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It’s August, which usually means a slow news month. But you cannot help but feel as though there are some very dark clouds gathering over certain parts of the window industry right now.

Share prices sliding for some of our biggest publicly traded companies. Profit warnings from national installers. Entu on the brink. Reports that sales are down at some of the industry’s biggest companies anywhere between 5-15%. It has not been a good few months if you’re one of the biggest in our sector.

That being said, talk to many small to medium sized installers and fabricators and they will tell you something very different. Sales are healthy, margins are good, and all the signs are that 2017 will be better than the year previous. So why the stark difference?

I believe the industry is approaching a rather serious crisis point and it’s approaching it very quickly, and depending on which part of the market you sit at, you’ll either do very well or you need to start thinking about your future.

Bad business model karma

I have long written about all the things that are bad with the old way of selling to home owners in this industry. The residential market has changed quite drastically in the last decade or so. Home owners have become much more discerning when it comes to purchasing new windows and doors, and quite rightly so. The internet has helped. And now we have a much more educated, wise and wary residential market that knows when they’re being taken for a ride.

Yet, many retail companies have continued to run a business model that includes door to door lead generation, heavy discounting and hard-sell tactics. All of which home owners are shunning and won’t entertain. They know to dismiss them. As a result, according to reports, sales at some of the biggest national retailers who also use these antiquated business models and sales tactics are being slammed. Many have said that if selling like this continues, these sorts of companies will fall by the wayside.

Add to that a whole raft of price increases in the past year or so, and karma has bitten back hard. With sales dropping and material prices increasing, margins are being eroded and revenues are falling fast at some businesses. This effect travels further up the supply chain, to those who supply the major regional and national installers with their materials. If their customers struggle, they struggle too.

The Epwin Group trading update last week was an example of that. They supply to a lot of companies, and some of those are the very ones struggling on the sales side. When their customers suffer, they suffer too. Hence we saw their share price plummet almost 20% in s single day. With all the stories circulating inside the industry right now, this is perhaps the most important.

For many of our largest companies and groups, we are approaching a pivotal moment. Business models have to change. The way large installers approach their sales has to change. For some, such as Entu, the damage is probably already done. For some, there is time to change, but it has to be now. To continue the status quo, bury heads in sand and assume that things will revert back to the old ways would be plain stupid.

The environment in which we all operate has now changed, and changed for good. As much as many would like, prices are never coming back down. Price increases that were blamed on Brexit and Sterling falls are never going to be reversed. We are all going to have to get used to charging more for our goods, and when you look at the wider picture that’s probably how it should be. Our prices are hardly different to what they were a couple of decades ago. It’s probably time home owners started paying more for what we sell. For the SME’s in our industry, those who work in smaller scales and can adapt their products to warrant higher prices, this is easier to manage. For the larger companies who operate on volume on lesser quality products this is where it is going to hurt.

But it is those early adopters of change. Those who saw that best way to survive and indeed thrive was by seeking out a higher end offering. A more bespoke service for home owners where shiny white plastics wasn’t the only choice available to them.

Many small to medium sized installers and fabricators identified quite a few years ago that niche products, higher end offerings were the way to attract new customers, more discerning customers and improve profit margins. Many SME installers also operate a much more laid back approach to sales, which given the higher end nature of products now being sold, is the right thing to do. You wouldn’t expect home owners to make instant decisions on home improvement products which can often cost into five figures.

Speak to SME installers and fabricators today and they will tell you that business is good. Sales and revenues strong, lead levels good. In total contrast to the commentary surrounding the biggest in our industry. Often the “shiny white” part of our industry.

Question is, is it too late for the bigger companies to change? We all know the trouble Entu is in. KPMG are trying their best to save the group, but the last update didn’t inspire confidence, and the talk at the moment is that it’s probably now too late. According to reports and industry commentary the biggest installers are suffering too. I also doubt their ability to ever change their ways. They will always sell the way they always have. And home owners will continue to resist that way of sales in the years to come, which means sales from tele-canvassing and door-knocking will continue to fall. I also believe that we are edging closer to laws being introduced that will ban the use of cold calling both via phone and door-step. The more companies abuse the rules, ignore them or find ways round them, the more likely the whole practise might be banned.

Personally, I believe that we’re only a few years away from seeing the landscape of our industry changing forever, driven by changing consumer habits. That will affect the very biggest suppliers too, as they supply those who may be hit worst by big changes in consumer spending. This is how serious I believe the situation to be right now. I believe that we are now at the start of what could be a very disruptive evolution of our industry. I know that sounds dramatic, but take a minute or two to read the trading updates of some of our biggest. Take a look at the share prices of our publicly traded companies. Look at what is happening at Entu.

The movement is already happening. It could be a very dramatic few weeks and months coming up in UK fenestration.

Residence is ‘Best windows’ finalist at Build-It Awards

PVC-U systems company, Residence Collection, has been shortlisted in the ‘Best Windows’ category of the national Build-It awards.

