MBD publishes report on UK window and door industry

After researching the UK Residential Windows & Doors Market Development and taking into account various other factors, the following major conclusions can be drawn from MBD's Market Review 1997-2001

The UK market for doors and door frames, windows, window frames and conservatories has demonstrated nominal growth in each year under review, culminating ina market valued at £3927 million in 2001. In that year growth is only expected to be in line with inflation, and there has been a slowing of growth since 2000.

Market forecast 2002-2006:

The UK market for doors, door frames, windows, window frames and conservatories is expected to increase in real terms throughout the review period, and between 2002 and 2006 growth of 15% is anticipated. This will reflect increased new construction activity in the longer term, the buoyancy of the replacement sector in the short term (although growth rates are expected to be significantly reduced compared with the past), and the effect of value added products, partly driven by increased thermal insulation regulations.

4% Growth for the Window and Window Frames Market:

In the windows and window frames market, the level of real growth for 2002 is expected to be some 4%, a level of growth is likely to be maintained throughout much of the review period.
In the doors and door frames sector real growth of 16% is forecast between 2002 and 2006, taking sales to £825 million.

The conservatories market is expected to increase by 10% in real terms between 2002 and 2006.

New Construction

Window and Window Frames Sector - Sales to reach £323 million:

Within the windows and window frames sector for new construction, MBD anticipate real growth of 10% between 2002 and 2006, taking sales to £323 million by the end of the forecast period.
Replacement and Refurbishment

18% Growth in the Window and Window Frames Sector:

Sales of windows and window frames in the replacement and refurbishment sector are expected to be somewhat stronger than in the new construction sector, particularly in the short term. In total between 2002 and 2006 demand is expected to increase by almost 18% in real terms.

Within the doors and door frames sector, MBD forecast real growth within the new construction sector of almost 10%, taking sales to £169 million by the end of the forecast period.

Timber Based Products - Demand to Increase by 31%:

Demand for timber based products is expected to increase by a highly significant 31% in real terms between 2002 and 2006, taking sales to £1092 million. As a result, the market share of timber based products is expected to increase from 20% in 2002 to more than 23% by the end of the review period.

Demand to Reach £3158 million for PVC-u Based Products:

Demand for PVC-u based products is expected to increase over the same period by 11% in real terms taking sales to £3158 million. The importance of the sector is anticipated to decline from almost 70% of sales in 2002 to 67% in 2006.

Contact MBD for details of the £395 report

website: www.mbdltd.co.uk

email: enquiries@mbdltd.co.uk

K2 invests in state-of-the-art logistics from Cedilla Systems

An investment a little under £1/2 million has been secured with Cedilla Systems, the UK’s leading independent Navision Solution Centre. Cedilla delivers innovative financial accounting, logistics and customer management software solutions, and has worked extensively with high profile companies such as CORUS, Delancey Estates and the Granada Group.

The investment has been made into purchasing an integrated enterprise system, which covers a wide range of procedures from goods inwards through to management accounts and production. This investment in software has been supplemented with a further investment in computer hardware.
The investment programme combined with an on-going recruitment drive is evidence that the Group and its conservatory roof system, K2, will be capable of supporting the next growth phase.

The implementation of a multi-million pound investment programme from The Burnden Group plc, has enabled growth levels to exceed expectations for the Group and its innovative and design-led Conservatory Roof System, K2.

With little under 2 years elapsing since the roof system was launched, K2 has opened up significant growth opportunities for the company and its dealers.

Early last year the Group invested £2 million into a new Warehouse and Distribution Centre at their Emlyn Street Depot, to help support the levels of demand and in anticipation of a period of sustained growth. The 90,000 square feet facility was designed with flexibility and future growth in mind, and is located on the outskirts of Bolton, ideally situated for the distribution of the K2 product throughout the UK. Within this new facility the Group has the opportunity of building an additional 80,000sq-ft unit as future expansion dictates.The initial acquisition of the new warehouse was the first element of a long-term investment plan, which in more recent months has seen further developments at the
Emlyn Street Depot. A new £60,000 cantilever racking system has been installed to further enhance the units storage capabilities and the Group’s delivery fleet has been expanded, with the addition of a further two 38 tonne articulated wagons.

