Construction and building products
To the uninitiated, the sector is frequently seen as commoditised, dull, and extremely cyclical – hardly a sector in which to invest.
In practice, this sector includes many exciting products, ranging from sophisticated building management systems to highly technical components enjoying a niche position.
Key issues affecting the sector are:
• The rise of technology with increasing numbers of more technical products providing more value-add and consequently higher margins
• New methods of production and distribution to improve efficiency
• Increasing environmental concerns leading to changes in materials often encouraged by government subsidy or regulation
• Whether demand for a specific product is dependent on new build, or on refurbishment or maintenance expenditure, which is generally seen as less cyclical
AMR has conducted over 40 projects in this sector. What makes us different? A “bottom up” approach talking to our extensive network of construction companies, building product manufacturers, architects, distributors, and tradesmen. We couple this approach with a “top down” analysis establishing what is driving the market, and how demand and supply fits into the bigger picture. The results are pragmatic, grounded recommendations which have helped many of our clients to earn spectacular returns.