Like the rest of UK manufacturing, the joinery sector has been seriously stress-tested over the past year.
First came lockdown and the uncharted territory of furlough. Next it was a case of gauging the pace for gearing business back up as restrictions eased. Now, as the economy cautiously returns to something like normality, timber availability and price are issues.
But, say joinery producers, the crisis has also demonstrated the sector’s resilience. It’s been characterised by supportive suppliers and adaptable employees. Companies have continued to invest in technology and product development and they feel this, combined with pent-up consumer demand and latest market trends in construction, home repair and refurbishment, gives them increasing reasons for optimism.
When lockdown was introduced, producers moved swiftly to insulate themselves and take the lie of the land.
“The announcement came on Monday and by Wednesday lunchtime we’d closed everything down and sent everyone home,” said Haldane managing director Forrester Adam.
“From March through April we didn’t know what was happening,” said Performance Timber Products Group (PTP) non-executive chairman Roy Wakeman. “So we worked our order book down and furloughed most people.” West Port went into partial shutdown. “We closed for three weeks, but as that included the Easter shutdown, manufacturing wasn’t affected too badly,” said sales director Ian Newey. “Our sales and marketing team also worked remotely throughout, which paid off.”
Besides the bottom line, companies recognised the importance of worker welfare.
“Every week I called and emailed all employees to ensure they were OK and bring them up to speed on our situation,” said Mr Adam. “That definitely contributed to levels of enthusiasm and commitment when people returned.”
Most companies report gearing up operations from late spring into June.
“We saw recovery build momentum from May,” said Mr Newey. “Production has since increased dramatically and we’re now experiencing record sales.”
“With most merchants closed during April, first signs of growth came from internet trading partners, with consumer orders for direct delivery ramping up quickly,” said JB Kind managing director James Cadman. “By early June pent up demand was clearly coming through, driven by housing construction and home improvement.”
“We did have to furlough some staff, although we were able to adapt and reposition to meet demand as required,” said Vicaima marketing director Paul King. “Then first signs of recovery began late spring – since then demand has been well above forecast.”
Haldane started with a skeleton crew, then increased that as work grew, with everyone back by July. “We worked closely with construction customers as they increased activity and then came a massive surge in domestic enquiries,” said Mr Adam. “To cater to consumers, we’ve upgraded our 3D rendering software to show finished products in situ, while stressing what they’re getting doesn’t include the chandelier!”
Lockdown and furlough are actually seen as joinery demand drivers prompting consumers confined to home to refurbish or remodel properties as live-work spaces. Unable to take holidays, they’ve also had more cash. “Customers frequently say the holiday’s paying for the project,” said Mr Adam.
“[Pandemic] consumer savings are forecast to reach £200bn mid-2021, which will undoubtedly increase spending on home improvement,” said Mr Cadman. “The market has also been boosted by stamp duty suspension on properties up to £500,000, with direct correlation between house movement and refurbishment.”
Mr Wakeman believes the shift to more remote working is becoming entrenched, reporting 60-70% of PTP’s business now in refurbishment. He also said the group’s performance through the pandemic has further underlined the strength of its TimberWindows.com business model. This undertakes digital marketing centrally, with orders fielded via its network of independent showrooms and installation specialists who feed specifications back to group manufacturing.
“We’ve continued to open new Timber Windows outlets, with 44 now and plans for more over coming years,” said Mr Wakeman.
Business, he maintained, has also been driven by consumers’ growing affinity for timber as a natural, low carbon material.
“Environmental concerns are increasingly shaping the market,” he said. “And the merger of the TTF and TRADA, giving the timber sector a more united voice, will enable us to build on this.”
Mr Cadman said home improvement media have further pushed the trend to environmentally sound materials. “Ethical, sustainable sourcing is very important to us and we expect accountability for this and demand to increase,” he said.
Vicaima also reports investing at its Portuguese factory in developing products for an increasingly “green-conscious world”, including a new improved energy performance interior door range.
Meanwhile Haldane is seeing sales rise to small to medium-sized timber frame/timber kit housing suppliers in the 40-100 units a year range. “Many of this scale disappeared in the financial crisis, but we’re seeing resurgence in response to housing need, with new businesses coming on the scene,” said Mr Adam.
