The latest timber fire door survey shows that manufacturers continue to report better figures. “It looks like the fire door manufacturers are taking more notice of the numbers than the headlines,” said Richard Lambert, director of the British Woodworking Federation. “No-one questions the fact that things are much tighter in the construction sector than a year ago, but equally everyone sees that sales are not falling and there are strong prospects that further opportunities will emerge this year.
“Much of the optimism depends on the government delivering on its spending and investment plans. Building and refurbishing schools, hospitals and other public buildings means a continuing need for fire doors. The planned investment in social housing is likely to take the form of blocks of flats, which require more fire doors than single dwellings. We can see where the orders are likely to come from but, as always with government, there is a lag between announcing the programme and the projects coming through. The fall in construction output towards the end of last year was largely due to the delay in government building projects picking up again after the general election and, while ministers and civil servants will want to avoid being accused of holding back, you can never tell what political events are waiting round the corner to throw plans off-track.
“Perhaps the most surprising result of this quarter’s survey is that the trend in rising costs seems to be turning. Whether that will continue in the face of the recent energy price rises, which are having a serious effect on all manufacturing sectors, remains to be seen.”
The survey assesses the timber fire door market in terms of the percentage of manufacturers experiencing a particular business trend (a sales rise, for example) over those experiencing the opposite, expressed as a net balance. On this basis, a net 8% of manufacturers sold more timber fire doors in the three months October to December compared with the previous quarter. Of those reporting growth, most (88%) saw increases of 10% or more.
Although a small balance of manufacturers increased sales of timber fire doors compared with the previous three months, significantly more reported a rise year-on-year. A net 58% saw sales up in October to December 2005 compared with the same period in 2004.
Orders for timber fire doors were also up with a net 24% reporting a rise compared with three months ago.
Looking ahead, expectations for sales growth are strong with a net 58% of manufacturers forecasting better sales in January to March 2006 compared with October to December 2005. Few are anticipating a fall. Manufacturers are feeling more positive and regaining a level of optimism shown in previous surveys.
“Part of the government’s initiative to increase and sustain student population is to build prime student accommodation. We have seen an increase in demand for fire doors within this sector which I estimate will continue over the next 12 months in our area. ” |
Mark Ley, buyer |
Similarly a net 63% of manufacturers expect to sell more timber fire doors in January to March 2006 compared with the same period in 2005, with few forecasting a drop.
In view of the above, on balance 40% of manufacturers are more positive now about the overall prospects for the timber fire door market than three months ago. This compares with 17% in last quarter’s survey.
A net 16% of manufacturers put up prices compared with three months ago but on balance 36% of manufacturers reported a rise in purchase costs of materials. However, the number of manufacturers affected by rising costs is trending down as shown in recent surveys.
Thirty-six per cent of timber fire doors sold in the last 12 months were sold as fire doorsets. Most manufacturers (76%) continue to sell fire door frames and 72% supply additional components such as fittings. It is reassuring that most manufacturers (84%) advise customers which components are required for timber fire doors.
The three main problems facing manufacturers in October to December 2005 were price cutting (52%), lack of skilled staff (48%) and supplier price rises (36%). As in last quarter’s survey, the single biggest problem affecting manufacturers over the period was lack of skilled staff, mentioned by 24% of firms.