BUILDING AND HOME IMPROVEMENT PRODUCTS DISTRIBUTION MARKET REPUBLIC OF IRELAND 2008-2012

Abstract

AMA Research has published the 5th Edition of the Building and Home Improvement Products Distribution Market - Republic of Ireland report. The report provides a comprehensive and easy to use review of the rapidly evolving Irish building materials sector.

Key areas in the report:

• In-depth analysis of the Irish construction market including the current state of the house building sector, which is now thought to have peaked.
• Review of the major influences - including the growth in off-site construction and timber-frame housing sectors; increased government regulation, analysis of investment under the new National Development Plan for the period 2007-2013, and external factors such as rising energy and transport costs.
• Overview of major distribution channels in Ireland with profiles of the key indigenous and overseas distributors including Builders Merchants, the retail DIY multiples and the independent hardware sector.
• Key market changes and forecasts of future developments.

Areas of Particular Interest Include :

• The rapid growth of the Irish economy over the last 10 years has led to a boom in construction and house building and the buildings materials sector has been a key beneficiary. However, in 2007 the construction sector has begun to slow and will be followed by a more sedate and sustained period of growth over the coming years.
• High levels of consolidation in the builders merchants and retail DIY sector is forecast to continue as the market matures and faces increasing competition from overseas companies.
• The building materials distribution sector is highly fragmented with around 600 outlets distributing building products to trade and domestic customers in Ireland.
• Key drivers of growth in the building materials market and estimated forecasts for growth over the next few years.

Key areas of coverage in the report include:-

IRISH CONSTRUCTION MARKET

• Value of Construction New Work Output in the Irish Republic.
• Forecasts for construction output beyond 2007.
• Analysis of output by sector in the Irish Construction Industry.
• The impact of residential house building as the major driver of the building materials Market.
• Analysis of the main drivers of growth in the construction industry.
• Analysis of building materials supply sector, including leading players in the manufacture and supply of building materials to the distribution sector.
• Impact of the 2007 Budget and a look forward to the 2008 Budget, with an analysis of total gross current spending on existing public services for 2008, estimated to be almost €51 billion.

FACTORS AFFECTING THE BUILDING PRODUCTS MARKET

• Analysis of the rise in construction costs and building materials prices with a review of recent % rises in specific building materials.
• Impact of residential house building as the major driver of the building materials market and the impact of lower levels of completions forecast over the next few years.
• The impact of rising energy prices on both raw materials producers and the building materials distribution sector, with an analysis of wholesale energy prices.
• Overview of construction employment levels and labour costs.
• Analysis of spending levels under the new National Development Plan 2007-2013 ,which is expected to support public sector construction activity for the next 7 years and will be a significant driver of growth in the building materials sector.
• Major legislative drivers affecting the building materials market including construction products directive, waste disposal laws, energy performance of buildings and the new conditions of contract for government projects.

BUILDING PRODUCTS DISTRIBUTION

• Overview of the market size and structure for building materials distribution in the Republic of Ireland including builders merchants, retail DIY and independent hardware sectors.
• Market trends from 2001-07, with forecasts up to 2011. Key factors influencing market growth.
• Review of recent consolidation activity among companies in the builders merchants and DIY sector.
• Analysis of both the leading and smaller builders merchants, DIY multiples and major hardware groups in the building materials sector - market shares, trends, new market entrants.
• Overview of specialist retail outlets in the flooring, gardening, timber, sanitary ware, kitchen and electrical appliance markets.
• Future Prospects - recent and future changes in distribution.

Table of Contents

1. INTRODUCTION

2. SUMMARY

3. ECONOMIC ENVIRONMENT

• 3.1 GENERAL
• 3.2 ECONOMIC BACKGROUND
  • 3.2.1 Economic Performance in 2006 and 2007
  • 3.2.2 GDP
  • 3.2.3 Impact of the 2007 and 2008 Budgets
  • 3.2.4 Interest Rates
  • 3.2.5 Imports and Exports
  • 3.2.6 Consumer Confidence
• 3.3 FUTURE PROSPECTS FOR THE ECONOMY
• 3.4 DEMOGRAPHIC PROFILE
  • 3.4.1 Population
  • 3.4.2 Regional Profiles

4. TRADING WITH COMPANIES IN THE REPUBLIC OF IRELAND

• 4.1 THE EURO
• 4.2 TAXATION AND LEGISLATIVE DIFFERENCES
• 4.3 THE LABOUR MARKET IN IRELAND
• 4.4 BUILDING MATERIALS
  • 4.4.1 Prefabricated Buildings and Offsite Manufacturing
  • 4.4.2 Building Materials Producers

5. THE CONSTRUCTION MARKET IN THE IRISH REPUBLIC

• 5.1 CONSTRUCTION MARKET OVERVIEW
  • 5.1.1 Value of Construction New Work Output
  • 5.1.2 Construction Output in 2007 and Beyond
• 5.2 SECTOR OUTPUT IN THE CONSTRUCTION INDUSTRY
  • 5.2.1 Residential Sector
  • 5.2.2 Productive Infrastructure
  • 5.2.3 Private Non-Residential
  • 5.2.4 Social/Public Infrastructure
  • 5.2.5 Repair Maintenance & Improvement (RMI)

