There Is One Segment of The United Kingdom Construction Market Compared with The Rest

Its economy may be struggling, but there is one segment of the United Kingdom construction market which is performing well compared with the rest: Timber frames. Better yet, as carbon reduction and environmental requirements become increasingly significant, this segment is expected to outperform the broader housing market and grow by around 60 per cent in volume and 80 per cent in value between now and 2016. These figures were suggested in the latest Timber Frame Housebuilding & Construction Market report published by MTW Research, a research firm which specialises in the UK building and construction market. While the report acknowledges that the timber frame market, like other parts of the construction industry, has been hit by the UK recession, it also says the sector is in reasonable financial health, with around 60 per cent of manufacturers having “good” or “excellent” credit ratings and just four per cent of suppliers currently regarded as being at immediate risk of failure. Indeed, despite the poor economy, MTW says that sales of timber frame, SIPS, and volumetric timber buildings increased by £30 million in 2011. Better yet, much of the demand came not from overall market growth but instead from timber gaining an increasing share of the house building market. Furthermore, MTW believes the immediate and long-term future looks promising. This year, MTW expects the timber frame market to grow by a respectable nine per cent and surpass £400 million in value. Beyond that, the research firm expects growth of around 60 per cent in volume and 80 per cent in value by 2016. Low carbon intensity, high performance MTW says the primary driver behind all this relates to environmental considerations, with the report citing a combination of low-carbon regulations such as the Code for Sustainable Homes, a positive response from the timber frame industry with regard to meeting changing market demand patterns and influences, and the recognition of timber as a low carbon intensive material as key drivers behind an increasing popularity of timber frames. Furthermore, MTW says, value growth will get an additional boost in the near term through a number of market-led solutions. The research firm says manufacturers are now working harder to develop closer relationships with customers, with turn-key solutions offering healthy opportunities for growth. MTW also says concerted efforts by the industry to ensure a focus on the efficiency of the building fabric before any other sustainable products are introduced are paying dividends in terms of differentiation and enhancing the core product offered by timber frame suppliers. David Hopkins, Head of External Affairs at Wood for Good, shares MTW’s optimism. Along with its low carbon intensity, high performance and low cost, Hopkins says, timber has a natural advantage in helping building firms improve lead times and reduce waste. “This report shows that the timber frame sector has a lot to look forward to, ” Hopkins says. “As low-carbon and environmental regulations get ever tighter, developers are looking for the lowest-carbon and highest-performance materials on the market and that’s where timber products stand out. ” Hopkins says Wood for Good is working to help educate the wider construction market on the benefits that timber provides. Mark Waddy, Director of MTW Research says that while the industry has fared well during the downturn, the challenge going forward will come in ensuring that customers have a clear understanding of the benefits of building with timber, rather than ‘being put off by the myths. ’ While MTW is bullish about overall prospects for timber, it says the sources of growth in the market may shift, with non-residential projects in health and education becoming increasingly important as a driver in demand. Showing high levels of optimism among UK timber frame suppliers, the report speaks of increasingly bullish sentiment within the industry with regard to commodity retail, leisure and other commercial applications. Source: designbuildsource