The prestigious annual event recognises innovation and excellence in the custom and self-build sector, bringing together architects, manufacturers and key industry figures. Residence entered its new, flush sash window R7, which is said to offer outstanding benefits in performance, looks and design. The entry included a case study where R7 was chosen for a replacement installation because of its ‘authentic design and character’. The property owners were looking for timber windows but were said to be ‘immensely impressed by the quality, style, and timber-alternative solution of R7. They said the windows had ‘transformed’ their home.

Residence Collection general manager, Sarah Hitchings, said: “We’re extremely pleased to be shortlisted for these awards. We’ve been active in developing and positioning our systems as the best flush sash windows on the market. Our strong growth this year and achievements like this are a credit to our team’s efforts and success.

“R9 is an established timber-alternative flush sash system targeted at the super premium market. It’s ideal for period or heritage properties, or those in conservation areas,” continues Sarah. “R7 is the new kid on the block. A uniquely flush system, inside and out, it opens up a new market for us in high-end contemporary homes and self-builds, modern new builds and city apartments. We’re looking forward to the award ceremony and keeping our fingers crossed!”

The winners will be announced on 22nd September in London.

www.residencecollection.co.uk

The post Residence up for a Build-It award appeared first on Glass & Glazing Products Magazine (GGP).

Aluminium specialist CDW Systems recently supplied its products for a new waterfront restaurant in Guernsey.

Octopus Bar and Restaurant is located on the south side of Havelet Bay in St Peter Port, Guernsey.

The restaurant boasts ‘one of the best views in Guernsey’ towards Herm, Jethou and Sark and encompasses a maritime and explorer theme that extends to a varied international menu including locally freshly sourced seafood.

CDW Systems supplied curtain walling and wide-span sliding doors for the project, which were installed by Stainless Steel Fabrications.

Sapa’s Elegance 52 is a high-performance curtain walling system designed to meet the demands of modern architecture. With a 52mm width, Elegance 52 offers slim sightlines while maintaining the necessary strength requirements.

The project also incorporated Visoglide Plus sliding doors from Smarts. The system is ideal for maximising light and space in commercial projects, and delivers superior thermal performance.

Mike Davis, Managing Director of CDW Systems, comments: “We’re delighted to have our products included in this project. Octopus encapsulates a sleek and modern aesthetic internally so it was important the exterior matched.

“Our products combine contemporary styling with unmatched performance that is ideal for a marine environment to protect against unpredictable weather and salt corrosion.”

CDW Systems has been operating for over twenty-five years as an aluminium specialist, manufacturing and supplying a wide range of windows, doors, shop fronts and curtain walling, using some of the leading aluminium profile systems on the market.

For more information call 01452 414853 or visit www.cdwsystems.co.uk

Online lead generation business Leads2trade is gearing up for a record year after posting strong sales figures for the first half of 2017.

Leads2trade has seen high demand for its services, culminating in a 15% increase in lead volumes compared to last year.

The positive trading figures have set Leads2trade on course to achieve a record end of year turnover, come the end of the year.

The news follows the recent expansion of the business, with Leads2trade acquiring an additional 3000 sq ft. of office space in a neighbouring building to its Stockport-based headquarters.

Director Andy Royle comments: “We have now officially settled into the expanded office space and have taken on four new members of staff as we gear up for further growth.

“We have seen an influx of new customers and existing clients wanting to break into new markets using our specialist lead generation services. Our growth shows consumer spending is still strong and homeowners are choosing to invest across a wide range of products and services.”

Leads2trade generate thousands of leads per month for companies operating in the home improvement market, with the core sectors including windows, doors and conservatories, security and heating and plumbing.

These leads are then double qualified by Leads2trade’s in-house call centre and passed onto members of its popular Trusted Local Supplier network, in postcodes of their choice. They can receive leads instantly via email and SMS and use the company’s appointment booking and hot key transfer service.

Director Andy Royle says while growth has remained consistent across the business, Leads2trade has received particularly high demand for replacement conservatory roof leads.

He comments: “As we move into summer, now is the time many homeowners look to make renovations and upgrades to their homes such as replacing conservatory roofs. Solid tile roofs are a popular option as they don’t leave the room too hot in the sun and will keep the conservatory warm enough when winter rolls around.”

For more information on Leads2trade please visit www.leads2trade.co.uk or call 01614 660099

Image Above: Chris Jones, Dean Halfpenny, Adam Coleman

Kent-based facade contractor Prima Systems (SE) Ltd has promoted two of its long-standing team members to the Board of Directors with the aim of driving business growth and profitability.

Adam Coleman and Chris Jones – who are both long-standing members of the team – have become Technical Sales Director and Contracts Director respectively.

Adam, who recently celebrated his 20th year at Prima Systems, will continue to head up the Estimating team with a focus on lead generation and product innovation whilst sharing his vast technical knowledge with our clients.

