Paul Rivett, Managing Director Heatrae Sadia is BMBI’s Expert for Water Heating
Trading during Quarter 2 continued the trend set in the first period of 2017, with overall sales out through merchants falling back by 10% when compared to the same period in 2016. Overall this leaves the sector trailing last year by 7.5% for the half year.
However the picture is more complex than the headline view, with domestic hot water storage cylinders declining more than electric commercial water heating or boiling water dispensers which remained relatively flat. The issue with domestic hot water storage is due to the wider use of 35kW combi boilers in new build properties, a practise that needs to stand up to a winter when ambient water temperatures are much lower than the current summer temperatures. It’s a factor that will affect performance and potentially result in consumer complaints of poor flow rates.
Electric boiler sales were however consistent with last year, driven by the trend of replacing gas boilers in flats and apartments with electric powered versions, due to more stringent regulations for installing gas boilers and flues in this type of dwelling. This is a trend that is set to continue, along with the increased use of offsite package solutions for flats and apartments. As skilled labour becomes harder to find, these solutions provide the specifier and developer with more control of quality, design and installation cost. The package would typically include a hot water cylinder installed on a painted frame with other products such as pumps, manifolds or controllers depending upon the requirement of the installation.
In summary, it’s a mixed picture so far this year but good opportunities exist by selling package solutions, and more niche products such as electric boilers and drinking water products.
See the full Q2 Report here: https://www.bmbi.co.uk/the-index/