Fire door manufacturers reported increased sales of timber fire doors in October-December 2004 compared with the previous three months. Thirty-seven per cent of manufacturers improved sales while 26% decreased and 37% 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 11% of manufacturers reported higher sales in October to December 2004 compared with the previous three months (see chart 1). Of these, 86% recorded growth of 10% or more.

Sales and forecasts

A net 21% of manufacturers reported higher sales in the last three months compared, with the same time last year (chart 1). Eighty per cent recorded an increase of 10% or more.

Eighty per cent of manufacturers’ timber fire door sales were sold with a FD30 rating, 17% had a FD60 rating and 3% were sold with a FD90 and FD120 rating.

A net 37% of manufacturers forecast growth in the next three months compared with the previous quarter and only a few expect a drop.

Year-on-year expectations are also strong with a net 74% of manufacturers anticipating better sales in the coming quarter compared with the same period last year.

Orders and prices

A net 21% of manufacturers increased order volumes from October to December 2004 compared with the previous three months.

Just under two in five manufacturers raised their selling prices during the three months October to December compared with the previous quarter. However, just under seven in 10 companies reported an increase in the cost of materials over the period.

Prospects and problems

A net 47% of manufacturers are more confident now about the overall prospects for the timber fire door market than three months ago. Significantly, as in last quarter’s survey, none of the manufacturers interviewed were downbeat about prospects.

Slow payments and bad debts (56%) and price cutting in the market (44%) were among the top two problems mentioned by manufacturers this quarter. However, low sales volume, margin squeeze, supplier price rises and lack of skilled staff all came in at third position (39%).

&#8220“We manufacture approximately 1,650 timber fire doors per month and are working at capacity. We will be investing and expanding the company over the next two years and expect a sales increase of 10% year-on-year.
“Government legislation from within the industry is responsible for growth in the timber fire doors market. Building controls and fire officers demand credible fire door manufacturers who comply with regulations and are armed with all necessary standards. They will be the force behind the growth in this market and reputable companies like ours will prosper”
”

Brian Warren, technical sales manager Enfield Speciality Doors

Low sales volume and price cutting in the market are identified as the two single biggest problems affecting 22% of manufacturers in the last three months.

Internal/external doors and doorsets

Ninety-one per cent of timber fire doors sold in the last 12 months were internal, and 9% were external doors.

Meanwhile, 38% of timber fire doors sold in the last 12 months were sold as fire doorsets.

Merchants’ sales

A net 4% of merchants increased sales of timber fire doors in the last quarter compared with the previous three months. Year-on-year sales are stronger, with a net 44% of merchants selling more timber fire doors in the last three months against the same time last year.

A net 40% of merchants expect to sell more timber fire doors in the next quarter compared with the previous three months.

BWF comment

“This report underlines the strength and confidence in the timber fire doors market at the moment,” said Richard Lambert, director of the British Woodworking Federation.

“The factors driving the growth in the market, such as planning policies promoting development of blocks of flats and townhouses, and substantial housing refurbishment, particularly in the social housing sector, are unlikely to disappear. Indeed, if the early signs of a revival in commercial office construction come to fruition, we could see a further boost.

“But we mustn’t allow good sales figures to distract us from the need to continue to improve the quality of the doors on the market,” he added. “The BWF has worked hard to establish the importance of using independently certificated fire doors in the minds of specifiers, contractors and regulators. We’ve also pressed home the message that a fire door is only as reliable as the components used to install it. The responses in the most recent surveys show that there is an increased awareness of the importance of compatibility of components.

“This awareness is sure to have influenced the proportion of fire doors sold as complete doorsets,” continued Mr Lambert. “At the beginning of 2004, the survey found 27% of fire doors sold as doorsets. We saw a step change in the latter part of the year, with the proportion jumping to 38%. Doorsets are a better product for the client and give greater value to the manufacturer, so I expect this trend to continue.

“Selling prices are likely to creep up in the face of increased timber prices, fuel costs and liability premiums. However, actual and expected price rises haven’t affected sales forecasts. Although the doors market remains intensely competitive, there is an optimistic mood going into 2005.”