Peter Gray, K2’s operations manager added, ‘With the recent investments in the warehouse and in the delivery fleet we are again committing ourselves to further growth.’
The Group’s headquarters have also seen heavy investment with the recent development of additional office space, and the purchase of state of the art computer controlled extrusion equipment and tooling from Austria. As demand for K2 increases, additional investments in the extrusion facility will be made with a further extrusion line planned for early next year.

The Burnden Group’s, managing director, Gary Fielding, said: ‘The company has the security that comes from being part of a major plc, which over the last 18 months has allowed us to put the infrastructure in place first, before growth.’

‘We will continue to adopt this policy to ensure that our customers get the very best in product, service and support.’

CET - gearing up for the future with HANIC software

After only 6 weeks of the introduction of the software products from HANIC to the British glass market a first success has now paved the way into the market in the United Kingdom.

Northampton based CET GLASS PROCESSORS is an important player in the UK and produces IGU, toughened and processed glass. CET uses modern machinery of the highest technical level and has a long successful company history.

According to the management of CET Glass ‘The existing software solution could not comply with the constant growth of our business and the new product range, we had to look for a new integrated solution’.

HANIC is an important strategy partner for CET and the glass processor was convinced by the functions , the performance and the high integration of the software right from the beginning. CET believes that the HANIC solution offers more functions and flexibility than any other software solution on the market and is convinced that this system will lead them into the future, also taking into consideration the new building regulations in the UK.

CET has placed an overall order with HANIC whereby all software products available at HANIC will be installed : OPTIPLUS (Overall Integrated Management Solution), OPTIFER (production scheduling and control), OPICAP (capacity planning), OPTIPLAN/R(sequenced just-in-time optimisation system) as well as monitoring systems and integrated bar-coding.

‘We are very proud of this success’ says Horst K Mertes, Export Director ‘and according to the actual contacts and feedbacks we are looking forward to concluding several new projects in the near future in the UK.’

In the meantime HANIC is creating a new infrastructure to offer a UK based sales and service office for the new customer base.

Web: www.hanic.de

email: hkm@hanic.de

Diamond Tool Company is bought by Bohle

Bohle AG, the parent company of Bohle UK, has announced its purchase of E.Hermann, a German manufacturer of diamond grinding heads and drills bits.

The ‘Hermann’ product range features a wide variety of specialist and contoured diamond tools that are specifically targeted for the craftsman and art glass markets.

The Hermann factory and staff will remain at their existing site.

UK Director of Bohle, Gary Dean told us ‘ as we continue to expand our product ranges so we wish to continue to expand our manufacturing capabilities which, uniquely to Bohle in this sector, have always been at the heart of our programme. We manufacture around 50% of our vast portfolio and want to retain that strong position whilst further increasing customer choice. This purchase allows us to add diamond tool production to our competences and allows further development of the Hermann range through the influx of Bohle resources and market knowledge.’

Existing customers of E.Hermann can now source their products directly through Bohle in the UK or the Bohle Art Glass Division in Germany. More details can be found on the website www.bohle.ltd.uk or by contacting Bohle on freephone 0800 616151.

Factory investment at Duraflex
lnvestment of some £700,000 in the latest extrusion technology, including a new high-speed, twin-strand line, marks the latest phase in Duraflex's ongoing commitment to profitable and sustainable growth.

A Cincinnati Argoss 112 extruder, the largest of its type in the UK, is part of a major capital expenditure programme. With an output of 450 kgs per hour, this next generation extruder will significantly increase Duraflex's typical current machine capacity by more than 60%.

Whilst twin strand technology is not new to the UK, this is the first time Duraflex has had such capability on such a high capacity machine. Barry McCarthy, Director of Operations explains the strategy behind this major investment; 'By increasing capacity on main line profile we will be able to balance line availability with the demand for product mix generated by our fully integrated Diamond Suite. We believe optimum efficiency is best achieved by allocating high volume items to dedicated lines and mixing and matching on others.'

Aside from its speed, the other major advantage of this new machine is its automatic packing and racking capability. A unit that cuts to length, packs a stillage and recognises when the stillage is full joins the typical downstream operations of calibration, protective tape application and haul-off. Mirrored on either side for each strand, this once again enables greater speed to be harnessed safely and effectively.

