Welcome to THE GL@ZINE News 21st November 2006

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Edgetech Takes its VAT Campaign to Number 10

Edgetech has taken advantage of a new online petition service to gather support quickly and easily for its campaign to have VAT reduced to 5% on Energy Saving Recommended (ESR) windows.

The new online petition on the Number 10 Downing Street website allows people to lobby Tony Blair on important issues. Managing Director of Edgetech Andy Jones comments: 'I urge as many people as possible to sign this petition so we can put it at the top of the list of issues people are petitioning for. The Government must take notice of ESR windows and the benefits they offer homeowners and the environment. As well as signing the petition I also ask for continued lobbying of Government officials and MPs to ensure that the window industry's voice is heard on this issue.'

The petition can be found at: http://petitions.pm.gov.uk/reduced-VAT


NSG Reports Good First Half with Pilkington

NSG has included the performance of Pilkington, which became a consolidated subsidiary in June 2006, in the Company's consolidated income statements from the second quarter of the current term. Consequently, sales, operating profits, and ordinary profits all saw substantial year-on-year increases.

Building Products

Sales: JPY131.604 billion, Operating profit: JPY6.103 billion

In Japan, solid increases in shipments of high-performance glass boosted sales, but higher costs for raw materials and fuels caused operating profits to drop year-on-year.

In Europe, profits were strong due to a firm increase in demand in the region.

In North America, amongst a decline in housing construction, robust demand for commercial building supported sales.



Automotive Glass

Sales: JPY96.872 billion, Operating profit: JPY 2.018 billion

In Japan, glass shipment were up year-on-year fueled by increase of domestic car build.

In Europe, the new vehicles, of which Pilkington supplies glass products, showed good growth.

In North America, OE business was slow due the reduced production by US automobile manufacturers.

Other Businesses

Sales: JPY 44.782 billion, Operating profit: JPY 0.559 billion

In the information and electronics sector, steady shipments of optical lenses for multifunction printers and a recovery in the display product market lifted sales and profits year-on-year.

In the glass fibre sector, recovering demand for air filter-related equipment was among factors generating a year-on-year rise in sales and profit.Convertible bonds and borrowings

As for the convertible bond-type bonds with stock acquisition rights (No.1), JPY 61 billion has been converted into stocks out of the issued JPY 110 billion as at the end of September 2006 and JPY 71 billion as of today (approximately 65 percent of the total).

Interest-bearing debt balance at the end of this interim period is JPY 636 billion, which is a JPY 32.6 billion decrease from the end of the first quarter.

New Medium-term Plan

Dividing the ten-year strategy from FY2008 to FY2017 into three stages, the Company has set out a four-year medium-term plan starting from April 2007 as its first stage. This plan aims to integrate the Group's strength and expand its performance by continuing efforts to restore financial soundness, placing emphasis on improving productivity and quality, and endeavouring to distinguish itself from its competitors.


Expansion at Deceuninck's Calne Plant Reflects Positive UK Business

Deceuninck has expanded its manufacturing capacity by introducing two new cellular profile extrusion lines to help it meet growing demand for its Deeplas by Deceuninck product range.

This means the Calne-based company has introduced four new, state of the art, cellular profile lines this year alone which, along with its new logics centre that was opened in June of this year, is in line with Deceuninck Group's continual growth plan for the UK.

Hazel Wilson, Building Products Division Manager at Deceuninck said: ‘Deceuninck Group continues to invest in the UK due to the rapid growth of Deeplas by Deceuninck sales and it's a trend we are confident will continue. The investment is also an indication that the industry is still growing, which is welcome news for everyone in the sector.’

Deeplas by Deceuninck is a comprehensive range of cellular profiles for interior and exterior use. It includes the Décor range of ceiling and wall panels, which are ideal for bathrooms and kitchens because their water resistant and insulating properties minimise condensation and mould growth. Easy installation makes them ideal for both professionals and DIY consumers too.

For the exterior, Twinson Terrace and Twinson Face combine the natural appearance and warm feel of wood with the durability and low maintenance of PVC to great effect in ranges of patio planks and cladding. Also for the exterior is Belface, a heavy duty cladding system. It's a cyclefoam using recycled PVC with very low thermal expansion so there's no tendency for it to warp through exposure to moisture or temperature changes. Throughout all the ranges, the colours and styles make them suitable for every type of home and commercial application.

