The times they are a-changing in the truss rafter industry and if manufacturers do not diversify they may not survive, according to George Watson managing director of Donaldson Timber Engineering Ltd.
He believes the challenges facing the nearly 120 UK truss fabricator plants – which have turnovers ranging from £500,000 to £8m – are immense.
“This £150m turnover business is facing changes over the next five years,” he said, “and these can be labelled under two areas – the market place and competing products.”
Mr Watson explained that over the past five years land prices have risen dramatically due to a shortage and to planning problems – and that the problem will not go away in the foreseeable future.
Impact of flats
“Years ago truss rafter manufacturers enjoyed the demand for bungalow/villa roofs – nowadays we have to contend with three-storey townhouses and, worst of all, flatted developments.
“The housing market will build around 160,000 houses this year. If we manufactured bathroom suites we could budget for at least a 160,000 market. However, in the truss rafter industry the new type of housing being built means our sales per square metre of habitation are being reduced by as much as 60%.”
And, said Mr Watson, the picture gets worse. “The major housebuilders in the UK are determined to grow their business normally through acquisition. This means that a local truss fabricator who has serviced a regional builder for many years can lose that work overnight if he is not on the preferred supplier list when that business is bought.
“The majors are also going down the sole supplier route. Therefore, if you do not have the dots on the map you will not be considered for a national supply deal. Good for some fabricators – bad for the majority.”
Mr Watson said the days are gone when a truss rafter manufacturer could sit on his laurels. “Truss rafters have been in the UK for 35-40 years and we currently enjoy 95% of the domestic roofing market. This market share shows how successful our product has been – but as an industry we cannot become complacent.”
He said new demand for attic roofs in townhouses has led to a boom in this area – but warned that both the I-joist and SIPS producers can offer an alternative for this product.
Looking to the future
“So, where does the truss fabricator turn? Will he have a business in five years?
“As an industry we have to look at other areas to protect our diminishing truss sales. With the advancement of design software we can now produce and deliver 17m-plus span trusses, great for industrial steel framed buildings.”
Mr Watson said that competition is fierce but some truss rafter companies are fighting back, offering design, supply and erect services, an I-joist supply into the market place, and steel web beams for the flooring market.
“Last but not least there is timber frame manufacturing. The truss rafter manufacturer cannot afford to do nothing – he needs to diversify into other areas in order to survive.”
His views were echoed by Mike Beale, the newly elected chairman of the Trussed Rafter Association, who said: “There has been a huge drop in the number of individual roofs our industry is providing, and I think that will rise. We should be looking for other opportunities to get our turnover up and increase our profit.
“The Germans are bringing some huge trusses into the UK market for supermarkets, and maybe that is an area we should be looking at.”
