The British Institute of Kitchen, Bedroom and Bathroom Installation is delighted to announce Hansgrohe as the latest KBB brand to become a corporate sponsor of the institute, with the global premium bathroom and kitchen company pledging its support to the government-sanctioned organisation and its work on building a sustainable workforce and improving education, standards and compliance in the KBB installation sector.

With its brands AXOR and hansgrohe, the Hansgrohe Group, is an internationally active company synonymous with innovation, design and quality in the bathroom and kitchen industry. Hansgrohe, a family business founded in the Black Forest, Germany in 1901 is known for its long-lasting, high-quality products and for how seriously it takes its responsibility towards people and the environment. The 120-year history of the company is marked by innovations, such as the first hand-held shower with multiple spray types, the first pull-out kitchen mixer tap, and the first wall bar to hold a hand-held shower. In 1990 the Hansgrohe Group founded the UK subsidiary which currently employs around 90 staff in the office and in the field, and recently invested more than £5m into its UK business.

Julie McLean, Marketing Director for Hansgrohe UK said: “The UK KBB installation sector is vital to manufacturers like us. That’s why so many of our product innovations are linked to benefits for installers – from our spare parts guarantee to ‘fit and forget’ designs that help ensure a quality finish and longevity for their customers. We are therefore delighted to support BiKBBI in its important work championing installers, retailers and the KBB industry, and the significant contribution they play in the wider economy.”

BiKBBI CEO, Damian Walters said ‘2023 was an extremely active year for the institute as we continued our work education, standards, compliance and sustainability – all of which are fundamental to the future of the installation community that serves the KBB sector. It is vital that we collaborate with the wider industry, so to start 2024 by welcoming Hansgrohe, a much-respected business and brand, on board as a corporate sponsor is a real highlight for our organisation. It is also a significant step in our quest to garner support from more manufacturers, suppliers, distributors and retailers, all of whom are reliant on installation at some point in the cycle, as we work towards closing the communications gap, improving the skills shortage and ultimately building a sustainable workforce.

We are thrilled to have Hansgrohe supporting the work that we are doing to drive positive change in the KBB installation sector and very much look forward to working with the team and supporting them as they embark on an exciting phase within their business.’ 

• 17% of all insolvencies were construction companies last year
• Construction insolvencies have outpaced all other UK sectors for the last three years
• Cancellation of Northern leg of HS2 hits confidence

The construction sector is experiencing the highest number of insolvencies of any industry in the UK, with 4,370 companies going bust in the year to the end of November 2023, representing 17% of all insolvencies*, says Mazars, the international audit, tax and advisory firm.

In 2022, the UK’s construction sector contributed 6% to the country’s GDP**. Construction insolvencies have consistently outnumbered any other sector for the past three years, with 2022/23’s figure showing a 7% increase from the 4,086 companies that went insolvent in 2021/22 and a 76% rise from 2,481 2020/21.

Mazars says that the construction sector has been hit hardest with a perfect storm of high material and labour costs. The impact of rising borrowing costs has further impacted profit margins on both live and pipeline development projects. 2023 saw mortgage rates reach a 15-year high, putting a dent in consumer confidence and taking the heat out of the dramatic price rises in residential housing over recent years.

Mark Boughey, Partner in the Restructuring Services team at Mazars, says: “There are now on average a dozen building companies going under every single day in the UK. This is an immensely difficult period for the construction sector.”

“One problem is that the commercial viability of a lot of today’s projects were assessed three or four years ago, with fixed price contracts often being negotiated – since then, costs have spiralled, while buyers’ appetite has taken a dive. Construction contractors operate on very tight margins at the best of times – the sector is really being squeezed at both ends right now.”

Insolvencies in the sector have been highest in specialised construction activities, such as demolition, electrical and plumbing, representing 58% of all insolvencies in the sector over the last twelve months.

“We saw a number of bigger contractors filing for insolvency 12 to 18 months ago and now those failures are being felt downstream in the supply chain,” says Mark. “Sub-contractors aren’t getting paid on time or to the agreed levels and, as a result, are now starting to experience their own financial problems. The impact of failures in the sector cuts both ways though – when smaller companies fold, it can cause major delays for the main developers in completing projects.”

“Whilst some of the headwinds around increasing borrowing costs and material prices have eased, we’re unfortunately likely to see these difficulties persist through 2024 and into 2025.”

* Source: Insolvency Service

** Source: United Nations Economic Commission for Europe, Share of construction in GDP, 2022