Tel: 01249 816969
Email: hazel.wilson@deceuninck.com


Spectus Installs New Extruders

The Spectus factory in Macclesfield is now home to two new state of the art twin strand extruders. These new high-speed extruders increase capacity but also bring many more benefits.

They are more efficient and require less electricity and cooling water per metre of profile than older machines. Die changes are quicker leading to less downtime. The machines are easier to set up so quality is more consistent and Spectus' already low scrap levels are further reduced.

Moreover, the investment underlines Spectus' commitment to the UK market.

Says Dave Mulholland, Spectus' Sales and Marketing Director: ‘The PVC-U windows and doors market is undergoing a period of change, and as the market matures and becomes ever more competitive, our UK-base will become increasingly important.

'We offer customers continuity of supply on a day-to-day basis and our factory operates 24 hours a day, seven days a week, closing only for Christmas and New Year.

'Almost inevitably some European system companies whose core market is not the UK will either pull out all together or move manufacturing back to mainland Europe. As transport costs increase and the environmental impact of moving goods long distances begin to have more of an impact, they will find it increasingly difficult to provide the service fabricators are used to.

'Our customers will continue to benefit from the service levels that only a financially stable, progressive, and UK based company can provide.’

Picture: The Spectus factory in Macclesfield is now home to two new state of the art twin strand extruders.


Freefoam Hits the Target

Freefoam Plastics, a leading manufacturer of roofline and Rainwater systems in the UK and Ireland, has reached another milestone by achieving record monthly sales in excess of €4 million for September.

It was Freefoam's objective to reach this target for the month of September and due to an increase in demand in the marketplace plus a growing customer base this has been achieved.

The reason for this growth is attributed mainly to the continued investment in the market and the launch of new products that add to an already extensive product range.

Aidan Harte, Finance Director, comments,

‘There are numerous reasons why Freefoam's sales have grown so fast in the last few months but the main contributors have to be the benefits incurred by expanding our manufacturing plant in Northampton along with our recent acquisition of the Permacell product range allowing us to offer a wider product range to our customers.

'Freefoam is committed to continuing this investment programme and we shall be making further announcements in the near future. How long before we have reached €5m monthly sales? Watch this space’.

For more information, contact Freefoam directly on 01604 759871 in the UK, 021 4911055 in Ireland, or email marketing@freefoam.com


Deceuninck to Consolidate Extrusion Production in North America

The Deceuninck Group will cease extrusion operations at its Oakland, New Jersey (USA) plant. The move is part of the integration of the Vinyl Building Products and Dayton Technologies acquisitions completed earlier by Deceuninck Group. The Pompton Plains, New Jersey, distribution centre shall remain operational to ensure uninterrupted service to Deceuninck's customer base. This decision is an integral part of the Deceuninck Group's business plan 2009 and is the final part of site optimisation.

The Oakland, New Jersey manufacturing plant became one of the Deceuninck North America production sites after the acquisition of Vinyl Building Products, part of Thyssen Polymer (Germany) in July 2003.

Deceuninck North America holds a leading position in the American PVC window profile extrusion market with sales of $ 170 million in 2005. The current production capacity of Deceuninck North America remains unchanged, but will be consolidated into its state-of-the art Monroe, Ohio and Little Rock, Arkansas facilities.

The transition will begin immediately and should be completed by the end of March 2007. Approximately 70 people will be affected by this consolidation and the company will make every attempt to identify further employment opportunities for those employees.

The costs related to this operation will be accrued for in the 2006 accounting figures.

‘The decision to close down production at the Oakland site is part of our worldwide platform and streamlining projects that were started after the acquisition of Thyssen Polymer in 2003. Through much improved operating efficiencies resulting from this action we will become a more competitive industry leader, which will strengthen our position as a leading supplier to the North American PVC window market. This move leverages our state-of-the art facilities in a more efficient approach to the market. It also enables a greater focus on quality resulting in further improved service levels. Finally, it will strengthen the relationship with our customer base as we ensure the long term viability of our partnerships,’ says Clement De Meersman, CEO of the Deceuninck Group.

Web: http://www.deceuninck.com


The Freefoam Roofline Report - Roofline Sales Rocketing

According to The Freefoam Roofline Report, a quarterly trends survey produced by Michael Rigby Associates, and sponsored by Freefoam Plastics Ltd, a net* 32% of roofline stockists and installers reported better sales in August to October 2006 compared with May to July 2006.

A net 35% of stockists and installers increased sales in August to October 2006 compared with the same three months of 2005 (chart 1). Mid-sized (48%) and small companies (38%) saw an improvement but on balance 7% of large companies saw a fall in sales. Stockists and installers in all regions experienced better sales.


