It’s a clichéd yet almost obligatory way to start any discussion at the moment, but we really are living through unprecedented times.
The global outlook is not short on volatility, with geopolitical happenings, economic pressures and shifting consumer behaviours all reshaping markets daily. And while some of these forces often appear far removed, their effects ripple quickly into local industries like ours.
After years of steady, if unspectacular, performance, the UK’s fenestration sector has unfortunately entered a phase of stagnation, creating pressure that is difficult to ignore. Order volumes are reported as flat at best, discretionary household spending continues to decline, and sadly, insolvencies have started to surface. Even those in the sector that have a knack for overclaiming their performance have gone quiet. For transparency, our volumes are in line with 2024.
In contrast to previous years, few can now confidently claim that the sector is outperforming. Privately, even long-standing operators are referring to the current landscape as ‘dire’, expressing their concerns about where the market is. The usual optimism we tend to sense in the summer months ahead of the September to November ‘peak season’ seems muted, and fabricators, installers and suppliers alike are occupied with what comes next.
The most pertinent challenge is that households remain reluctant to commit to big-ticket purchases like new windows and doors. The latest GfK Business and Consumer Confidence research1 shows that overall consumer confidence continues to sit in negative territory, and although personal savings remain high, spending has shifted. According to Barclaycard’s data, consumers are choosing experiences over major home improvements, even when funds are available.
There is also little sign of external stimulus. Government focus has been on greener technologies like solar panels and heat pumps. Window and door replacements, despite offering proven energy-saving potential, remain largely absent from subsidy or voice. As a result, demand is heavily dependent on discretionary spend – hard when homeowners are adopting a ‘wait and see’ attitude in response to a volatile economy.
It would be wrong to suggest that the outlook is universally bleak, but a lot hinges on the months ahead. As we know, Autumn is traditionally a key period for the industry, as projects scoped and priced during the summer go ahead. This year, quoting activity won’t have picked up as hoped for everybody, meaning that everybody will have to work harder and smarter to convert.
Yet, there are many businesses still making ground. We see it in our business with some customers who have found double digit growth so far this year, and others who have grown for eight consecutive years. Regardless of overall conditions, some businesses are outperforming the market. The differences between those who are growing or stable and those who are not are becoming more defined. The firms doing well have a clear strategy, they’ve invested in capability, whether production technology, marketing or customer services, and they are actively managing risk across markets. Critically, they are not over-exposed to a single customer group or channel, and have diversified customers across retail, commercial and public sectors – because it’s rare to see all sectors in decline at once.
Manufacturers and systems houses are also being asked for more, such as technical input, commercial support, help with marketing and even operational advice. At VEKA, we have seen this shift first hand. Increasingly, our most successful partners are those who approach us as collaborators. They share their challenges and plans and ask us to add value beyond ‘just’ hugely reliable supply. In return, we are candid about what’s achievable and where we can add value.
We know that now, more than ever, customers need partners who can be relied on. While we recognise that we are not immune to market forces, we are strong and stable on a solid foundation. Unlike some in the sector, we remain free from the financial pressures that have unfortunately challenged others in recent months. Our supply chain is secure; balance sheet is strong and our family ownership is rock solid.
This robust foundation allows us to continue investing in our services, product development and technical and marketing support.
While we will continue to invest and support, there is also a shared responsibility. The fabricators and installers who weather this period successfully will need to work harder to stand out. That means marketing better, quoting smarter – all while avoiding a race to the bottom – and managing costs tightly. Most importantly, they need to be open to change.
That means reaching into the sales opportunities provided by the whole VEKA product range, thinking critically about what they want to stand for, and communicating this successfully to their customers, whether new or established. Importantly, it means seeking out support from suppliers and using it to its full extent, as well as investing in being seen.
In a recent discussion with several installers, they emphasised to me that they had seen a positive shift in the role of recommendation as a source of leads and as a source of conversion. Real people with real experiences as the basis of choice.
For the market to turn, the industry needs to make it happen – and VEKA is here to help lead the charge.
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