Does Our Industry Have A Productivity Problem?

Much has been made of the productivity gap here in the UK compared to our European counterparts and other countries around the world. As an example, UK productivity is 30% lower than that of Germany and the US. We’re even behind Italy and France, not normally known for being work powerhouses.

The end result is less things being made at higher costs. It is said that for every four days worth of work we do here, Germany does five. Over the course of a single year, that becomes very costly.

At a more localised level, I believe that our own fenestration industry is suffering from it’s own productivity problems.

Hangover from the financial crash

Roll back 8 years to the beginning of the financial crisis, or what is now known as the Great Recession. In order to survive the severe downturn window and door companies across the sector began to shed staff in an effort to cut costs. In the end, most businesses were probably at the size they needed to be in relation to the amount of sales they were bringing in.

Spring back forward to present day, and the industry has recovered and grown significantly. Yet, I would say staffing levels have not risen anywhere near as quickly as they should have in order to cope with increased levels of business across all parts of the industry. It’s fair to say many companies have probably held out hiring as many as they thought they might for fear of levels dropping off again or to protect margins. A hangover effect if you will.

Problem is, that has left many across all parts of the supply chain under strain. At our place for example, we are looking to hire extra installers to help reduce a lead time that jumped up rapidly at the start of the year due to a lot of big contracts coming in. At our fabricators I know they are only now training new staff in pricing and processing to help cope with the upturn in business. Not always the easiest thing to do.

I have also heard reports of fabricators beginning to struggle under ever increasing lead times, some over three months already and it’s only February. It’s too long to wait for PVCu windows and doors to be made. There appears to be problems with productivity across various parts of our industry. And it’s probably costing us all more money in inefficiencies than it would cost in putting them right.

Improving productivity

Three month fabricator lead times, delivery delays, poor quality control are all things that cost us money as an industry. Even the small stuff like forgetting to call someone back, not replying to emails or sending quotes to home owners later than promised should be avoided as much as possible.

The solution is two-fold: hire more people and improve internal processes to make them more efficient.

Speed is everything in our industry and every industry. It starts from the installers all the way up to the systems companies and everyone else in between. Quotes have to be sent to home owners in a professional and detailed manner as quickly as possible. Fabricators have to produce and deliver orders to their installers in good time and with absolutely minimal quality control issues. Systems companies have to ensure regular, high quality supplies, on time, to their fabricators so they can give their installers the most efficient service possible.

This is a very basic way of looking at the supply chain of course, and there are many other elements that go into the supply chain. And the best way to ensure the whole thing runs productively, profitably and efficiently is to hire more staff into the areas under the most pressure. I’m not saying to hire for the sake of hiring. But to place skilled people in the right places to help reduce the load businesses are struggling under.

In fairness I think we are seeing lots more hiring than a year or so ago, but I believe there is still more to do. Once glazing companies find that balance through correct staffing levels, they may well find their customer service levels go up, productivity improved, mistakes reduced and through all of that more business might be won and the hiring of those extra staff members justified.

The other thing that needs some serious scrutiny is the internal processes of installers, fabricators, systems companies and everyone else in between. The ways in which our business is done. We can hire all we want, but if there are disorganised areas of our companies, mistakes will continue to be made, productivity falls and this costs us all money in one way or another. We should be looking at ways in which we can streamline our processes, at all times as well. It can’t just be a flash in the pan review. Management at all companies in the glazing supply chain should always be looking to tweak and change to ensure the business if operating as fluently, productively and profitably as possible.

Perhaps if we do the above, we’ll find customer service levels rise back to where they should be. Perhaps productivity will rise. More work will get done quicker. More money will be made by everyone. And then perhaps at least on a fenestration level we can compete with our European and American neighbours.