INDUSTRYNEWS
CPA members called it
right - but what next
for the economy?
CPA Director Jeremy Brett updates us on the
Consumer Protection Association’s upcoming annual
barometer; and the economy in general.
After 21 years in business,
the Consumer Protection
Association (CPA) has seen a
number of changes, not just in
industry but in the country as a
whole.
Four prime ministers and six
World Cups have passed; all
promised much but ended up
delivering little. Each year has
offered up different challenges,
particular to that time and the
period has also seen the UK
economy battered by two major
recessions.
It was the 2008 crash that
prompted us to commission
Insight Data to research and
publish the industry’s biggestever poll of installers; asking
questions not just about products
but sentiment surrounding the
economy. More than 12,000
installers were polled in the survey
sent out in September 2013.
We wanted to find out what
installers thought about the future
prospects for our industry and the
country.
‘They called it right’
Despite a lack of confidence
penetrating many sectors in
the UK - including parts of the
glazing sector - at the time the
survey was released, those polled
were upbeat and overwhelmingly
voted to say that they felt things
would improve, confidence would
return, order values and volumes
would increase.
They called it right. CPA
members and the majority of
installers foresaw the improving
8
JUL 2014
conditions we are seeing today.
Some 62.5 per cent said they
believed sales would increase in
2014, compared to last year and
56 per cent said they felt the UK
economy would improve.
This was their sentiment but
what has been the reality? From
talking with members their hunch
wasn’t just correct about the
economy as a whole, but also for
their businesses.
‘From talking with
members their
hunch wasn’t just
correct about the
economy as a
whole, but also for
their businesses’
Ourmembers are telling us
that they are in a better position
this year compared to last, with
sales and profits up and hiring
intentions improving.
To nail down this data and find
out projections for next year and
beyond, however, we will soon
be releasing our next installer
barometer. It will be interesting
to see what this reveals and if
optimism increases or decreases.
Because there are still some
concerns about the economy,
with some commentators stating
that the upturn is being fuelled
by more, cheap consumer credit
and schemes that have injected
life such as help to buy are not
sustainable.
There are also concerns about
housing shortages, employment
contracts, our trade deficit,
interest rates and the balance of
power and production between
England’s South East and the rest
of the UK. We need to be sure
we’re not just kicking a dented can
a little further down the road.
And what would a change
of government mean for the
economy and our industry?
These are all questions we’ll be
asking in our upcoming survey,
that is going to be even more
comprehensive and detailed.
At the CPA we feel there are
still levers to be pulled to improve
our industry and create more
opportunities for installers.
VAT & HOME IMPROVEMENTS
For example, we support a
campaign to remove VAT on
home improvement products.
The economy has been jumpstarted through building and
construction but what about the
home improvement market?
If you knock down a house
and start again you don’t pay
VAT but if you want to improve
your home, you do. This makes
no sense – how is this good for
the environment and how does
it work alongside government’s
drive to improve the UK’s housing
stock?
Let us remember that VAT is an
invented tax and a removal of it
on home improvement products
would not only see an increase in
work available for installers but
also help to drive out the black
market.
We remain optimistic. Mergers
and acquisition activity in our
industry underlines this and
despite concerns about longevity
we feel confident that the UK
economy is out of the worst. But
certain processes may never be the
same again.
‘despite concerns
about longevity
we feel confident
that the UK
economy is out
of the worst. But
certain processes
may never be
the same again’
The consumer buying cycle
is now more robust and the
‘wow’ factor from installers is
more important than ever - its
value cannot be underestimated.
Doing things as they have always
been done is a risky strategy and
teaming up the CPA, utilising our
21 years of experience is one way
of ensuring installers are one step
ahead, shaky economy or not.
Email: [email protected]
To read more, visit www.clearview-uk.com