In addition to the new twin-strand line, Duraflex has invested in a Cincinnati CM80 extruder dedicated to the door profile line. The £230,000 machine has been brought in specifically to meet heavy demand for door profile from both the Featured and Bevelled Diamond Suites which Duraflex believes is due to continued growth in the flourishing conservatory market. New tooling for this line is also due to be installed shortly and will increase capacity still further.

'Our volume is up by over 22% on the same period last year and we have to ensure we can meet demand effectively over the next 3 to 5 years' comments Barry. 'Through a combination of new extrusion technology, mixing plant capacity and materials handling improvements we've raised our potential output capacity to almost 20,000 tonnes per year without compromising on quality.'

Looking ahead, the Duraflex team is already laying the foundations for further expansion and improvements. Future plans, including a dedicated electrical supply to increase power capacity to the factory, aim to boost annualised capacity over the next 3 years to in excess of 25,000 tones.

LHC Appoint Piper Windows
The LHC, a local authority consortium has appointed Piper Double Glazing Limited, to their U5 arrangement for the supply of PVC-U windows and doors to users in the Public Sector.

This LHC arrangement provides for technical design advice, a full site survey and measurement service, supply and fix or supply only. In addition the company is able to act as main and Principal contractor thereby offering considerable savings, with Piper also able to undertake a wide range of builders' works
One of the main features of this LHC arrangement is that Piper offer competitive prices for supply and installation, and overheads for many preliminary items are included in the LHC tender.

Piper also offer a full range of windows with the following options - high levels of weather resistance - improved sound insulation - enhanced security windows Kitemarked to BS 7950 (casement and tilt/turn) - safety features for alternative means of escape and operation by people with special needs. A full range of residential and patio doors with the option of low thresholds for wheelchair access are also included.
This LHC arrangement is suitable for low, medium and high rise schemes and for all types of residential, school and other public sector buildings.

Les Roberts, Commercial Sales Manager said, 'This justifies the company's recent substantial investment in both new manufacturing plant and employee training. This gives us the capacity to achieve £20m turnover by the year 2003.

The LHC, through its exhaustive investigation into all aspects of the company operation, enables Local Authorities and Housing Associations both within London and throughout the UK to award contracts to Piper without the necessity to undertake much of the normal tendering procedures.'

Piper are an accredited NVQ Training Centre, and the Company has used its training expertise to fine-tune their already stringent site control procedures. They rigorously monitor installation contracts to minimise the problems of working in occupied dwellings, thereby ensuring that the clients, whether Local Authority or Housing Association, are free from tenant complaints.

Les Roberts went on to say 'We have fabricated windows using the Veka system for over twenty years; with this quality system, modern equipment, and an effective Quality System to BS EN ISO 9002, windows are produced in a strictly controlled environment. Where most companies fail is their inability to organise the site installation effectively. The majority of our site staff are construction industry professionals with the core of the fitters and supervisors having served building trade apprenticeships.'

Piper were also one of the first companies to be awarded BSI Certification for the installation of windows and doors. 'Regular BSI quality control site inspections keep the pressure on maintaining site performance and good working practice,' adds Joe Berry, Senior Contracts Manager.
Piper has a turnover of £I0.1M with a large percentage of this being repeat business from their existing customer base.

Confirmed orders over the last month have topped £1.8M, which puts the Company well on track for a £12.5M turnover this financial year.

Contact Neil Piper or Les Roberts for more information (01843850500)

Sales growth at BCE
BCE Cellular Extrusions, manufacturer of PVC-UE building products, reports that it has enjoyed unprecedented sales growth over the past six months.

Year on year growth at BCE has exceeded twenty percent, with demand for certain new product lines far out-stripping expectations.

BCE have announced a four point plan which is currently being implemented, in order to respond to the increased demand.

1. Capital Investment: earlier this year we made a substantial six figure investment in another extrusion line at our Scunthorpe plant. We've now ordered another FOUR
extrusion lines and are awaiting their delivery. All the infrastructure work is
currently being undertaken and, when the new lines are installed, we'll have a total of 19 lines working non-stop round-the-clock to fulfil your orders. The new ABL tool is now in place at BCE and is running well.

