Insight Data has published the 2013 Fabricator and Installer Report, which points to significant change across 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 in the last year to 4,278 companies although PVC-U fabricators have declined in the same period. 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.

Helen Costeloe-Hughes, commercial director of Insight Data comments; “PVC-U fabricators are evolving and diversifying.  They are introducing alternative products, such as aluminium, composite windows or new products such as Residence 9 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-on-month. 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.”

DOUBLE GLAZING INSTALLERS

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 home improvement products such as garage conversions and extensions.

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 already have relationships with homeowners and are winning contracts under the radar.”

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 now offer windows, doors and conservatories. This is great for trade depots, but double glazing installers across the UK need to be aware of these new competitors.”

Conclusions

While on the surface the industry appears stable there is a significant undercurrent of change.  This is being seen across many facets;

   1. Reduction in the number of PVC-U fabricators

   2. Diversification of materials being manufactured by fabricators

   3. Route to market (distribution channels)

   4. Installer diversification in products and materials

   5. Installer diversification into other home improvement sectors

   6. Rapid increase in ‘general builders’ now offering windows and doors

   7. The rise of the trade counter depot

As a result of this undercurrent, the rate of change within the Insight Database is at its highest ever level.  Across the database, there are now some 1,300 changes occurring every month – companies, management, locations, contact details, products and sectors.  Over the last six months 60% of companies on the Insight database have experienced some change in their business.

The Full Report

The Insight Data 2013 Market Report uses data collated during extensive research and interviews carried out with over 15,000 fabricators and installers.  It is the most comprehensive analyse of the fenestration industry.