Most of West Port’s focus is on commercial buildings and social housing and activity here also continues to gather pace. “In fact, due to our diverse market sectors, overall we didn’t notice much of a slowdown at all,” said Mr Newey.
All companies polled said they’d continued to develop new products through the crisis.
“In particular we’ve updated specifications to comply with Building Regulations Document Q on security,” said Mr Wakeman.
West Port’s product development team has kept busy too.
“This period has given us time to reflect on the condition of the UK timber window market and we’ve been working on two new ranges for social and private housing,” said Mr Newey. “We’re also developing new fire door options.”
JB Kind has just introduced three new styles; Urban Industrial, a pre-painted timber alternative to black metal industrial, unfinished Palomino Oak and dark grey laminate Tigris Cinza.
Vicaima’s R&D has also lined up new doors and door kits for 2021. These include Portaro and Easi-Fit fire, acoustic and security kits, figured and random grain Heritage oak, real veneer and Vicaima H2P technology Stained Extra, embossed Dekor 3D Glacier and Silver Oak and foil-faced, textured feel SD Touch.
And Haldane reports taking on some challenging high end projects, including handrails for 13 flats in the prestigious Chelsea Barracks redevelopment and 300m of US white ash balustrade for Glasgow University. It is also replicating the grand staircase in fire-damaged Cameron House Hotel near Loch Lomond.
“The 120 rope twist balusters feature flowers on each face of a squared section that were originally hand-carved,” said Mr Adam. “We used our 14-lazer scanner to reproduce these, with the scan fed directly into our CNC machines.”
The pandemic also prompted investment.
“It’s given us the opportunity to focus on where we want to be and what we need in terms of people and technology,” said Mr Adam. “Consequently we’re looking at major investment, including new equipment. We’ve recruited three more people to operate it and a new production director from the electronics industry.”
Likewise PTP has scrutinised operations to drive productivity, with a new Homag flexible manufacturing system going in at Mumford and Wood and a new treatment plant. Total investment approaches £1m.
West Port has added a further paint line and four additional door lines, while also taking on 24 more production personnel and recruiting sales staff.
Having Brexit to deal with besides the pandemic doesn’t seem to have caused major issues. Joinery businesses attribute this to their own and suppliers’ stock building to hedge against customs disruption. PTP also “employed expertise in forward shipping so paperwork was spot on”.
Of bigger concern are timber supply and price inflation.
“We must collaborate timber industry-wide on this to avoid snuffing out recovery,” said the spokesperson for one company.
Mr Adam agreed: “We must keep prices at levels that are commercially viable for us, not just suppliers.”
Vicaima has absorbed and mitigated timber price fluctuation as far as possible.
“However, there are limits, so, in common with all UK timber product manufacturers, there will need to be adjustments,” said Mr King. “But there is a desire to work together with customers to find solutions.” Mr Cadman doesn’t see the situation easing in the short term. “Demand levels are high worldwide and, with disruption to key trade routes, it’s highly likely that timber will remain in short supply, with prices further underpinned by high container rates.”
Companies have taken steps to minimise their exposure on the issue as far as possible.
“After talking to our merchants, we bought £100,000 of wood already on quayside, mainly European oak and US black walnut,” said Mr Adam.
“We figured it was a better investment than leaving the cash in the bank.”
PTP has also been able to “cover itself quite well”. “We’ve got arrangements with UK companies who warehouse for us, so we buy in bulk, then call material off,” said Mr Wakeman.
He predicted continuing hardening on prices and lead times extending. But like other joiners consulted, he’s upbeat about prospects for his business “and timber generally”.
Vicaima anticipates a booming market. “We see fresh impetus for interiors that reflect not only nature and the world around us, but with assured performance and safety,” said Mr King.
While seeing good prospects through into the first half of 2022, JB Kind also forecasts output being constrained by timber supply and skilled labour availability. “But that will smooth out what could have been a post- Covid spike, followed by similarly significant contraction, something we’d want to avoid,” said Mr Cadman.
Mr Adam is positive too. “Bullish is probably the wrong word,” he said. “But I am enthusiastic!”
