Pro Installer December 2013 - Issue 09 | Page 2

2 DECEMBER 2013 PRO INSTALLER PRO NEWS www.proinstaller.co.uk ISSUE 09 December 2013 If you would like to find out more about the PRO Installer... Write to: Office F2, Holme Suite, Oaks Business Park, Oaks Lane, Barnsley, S71 1HT. Tel: [phone] Fax: [phone] Email: [email protected] All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronically or mechanically without the consent of Clearview Group Ltd and any of its subsidiaries. Whilst every effort is made to ensure accuracy, this publication does not accept liability for errors, printing or otherwise appearing in this publication. The views expressed by contributors are not necessarily those of the editor or publisher. » Continued from the front page INSTALLERS According to Insight Data the installer landscape is changing rapidly. The number of installers has increased over the last 12 months but a growing threat from general builders has had an impact on volumes. ‘47% of installers now offer a choice of materials, PVC-U, timber or aluminium’ To combat low volumes and low margins, installers have diversified into other products and sectors. 47% of installers now offer a choice of materials, PVC-U, timber or aluminium, while many have diversified into other home improvement products such as garage conversions and extensions. Helen continues; “Installers, like fabricators, are keen to increase order values and margins and an increasing number are offering higher value product lines such as bi-fold doors, vertical sliders and coloured frames. “Meanwhile, the number of general builders offering home improvement products such as windows and doors has increased dramatically to over 20,000 across the UK. Many of these builders already have relationships with homeowners and are winning contracts under the radar.” CONCLUSIONS ‘an increase in the number of general builders who now offer windows’ TRADE COUNTERS A shift in distribution channels has occurred across the industry. The traditional route of fabricator >> installer >> homeowner is being challenged by a rapidly growing network of trade counters. Trade counter depots emerged some years ago with a number of operators buying from fabricators in volume, and selling-on to small installers and general builders. However, a growing number of PVC-U fabricators have now established their own network of depots. This provides a strong regional presence and enables the fabricator to capture volume they would not otherwise gain. On the flipside this poses a threat to smaller, regional fabricators who rely on local business. Helen adds; “It is this expansion of trade counter depots that has fuelled an increase in the number of general builders who now offer windows, doors and conservatories. This is great for trade depots, but double glazing installers across the UK need to be aware of these new competitors.” While on the surface the industry appears stable there is a significant undercurrent of change. This is being seen across many facets; • Reduction in the number of PVC-U fabricators • Diversification of materials being manufactured by fabricators • Route to market (distribution channels) • Installer diversification in products and materials • Installer diversification into other home improvement sectors • Rapid increase in ‘general builders’ now offering windows and doors • The rise of the trade counter depot As a result of this undercurrent, the rate of change within the Insight Database is at its highest ever level. Across the database, there are now some 1,300 changes occurring every month, companies, management, locations, contact details, products and sectors. Over the last six months 60% of companies on the Insight database have experienced some change in their business. THE FULL REPORT The Insight Data 2013 Market Report uses data collated during extensive research and interviews carried out with over 15,000 fabricators and installers. It is the most comprehensive analyse of the fenestration industry. The full Re port includes a detailed analysis of the industry, sectors and regional variations and is available to download from the Insight Data website. www.insightdata.co.uk UK TO BECOME EUROPE’S LARGEST SOLAR MARKET IN Q1 2014 The UK is set to become the largest solar market in Europe for the first time during the first quarter of 2014, according to the latest data from NPD Solarbuzz. The firm estimates, the combination of predictable feed-in tariff rates and the rush to complete larger projects ahead of the cuts in the Renewable Obligation Certificate, in the second quarter, will help the UK to take top spot. But the honour will be short-lived, with Germany expected to regain the number one ranking by the end of 2014. NPD Solarbuzz predicts that the UK along with Germany, Italy and France will help European solar demand to stabilise. “Following consecutive quarterly market declines going back to the start of 2012, solar PV demand from Europe is forecast to stabilise over the next three quarters,” said Susanne von Aichberger, analyst at NPD Solarbuzz. “The downturn in the European solar PV industry has now bottomed out, with the quarterly demand volatility of the past soon to be replaced by more stable end-market dynamics,” added von Aichberger.