Our
Industry Needs to put Suppliers Under the Microscope
As our industry sees yet more big-name closures, installers
need to take positive measures to protect themselves. This is the alert
sounded by Mark Warren of Lister Trade Frames, a company which says it
is riding the storm with little sign of discomfort.
‘There's no doubt the market's going through a difficult time,’
says Mark, ‘but that doesn't mean that installers and end-users need
to suffer because of mistakes higher up the supply chain.’
Mark
believes that many of the industry's problems are self-inflicted. Faced
with more difficult times, many fabricators relaxed their credit criteria,
causing a huge rise in bad debt. This happened just as prices and profitability
came under maximum pressure. As money became tight, several manufacturers
began cutting back, further reducing their ability to survive.
‘The problem facing the installer now is that his supplies could
suddenly dry up. If a fabricator goes bust, everything freezes very quickly.
At the same time, liquidators may demand immediate settlement of accounts,
soaking up the cash that the installer needs to source materials elsewhere.
When a manufacturer goes bang, it's far too easy for his customers to
get caught in the blast.’
Lister has recently reported figures 10% up on last year, making this
the company’s third consecutive year of growth. Why has it been unaffected
by the slow-down?
‘We haven't been unaffected,’ replies Mark, ‘Given a different
climate we might be 25% up, but who knows? The important consideration
is that we've kept our heads, stuck to what we're good at and continued
to invest in our production and customer service.
‘And that's what I'm suggesting the industry needs to do. Installers
should be looking closely at their suppliers and planning how they'd cope
if deliveries suddenly stopped. You should be asking your suppliers some
searching questions, and if they can't reassure you fully, consider a
back-up plan. There's a tidal wave on the horizon, so now's a good time
to get hold of a surfboard!’
Mark Warren, Lister Trade Frames ltd.
Tel: 01782 205605
Web: http://www.listertf.co.uk/enjoytheride