2. Sales Order Processing: we're now in the process of implementing an improved sales order processing system. This system will give everyone in our sales office real-time information about exactly what we have in-stock, what we can expect in stock in the next few days, and the delivery lead times that we need to quote. The system should be complete by Spring 2002.

3. More People: we have increased the number of staff in the sales office with the
recruitment of 2 new sales order processors - Claire Cawkwell and Nikki Bradley, and we've appointed Hayley Millns to the newly created post of Sales Office Manager. This change, and the new systems, will help us to improve our communication with you on a daily basis.

4. lmproved QualityControl:
We have recently established a dedicated Quality Control team to guarantee a high standard of product quality. BCE Quality Control Supervisor, Ken Parker heads up this team, which consists of 4 Quality Controllers. In addition to this, a Quality awareness training programme has been implemented encompassing all production staff, and all new and recent recruits are undergoing improved induction programmes to ensure that the importance of quality is understood at every stage of the production process.

Deceuninck launches "Perc" to Roofline market
The newly formed Home Value business unit at Deceuninck Ltd is launching a nationwide scheme that aims to set the standard for the installation of PVC-U building, roofline and cladding products. The PERC scheme - Purveyors of Excellence in Roofline and Cladding - is being launched in conjunction with the company's reinvigorated Deeplas range.

The PERC scheme will consist of a regionalised network of Deceuninck trained and approved installers. Supported by the long heritage of the Deeplas brand of products, a ream of personalised marketing materials, a nationally established distribution chain, and the strength of the international Deceuninck name, PERC members will be well equipped to offer the best and most competitive roofline and cladding service in its local area.

'To date there has been no nationally recognised quality accreditation scheme for this specific area of the home improvement market,' said Deceuninck Home Value Unit's commercial manager Mark Ridgewell. 'We have launched the PERC scheme to redress this balance and generate greater awareness of the installation issues involved for the general homeowner.'

'Response from our distributors and their customers has been ovewhelmingly positive, and their enthusiasm to apply strict quality standards precisely reflects our aims with the scheme,' he continued.
Deceuninck believes that the PERC scheme provides the perfect opportunity to develop a new business venture, or indeed add value to an existing home improvement based operation.
'Diversification is a key route to success, and if you are already working with windows and conservatories, the PERC scheme could be an ideal complementary service plus additional source of profit margin. Alternatively, with the training we provide, it may give someone a fantastic start in setting up their own business,'concluded Mark.

Confident Future For Woodgrain Door Panel Market
Latest industry figures reveal that confidence is returning to the UK woodgrain door panel market with Portal Products witnessing a rise in demand for its Thermasure product.

According to figures published by Palmer Market Research in November 2001, the
number of woodgrain panel installations grew by 3.6% in 2000 to 72,000 panels representing 18.5% of the total door panel market.

There is also a significant trend towards lighter woodgrain panels and a corresponding move away from the darker, more traditional mahogany-effect finishes. Demand for light woodgrain panels is up 40% from 27,000 to 35,400 panels compared to 2000, with dark woodgrain down 17% to 36,600 panel.Confidence in the woodgrain market has come back mainly as a result of new hightech products such as Thermasure from Portal Products that claim to offer significantly greater resistance to problems associated with extreme temperature ranges.

Thermasure incorporates new COMPAX door skin technology to create a woodgrain panel that will not crack or blister and panel bow is drastically reduced in comparison to PVC-U and ABS woodgrain door panels.

More than 14,000 Thermasure panels have now been installed since the product's launch in 1999. Following successful field trials over the last two years, Portal reports a 100% success rate with no product failures.

Good Sales Growth Cannot Hide Plummeting Profits says
new Report on The Glass lndustry
A new report published today based on the financial accounts of 149 key players in the
glass industry confirms a disappointing financial period between 1997- 2000. Despite a good growth in sales, profits have fallen markedly and margins have suffered.

