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The market in the EU is estimated to be worth around € 110 billion, with the key markets illustrated in the table below:
European Union – Builders merchant market – by major country 2001
Germany
26 %
France
15 %
UK
13 %
Italy
15 %
Netherlands/Belgium
6 %
Others
25 %
Source: AMA Research
2001 has proved to be a difficult year in most European markets, primarily reflecting the fall in Eurozone GDP growth to around 1.5 per cent, from a peak of 3.4 per cent in 2000. Prospecs for 2002 are clearly uncertain with estimates of GDP growth across the region typically estimated at between 0.5 - 1.5 per cent.
2003 is anticipated to see a further strengthening of the EU economy with typical forecasts of around 2.5 - 3.0 per cent GDP growth for the region. This should feed through into a buoyant construction sector and a general recovery in the builders merchants market in most EU markets. France, UK, Netherlands and Belgium are all expected to experience recovery in late 2002/2003, though prospects in Germany are more uncertain, particularly in view of the depressed construction sector.
In most markets, buying groups have emerged to protect and co-ordinate the interest of independents, but in general there is a trend towards further concentration of supply. The introduction of the Euro and emergence of large customer groups with pan-European operations are just two factors encouraging the formation of international merchants capable of providing the level of pricing, service, and support required.
However, the builders merchants market remains highly fragmented across Europe and there is scope for rationalisation. As product specifications, standards and applications become more harmonised and as the CE marking programm expands, the opportunities for pan-European expansion will grow.
European Union – Builders merchant market – by major country 2001
Germany
26 %
France
15 %
UK
13 %
Italy
15 %
Netherlands/Belgium
6 %
Others
25 %
Source: AMA Research
2001 has proved to be a difficult year in most European markets, primarily reflecting the fall in Eurozone GDP growth to around 1.5 per cent, from a peak of 3.4 per cent in 2000. Prospecs for 2002 are clearly uncertain with estimates of GDP growth across the region typically estimated at between 0.5 - 1.5 per cent.
2003 is anticipated to see a further strengthening of the EU economy with typical forecasts of around 2.5 - 3.0 per cent GDP growth for the region. This should feed through into a buoyant construction sector and a general recovery in the builders merchants market in most EU markets. France, UK, Netherlands and Belgium are all expected to experience recovery in late 2002/2003, though prospects in Germany are more uncertain, particularly in view of the depressed construction sector.
In most markets, buying groups have emerged to protect and co-ordinate the interest of independents, but in general there is a trend towards further concentration of supply. The introduction of the Euro and emergence of large customer groups with pan-European operations are just two factors encouraging the formation of international merchants capable of providing the level of pricing, service, and support required.
However, the builders merchants market remains highly fragmented across Europe and there is scope for rationalisation. As product specifications, standards and applications become more harmonised and as the CE marking programm expands, the opportunities for pan-European expansion will grow.