6. FACTORS AFFECTING THE BUILDING PRODUCTS MARKET

• 6.1 CONSTRUCTION COSTS
• 6.2 CONSTRUCTION EMPLOYMENT LEVELS
  • 6.2.1 Labour Costs
• 6.3 THE NATIONAL DEVELOPMENT PLAN
  • 6.3.1 NPD 2007-2013
• 6.4 LEGISLATIVE DRIVERS
  • 6.4.1 Construction & Demolition Waste
  • 6.4.2 Construction Products Directive
  • 6.4.3 New Conditions of Contract for Government Projects
  • 6.4.4 Energy Performance of Buildings Directive (EPBD)
  • 6.4.5 The ‘Reach’ Regulations
  • 6.4.6 Greener Homes Initiative

7. THE BUILDING PRODUCTS DISTRIBUTION STRUCTURE

• 7.1 BACKGROUND
• 7.2 BUILDERS MERCHANTS
  • 7.2.1 Market Overview
  • 7.2.2 Market Structure
  • 7.2.3 Market Size
  • 7.2.4 Key Company Profiles
• 7.3 DIY AND HOME IMPROVEMENT DISTRIBUTION
  • 7.3.1 Market Overview
  • 7.3.2 Market Structure
  • 7.3.3 Market Size
  • 7.3.4 Key Company Profiles
• 7.4 INDEPENDENT HARDWARE / DIY STORES
• 7.5 OTHERS
  • 7.5.1 Overview
  • 7.5.2 Retail Gardening Sector
  • 7.5.3 Bathroom and Kitchen Specialists
  • 7.5.4 Timber Merchants
  • 7.5.5 Floor Coverings
  • 7.5.6 Electrical Equipment

TABLES AND CHARTS

• CHART 1 TOTAL MARKET SIZE FOR BUILDING PRODUCTS IN IRELAND 2001-2012 (BUILDERS PROVIDERS AND DIY OUTLETS)
• TABLE 2 IRELAND - ANNUAL AVERAGE % CHANGE GDP 1999-2011
• CHART 3 GROSS CURRENT SPENDING ON PUBLIC SERVICES BY SECTOR IN 2008 (%)
• TABLE 4 IMPORTS AND EXPORTS FROM AND TO IRELAND 1997-2007 BY VALUE - (€ MILLION)
• TABLE 5 IRELAND - ANNUAL AVERAGE % CHANGE IN CONSUMER PRICES 1997-2006
• TABLE 6 POPULATION OF THE REPUBLIC OF IRELAND 1995-2015 (MILLIONS)
• TABLE 7 IRISH LABOUR MARKET - TOTAL IN EMPLOYMENT/EMPLOYMENT IN 25-44 AGE BRACKET: 1998 - 2008
• CHART 8: IRELAND - VALUE OF CONSTRUCTION OUTPUT NEW WORK 2001-2012 (€ BILLION)
• CHART 9 TOTAL CONSTRUCTION MARKET IN THE REPUBLIC OF IRELAND BY SECTOR - % BY VALUE 2007
• TABLE 10 VALUE OF CONSTRUCTION OUTPUT BY SECTOR* - 2004-2008 (€M)
• CHART 11 IRELAND - HOUSE-BUILDING COMPLETIONS 2000 - 2012
• TABLE 12 VALUE OF OUTPUT IN THE RESIDENTIAL RMI SECTOR IN IRELAND 2000 - 2009 (€ ‘000)
• TABLE 13 VALUE OF OUTPUT IN THE NON-RESIDENTIAL RMI SECTOR IN IRELAND 2001 - 2009 (€ ‘000)
• TABLE 14 WHOLESALE PRICE INFLATION FOR BUILDING MATERIALS IN IRELAND (AUGUST 2006-2007):
• TABLE 15 NUMBERS EMPLOYED IN THE IRISH CONSTRUCTION INDUSTRY 1997-2009*
• TABLE 16 THE NATIONAL DEVELOPMENT PLAN 2000-2006 - CAPITAL ALLOCATIONS TOWARDS SOCIAL & ECONOMIC INFRASTRUCTURE (€Bn)
• TABLE 17 ESTIMATED CAPITAL ALLOCATIONS UNDER THE NATIONAL DEVELOPMENT PLAN 2007-2013 - (€ BILLION)
• TABLE 18 TYPICAL PRODUCT RANGES SUPPLIED THROUGH BUILDERS PROVIDERS AND SPECIALIST MERCHANTS IN IRELAND.
• TABLE 19 GEOGRAPHICAL SPREAD OF THE MAJOR BUILDERS MERCHANTS CHAINS IN IRELAND 2007*
• CHART 20 BUILDING PRODUCTS DISTRIBUTION STRUCTURE
• TABLE 21 TOTAL MARKET SIZE FOR BUILDERS PROVIDERS IN THE REPUBLIC OF IRELAND 1997-2012 (€ MILLIONS) (RSP)
• CHART 22 LEADING BUILDERS MERCHANTS IN IRELAND BY ESTIMATED SHARE 2007
• TABLE 23 GEOGRAPHICAL SPREAD OF THE MAJOR DIY SUPERSTORE CHAINS IN IRELAND 2007*
• TABLE 24 TOTAL MARKET SIZE FOR DIY AND HOME IMPROVEMENT OUTLETS IN THE REPUBLIC OF IRELAND 1997-2012 (€ MILLIONS) AT RSP
• CHART 25 DIY RETAIL DISTRIBUTION - LEADING RETAILERS BY SHARE 2007