The generally smooth trading conditions of 2004 made way for a far harsher business climate last year, with the British Woodworking Federation (BWF) confirming that the number of its members entering administration or suffering liquidation was higher in 2005 than for several years. Latest insolvency statistics from the Department of Trade and Industry suggest that the rate of manufacturing industry liquidations in England and Wales has been even higher so far this year; the joinery sector itself has witnessed the disappearance of some well-known names in 2006, such as Frank & Whittome which entered administration in January after trading for more than a century.

Overall, however, the BWF believes the UK joinery sector has experienced fewer closures and a gradual improvement in the business outlook since the early part of the year. Whereas at the start of 2006 many companies had work in hand “but couldn’t see beyond the next few months”, there was now “a lot more work floating around” with the result that a significant proportion of joinery firms were “more confident about the future”, said a federation spokesperson. “Confidence is still outweighing pessimism.”

In revealing the latest insolvency statistics, the DTI predicted that spiralling energy prices would lead to even more closures within UK manufacturing. Certainly, “dramatic” and ongoing increases in energy costs were cited by many joiners this week as one of the major challenges facing their businesses; one source suggested increases in energy costs were putting “£1 on every metre cube we machine”.

Feedback from the UK mass production joinery sector suggests that price increases have generally failed to keep Pace with spiralling costs owing to a reluctance among customers to accept higher quotes. There was even a suggestion that severe competition was creating pockets of price weakness. Some producers are taking the view that, having absorbed much of these cost increases to date, they must either raise prices or be prepared to walk away from unprofitable business.

Several leading firms contacted this week confirmed that they had implemented increases; one manufacturer said that, having raised its window prices by around 5% at the start of the year, its door prices were about to be increased by 5-10%, mainly in response to escalating raw material costs.

Market growth

On a more positive note, statistics for 2005 are expected to reveal that timber windows secured around 12% of the UK fenestration market last year following a prolonged period during which the figure reached a plateau at nearer 10%. According to the BWF’s most recent trend survey, the rate of market growth for both timber windows and fire doors has slowed recently. While some joinery firms are reasonably confident about the business outlook for the second half of this year, the general view is that 2006 will be a difficult year, but that 2007 is likely to offer more promise given current housing forecasts and heightened construction activity in the run-up to the 2012 London Olympics. Several contacts suggested 2007 “could be a bumper year”, although feared any boom could be undermined by cost and supply issues.

Most companies contacted this week reported “having to pay more and to wait slightly longer” for their supplies of timber. One source said: “You can usually shop around for deals but good deals don’t seem to be about.” Timber availability has not been a major issue for joiners; indeed, most identified glass as perhaps a more difficult material from the supply perspective. The rising cost of other materials – such as ironmongery – was also a source of widespread consternation.

Consumption of timber by the UK joinery sector has been relatively stable while overseas demand has been much stronger. Having pointed to upward price pressure on panel products, pine and red hardwoods in particular, one contact said the summer could exacerbate existing supply problems. “Some countries are prepared to pay more than the UK for easier specifications. So unless we pay more, we will struggle to get the timber,” he said.

In terms of demand trends, factory finishing remains the dominant factor as clients seek to minimise on-site skills requirements by purchasing products that are almost, if not actually, ready to install. Hence, orders are focusing on complete doorsets, fully-glazed windows and pre-assembled balustrades. While demand from the merchant and mainstream construction sectors was described as no better than average, the luxury housing market appears to be offering greater encouragement.

&#8220We are struggling to get contracts managers, estimators, joiners and people for the estimating office. It’s also difficult to get youngsters interested in wood machining – which is strange because it involves working with computers”

Architectural joinery

Large pockets of sluggish demand were also reported by the UK’s architectural joinery sector, with shopfitting and commercial fit-outs attracting specific mentions. With costs rising and competition becoming more intense, a greater proportion of available business appears to be heading to those with more flexible equipment or those who are prepared to operate on wafer-thin margins.

One company ascribed a successful recent past in part to offering customers a “one-stop shop” supply and installation service; a spokesperson also said that joinery firms in some regions had gained from the demise of local rivals.

Those companies with busy workloads are continuing to experience problems in securing skilled labour. One industry expert noted: “We are struggling to get contracts managers, estimators, joiners and people for the estimating office. It’s also difficult to get youngsters interested in wood machining – which is strange because it involves working with computers.” In general, it would appear that site workers are easier to secure than bench joiners.

According to feedback from the architectural joinery sector, timber trends have continued to veer away from the lighter species such as hard maple towards the darker woods, notably black walnut. Temperate hardwoods appear to be proving more popular because of the sourcing difficulties and accreditation issues surrounding tropical alternatives.

Training programme

In other news from the BWF, the organisation will shortly follow up its launch of technical guidance for staircases and a revised health and safety guide with the release of the third module of its timber training programme, the overall aim of which is to examine key business issues from the perspective of the working joiner. The first of these modules focused on understanding softwoods and hardwoods, the second on coatings and preservatives, while the third will address sustainability. According to The Federation, the three modules will be run together at training events being organised for later in the year.

Meanwhile, late May saw the third anniversary of the implementation of the BWF’s Code of Conduct. More than 300 members have now been visited as part of the assessment procedure – in line with the federation’s target of 100 visits per year. The Code of Conduct sets best practice standards and demonstrates to customers that a joiner is working to those standards. From January 1 this year, BWF members have had either to be compliant with the Code of Conduct or to be actively working towards compliance. Indeed, the federation has revealed that nine companies had their membership terminated for failing to respond to this new condition.

Staying on the theme of assessments, BM TRADA reports a growing number of enquiries for its independent verification services relating to window energy ratings. According to a spokesperson, demand for verifications under the British Fenestration Rating Council scheme was being underpinned by the revision of Part L of the Building Regulations. “Specifications and building control are starting to refer to the ratings,” it was pointed out. As part of the Secured by Design initiative, meanwhile, Chiltern Dynamics has begun testing sliding sash windows against BS 7950. “This opens up a whole new market,” said a spokesman for the organisation.

In other news, Allan Brothers, of Berwick-upon-Tweed, commissioned a dedicated paint line at its door factory in mid-May while a new timber window production line scheduled for delivery by the end of June will provide the firm with an additional £4m worth of capacity.