Timber fire doors are selling well, with a balance of 57% of manufacturers reporting better sales in the three months April to June compared with the previous quarter. (The net balance is the difference between the percentage of companies reporting an increase over those reporting a decrease.) Year-on-year sales were also strong, with a balance of 67% of manufacturers selling more timber fire doors in April to June 2005 compared with the same period in 2004 (chart 1).

“Whatever uncertainties there may be in other sectors of the economy, they don’t appear to have reached the timber fire doors market,” said Richard Lambert, director of the British Woodworking Federation. “Both merchants and manufacturers are reporting continuing improvements in sales and optimistic forecasts.

“Although there is still widespread concern about price cutting and squeezing margins, no manufacturer dropped prices over the survey period and many are managing to pass on some of the rising costs.

“There is still a general expectation that the tightening housing market will affect the construction sector. But if the government delivers on its spending plans, particularly in the social housing sector, and if commercial office construction recovers as we move towards 2006, then the optimism of fire door manufacturers could be well-founded. Longer term, the proposals in the revision of Approved Document B, which are now under consultation, could actually increase the requirements for fire doors in housing.”

Forecasts and prospects

Manufacturers are positive for the next three months, with just under five in ten expecting to sell more in July to September compared with April to June (chart 2).

Year-on-year, a balance of just under six in ten manufacturers anticipate better sales in the coming quarter compared with the same period last year (chart 2).

A net 48% of manufacturers are more positive now about the overall prospects for the timber fire door market than three months ago.

Selling and buying prices

A balance of 14% of timber fire door manufacturers put up prices in April to June 2005 compared with the previous quarter. None of the manufacturers interviewed dropped prices and most held them. However, just over one in two manufacturers reported higher input prices over the period.

Problems

Price cutting (71%), margin squeeze (62%) and lack of skilled staff (57%) were among the three main problems facing timber fire door manufacturers in April to June 2005. Price cutting (24%) is the single biggest problem.