The latest Plumbing & Heating Merchant Index (PHMI) report, released in August, shows that sales at specialised plumbing and heating merchants decreased by 1.8% in value in the second quarter of 2024 compared to the same period in 2023. While the number of items sold increased by 4.3%, prices dropped by 5.9%. Adjusting for two additional trading days this year, sales were down by 5.0%.
When comparing the second quarter of 2024 to the first quarter, total sales value fell by 10.4%. The volume of sales was up by 1.4%, but prices decreased by 11.7%. With one less trading day in the second quarter, sales were down by 9.0% when adjusted for that.
June sales specifically saw a drop of 9.3% compared to June 2023. The volume of sales fell by 6.3%, with prices decreasing by 3.2%. Adjusting for two fewer trading days in June, sales were nearly unchanged at -0.2%.
Month-on-month, June sales values were down by 6.3% compared to May. Volume sales dropped by 9.4%, while prices increased by 3.3%. Again, with one less trading day in June, sales were down by 1.7% when adjusted.
For the first half of 2024, sales values were down 2.7% compared to the same period in 2023, with volumes down 1.2% and prices down 1.5%.
Over the 12 months from July 2023 to June 2024, total sales at plumbing and heating merchants were slightly lower (0.5%) compared to the previous year. Volume sales decreased by 2.4%, while prices rose by 2.0%. Adjusting for two extra trading days during this period, like-for-like sales were down by 1.3%.
The PHMI Index for June 2024 was 90.0, which adjusted to 93.0 for one less trading day compared to the baseline period.
Mike Rigby, CEO of MRA Research, which produces the report comments:
“With a newly elected government in charge, and one which is pledging to build 1.5 million homes over the next five years, there is an air of optimism in the industry, not yet reflected in Plumbing & Heating merchants’ sales to the trade. But much as it wants to build those homes and make the UK’s existing housing stock of around 30 million dwellings fit for the future, the industry is questioning its capacity to do so.
“The UK construction workforce fell again in 2024 Q2, according to the latest ONS data, reports Noble Francis, Economics Director of the CPA. In 2024 Q2, there were 2.04 million workers in construction, he says, 5.1% lower than a year ago, its lowest level since 2000 Q1. It was also 15.9% lower than 2019 Q1 and 21.0% lower than the peak in 2008 Q3, which was before the impacts of the financial crisis. The key losses have been in self-employment and in the old-age demographic. The workforce is likely to take a very long time to get back to 2019 Q1 levels.
“The limiting factor in both housebuilding and the RMI of the existing housing stock is the growing skills shortage. According to the Federation of Master Builders (FMB) Q2 2024 State of Trade Survey the UK is currently experiencing a construction skills crisis, with a high proportion of tradespeople within 10 years of retirement. The FMB reports a net +7% increase in total workloads this quarter. But 43% of FMB members reported a shortage of skilled tradespeople resulting in project delays, up from 36% in Q1.”