Specialist stockists (net 44%) again did better than specialist installers (25%).

* The net balance is the difference between the percentage of companies reporting an increase over those reporting a decrease.

Sales forecasts
Seasonal influences mean that expectations for the next three months are low. On balance 41% of stockists and installers expect to see a drop in sales in the next three months (November 2006 to January 2007) compared with the previous three months (August to October 2006).

Year-on-year forecasts are better. A net 11% of stockists and installers expect increased sales in November 2006 to January 2007 compared with November 2005 to January 2006 (chart 2). Mid-sized firms (net 20%) are most confident but small companies (9%) are also positive. However, a net 7% of large firms forecast a drop. Stockists and installers in the South and Midlands (17%) are upbeat but a balance of 3% in the North expect sales to fall.

Prospects
A net 19% of stockists and installers are more optimistic now about the overall prospects for the roofline market than three months ago. Mid-sized firms (38%) are more confident than small companies (13%) but a balance of 13% of large firms are less confident than three months ago. Stockists and installers across the country are positive.

Specialist stockists (20%) are more optimistic than specialist installers (8%).

Comment
‘With home owners staying in their existing homes for longer,’ says Tony Walsh, Managing Director of Freefoam, which sponsors this survey. ‘Window and conservatory companies will reap the benefits this brings when consumers start to make big home improvements. However, they are not the only ones who gain. With more installers now switched on to the benefits of roofline, more home owners are also having roofline products installed.

‘Consumers are prepared to spend money on their home but they will not be knocking down your door to buy from you. Projects don't just fall in your lap.

There is no substitute for positive word of mouth generated by quality of installation and service, but the real winners also make themselves known to prospective purchasers. Whatever the state of the market, proactive marketers and sellers do better than those who sit and wait. Are you consistent in your marketing? Is your company top of mind, the first name to be considered when your sort of customers think of roofline? If homeowners know about you, they're more likely to use you.

‘Home owners do have money, and they are spending, but you are competing for their pounds with holidays, cars and entertaining as well as a growing list of other home improvements. Companies have to make the case for roofline, as well as making the case for their company. The long term prospects for roofline look very good.’

For a copy of the full report call: Jenny Reilly on 01453 521 621 or visit http://www.521621.com/research/quarterly/readreport.php?roofline

The Freefoam Roofline Report, a quarterly trends survey, is produced by Michael Rigby Associates, and sponsored by Freefoam Plastics Ltd.

The survey covers a representative sample of 100 roofline installers and stockists, including builders' merchants, of PVC-UE cellular foam. Telephone interviews took place between the 1st and 8th November 2006 across a balanced spread of size of firm and geographical area.

© Copyright Michael Rigby Associates 2006


Home Counties Roofing Systems Moves to Ultraframe

A desire to keep ahead of its competitors has driven Home Counties Roofing Systems to switch to fabricating Ultraframe conservatory roofs. The Milton Keynes based fabricator wanted to provide its customers with the best quality and most technically advanced roof system on the market and found that only Ultraframe could meet the company's demands.

Home Counties conducted thorough research in its hunt for an alternative supplier which could keep the company at the forefront of the conservatory industry. The company has the capability to manufacture over 50 roofs a week, so efficient product ordering and delivery was paramount in their search for a new supplier.

Geoff Davies said: 'We felt it was time to introduce a change that would inject some enthusiasm back into our company. After a lot of researching and several meetings we realised that Ultraframe could offer us a package that meets our need for a superior product range, excellent sales back up plus outstanding technical and marketing support. We are particularly impressed with Ultraframe’s ability for next day delivery on our component orders. This new partnership allows us to work with a company who is concentrating on providing products which deliver exactly what the marketplace is looking for, so we in turn we can give our customers what they want.'

To maximise order accuracy and cost efficiency Home Counties is planning to use Ultranet Order Manager. This initiative was developed by Ultraframe in partnership with its fabricators to give them a unique, cost effective and responsive solution to ordering Ultraframe products. The user-friendly system reduces paperwork and allows fabricators to easily configure roofs, prices and order stock components.

For the past twelve months Ultraframe also has been running a programme of regular fabricator consultation days. This Customer First approach provides an opportunity to gather vital feedback and for Ultraframe customers to preview the latest developments and shape the way Ultraframe products and services evolve before they are offered to the market place.

