The latest timber fire door survey suggests that the sector is riding out any reduction in construction activity and that although the situation may not be as buoyant as it was a year ago, fire door manufacturers don’t see any cause for alarm, and there is a general sense of things improving as the year goes on.

“My impression of the first half of this year is that the construction market overall has not been as difficult as everyone expected at the turn of the year, and this quarter’s survey of the fire door market seems to confirm this,” said Richard Lambert, chief executive of the British Woodworking Federation (BWF).

“The major source of concern is the increase in supplier prices, especially in energy prices. Joinery manufacture does not compare with some other construction products sectors as an energy intensive industry, but few can absorb the price hikes without experiencing real pressures on their margins. Given that some of the larger manufacturers who distribute through the major builders merchant chains already face pressure on their selling prices, only increasing sales volumes will protect profits.

“A rising market will always attract new entrants who see the potential opportunity and want to exploit it. The risk is that their focus is on entrepreneurship, on breaking into the market, rather than on providing and ensuring their products meet quality standards. The BWF has led the drive towards establishing independent, third-party certification as an essential criterion in specifying fire doors. We need to ensure that anyone who looks to enter this market knows that there is no way in if they cannot prove their products meet the standard.”

The latest timber fire door survey assesses the timber fire door market in terms of the percentage of manufacturers experiencing a particular business trend (for example, a sales rise) over those experiencing the opposite, expressed as a net balance. On this basis, a balance of 16% of manufacturers sold more timber fire doors in January to March 2006 compared with October to December 2005 (chart 1).

Year-on-year, more manufacturers reported growth, with a balance of 40% increasing sales in January to March 2006 compared with the same period last year (chart 1). Of those who sold more, 58% saw a rise of 10% or more over the period.

Timber fire door orders were also up. A balance of 26% of manufacturers reported higher order books than three months ago.

&#8220There has been a steady increase in demand for 30 minute timber fire rated doors in an aim to meet new government legislation. Fire upgrade and refurbishment contracts specifying fire doors to comply with health and safety regulations have also influenced growth.

At present we make approximately 750 fire doors a month. We estimate at least a 5% increase this year on last. The future trend looks good due to the surge in quality commercial work.”

Ian Kirkwood
Sales manager
Graefe Ltd

Expectations

Looking ahead, expectations for growth are good, with a balance of 40% of manufacturers expecting to sell more in April to June 2006 compared with the previous three months (chart 2). A net 55% of manufacturers also forecast better sales in April to June 2006 compared with the same three months of 2005 (chart 2). Few firms expect sales to fall.

Strong sales expectations are based on manufacturers’ positive views about market prospects. A net 30% are more optimistic now about the overall prospects for the timber fire door market than three months ago.

Forty-six per cent of timber fire doors sold over the last 12 months were fire doorsets. The majority of manufacturers (80%) continue to sell fire door frames with 60% supplying additional components – for example, fittings for fire doors. Most manufacturers (75%) advise customers which components are required for fire doors.

On balance, one in two timber fire door manufacturers were affected by rising material costs compared with three months ago, with none of those interviewed reporting a drop. But only a net 25% of manufacturers increased their selling prices to counter rising costs.

The main problems manufacturers faced in January to March 2006 were price cutting in the market and margin squeeze (65%), supplier price rises (55%) and lack of skilled staff (55%). However, when asked what was the single biggest problem for them, supplier price rises and low sales volume tied in first place, both mentioned by 20% of manufacturers.