
as being a key market for leading non-UK-based contractors.
The ‘Commercial
Glazing Market Report – UK 2017-2021 Analysis’ report is published by AMA
Research, a leading provider of market research and consultancy services with
over 25 years’ experience within the construction and home improvement markets.
