Fire door manufacturers reported increased sales of timber fire doors in July-September compared with the previous three months. Forty-six per cent of manufacturers improved sales, 9% decreased and 45% stayed the same.

The difference between the number of companies reporting an increase over those reporting a decrease is the net balance, expressed as a percentage. A positive net balance indicates growth, a net balance of zero implies little has changed.

On this basis, a net 36% of manufacturers increased sales of timber fire doors in the last three months compared with the previous quarter. Of these, nearly 90% recorded growth of 10% or more. More large manufacturers (60%) grew sales than small (20%) or medium-sized (14%) manufacturers. Manufacturers in the south (40%) fared better than those in the north and the Midlands, both at 33%.

Sales, year-on-year

A net 41% of manufacturers reported higher sales in the last three months compared with the same time last year. Two-thirds recorded an increase of 10% or more.

Large companies (60%) were ahead of medium-sized manufacturers (43%). Small firms reported little change. A net 83% of manufacturers selling more than an average of 1,000 fire doors a month increased sales. Manufacturers in the north (67%) recorded an increase in sales followed by manufacturers in the Midlands (33%) and south (20%).

Timber fire doors with a rating of FD30 accounted for 81% of sales in the last 12 months. Seventeen per cent were 60-minute rated fire doors and the remaining 2% were FD90 and FD120.

A net 25% of manufacturers said they increased sales of FD30 rated fire doors in the last 12 months. Fourteen per cent saw a rise in sales of FD60 rated fire doors over the same period.

Forecasts

&#8220Eighty percent of our business is timber fire doors and 20% non-rated doors. With continued increase in demand for fire doors through legislation, we have found a niche market by manufacturing complete fire doors sets that comply with CE marking for the modular building market which is enjoying lots of government support. Our view is margins and price increases are going to be difficult to enforce as the market becomes swamped with off-the-peg fire doors. We believe the way forward is to corner a market and this is the way ahead for us.”

Mr Lee Robinson, product development manager, Aynsley Doors, Brighouse

Sales forecasts are strong this quarter with a net 36% of manufacturers expecting to sell more between October and December compared with the last three months. Large firms (50%) and companies in the north (45%) are particularly positive.

The pattern is similar for year-on-year forecasts with a net 50% of manufacturers expecting sales to go up in the next three months compared with the same time last year. Large (80%) and medium-sized (43%) manufacturers expect widespread growth. Regionally, sales expectations were strong across the board.

Orders and prices

A net 45% of manufacturers increased order volumes from July to September compared with the previous three months.

Few manufacturers raised their selling prices (5%) during the three months July to September compared with the previous quarter and most reported no change. However, a net 33% of companies absorbed an increase in the cost of materials.

The outlook amongst all manufacturers for the next three months is positive with a net 50% more optimistic now about the overall prospects for the timber fire door market than the last three months.

Slow payments and bad debts (46%), lack of skilled staff, price cutting in the market, and margin squeeze (41%) were among the problems mentioned this quarter. Lack of skilled staff is identified as the single biggest problem with 23% manufacturers affected by it.

Ninety per cent of timber fire doors sold in the last 12 months were internal, and 10% were external doors while 37% of timber fire doors sold in the last 12 months were sold as fire doorsets.

Merchants’ sales

&#8220We are a bespoke joinery manufacturer who as part of our product portfolio provides fire door assemblies and screens to the UK market.
Our pro-active approach in raising awareness about current legislation amongst our customers has led to our increasing sales of internal fire door assemblies to approximately 25% of our total business in 2004. We expect this trend to continue and have planned for a 10% growth in this sector in 2005.
”

Mr Allan McGillivray, general manager, Hall & Tawse Joinery, Aberdeen

A net 31% of merchants increased sales of timber fire doors in the last three months compared with the previous three. Year-on-year sales look healthy too, with a net 39% of merchants selling more timber fire doors compared to the same time last year.

Ninety per cent of all fire doors sold in the last year by merchants had a 30-minute fire door resistance rating. A net 22% of merchants saw sales of FD30 fire doors go up in the last 12 months.

Merchants’ outlook for the next three months is optimistic with a net 13% expecting to sell more during October to December.

Nearly 30% of all timber fire door manufacturers still do not recommend compatible components every time a fire door leaf is sold.

BWF comment

“The increase in sales and optimism reported in this quarter’s survey shows the strength of the timber fire doors market at the moment,” said Richard Lambert, director of the British Woodworking Federation. “The manufacturers’ confidence is reflected in the parallel survey of merchants retailing fire doors.

“However, there is a significant difference between the two. The merchants reported that manufacturers were pushing up their prices and the merchants were bullish enough to expect to pass them on to the customer. This survey shows that manufacturers’ confidence is based on expectation of continuing growth in sales volume. They don’t anticipate being able to raise their prices, reflecting the intensely competitive nature of the fire door market. Increases in the cost of materials will add to that pressure. Little wonder then that those who want to develop their businesses are looking to increase the value of what they offer in terms of doorsets or complete assemblies.

“From our perspective, it is curious to find that almost 30% of merchants do not recommend components to go with the fire doors they sell, and more curious still that they give their reasons as either a lack of knowledge or an assumption that the customer knows what they want. In effect, they have someone standing in front of them wanting to buy something, and they aren’t making the most of the opportunity to cross-sell.

“The trained staff in BWF Approved Fire Door Centres don’t just give better advice about the product because they understand fire doors; they are also better able to use their knowledge to the commercial advantage of the business.”