Commercial glazing hit by slow
construction market
February 2018

The impact of a sluggish year for construction on the commercial glazing sector is reflected in the latest AMA report that shows and estimated marginal growth in 2017, following good growth in 2015-6, with a forecasted flattening this year and next followed by ‘modest’ growth of 2-3% through to 2021.

The report adds that the level of demand for ground floor treatments has also been affected by structural changes in the retail sector towards online shopping and ‘click and collect’ services, while the trend for the grocery multiples to build ‘express’ type outlets has also affected the average value of contracts.

Jane Tarver of AMA Research said: “Commercial glazing suppliers will continue to derive gains from RMI particularly in those sectors showing lower annual growth in new construction work, such as education and healthcare.

Increasing average prices are likely to be a characteristic of the market into the medium-term which will result in some value growth, but with the volume of commercial glazing opportunities likely to decline”.

The report continues: “Key to the medium-term prospects for the commercial glazing market in the UK are the levels of business confidence and investment, which remain uncertain at present and will depend on the outcome of the Brexit negotiation process.

“In addition, the strength of the private commercial sector construction output will be key, with some regions benefitting from a strong pipeline of work, eg London and the South East, but with other regions likely to be less buoyant.

“The issue of pricing will also be affected the performance of Sterling on the foreign exchange markets since the UK is a significant importer of some glazing systems, as well as being a key market for leading non-UK based contractors.

‘Commercial Glazing Market Report – UK 2017-2021 Analysis’, published by AMA Research, is available online at 

www.amaresearch.co.uk