Despite materials shortages and volatile prices troubling the sector, Builders Merchants Building Index (BMBI) figures have shown that British merchants enjoyed the best performing quarter on record in Q2 2021.
Figures from the Builders Merchants Federation (BMF) showed that total builders’ merchants sales in Q2 2021 increased by +96.0% over Q2 2020, showing the adverse effects of the lockdown. However, to compare with a normal year, merchant sales have increased by +20.3% against Q2 2019, with all categories selling more in Q2 2021 compared with the same period in both of the last two years.
Quarterly growth also signalled the market’s recovery and resilience, with sales in Q2 2021 up 24.1% higher than in Q1, with two less trading days in Q2. Average sales a day in Q2 were also 28.1% higher than in Q1.
Q2 2021 vs Q2 2020 – Year on year
Despite being one of the weakest performers in Q2 2020, tools performed the strongest in the same period in 2021, increasing by +151.4%. Meanwhile, four categories had their best-ever quarterly sales since the BMBI started in July 2014 – timber and joinery products (+134.6%), ironmongery (+105.9%), heavy building materials (+81.4%) and landscaping (+71.1%).
Q2 2021 vs Q2 2019 – Year on two year
Comparing Q2 2021 with Q2 2019, landscaping (+48.3%) and timber and joinery products (+41.3%), drove the overall increase acting as the highest performers. Sales increases were recorded in all categories, with the largest product category, heavy building materials, up by +11.8%.
Q2 2021 vs Q1 2021 – Quarter on quarter
Ten of the 12 product categories sold more in Q2 than Q1. Once again landscaping (+67.8%) was the strongest, followed by timber and joinery products (+29.3%). Heavy building materials (+20.5%), decorating (+11%) and kitchens and bathrooms (+8.6%) were amongst the others that showed growth. Only plumbing, heating and electrical (-3.5%) and workwear and safetywear (-11.4%) sold less.
Strength of market
Commenting on the figures, John Newcomb, chief executive officer of the BMF, said: “This quarter’s results reflect both the strength of the current market and the vital role of builders’ merchants in the supply chain. With high global demand and UK workloads continuing at extremely high levels, merchants have done a fantastic job managing product demand and supply.
“The challenges faced in the first half of the year are likely to continue, and the building materials supply chain will be working closely with customers to keep projects on track.”
Emile van der Ryst, senior client insight manager and trade at GfK, added: “At the end of Q2 2020, the builders’ merchants sector was coming to terms with the initial fallout of the global pandemic and had just started to reopen. Fast forward 12 months and last year’s ‘lost’ quarter has been replaced by the best performing quarter on record.
“The well documented surge in house building and buying has played a key role, while the stock shortages experienced across the UK hasn’t slowed down market performance. The second half of the year is difficult to predict but will be fascinating to track.”
>> To read more about BMBI updates from earlier this year, click here.
