All Doors
A clear view of fenestration supply chain challenges sector in 2021
» DAVID JENNINGS FROM leading hardware specialist , UAP Limited , discusses the importance of resilience planning and ensuring an efficient supply chain for fabricators .
Between the challenges of the pandemic and the unexpected boost to the market as homeowners repurposed their holiday funds for home improvements , 2020 was year in which it was difficult to plan from one week to the next . 2021 is already shaping up to be just as unpredictable and , as we continue to cope with infection rates and lockdown conditions , it ’ s supply chain uncertainty that is worrying many in the fenestration sector . Confusion over new import rules and paperwork requirements following Brexit , the ongoing effects of the pandemic and the hangover from last year have created a complex supply chain landscape with the potential to spell one word for the fenestration sector : delays .
THE RIPPLE EFFECT FROM CHINA
The Chinese manufacturing landscape is one we know very well at UAP Limited because our products are designed , developed and tested by us in the UK , but manufactured to our exacting quality assurance standards by our Chinese partners . Chinese New Year is a time of celebration that has a major impact on manufacturing capacity in China every February . Each year , workers who have travelled to the cities to work go home for Chinese New Year , often spending a two-week break with their family , which is bookended on either side by a journey of at least a week . Every year , a proportion opts to stay in the provinces after the resulting in reduced capacity while factory owners replace them . That annual cycle has a significant effect on production schedules , for which UK companies importing goods from China need to prepare by ordering in advance and managing their UK stockholding . This year , the fall-out from Chinese New Year is likely to be worse than usual because lockdown restrictions prevented the 2020 celebrations so Chinese factories are anticipating a longer hiatus and an even greater worker drop off .
Changes in the Chinese manufacturing sector are also affecting capacity . For example , the drive to meet international environmental standards has reduced the number of metal plating operators , cutting capacity for plating of hardware products . As a result , UK companies must have established relationships and diligent lead time planning in place if they are to meet demand and offer acceptable delivery terms to customers .
All of these factors make manufacturing products overseas for the UK market more challenging for the fenestration supply chain ; but none of them are insurmountable . At UAP Limited , we began the pandemic in a position of strength with long-established manufacturing partnerships and a good understanding of how the Chinese market operates . Indeed , our relationships in China meant that we were faster than most in recognising how severely it was likely to affect the UK market .
Because of those insights , we were able to plan and implement a strategy for maintaining stock levels and mitigating the risk of delays . Product development and investment continued , and we looked at where we needed to add more warehousing capacity in order
to build resilience for the company and our customers . As a result , we started 2021 with an additional 25,000 sq ft of warehousing space , with a further 35,000 sq ft planned for this year , and our stockholding currently sits at £ 7 million , and will increase to £ 8m by the end of 2021 .
Because we anticipated delays and production capacity issues in China during February and March 2021 , we ordered our products months in advance and ensured that consignments for Q1-2 were either received or en route by the end of 2020 . Products for Q2-3 are already on order and we will continue to build the likelihood of extended lead times and shipping delays into our production planning .
CAPITALISING ON POTENTIAL It ’ s been a tough year for the fenestration sector but , with a strong housebuilding sector and consumer focus on home improvements , there is potential for a strong recovery . But recovery can only happen if the products are available to meet demand , so UAP Limited is focused on planning ahead with high stock levels and advance orders , underpinning our own business continuity , and ensuring fabricators can rely on consistent service levels and short lead times .
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40 » MAR 2021 » CLEARVIEW-UK . COM