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Let’s start by saying that it’s been a year of highs and lows for everyone.

EGGER has a unique perspective on the market as it touches so many parts of the UK’s construction, furniture, and interior sectors and all of these industries have faced an array of challenges in 2024.

From the lingering impacts of Brexit to the shockwaves of COVID, we were all navigating a labyrinth of economic hurdles even before the energy crisis and soaring inflation struck.

These pressures have tightened budgets, affected consumer confidence, and hindered growth across the board. Yet, despite these obstacles, I genuinely believe there are reasons to be optimistic as we move into 2025.

The primary challenge we’ve seen this past year is a significant slowdown in housebuilding, a sector that fuels a great deal of demand across our industries. When new builds falter, so too do all the sectors downstream, from the supply of kitchen and bathroom materials to the demand for interior finishes and furniture. 

The government has said it wants to increase housebuilding significantly and, with an acknowledged housing shortage, the fundamentals are in place for growth. 

But growth is dependent on more than just government aspiration. We need practical changes in planning legislation, more land availability and, crucially, a stable labour market. The potential to build 1.5m homes over the next five years is an exciting target, but it remains an uphill battle at best.

Interest rates and inflation have become major concerns and, although the Bank of England’s recent decisions hint at some relief, it will take time for these changes to impact consumer confidence in a meaningful way. 

Stability

If we can stabilise inflation and bring down interest rates gradually, we’ll see a more favourable environment for first-time buyers, developers, and the construction sector at large.

This is essential because a buoyant housing market doesn’t just drive house sales, it cascades across our entire sector. From kitchen retailers to furniture makers, everyone benefits when people feel confident.

As I look to 2025, I see it as a year of stability. Now, stability may not sound thrilling after years of wild economic swings, but for us, predictability is invaluable. A stable market enables businesses to plan ahead, make investments with confidence, and strategise for growth.

For EGGER, it allows us to lean into what we do best – innovating in product design, delivering sustainable options, and meeting customer demands with quality materials. We’ve weathered the storm, and now we can focus on growth again.

For us, the drive to differentiate is more critical than ever. Whether it’s new finishes, sustainable materials, or enhanced durability, we’re always seeking ways to add value and bring fresh, appealing products to market. Innovation is the best response to market challenges.

So I feel optimistic. Yes, there are challenges, and yes, the path won’t be easy. But with a steady hand, a focus on innovation, and a commitment to sustainability and talent development, we’re prepared to make 2025 a year of progress.

Stability will be the foundation on which we build, and I have no doubt that we’ll see growth and opportunity as the market begins to recover. Here’s to a New Year that provides our industry with an increasing sense of optimism and opportunities for growth.

To find out more, visit Egger.com