Geoff Davies continued: 'Finding a company which actually listens to what we want from a supplier is very refreshing. All our staff have been receiving excellent training and support from Ultraframe which is making the transition to the new products much simpler. Although it is early stages we have had an overwhelmingly positive response from our customers who really trust the Ultraframe brand. Combined with the reputation for quality and customer service that we have built over the years, I’ve no doubt we’ll make a great team and our customers will benefit.'

Ultraframe’s Commercial Director, Nick Brown, said: 'We are delighted to welcome Home Counties Roofing Systems on board. Working hand in hand with our customers is the future of our business. Clearly Ultraframe already has a great product range and a number of innovative service initiatives that enable our customers to differentiate themselves from their competitors. We will be paying more attention to developing the infrastructure that will enable us to deliver increased customer service and jointly develop innovative conservatory solutions.'

For more information on Home Counties Roofing Systems call 01908 227881 or email hcrs@btconnect.com


M&S Cladding and Windows Celebrates a Successful Start

Torquay's M&S Cladding and Windows has two reasons to celebrate at the moment. The company has just opened its new impressive showroom - The Conservatory Centre - and is already seeing an increase in sales as a result.

M&S Cladding and Windows uses a wide variety of Deceuninck window and building products, including two of Deceuninck's systems - chamfered 2500 and zendow 3000 - as well as Twinson Terrace, Belface cladding and Deeplas range of cladding and fascias. The Conservatory Centre's main focus is obviously conservatories, which are displayed in luxurious lifestyle settings.

Steve Mazdon, M&S Cladding and Windows' Director, commented: ‘We're delighted with the success of The Conservatory Centre so far. We're particularly pleased with our decision to display products in lifestyle settings. It demonstrates the versatility and value of our product range to customers in a very subtle and modern way. Laying Deceuninck's Twinson decking round the conservatories, for example, means the benefits of the product are immediately visible - which helps make the sales person's job a bit easier.’

He added, ‘But we shouldn't forget the value of Deceuninck's products in all this. We've always been delighted with the company’s products and with the support it offers. Now we've opened our showroom and have an appropriate way to display the products, it's clearer than ever that our customers agree with us!’

Another factor in The Conservatory Centre's success was an extensive and effective local advertising campaign. The campaign included an attention-grabbing competition on local radio. 'I'm in a conservatory - get me out of here!' ran during the Centre's opening week. Two winners each day made it to the final - which involved all the winners being put in a conservatory. The eventual winner won the conservatory of their choice.

M&S Cladding and Windows serves both the trade and domestic markets. As well as its trade counter, the company also offers a reliable delivery service throughout the South West. The Conservatory Centre, which opened four weeks ago, is open to the public as well as members of the trade wanting to show their own customers what they can offer.

Steve concluded, ‘The Conservatory Centre is our window to the outside world and provides inspiration to consumers. We have been delighted with the amount of customers to the centre.’

Tel: 01249 816969
Email: mike.ward@deceuninck.com


Growth for Haffner GB

Haffner GB Ltd has reported another excellent trading year for the company with continued sales growth, which in today's volatile market is an achievement in itself.

Dave Thomas, Haffner's Managing Director says the growth is largely due to the continued success of its SBA Cutting and Machining Centre, backed up with its excellent customer service which includes free consultancy. The Centre offers a solution to the problems faced by many fabricators. By automating much of the fabrication process, it guarantees quality and accuracy and - crucially - can fabricate up to 750 frames a week using just one member of staff. Dave adds, ‘The machine's always offered a multitude of benefits to fabricators, but recent developments make it even more valuable. For instance, the centre now has a double routing facility for night vents, so rather than night vents being a separate process, the Centre can cut them in just 10 seconds.’

Naturally, the company is delighted with the growth it's enjoying. But Dave Thomas is pleased for another reason: ‘We're constantly being told that the industry is in decline, but I think our sales growth shows that even though times may be tougher than they used to be, the industry isn't going to give up without a fight.’

Next year is looking rosy for Haffner too. Ian Wheatley has just been recruited as Head of Sales and early signs suggest it was an astute appointment - he secured his first sales within a fortnight of joining the company. Plans are also afoot to move to new, larger premises to help keep up with demand. So watch this space for next year's results.

Tel: 01785 814032
Email: dave.thomas@haffnergb.co.uk


Selecta Systems Crosses Border with Trade Windows Scotland

Dundee-based fabricator Trade Windows (Scotland) Ltd is the latest in a string of companies that has switched to Selecta Systems, the UK extruder of PVC-u window systems.

