The market for construction materials totals over £78bn.
This is fulfilled through a variety of channels but a significant proportion (over £60bn) comes through distribution and is therefore addressable by the Group.
Market overview
The market for construction materials is approximately £78bn, with £60bn coming through distribution channels. The Group serves four major end-markets, with just over half of revenues coming from private domestic housing (both new build and repair, maintenance & improvement "RMI") and the balance being split between the commercial & industrial market and the public sector.
Market mix
Private domestic new build
Private RMI
Commercial & industrial*
Public sector**
Group revenue mix
Private domestic new build
Private RMI
Commercial & industrial*
Public sector**
Growth drivers
- Growth in households and population
- Ongoing housing supply shortage
- Drive for more energy efficient homes
- Sales incentives and support for first-time buyers
- Ongoing desirability of home ownership vs renting
- Disrepair of housing stock
- ECO+ insulation scheme
- Requirement for retrofit and cladding remediation works
- Need for decarbonisation and improvement for EPC ratings for rented sector
- Reconfiguring homes for more space and home working
- “Don’t move, improve!” – given costs of moving and challenge of finding new homes
- Growth in warehousing and logistics space
- Refurbishment of office and retail space around hybrid working and new patterns of retail
- Cladding remediation work on commercial buildings
- Repair and maintenance work increases when less new space is coming into the market
* includes commercial and industrial new build and private non-housing R&M
- Hospital and school rebuilding programmes
- Nine-year backlog of essential road repairs and major new-build schemes
- Major projects eg HS2, Hinkley Point C, Thames Tideway
- Offshore wind growth
- Ongoing requirements for Public sector affordable housing
- Significant requirements to improve the condition and thermal efficiency of existing public sector housing via retrofit programmes
** includes infrastructure, public new building (housing and non-housing) and public housing RMI and non-housing R&M
Macro factors impacting our markets
Changes to the market are causing all parties to consider the way that they work - raising expectations and creating opportunities for partners that are able to respond.
 | Macro factors
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Sector-specific factors
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