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Brick & Tile Manufacturing in the UK - Industry Market Research Report

United Kingdom brick manufacturing market: £1 billion industry by 2019

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2014-02-24 17:03:01 - Brick & Tile Manufacturing in the UK - Industry Market Research Report - a new market research report on

The United Kingdom brick manufacturing market and tile manufacturing industry has struggled since the onset of the of the UK recession, which sparked a collapse in the construction sector. The industry is almost completely dependent on the construction sector, particularly residential housing construction. The number of new housing starts has plummeted over the past five years as investment in the sector has waned. The industry is expected to generate revenue of £851 million in 2013-14, down 4.8% on the previous year. Industry revenue is estimated to fall at a compound annual rate of 3.2% over the five years through 2013-14. This decline largely reflects the performance of the residential and commercial construction sectors.

Profit margins have suffered over recent years, and



insufficient levels of demand have caused many companies to become unprofitable. This has forced many firms to leave the industry, as the 7.8% drop in the number of enterprises over the five years through 2013-14 demonstrates. Others have had to reduce the scale of their operations and mothball productive capacity, including all three of the largest industry players. Ibstock, Hanson and Wienerberger have all been compelled to mothball multiple plants as they try to adapt to the changing conditions in downstream markets. Many firms have attempted to lower their costs by reducing wage bills, which has brought down industry employment at a compound annual rate of 6.0% over the five years through 2013-14.

Conditions in the construction sector are projected to remain bleak over the short term as a weak economy, ongoing austerity measures and depleted investor confidence all contribute to restrict construction activity. However from 2015-16 onwards, conditions are expected to improve. The residential construction sector is expected to drive industry revenue over subsequent years as the number of new housing starts rises to meet growing demand. Industry revenue is expected to grow at a compound annual rate of 3.4% over the five years through 2018-19, to £1.0 billion.

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