Following the announcement Adam said “The fenestration industry and the wider construction industry as a whole have changed dramatically since my first days as a trainee estimator and it still faces many great challenges – an aging labour force, tighter margins, new technology and new methods of construction. As part of the team at Prima I have witnessed/experienced these first-hand but happily we have always been able to rise up to these challenges and push the company to meet them. There have been ups and downs as with any business but I am extremely happy to have been part of such a great company and to be offered the chance of joining the board of directors was very humbling. I very much look forward to helping the company achieve its ambitions now and in the future”.

Chris, who joined the company in 1999, will lead the Contracts Team and ensure we continue to deliver the best service and client support as we have for many years. Chris’ dedication to each project we undertake is fundamental to our success and his industry know-how will be vital as the company develops over the coming years.

Contracts Director Chris Jones said “Prima Systems has a solid reputation, a fantastic team and a first class client base so helping to steer the growth of the team into its next phase of development is a very exciting prospect. 2016 was a year of change for the company with the introduction of rainscreen cladding bringing new challenges and development opportunities, I hope to build upon the foundations laid by the whole team to cement Prima’s position as the undoubted choice for the design and installation of integrated facade solutions. I am honoured to be joining the board of Directors and look forward to working together to grow our business further”.

2016/17 was a year of great success and growth for the company with the highest number of orders received valued at £6.5 million. The introduction of cladding to the product range has increased the demand on the team but we are pleased to report several successful projects have now been completed with more enquiries coming in. Chris and Adam have been instrumental in the company’s success and we look forward to the future and further strengthening the company’s position.

Managing Director Dean Halfpenny said of the announcement, “A key part of the company’s strategic 5-year plan was the strengthening of the high-level management team. The appointment of Adam and Chris as directors is the first step in achieving this aim. The company is forever developing and adapting to suit the challenging demands within the construction sector and a strong and varied management team is key to Prima’s continued success. Adam and Chris’ input at board level will be instrumental in achieving our targets and goals going forward”.

Adam and Chris will sit on the board alongside Managing Director Dean Halfpenny and Directors David Halfpenny, Sue Halfpenny, Ross Halfpenny and Maria Halfpenny.

For more information, please contact the Marketing department on 01304 843625 or email osbornh@primasystems.co.uk

primasystems.co.uk

Michele Wietscher, director at Newview Windows & Conservatories

Following the revelation that the average age of a construction worker is 49, the director of a home improvement firm has called for action to encourage young people to choose a career in construction.

The average UK construction worker is said to be 49 years old and male, and with a contraction in workers from the EU likely following the Brexit vote, there is an increasingly diminishing pool of workers for building firms to access.

Michele Wietscher, who is a founder and director at Newview Windows and Conservatories says that increasing diversity and promoting construction as an industry that is ‘exciting and worthwhile’ at secondary school level is the answer.

Michele commented: “The debate is finally happening about the next generation of construction workers but it’s now time for action. We’re facing a double crisis of an ageing population and a likely contraction of workers from the EU.

“Ironically, the labour shortage is also driving wages up, so construction jobs should be more desirable if only young people were encouraged to consider them.

“The long-term answer is to promote our industry as a viable option for young people and this means tackling it at school level and doing it now. Too many schools are judged on how many students enrol at college or university and this often means they don’t focus on sectors such as construction and create engagement between business and students.”

www.newview-homes.co.uk

The post Director calls for action on construction skills shortage appeared first on Glass & Glazing Products Magazine (GGP).

In what has already been one of the firm’s most successful years in its history, fabricator Dekko Window Systems is celebrating rocketing sales of its premium, Infinity PVC-U range.

The firm which specialises in premium PVC-U and aluminium products, reports that sales of its Infinity range of ‘seamlessly welded’ PVC-U windows have increased by an impressive 80% compared to the same period last year.

Kurt Greatrex, sales director at Dekko, believes Infinity’s success is attributed to creating a strong upselling opportunity for installers and a viable route to market to meet extensive consumer demand for premium products: “It comes as no great surprise for us to see Infinity continue to soar, because it provides installers with the optimal solution to break into the thriving premium market,” explained Kurt.

“Infinity helps installers rise above their competitors by offering something that is truly unique and far beyond the standard white PVC-U windows their rivals are selling down the street.”

The Infinity range is Dekko’s unique stamp on Deceuninck’s high-performance 2500 and 2800 systems, combining three distinct styles; chamfered, sculptured and the star of the range, the flush sash. According to Dekko, what separates Infinity from its rivals is a seamless weld, achieved by graf welding technology still new to the UK. This reportedly eliminates the ‘ugly’ corner grooves which are synonymous with PVC-U and allows Infinity to succeed in the high-end, premium market.

“Our approach at Dekko has always been customer-first, because if they are thriving then so are we,” added Kurt. “That’s why we’ve developed three strong brands in Infinity, The Residence Collection and Räum, our aluminium range – offering installers everything they could possibly need to raise their profile, make more sales and ultimately take their business to the next level.”

Based in Greater Manchester, Dekko was listed in the 2016 edition of the London Stock Exchange’s 1000 Companies to Inspire Britain.

www.dekkowindows.com

The post Sales of Dekko’s Infinity range up 80% appeared first on Glass & Glazing Products Magazine (GGP).