Total sales in Q3 2021 were +17.2% up on the same period last year, with one less trading day this year.
The latest Builders Merchants Federation Builders Merchants Building Index reports another strong quarter for sales through UK builders’ merchants but finds the sector showing the first signs of easing.
Total sales in Q3 2021 were +17.2% up on the same period last year, with one less trading day this year. Sales were also +18.4% higher than the same quarter in 2019, pre-Covid, with one less trading day.
Total sales in Q3 2021 were -2.4% lower than in Q2 2021 despite Q3 having three more trading days. However, Q2 had been a record quarter, with Q3 the second-best quarter on record.
Q3 2021 vs Q3 2020 – Year on Year
The builders' merchants sector is very much influenced by heavyside activity. Looking at Q3 2021 vs Q3 2020 year on year figures in more detail: Timber & Joinery Products (+43.9%) contributed significantly to overall growth and achieved its highest-ever quarterly BMBI sales. Kitchens & Bathrooms (+12.3%) also achieved its highest-ever quarterly BMBI sales. Plumbing, Heating & Electrical (+11.6%) and Heavy Building Materials (+11.2%) also grew strongly.
Q3 2021 vs Q3 2019 – Year on 2 Year
A comparison of Q3 this year with the same period pre-Covid highlights two categories performing particularly well: Timber & Joinery Products (+48.9%) and Landscaping (+30.2%). Heavy Building Materials increased by +10.2%, Kitchens & Bathrooms (+4.3). However, six product channels sold less this year including Plumbing Heating & Electrical (-1.7%), Decorating (-2.5%) and the weakest category Workwear & Safetywear (-6.7%).
Q3 2021 vs Q2 2021 – Quarter on Quarter
While quarter on quarter sales overall were slightly lower, five categories sold more, including Kitchens & Bathrooms (+7.4%) and Timber & Joinery Products (+4.8%). However, the largest category, Heavy Building Materials (-2.1%) was one of seven categories that sold less in Q3 than Q2. Others included Tools (-5.2%), Ironmongery (-5.7%), with the seasonal category, Landscaping (-22.5%), the weakest performer.
Year-to-date the sector is up by 36.2% in value, with this noticeably ahead of some of the growth forecasts made at the beginning of the year.
John Newcomb, CEO of the Builders Merchants Federation, said: “Despite the issues in supply and pricing merchants have experienced throughout 2021, they are continuing to manage these challenges and deliver product to customer sites. While there are some signs that demand is starting to ease, Blocks, Lintels, Sheet Materials and Timber have again had record quarters, with Bricks and Insulation not far behind Q2’s record figures.”
Emile van der Ryst, Senior Client Insight Manager – Trade at GfK, added: “The final quarter of the year should see further sales easing, but still moving along very well. Supply chain issues are reducing, but wider UK market sentiment suggests this could persist until 2023.
"Pricing will most likely continue to drive any value growth. It’s safe to say that the final year figures will be noticeably ahead of initial forecasts, but we expect that 2022 will see a decline against this most exceptional year.”
