The latest report from the Builders Merchants Federation’s (BMF) Builders Merchants Building Index (BMBI) shows sales of building materials continuing their upward growth trend during Q1 2021.
One year on from the onset of the COVID-19 pandemic, comparisons with Q1 2020 inevitably reference the initial fall in sales during the first lockdown period, which began on 24 March, 2020.
The reality of the bounceback is impressive nonetheless with Q1 2021 sales volumes continuing the upward trend seen in Q4 2020 and comparing well with the pre-COVID levels seen in Q1 2019.
Looking at Q1 2021 in detail, January was down -3.7% on the same month the previous year, with February seeing annual growth of 2.3%. March however was a record month for the industry, with sales increasing by 47.4% against March 2020 and by 23.0% against March 2019.
This results in overall Q1 growth of 15.1% against Q1 2020 and 6.0% against Q1 2019. The figures also confirm overall growth of 8.6% against Q4 2020, helped by three more trading days in Q1. The average sales a day were up by 3.4%.
Q1 2021 vs Q1 2020
The strongest year-on-year performers were landscaping, up by +41.4% on Q1 2020, and timber and joinery (+30.5%). Sales of tools increased by +15.9% year-on-year, and were also up for the largest product group, heavy building materials (+10.3%) and plumbing, heating and electrical products (+3.7%).
Workwear and safetywear (-8.9%), one of the strongest performers a year ago when personal protective equipment (PPE) was in great demand, was one of only four categories to record a fall in year-on-year sales for the quarter.
Q1 2021 vs Q1 2019
Comparing Q1 2021 with Q1 2019, landscaping (+32.3%) and timber and joinery (+15.8%) were again the strongest performers. Heavy building materials also increased (+1.3%), but sales of tools (-1.8%) and plumbing, heating and electrical products (-4.4%) were both lower on the two-year comparison.
Q1 2021 vs Q4 2020
A similar picture emerges when comparing quarter on quarter results. Sales increased in 11 out of 12 categories in Q1 2021 vs Q4 2020, again led by landscaping (+26.2%) and timber and joinery (+12.9%), strongly supported by tools (+9.9%), heavy building materials (+5.9%) and plumbing, heating and electrical (+5.9%).
Kitchens and bathrooms was one of the few areas to record a fall in sales in Q1 2021 against all three comparators, at -2.1% vs Q4 2020, -1.8% vs Q1 2020 and -6.7% vs Q1 2019. This may be due to showrooms being deemed non-essential retail and closed during the period.
John Newcomb, chief executive officer of the Builders Merchants Federation, said: “The first three months of the year may have seen the country once again in lockdown but even this could not prevent a boom in construction activity. This is an excellent start to the year, and we are already seeing strong product demand in many areas, notably timber which has been one of the main drivers for growth during the quarter. Managing product demand and supply will be a recurring theme this year and the Construction Leadership Council, product availability group, which I co-chair, is issuing monthly updates to assist with forward planning.”
Emile van der Ryst, senior client insight manager – trade at GfK, added: “To say the first quarter, and March in particular, has gone well is an understatement. It was not only the big hitters such as timber, bricks, aggregates, insulation, cement, and plasterboard reporting record sales, but also areas such as tool hire, plumbing equipment, power tools, hand tools, boilers, tanks, and boiler accessories.
“Repair, maintenance and improvement is expected to be the main driver during the first half of the year, and quite possibly beyond, which bodes well for the industry if supply can keep up with demand.”
