Clearview North December 2013 - Issue 145 | Page 64

2013REVIEW NEW REPORT: INDUSTRY FACING MAJOR CHANGES Insight Data has published the 2013 Fabricator and Installer Report, which points to significant change across the fenestration industry. The report shows the number of window, door and conservatory companies has risen in the last 12 months, the first increase for 5 years, and now stands at 15,137 companies. The number of fabricators (PVC-U, timber and aluminium) has increased marginally to 4,278 companies although PVC-U fabricators have declined in the last 12 months. This decline has, however, led to greater volume shared amongst remaining fabricators, with a significant increase in average frame volume per company. This explains in part why many fabricators are reporting record sales. ‘First increase for 5 years, and now stands at 15,137’ Helen Costeloe-Hughes, commercial director of Insight Data comments; “PVC-U fabricators are evolving and diversifying. They are introducing alternative products, such as 64 DEC 2013 aluminium, composite windows or new products in a bid to increase revenue and improve margins. “In fact, 17.5% of all PVC-U fabricators now manufacture aluminium, a figure that continues to rise month-onmonth. This has been driven by demand for aluminium bi-folding doors, which has created awareness and demand for aluminium windows and doors in general among installers and homeowners.” home improvement products such as garage conversions and extensions. already have relationships with homeowners and are winning contracts under the radar.” INSTALLERS ‘The number of general builders offering home improvement products such as windows and doors has increased dramatically to over 20,000’ According to Insight Data the installer landscape is changing rapidly. The number of installers has increased over the last 12 months but a growing threat from general builders has had an impact on volumes. To combat low volumes and low margins, installers have diversified into other products and sectors. 47% of installers now offer a choice of materials, PVC-U, timber or aluminium, while many have diversified into other Helen continues; “Installers, like fabricators, are keen to increase order values and margins and an increasing number are offering higher value product lines such as bi-fold doors, vertical sliders and coloured frames. “Meanwhile, the number of general builders offering home improvement products such as windows and doors has increased dramatically to over 20,000 across the UK. Many of these builders TRADE COUNTERS A shift in distribution channels has occurred across the industry. The traditional route of fabricator >> installer >> homeowner is being challenged by a rapidly growing network of trade counters. Trade counter depots emerged some years ago with a number of operators buying from fabricators in volume, and selling-on to small installers and general builders. However, a growing number of PVC-U fabricators have now established their own network of depots. This provides a strong regional presence and enables the fabricator to capture volume they would not otherwise gain. On the flipside this poses a threat to smaller, regional fabricators who rely on local business. Helen adds; “It is this expansion of trade counter depots that has fuelled an increase in the number of general builders who To read more, visit www.clearview-uk.com