Cleanzine: your weekly cleaning and hygiene industry newsletter 25th April 2024 Issue no. 1111

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Washroom Products in the Education & Health Sector UK 2012 - 2016: report published

Forecasts for 2012 indicate that the commercial washrooms market is likely to achieve modest growth at 2%, supported by new build and refurbishment activity in the leisure and entertainment sectors and the build up to the Olympics. It is expected that commercial washroom spending in both the health and education end-use sectors will reduce by 7% over the next five years, with most of this reduction stimulated by capital expenditure cuts in the education sector.

So says AMA Research in its latest report, which says that the market for commercial bathroom products was worth £319m in 2011 - a rise of 2% since 2010 - while the value of washroom products in the education market was £49m in 2011, down from £54m in 2010.

Having recently been one of the most buoyant sectors for construction, the combination of a new government, the 2010 Spending Review and austerity measures prompting a review of capital building have now significantly slowed down activity in the education sector, says AMA.

Following on from the decision to halt Building Schools for the Future (BSF), capital spending will be reduced by 60% in real terms by 2014-15. Over the Spending Review period there will be a total of £15.8bn of capital spending.

2010 was a particularly strong year with the value of washroom products in the education sector achieving growth of 8% to a value of £54 million, predominantly supported by BSF projects.

Key issues regarding washrooms in the education sector include safety, water conservation and vandal resistance, in addition to the number of students, age range and ease of accessibility.

The value of washroom products in the health market was £64m in 2011, down from £65m in 2010. Overall NHS spending will increase by around £10bn - a 0.4% increase in real terms over the course of the 2010 Spending Review period (2011-2015). However, this includes a 17% decrease in capital spending so many capital schemes are expected to suffer, with contracts likely to take much longer to reach financial close.

Forecasts for 2012 indicate that the commercial washrooms market is likely to achieve modest growth at 2%, supported by new build and refurbishment activity in the leisure and entertainment sectors and the build up to the Olympics.

It is expected that commercial washroom spending in both the health and education end-use sectors will reduce by 7% over the next five years, with most of this reduction stimulated by capital expenditure cuts in the education sector.

The short-term outlook for education construction remains difficult, with the funding crisis in the higher and further education sectors likely to lead to deferral of improvements and extensions to existing facilities. The longer term outlook for primary and secondary education is also less clear under the coalition government, with the recent suspension of a number of projects under BSF, although a partial successor, the £2bn PFI schools programme, has now been announced.

By 2016 the market value of washroom products in the education sector is forecast to be some £40m at MSP, which would represent a decrease of 18% compared to the estimated market size in 2011.

Lower levels of capital expenditure and financial uncertainty in the health sector is likely to mean a shift from new hospital builds to less-costly refurbishment schemes. The ending of the large-scale hospital development programme also means that the role for the private sector is likely to reduce in future years as PFI is replaced with programmes such as LIFT Express and ProCure 21+ to build smaller based community projects.
By 2016 the market value of washroom products in the health sector is forecast to be some £64m at MSP, which would represent a fairly static market from 2011.

AMA Research's report 'Washroom Products in the Education & Health Sector Report - UK 2012-2016 Analysis', is available in hard copy or electronic format and can be ordered on:

T: 01242 235724
F: +44 (0)1242 262948
E: [email protected]
W: www.amaresearch.co.uk

22nd March 2012