INDUSTRY NEWS
The long-term issue is not the shortages
Gary Morton of Central Window Systems speaks exclusively to Clearview Group on shortages in the supply chain and if we can take any positives from current issues in the industry …
» “ THERE HAS BEEN NO SHORTAGE of shortages recently , and undoubtedly , they ’ ll be more to come . The problem is how we deal with these supply issues and the associated cost increases . The real problem , I believe , is the dysfunctional relationship between fabricator and installer . Don ’ t get me wrong , some fabricators do get it right , but we need to address the ones that don ’ t – or won ’ t – work with their customers and collaborate efficiently .
“ There are many different aspects that come into play , and it ’ s a complicated issue . Yet , in my opinion , there are some fundamental points that we can start with . In basic business terms , we think about supply and demand . At the moment , demand may have slowed compared to what we have seen over the past few years , but costs aren ’ t going down . In fact , they ’ re still going up ; in and out of the industry .
“ It may be a controversial opinion , but I think the prices we currently have in fenestration aren ’ t necessarily too high . I think they have been too low – daft , in some cases – and that ’ s why the jump seems so significant . The ‘ race to the bottom ’ to meet soaring demand from installers ( and their customers ) put the fitter in a position of power . And , the cost of living crisis may see a change in home improvement rates but the ‘ haves ’ will still order and spend , even if the ‘ have nots ’ hold back .
“ When it comes to how fabricators can communicate better with their customers , what do I mean ? There are a few points that really stand out to me where it can be improved . For product development , as an example , do the installers understand the products available , such as performance ? Are they educated on the specification and application of different products , or do they always revert to ‘ the same as last time ’? This isn ’ t a sales pitch , it ’ s an exercise in justifying the product – and its price .
“ Windows and doors are fully engineered , technically-precise products . There are not ‘ cheap ’ to design or develop , and they can be a very expensive purchase for the end-user , so we shouldn ’ t feel like we must devalue the process or the product just to get them fitted fast and for the lowest price .
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I do think that fabricators could give a helping hand
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“ Not all installers feel comfortable or
confident explaining this to a customer however , especially if they ’ re afraid of losing a sale . So , I do think that fabricators could give a helping hand . It can only strengthen the relationship throughout the chain too and help bridge the gap between ‘ them and us ’.
“ Some companies will certainly take advantage of the market and I think we may see some weaker businesses fall by the wayside . Again , this is the nature of any
industry , but it will be interesting to see who thrives and who may not survive .
“ There is no easy fix to any of this , and I am not suggesting that there is a list of companies all getting it right and another one doing everything wrong . I am saying that working together – up and down – throughout the supply chain needs a definite improvement , with immediate effect .
“ Recently there seems to have been so many momentous events from Brexit to the pandemic to global conflict to inflation ; we can ’ t have a contingency plan for all of these . Yet , if we strengthen the lines of communication in our own sector , and work on collaboration ; we undoubtedly have a better chance to weather this ‘ perfect storm ’ we ’ ve found ourselves in .
“ Many have been guilty of getting complacent when the market was booming , and resources were plentiful . Fenestration products are not convenience goods , and if we treat them as such , someone in the chain will always suffer . While the circumstances are far from ideal , if recent issues can teach us anything , it can be to work on more realistic pricing models , production runs and lead times . If we can do this now , it can only stand us in good stead , whatever happens next .”
6 NOVEMBER 2022 CLEARVIEW-UK . COM