Market comment from Mark Eggleston, MD, WJ Group
“We’re now closing in on the first half of 2016 and many indicators are demonstrating that the market is developing with no shortage of gusto – not least our own busy timber treatment sites in Hull and Rochester, coupled with increased interest in anti-slip decking and our DeckWright products. Businesses, organisations and consumers are spending more on timber and timber related products.
Let the facts talk
So how do we know that this market development is widespread? Taking some figures that have been released from the Builders Merchants Federation (BMF) recently, sales in quarter 1 were up 5.4% year on year. Quarter 1 even grew 4.6% on quarter 4 in 2015. Within this positive growth, timber and joinery products grew by 4% and represented 21% of total builders merchants’ sales.
In fact the NHBC would also consider the market to be performing well, reporting a 10% increase in the number of new home completions for the financial year up to the end of March; 137,396 homes in total. That’s a lot of timber and construction materials!
Even looking at the reported performance of leading builders merchants groups confirms the situation. Grafton Group has grown annual revenue by 6.3% and MKM has boosted operating profits by 27% (both reported in the Timber Trades Journal).
Be part of the growth
It’s time to be really rather positive; whether you’re a builders merchant or, like WJ Group, you supply them with products and services. The demand for all manner of timber and construction materials is most definitely on the up and we for one, intend to do our bit to meet that demand and help our customers to successfully grow, year after year. We are constantly developing our capabilities (most recently with a new vacuum coating service) and learning how we can do things better, listening to what our customers have to say. We’ve recently welcomed John Cook as our Operations Manager in a brand new role and will seek to strengthen our skills in other areas of the business as we grow.
If we can help you with your growing demand for timber treatment, anti-slip decking products and components, please do let us know.”