Clearview North January 2014 - Issue 146 | Page 31
2014PREDICTIONS
GREEN DEAL LOSES CREDIBILITY
BUT ENERGY EFFICIENCY IS THE
FOUNDATION OF GROWTH
A new poll suggests that industry has lost faith in the Green Deal but
remains confident of continuing growth throughout 2014, driven by demand
for energy efficient home improvements and product innovation.
Published this month, the second ‘Emplas
State of the Market Report’, found that
overall, installers were upbeat about their
prospects in the coming year, with 98 per
cent of those surveyed predicting growth
compared to just 67 per cent in 2013.
But while respondents were broadly positive
about their future prospects, they were far less
optimistic about the Green Deal.
With an aim of improving the energy
efficiency of more than 14 million homes
by 2020, the scheme was launched by the
Government this time last year but far lower
than expected take-up means that fewer than
1,000 households were predicted to have
signed-up to energy efficiency improvements
in its first 12-months.
‘Research shows that
consumers were not
drawn to the lowest
prices by default’
This has led to growing scepticism among
installers, with 98 per cent of those surveyed
stating that they did not expect to win any
business through the Green Deal in 2014.
This represented a hardening of position
on 2013, when a third of respondents said
that they hoped to win business through the
programme. None of those polled as part of
this year’ study had won business through the
Green Deal in the preceding 12-months.
Kevin Johnson, Managing Director, Emplas,
said: “The findings are consistent with those
last year. Very few installers were optimistic
about their prospects under the Green Deal
then and the hugely disappointing take-up of
the scheme to date suggests that they had no
reason to be.
“But we should be careful not to throw
the ‘baby out with the bath water’. The
Green Deal has so far put in a lack luster
performance but its fundamental premise -
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that we need to improve the energy efficiency
of UK housing stock - remains sound.”
This was identified as an area of opportunity
for those responding to the study with energy
efficiency ranked as the single most important
factor in driving retail sales. This was followed
by security, quality and only then cost.
Johnson continued: “The recession has been
a sobering experience for consumers. Even
during the downturn research shows that
consumers were not drawn to the lowest prices
by default. Instead, there was increased focus
on quality on the basis that ‘if you buy cheap,
you buy twice’.”
Product innovation was cited by all
respondents as providing the ‘backbone’ of
growth this coming year, with composite doors
and colour products tipped by 86 per cent and
80 per cent of respondents respectively, as a
basis for growth in 2014.
Analysis of the prospects for triple-glazing
were also somewhat more conservative, listed
as a source of growth in 2014 by just 17 per
cent of those polled, compared to just short of
half, in 2013.
But perhaps the biggest shift was the
growing mood of optimism that surrounded
the conservatory market. Last year a source of
melancholy and lamentation (cited by just 17
per cent of respondents as a source of growth),
this year 73 per cent of those polled said that
they expected to see the sector expand.
“Product innovation, the growing number
of hybrid products on the market, innovation
in glass technologies and an expanding
second-time replacement market mean that
the conservatory market is at last turning a
corner”, said Johnson.
Emplas sustained an enviable level of
investment throughout the downturn. This
included the launch of the ‘Livinroom’
conservatory/orangery cross-over from
Ultraframe.
The trade fabricator has also made similar
investment in its other offers including the
launch of a new GRP door range which sits
alongside chamfered and fully sculptured
casement windows, vertical sliders, bi-fold
and inline sliding doors, all available in a wide
variety of colours and finishes. Emplas has
also mobilised the latest digital technologies to