The company which is the largest fabricator of windows, doors and conservatory kits in Dundee, had been working with a major extruder for many years, but was attracted to Selecta because it was so impressed with its Advance 70 system and the support services provided.

Trade Windows, has been fabricating the Advance profile since August and was impressed with this single profile as it is compatible with such a diverse range of products, from windows through to French doors, so the need to hold large quantities of different stock has been dramatically reduced.

Trade Windows (Scotland) Ltd is the largest fabricator of windows, doors and conservatory kits in Dundee. Established more than a decade ago, the company operates in Central and North East Scotland and currently fabricates around 60 frames per week.

George Hood, Director of Trade Windows comments, ‘We reviewed a range of systems from many manufacturers, but when we looked at Selecta, there was really no contest. Advance 70's five chamber profile was what really sold it to us as the system provides great strength and durability while also helping it to achieve low U-values - this will be an essential element in further strengthening our business in the future with the increasingly stringent building regulations that will be coming into force next year.’

The strong technical and support services that are available for companies using Advance 70 was also a key factor for senior management at Trade Windows when deciding to choose Selecta Systems as its supplier.

George Hood continued, ‘We were really impressed with the service offered by the team at Selecta, as they are reliable and approachable so we felt very confident that we will always have a fast response from them.’

Mark Richmond, Selecta System's Sales and Marketing Director, stated: ‘We're delighted to welcome Trade Windows on board. We pride ourselves on the consistent, high quality of our products and the services we offer.
We're very pleased that our reputation for achieving this is growing within the industry. No product, however good it is, can succeed without good support service and I believe our personal touch is what really makes us different.
We have a genuine interest in the success and growth of all our customers and we will go the extra mile to help them achieve success and yield profit. I'm looking forward to a long and prosperous business relationship with Trade Windows.’

Tel: 0121 325 2100
Email: dawn.pritchard@selectasystems.com


More than One Elumatec

Not content with just one top of the range Elumatec SBZ150 profile machining centre, Roger Philips of Crown Aluminium is treating himself to a second. The company, based in Stroud, Gloucestershire specialises in the manufacture of aluminium curtain walling, doors and windows and has been a strong advocate of Elumatec equipment for years.

‘We began with an Elumatec SBZ130 eleven years ago and since then have installed two SBZ130s ands one SBZ150,’ commented Roger. ‘The new SBZ150 has been ordered to replace one of the 130s, as the capacity of the machine is much greater and we are able to complete many projects which would have been virtually impossible over the same time frame with comparable machinery.’

The value of the SBZ150 can be seen on the two domes at the Marshes Shopping Centre in Dundalk which Crown completed for Glazing Designs of Ireland. ‘There is absolutely no way that we could have managed this project in the timescale and with such precision, without the advanced cutting and unique power saw action of the SBZ150,’ admits Roger. The exterior of the Marshes centre has been designed as a streetscape linked by a new high street. The centre has several different architectural styles, including the 10m and 16m domes that reflect Dundalk's period architecture. ‘It was an ambitious design and a challenge to us to manufacture the domes but we achieved it and the results are stunning,’ continues Roger. ‘This is just one of many projects that we have been able to undertake confident in the knowledge that the Elumatec machinery will be up for the job.’

Elumatec UK has designed the SBZ150 profile machine centre to help with the manufacture of aluminium and steel profiles. ‘There is no doubt in my mind that the Elumatec SBZ150 is the most advanced machine of its kind currently on the market, with the saw feature second to none,’ continues Roger, who is also president of the Council for Aluminium in Buildings. ‘We are eagerly awaiting the new arrival in January!’

Crown Aluminium Limited is a family owned and operated company that was incorporated in 1987 and has an annual turnover in excess of £2.5 million. Specialising in the fabrication of windows, doors and curtain walling for specialist installing sub-contractors. Crown is undoubtedly the UK's largest and most experienced fabricator servicing this sector.

Web: http://www.elumatec.com


A Package to India

After a visit to India by Derek Parsons, managing director of Kombimatec Machines Ltd earlier this year an order was concluded during a reciprocal visit by the Kombimatec Indian representative, Deepak Chugh and uPVC window fabricator Mr. Vikram Kashyap to the Kombimatec manufacturing facility in Luton.

Kombimatec has been exporting machinery to India for the past four years but what makes this order significant is the inclusion of the EV470 CNC Corner & Transom Cleaner.

Although the market is predominantly 2 and 3-track horizontal sliding windows there is a need for outward opening casement windows just like the UK.