'A marginal sales growth of 2% between 1997/98 and 1998/99 was followed by a much better growth in sales of 9% between 1998/99 and 1999/2000, leading to a compound sales growth of 6% for the three year period under review. Compound profit growth stood at minus 15%. A worrying contraction in growth ofminus 40% between the first and second years ofanalysis was partly balanced by growth of 21% between the second and third years' reveals the report.

The table below lists the top ten companies analysed by the report by sales turnover in 1999/2000 and is led by Pilkington PLC with an exceptional turnover of nearly £2.5 billion. Please note that Pilkington UK has been excluded from the table due to the presence of its ultimate holding company, Pilkington PLC. Three companies reported negative profit margins, while the highest margin of 11.2% was recorded by Rockware Glass.

The Business Ratio report, entitled 'The Glass Industry' and published by The Prospect Shop, analyses and compares the financial performance of 149 leading companies operating in the glass industry in Great Britain. Covering the last full three accounting years, (1997/98 to 1999/2000) the report provides individual company and sub-sector analysis* as well as performance averages for the industry as a whole. *(glassware distributors, domestic glassware manufacturers, automotive glass manufacturers & distributors, industrial scientific glassware manufacturers, glass merchants, glaziers & processors).

Key Findings on the Performance of Leading Companies in the Glass lndustry:

• Average pre-tax profit margin for the industry as a whole is 3.0% in 1 999/00, having fallen from 4.6% at the beginning of the financial period under review, 1997/98. The company with the highest pre-tax profit result for 1999/2000 is Auto Windscreens Manufacturing at 37.8% - nearly thirteen times that of the industry average result.

• The average total debt to net worth figure over the three-year period under review has deteriorated quite significantly for the industry as a whole, rising from 99% in 1997/98 to 140.5% in the final year. When comparing sub-sector performance, 'industrial & scientific glassware manufacturers' has the healthiest result of just 34.5% in 1999/2000 whilst 'automotive glass manufacturers & distributors' has the worst result of 1459.1%.

• Average profit per pound of pay for the industry has almost halved during the three-year period under review, from £0.22 in 1997/98 to just £0.13 in the final year. Auto Windscreens (Manufacturing) Ltd has the highest result for the industry in 1999/2000 at £2.95, followed by Schott Glass Ltd with £2.08.

• Average pay per employee result for the industry as a whole has increased by nearly 10% from £15,208 in 1997/98 to £16,686 in the final year. The company with the highest result is Rayware Ltd with an average pay per employee result of £58,650.

• Average debtor days outstanding for the industry as a whole has improved slightly from 59 days to 57 days during the three-year period under review.

• Income gearing -which represents the percentage of pre-interest profits required to pay back interest on loans - has increased slightly to 29.6% for the industry as a whole in 1999/00 from 25.3% in 1997/98. However, there is a significant difference in performance between the subsectors, with 'domestic glassware manufacturers' reporting an average result of 118.8% compared to the 'industrial & scientific glassware manufacturers' sector result of just 11.0%.

Website: http://www.theprospectshop.co.uk

The 2001 best trading partners in the Window & Door Industry
Focusing on the best companies in the industry as part of a new 'Trailblazers' Edition, Plimsoll has awarded 50 companies its highest mark of distinction, 'Best Trading Partner' for 2001.

Chosen from 1000 companies in the Windows & Doors industry, these 50 companies have been selected for their financial and commercial success. These companies are taking the industry forward, effectively changing the rules of the game and proving that the Windows & Doors industry can reward innovation and niche performance.

Taking an overall measure for success, companies must have a combination of a strong balance sheet, good profitability and sound cash control. They are achieving this whilst capturing market. Last year these 50 'Best Trading Partners' grew by over 25% on average compared to the industry average of 7.4%. Profit margins at 6.4% on average were also above the industry of 3.1%. But it is their overall performance that sets them apart.

A few companies listed as a 'Best Trading Partner' have been given special mention. The company with the biggest market share increase over last year is ULTRAFRAME (UK) LTD. Sales increased by over £12 million and they now have sales of almost£69 million. This 18% growth is well above the industry average of 7.4% for the same period.

Earning the biggest turn around in profit margin over the last 12 months, LEADERFLUSH + SHAPLAND LTD. has made a massive improvement and now holds a healthy 11.2% profit margin. With annual sales of over £25 million and no debts this company is now able to maximise profitability.

