Companies hitching a ride on the factory-finished timber window wave have enjoyed a sprint start to the year.
One leading producer of fully-glazed, factory-finished products recalled that the order book early in 2001 had reached ’embarrassingly’ large proportions, before adding that orders in the early weeks of 2002 were running 20% higher still. This renewed buoyancy is attributed at least in part to a recovery in demand from the high-quality and social housing sectors, the former having suffered something of a blip in the aftermath of September 11.
The theory runs that the uncertainty created by the terrorist attacks, as well as widespread talk of recession during the second half of last year, prompted some investors and developers to put a hold on new projects. The demand remained ‘pent up’ ever since and is beginning to be released as industry appears to gain more confidence in business prospects.
Doors have also made a reasonable start to 2002 in terms of orders. A manufacturer of both timber doors and windows noted a ‘quite brisk’ start to the new year and ‘pretty good’ prospects for the year as a whole, notwithstanding a brief setback in mid-February – possibly because of wet and windy weather.
House prices
His merchant customers believed prospects for the housebuilding and RMI sectors appeared promising for the middle months of the year to September. The rise in average house prices was also creating optimism, although there is concern about whether current conditions in the UK market can be sustained and about the growing number of redundancies in a host of business sectors.
The same contact was not alone in confirming that his company had raised the prices of some of its doors and windows in November last year and that they had stuck with little complaint. However, another leading manufacturer suggested price increases had been discussed widely but that little actual movement had taken place. Overcapacity and fierce competition remained an obstacle to higher prices for many types of door –notably commodity interior units, he said.
The joinery sector regards price rises as long overdue, with many operators having survived for at least a couple of years without being able to push through any increases. ‘The building industry is reluctant to pay more but joinery manufacturers will continue to look to push up prices,’ said the same contact. ‘They need it and see it as catching up lost ground.’
Staircases are reported to have made a reasonably healthy start to 2002, with demand for pre-assembled products becoming ever more pronounced, in line with the trend towards lower availability of skilled workers on site.
Looking to industry trends, latest statistics indicate that timber windows have expanded their share of the replacement market, most notably in the housing association and public sectors. According to the British Woodworking Federation, members of its Timber Window Accreditation Scheme are enjoying a particularly strong start to 2002 because the affiliation with TWAS ‘gives them a lot of leverage in the market’.
The scheme continues to widen its appeal and now counts five major timber suppliers within its membership.
New window scheme
The BWF has confirmed that, following the long-life timber window pilot project conducted in conjunction with the BRE, a scheme is being launched to showcase timber window products encapsulating the main findings of research carried out over the past two years. Due to start in April, the so-called ‘Best of Breed’ showcase will be targeted principally at local authorities and housing associations, although also at architects and housebuilders.
BWF’s Certifire scheme has also developed fresh momentum following a national campaign by the federation across 1,500 builders merchants to promote correct use of fire doors and doorsets. The campaign has provided information on what customers need to look for in door leaves, glazed apertures and glass openings, and how they should comply with the Certifire scheme and the new Building Regulations. The scheme now has more than 70 member companies and has achieved ‘a critical mass in the market place’, says the BWF.
The campaign has been followed up in recent weeks with a mailshot – mainly to building control officers and merchants – comprising a ‘gap tester’ for ascertaining the all-important gap between the door leaf and the frame. The device also features a mirror on one side to enable users ‘to check that the BWF label is on the top of the door’. There is a growing awareness among customers that use of fire door blanks is not permitted under the scheme, says the BWF.
TRADA has reported a steady take-up on its fire door installer scheme, as well as a strong response to its first Q Mark seminar and exhibition held in London in January. The event – which attracted around 150 delegates including architects, contractors and housing association representatives – comprised practical presentations and product displays from Q Mark members. The aim was to show that timber was able to satisfy a broad range of needs if properly specified, said a TRADA spokesperson.
Four further Q Mark seminars and exhibitions are scheduled for venues around the UK.
Part L launch
An issue raised this week by both TRADA and contacts within the trade itself surrounds the scheduled introduction on April 1 of Part L of the Building Regulations, which will require door and window sets to achieve a generally higher thermal performance. A commercial service launched several weeks ago under the Chiltern Dynamics banner provides door and window manufacturers with a rapid means of determining the U-value of their products: a cross-section drawing of the door or window is simply sent to Chiltern Dynamics along with relevant information about the product, such as the materials used. A software simulation works out the U-value to the same degree of accuracy as a laboratory test while also providing the manufacturer with an easy means of fine-tuning the product to arrive at the desired U-value.
The spokesperson said that take-up of the system had been relatively good and that an even swifter flow of enquiries was anticipated once the service was featured at the forthcoming Glassex exhibition. However, he was surprised at the lack of manufacturer activity on this issue given that the Part L launch was only weeks away.
Building costs
The industry view was that Part L can be expected generally to increase product specifications and therefore to push up building costs. According to one leading operator in the mass production sector, Part L had the potential ‘to put a question mark over some existing products’ as awareness increases of the importance of U-values. Standard double-glazing was in danger of becoming ‘a dinosaur’ while timber frame could well gain some advantage over predominantly glass-based buildings, he added.
The architectural joinery sector was virtually unanimous in acknowledging the pleasing number of enquiries in circulation, while at the same time bemoaning the low percentage being translated into actual orders. Some point to a possible ripple effect from the loss of business confidence immediately following September 11 and are therefore hopeful that this will simply mean delays to projects rather than cancellations. ‘The contracting side seems very busy, which is always a good sign,’ said one joiner.
Tenders and orders to date this year have been concentrated in the office sector and in domestic refurbishment rather than the retail sector. Prices throughout are as keen as ever and have perhaps been sharpened towards the lower end of the market following the replacement of some larger joinery firms by a myriad of smaller operators. ‘There is a lot of undercutting and a lot of sharp pencils out there,’ said one source. The demise of a number of competitors was identified by one source as a key reason behind his company’s healthiest early-year order book for some time, notably for commercial interior work.
Margins appear more solid towards the higher end of the market, with one company in an affluent area of the UK reporting a record number of quotations for the time of year and an increase of 15% on the average. Unfortunately, added a spokesperson, many main contractors still failed to appreciate that an eight-week deadline was generally required for quality joinery work.
Despite this healthy level of enquiries, the same source was still concerned about the need to convert them into orders in order for confidence to build. Near-term economic prospects remained shrouded in uncertainty ‘and so we are still a little on a knife’s edge’.
Several sources reported having raised their basic rates of pay since the start of the year but availability of skilled labour remains a considerable problem for the architectural joinery sector. A marked upturn in activity would put severe pressure on labour supply.
According to one contact, companies have to be prepared to pay good wage rates not only to keep their top workers but also to attract and keep the best young talent. He believed apprentices merited a decent wage in their first year, not least because of the increasing record-keeping and health and safety responsibilities associated with the job. ‘A lot of employers don’t want to pay these higher wages in the first year, but it is part of making this industry attractive to good youngsters,’ he added.
Fussy demand
While wage costs are on a firming trend, timber prices have been relatively stable in recent months. Oak, maple and other paler timbers are most in vogue, with architects and customers said to be becoming ever more fussy about sourcing timbers from renewable sources.
One joiner pointed to problems in obtaining quality hardwoods, notably North American species. His company had begun sending staff to timber yards in order to select boards at first hand, he said.
