Equipment Wholesaling
Operators in this industry provide hardware, plumbing and heating equipment, such as plumbing fixtures, hand tools and boilers, to construction contractors and hardware stores, among other markets. The industry is heavily influenced by the performance of these downstream markets. Over the five years through 2021-22, industry revenue is expected to contract at a compound annual rate of 1.3%. The industry has been significantly affected by uncertainty related to the UK's departure from the European Union negatively affecting economic conditions, which has been compounded by the COVID-19 (coronavirus) pandemic.
Revenue is expected to grow by 2.7% in 2021-22 to £12.9 billion, supported by rising business and consumer confidence, the relaxation of coronavirus restrictions and government housing initiatives. The government has indirectly supported industry demand by providing schemes such as the ongoing Help to Buy scheme and the Stamp Duty holiday, the latter of which ran from July 2020 to September 2021. The initiatives stimulated the housing market and raised demand for repair and maintenance work and home improvements, supporting industry revenue. The end of the UK's transition period with the European Union on 1 January 2021 came with a new customs arrangement and a trade border in the Irish Sea, slowing trade from mainland Europe and disrupting trade between Britain and Northern Ireland, which is expected to affect operators who source materials from abroad.
Over the five years through 2026-27, revenue is expected to grow at a compound annual rate of 4.5% to £16 billion. The extension to existing government initiatives such as the Help to Buy scheme and the establishment of new ones is anticipated to support revenue growth over the coming years. For instance, the Welsh government has announced that it will spend over £1 billion on new social homes in the three years through 2024-25 alongside a further £580 million allocated for the decarbonisation of social housing over the same period. This is forecast to support industry revenue due to the close relation between industry demand and construction activity.
Industry overview provided by IBISWorld.
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