Proving that success is still firmly in their grasp, AVDON BRISTOL LTD is the oldest company to receive a 'Best Trading Partner' award this year. Incorporated in 1994 with current sales of £2.7 million, this company grew 24.6% last year!

Companies featured in this special 'Trailblazers' Edition will be receiving a special award over the coming weeks to celebrate their success and their contribution to the Windows & Doors industry.

The 50 Best Trading Partners for 2001 are: (in alphabetical order)
A E SPINK LTD
ALLAN ROOFING & FENESTRATION LTD
ARMTHORPE GLASS LTD
AVDON BRISTOL LTD
AWS COMMERCIAL WINDOW SYSTEMS LTD
BRAMPTON WINDOWS LTD
BRIGHT LOOK DOUBLE-GLAZING LTD
CENTRAL EXPRESS WINDOWS LTD
CLASSIC WINDOWS AND CONSERVATORIES LTD
ESSEX SEALED UNITS LTD
EUROCELL PROLlLES LTD
EUROWINDOWS LTD
FLEETWOOD UK LTD
FOX ALUMINIUM SYSTEMS LTD
GLASS CENTRE (WOKING) LTD
GLAZEGUARD (SOUTH WEST) LTD
GRIFFIN WINDOWS LTD
GROSVENOR WINDOWS LTD
J A G GLAZING LTD
J PREEDY & SONS LTD
J & W HARAN LTD
LEADERFLUSH + SHAPLAND LTD
M PRICE LTD
MARSLAND AND CO LTD
MARSTON & LANGINGER LTD
MDS ARCHITECTURAL FABRICATIONS LTD
MID KENT WINDOWS LTD
MIVAN LTD
NEWDAWN AND SUN LTD
NORMAN & UNDERWOOD (GLASS) LTD
NORTH EASTERN GLASS LTD
NUGLAS LTD
PIPER DOUBLE GLAZING LTD
PREMIER TRADE WINDOWS (WALES & WEST) LTD
PROFILE CONCEPTS LTD
REDFORREST GROUP LTD
SAINT GERARD HOLDINGS PLC
SCHMIDLIN (UK) LTD
SCOTPLAS LTD
SHEPLEY WINDOW SYSTEMS CO LTD
SOLAIR LTD
SOUTHERN CERAMIC SUPPLIES LTD
SWEDISH WINDOW CO LTD
SYNSEAL HOLDINGS LTD
ULTRAFRAME (UK) LTD
UNI-SEAL (SOUTH COAST) CO LTD
W D ROLLINGS LTD
WALL LAG (WALES) LTD
WINDOW FITTERS MATE LTD
WINDOW TECH TRADE PLC

This special edition, priced at £395, also includes outstanding company performance in 15 areas of business, including sales growth, efficiency, best use of people, best young businesses and more. To order a copy of this 1154 paged analysis or for more details please ring Jennifer Ovington on 01642 257800.

email: plimsoll@dial.pipex.com

website: http://www.plimsoll.co.uk

GQA moves to assert independence

GQA the Awarding Body for glass and glass related qualifications has recently moved offices. Originally GQA has housed within the offices of Glass Training Ltd (the Glass National Training Organisation). To demonstrate its independence it has now moved to:

Glass Qualifications Authority
Provincial House
Solly Street
Sheffield
S1 4BA
Tel: 0114 272 0033 Fax: 0114 272 0060
e-mail: gqa@btconnect.com
It has also upgraded its website: www.glassqualificationsauthority.com

The National Vocational Qualifications offered by GQA include ones clearly linked to the CSCS card for Glaziers, Installers and Surveyors. The GGF WISA scheme submitted and accepted by the DTLR was for a 'Competent Person Scheme'. GQA claim that its Fenestration Installation and Surveying NVQ/SVQ qualifications fit the bill exactly.

There is also increased interest from the construction related sector in achieving competence related qualifications to improve business performance and for those who offer subcontract services to the Major Contractors Group, to be able to tender for future business.

In total GQA has awarded nominally 6000 National Vocational Qualifications (NVQs/SVQs) and has a similar number of candidates registered as working towards them