The new Timber Frame Market report from MTW Research has found that timber frame house building is set to rise by some £70 million in 2022, identifying sustained optimism for timber frame suppliers through to 2026.
Based on data from 80% of the timber frame market, the research found that sales are set to rise rapidly in 2022 as the housebuilding market boosts demand for timber frame homes, whilst commercial timber frame activity also exhibits growth.
The 100 page report forecasts that the timber frame market will rise by more than £150 million by 2026, identifying a wide range of positive factors and opportunities for growth for timber frame suppliers.
MTW identify shares by timber frame type, with open panel and closed panel timber frame experiencing over 30% growth in 2021 and 2022, whilst the SIPS market continues to demonstrate the fast paced innovations within the timber frame construction market, rising by almost 60%. More traditional post and beam timber housing is also benefiting from a revival in the self build housing market, which MTW report is now outpacing the UK economy.
The positive environmental credentials of timber homes are also highlighted by MTW as a key growth opportunity for the timber frame sector in 2022. Carbon capture, enhanced quality control, faster build times, reduced on-site costs, waste and labour are just some of the characteristics of the timber frame market identified in the report boosting opportunities for the timber frame market in 2022 and beyond.
MTW point to brick production down by 40% in 2020/21 compared to 2018/19 as a key determinant on timber frame growth, with timber prices rising by 30% between late 2020 and mid 2021. With timber costs rising by an average of 4-5% per month, the timber frame market successfully adapted to a very fast paced and changing trading environment throughout 2021 and into 2022.
MTW’s director Mark Waddy points to “A real possibility of a £1 billion timber frame market in future, with merger and acquisitions more prevalent across the timber frame industry as acquisitive growth increasingly becomes a pre-requisite for profitability growth and fulfilling customer needs”.
The report sets a tone of optimism for many end use sectors, though some customer segments continue to lose share. MTW also review the impact of Covid-19 on timber frame building, with the report finding that the timber frame market lost more than £100 million by 2022, with the total cost of Covid-19 to timber frame suppliers set to top £180 million by 2026.
Regionally, MTW found that the North West and Eastern regions remain significant in terms of timber frame construction, with the South East and West Midlands growing market share. Scotland continues to lead the way in timber frame house building, though Wales, England and Northern Ireland have all continued to experience volume growth.
The report also provides timber frame shares by dwelling type, finding that detached houses account for almost a third of timber frame building activity in 2022 though semi detached houses continue to gain share of the timber frame market. The 2022 Timber Frame Construction Market report is available from MTW Research’s website www.marketresearchreports.co.uk £895 or by calling 08456 524324.
