Commercial glazing set for more growth
10th November 2015
The UK market for commercial glazing is forecast to grow by 5% in 2016, following several strong years as the industry pulled out of the difficult times earlier in the decade.
AMA Research, which published the figures, continues to say there are signs of growing demand for new Grade A office space in London, as well as other cities, which is likely to stimulate growth for commercial glazing from 2016 onwards.
Construction output in the education sector has also been strong in 2014/15, which is surprising given the public sector capital budget cutbacks, says the report: “The education sector is also likely to see growing demand with the roll-out of the Priority Schools Building Programme (PSBP) in England as the replacement for BSF, which should deliver £2.5bn worth of new schools to complete by 2017, and the University Technical Colleges programme and similar schemes in Scotland and Wales.
“In healthcare, the shift away from building large hospitals towards smaller primary care facilities has meant less demand for curtain wall, roof glazing and windows. The decline in High Street retailing – as well as in retail parks and out-of-town developments - will probably continue, as online shopping continues to penetrate the market. In addition, the grocery multiple sector is also experiencing a major cutback in store development programmes, which will have negative implications for the glazing industry.
“In terms of product sectors, commercial windows is the largest sector accounting for over 50% of sector sales, with curtain wall and ground floor treatments both substantial markets. Demand for curtain walling has been particularly buoyant in 2014/15 – growing by around 10% per annum and driven primarily by a recovery in office construction – particularly in London. Roof glazing accounts for the smallest share at less than 10%, though rooflights are in demand for both commercial and domestic applications. Aluminium is still the dominant frame material in the commercial glazing market, but timber, PVCu, steel and composites all have reasonable shares and sector strengths. “
Andrew Hartley, Director of AMA Research said: “In the aluminium systems supply sector, the market is broadly split, with the 10 largest accounting for around 90% of this market. However, more difficult market conditions in 2012-2013 has led to a significant contraction among fabricators and installers, with several players ceasing trading, though order books have improved in 2015.”
The report continues:“Key to medium-term growth will be continued recovery for the private commercial construction sector, which is forecast to be the main driver for growth into the medium-term - and should more than offset the less positive performance of the public sector. As a result, the market outlook for commercial glazing in key application areas in office construction continues to offer the best areas for growth in the near to medium term future, though the leisure/entertainment construction sector also offers good opportunities.
“The commercial glazing market is forecast to have grown by 5% in 2015, with further growth of 4-5% forecast for 2016. Forecasts are for more moderate, but steady, underlying annual growth at 3-4% from 2017-19, and AMA’s report highlights differences between sectors which will have implications for contractors, product and material suppliers in different markets.”
‘Commercial Glazing Market Report – UK 2015-2019 Analysis’