The Insight Data annual Fabricator and Installer Report on the window, door and conservatory industry reveals trends and performance over the last 12 months.
The report highlights the decline in PVC-U fabricators and increase in aluminium manufacturers; along with continued growth of niche products.
Managing Director of Insight Data, Andrew Scott, comments; “The Insight Report differs from other analysis as we do not make assumptions based on a cross-sample of companies, which is the norm in market research. For the Insight Report, we use the data collected by our in-house research team who make over 200,000 telephone research calls a year.”
The headline figures show that 4,209 fabricators and 12,127 installers are active in the window and door market across PVC-U, aluminium and timber products.
The number of PVC-U fabricators has dropped by 8% over the last 12 months and with 65% of fabricators manufacturing 100 frames per week or less, the decline is likely to continue.
“Smaller PVC-U fabricators are finding it increasingly difficult to compete especially in trade and commercial sectors and we predict some of these companies will cease production altogether and buy-in from a larger fabricator. But it isn’t all doom and gloom; some PVC-U fabricators are enjoying real growth and there are still new fabricators starting up.”
Aluminium continues to have resurgence, and it is notable that many PVC-U fabricators and installers are now offering aluminium; a trend that is set to continue.
Some of the largest UK fabricators are specialist aluminium contractors, while heavyweights such as Jeld-Wen, with turnover exceeding £100 million in the UK, remind us that timber windows still represent a significant market.
Introducing the Insight 50
For the first time the Report takes a closer look at PVC-U fabricators with key financial data and the introduction of Insight 50, the top 50 fabricators in the UK, based on a range of criteria including products, volume and financial information.
By size (turnover) the retail giants Anglian, Everest and Safestyle reign supreme however there are surprises elsewhere, particularly among trade fabricators and the continuing trend towards product diversity and business acquisitions to gain market share.
“There are a number of fabricator acquisitions and investments that are creating groups with significant economies of scale and purchasing power, such as A & B Group, which is now one of the largest fabricators in the country.”
Among installers, diversification is the key to survival. Insight Data has identified what it calls ‘morphing’ where double glazing companies are evolving into home improvement companies and offering extensions, garage conversions, solar and other product lines.
“We may be facing tough economic conditions and a saturated market, but installers are keeping their heads above water by expanding their product offering across home improvement products. This is good news for installers, but it comes at the expense of their core business with an aggregate drop in window and door volume.”
Niche and premium products continue to sell well, often propping up slowing sales elsewhere. The ‘hot’ products continue to be composite doors, vertical sliders and bi-fold doors.
Regional Variations
Regionally, the North West saw the largest drop in volume output while Greater London saw a net gain in volume over the last 12 months.
The East Midlands region continues to have the highest number of fabricators and installers, with 556 and 1,533 companies respectively. The ratio between fabricators and installers is lowest in Northern Ireland, with 1.8 installers to every fabricator, and highest in the South East with 3.7 installers per fabricator.
Andrew concludes “this report highlights some of the challenges ahead, but it also points to the opportunities. As an industry, even the largest companies have less than 5% market share, which means every fabricator and installer has the opportunity for growth. Many companies are reporting record sales and there is an optimistic outlook among many industry leaders.”
The Insight Report is a clear and concise snapshot of the industry over the last 12 months while the Insight 50 creates a new annual benchmark. The Report can be ordered from www.insightdata.co.uk or call Insight Data 01934 808293.
