.png)
Builders merchant sales volumes were down 5.6% in October 2022, year-on -year. However, prices were up by 13.9%, so the revenue from sales in October 2022 was 7.5% higher than in October 2021.
The latest Builders Merchant Building Index (BMBI) report shows that 11 of the 12 product categories sold more (by value) in October 2022 compared to the previous year. Renewables & Water Saving (up 66.1%) was the standout growth category, while Plumbing, Heating & Electrical (up 19.5%), Workwear & Safetywear (up 19.0%) and Kitchens & Bathrooms (up 17.5%) also had a good month. The Timber & Joinery Products category (down 8.4%) was the only category to sell less than in October 2021.
Compared to pre-pandemic October 2019, total merchant sales volumes were down 8.9% but with prices were 31.2% higher, the value of sales was up 19.6% – with two fewer trading days this year.
Month-on-month, sales volumes were down 1.8% in October compared to September. Prices edged up by only 0.9%, which was not enough to offset the volume fall. Therefore sales revenue dropped by 0.9% in October compared to the month before.
Mike Rigby of MRA Research, which produces the report for the Builders Merchant Federation, said: “The building industry does not operate in a vacuum and this year it’s been hit by the effects of political turmoil and economic UK own goals, and aggressive policies and events in Russia and China. Steeply rising interest rates, soaring energy costs, a cost-of-living crisis, a rapid slowdown in the housing market, plus beneficial freight rates tumbling back to normal, have all impacted the sector.
“Coming after a series of national lockdowns and a prolonged period of furlough, it’s hard to think of a time when the industry has had to face so many shocks to the system in such a short time. And the industry has coped remarkably well. But the roller coaster is not over. The new combination of Sunak and Hunt are safe hands but can they bring their party with them, and will their feet on the brakes postpone productivity improvements and growth? Who knows? And good luck to the boards who must put their budgets to bed before the start of 2023! It would be good to return to some sense of normality in 2023 but I wouldn’t bet on it.”
Got a story? Email news@theconstructionindex.co.uk
