Abstract
The market for suspended ceilings and partitioning systems was worth an estimated ｣307m at
manufacturers selling prices in 2004, having remained relatively flat since 2002.
Between 1997-2001 the market achieved annual growth of 3-7% but 2002 saw lower growth reflecting
the decline in new build office projects and a fall in confidence levels. Between 2003-2004 the
total market for partitions and suspended ceilings was relatively flat as a result of a decline in
the office construction market and high levels of vacant office space, especially in London and the
South East. However, continued government investment in the health and education sectors have
benefited the market, as has growth in other end use sectors such as retail and entertainment.
In 2004, suspended ceilings are valued at approximately ｣156m, having experienced growth
of around 3% since 2002. The sector has performed better than the partitioning market in recent
years due to their use in a wider range of end-use sectors, which makes the market less susceptible
to difficult economic conditions and less reliant on the vagaries of the office construction market.
In 2004, it now represents the major section of the total market and is expected to increase its
share at the expense of partitioning systems in the short to medium term.
The major end-use sector for suspended ceilings is offices, accounting for an estimated 42% share
of the market, followed by the retail, health, entertainment, education, industrial and other
sectors. The recent decline in commercial office construction and high levels of vacant office space
is adversely affecting the market, although the situation is expected to improve during 2005. Other
end use sectors, such as entertainment and retail, have achieved growth in recent years and,
together with airport construction, have further benefited this market. Increases in government
spending in the education and health sectors have also positively affected market growth.
In terms of key product sectors, there are five main types of ceiling tiles: wet felt/mineral
fibre and soft fibre (which together are estimated to account for 69% of the market), metal,
open-cell and others, e.g. plaster.
Increases in steel prices have adversely affected the grid and metal ceilings markets, with metal
ceilings seeing a small decline in their share of the suspended ceilings market. Soft fibre ceilings
have maintained share despite low growth in the suspended ceilings market and wet felt mineral fibre
ceilings have gained slight share from metal ceilings during difficult market conditions.
Gypsum-based ceiling tiles and plasterboard have also seen growth in recent years. Open-cell
ceilings systems have seen a decline in share, mainly due to a continuing trend towards smoother
ceiling surfaces.
The market for partitioning systems is valued at ｣151m in 2004, having seen a decline of
nearly 4% since 2002. This market is heavily reliant on the office sector and has suffered from a
combination of the decline in office construction and high levels of vacant office space in London
and the South East.
The market is comprised of three major sectors:
- Monobloc;
- Operable walls/folding partitions; and
- Other demountable/relocatable partitions.
Monobloc partitioning has seen low levels of growth since 2002 due to its relatively high price
and low demand for premium office space, especially as these partitions are high quality products
aimed at the upper end of the market and installed particularly in prestigious offices.
Operable walls have also been a relatively buoyant sector, with some growth in products with
acoustic properties. Within the other demountable/relocatable sector, there has been growth in
demand for bi-bloc partitioning which is flexible and allows each side of the partition to be
decorated differently. Glass frameless partitioning has also been a growth area as the trend
towards open-plan offices with flexible partitioning continues.
Short to medium-term prospects for partitioning are optimistic and the market is expected to
begin to recover from 2005 as vacant office space starts to reduce, and an expected upturn in
commercial office developments is seen. However, partitioning is expected to continue to lose share
within the total market to suspended ceilings which benefit from having a greater number of end use
sectors and are better placed to benefit from government investment in health and education.
The suspended ceilings and partitioning market has a complex supply and distribution structure,
reflecting the wide range of materials involved. There are many companies operating in the market,
supplying a wide range of end use sectors, particularly in the case of suspended ceilings.
Companies operating in this market include raw material suppliers, manufacturers and
distributors, with a substantial element of vertical integration. The major distributors sell a
range of products including those they manufacture and sell under their own brand-name; products
manufactured by other companies and sold under the distributors own name; and branded ranges from
other manufacturers.
In terms of suspended ceilings, leading suppliers include Armstrong World Industries, USG (UK),
SAS International, Saint-Gobain Ecophon, CEP Ceilings, Burgess Architectural Products, Rockfon and
Hunter Douglas.
Major suppliers of partitioning systems are Komfort Office Environments, Clestra Hauserman, CPD
Distribution (Tenon Partitions), Neslo Partitioning and Interiors, Alco-Beldan, as well as Optima
and Unilock (both part of HL Smith Construction).
At distributor level, the market is relatively concentrated. Major distributors are CPD
Distribution (which now includes CP Supplies, Capco and Ceilings Distribution and lead the market
with an estimated 39%), Commercial Ceiling Factors (CCF), Komfort Office Environments, Nevill Long
and Encon Interior Systems.
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