As a result they require transom welding and cleaning capacity (and reverse butt) and with the complex styles and variety of profiles the EV470 Cleaner is perfect.
The Indian market in general is booming and the building sector in particular has a 25% growth. This is growth is being fuelled by tax incentives to purchase homes and the boom is happening in all the major cities across India.

The Kashyap Company currently produces Aluminium and Wooden windows but sees demand from its existing and new customers for uPVC windows.

During their visit to the UK they visited several existing fabricators including Evolution based in Biggleswade. The first package of machines will be despatched before the end of 2006 complete with tooling to manufacture Rehau Tritec 60 and S920 profile suites.

Tel: +44(0) 1582 455934
Email: sales@gtikombi.co.uk
Web: http://www.kombimatec.com


Andrew to Head Up Oktopus UK Crane Team

Bromsgrove-based lifting specialist Oktopus UK has announced the appointment of Andrew Hinton-Sheley as head of its cranes division.

Andrew joined the company as part of its move towards offering a dedicated lifting solution as well as the general supply of specialised lifting equipment.

Oktopus has devised a range of compact cranes to suit most industry needs, and assesses each customer's requirements to ensure that the equipment involved is correctly suited to the job.

Andrew, 38, who is married with two children and lives in the West Midlands, has 10 years' experience in the construction hire business, as well as being an appointed person.

As an appointed person in the crane industry, Andrew's role will involve site surveys and drawing up lifting plans so that the needs of the customer can be best met.

Oktopus UK supplies vacuum lifting machines for the roofing, cladding and glazing industries. The increase in size of panels in the building industry, combined with stricter health and safety guidelines, has led to logistical problems for lifting and construction personnel.

The Oktopus system can handle every profile of cladding panels and is suitable for roof panels up to 30 metres in length. The suction contact means that there is no damage to the panel edges or surfaces as they are lifted into place.

Stuart Young, works manager at Oktopus UK, said: ‘Our range of specialist cranes is increasing and that allows us to ensure that any of our equipment is correctly specified for the customer's needs. We also recognise the importance of safety on site and how that is related to the correct use of equipment.

‘Andrew's appointment will allow us to better serve our customers, both in the supply of equipment or, alternatively, in offering a lifting service where required. We are delighted to welcome him to the company.’

For more information on Oktopus UK, telephone 01527 570111 or visit http://www.oktopus.co.uk


Martindales Increases Production Five-Fold in 12 Months

Replacement door and window frame production at Martindales has increased five-fold in the past 12 months.

A combination of new equipment, contracts and working practices has meant that Bolton-based Martindales, the UK supplier of replacement doors and windows to the insurance industry, has stepped up output from 120 to 500 uPVC frames a week.

'We've invested in new equipment, we've launched Martindales Trade Frames - a division to supply the building trade - as a supplement to our insurance business, we've increased efficiency and production levels in every part of the business, and the result is that we've achieved a fantastic result,' said Phil Martindale, founder and Managing Director of Martindales.

'This is extremely encouraging - because it is a tough and massively competitive business sector. It is even more encouraging that we have maintained our high standards of customer service while increasing production levels,' he added.

'However, the team has looked very carefully at ensuring we can cope with further growth - and such is the structure at which we have arrived that we clearly have an ability to step up even further.'

Martindales invested more than £300,000 in several key pieces of equipment at its manufacturing headquarters in the second half of 2006, and is planning more investment in 2007.

'It has also meant that we can drive even more competitive prices, because with an increased volume of raw material purchased comes better buying power,' added Phil Martindale.

'The new equipment and processes mean that the factory is maintaining high levels of output for two completely different seasonal markets.

'Things change slightly in winter, because there is a 25% increase in break-ins with darker afternoons, evenings and mornings. Our capacity comes in to its own and enhances speed, while we have a different sort of demand - planned volume - for the building trade and summer construction projects and contracts.

'On the insurance side, we are on a permanent state of high alert. We never know what we're going to be asked to replace. It's a bit like a restaurant kitchen: we get the order, it's given to the production team, and we have to pull together the ingredients very quickly - and deliver a perfect job.'

Web: http://www.martindales.ltd.uk


Penicuik Home Improvements Opens New Showcentre

Scottish window and conservatory specialist, Penicuik Home Improvements, celebrates the opening of the company's new showcentre in Cairneyhill, Fife.

Cutting the ribbon are managing director Bob Tennant (right) and marketing manager Craig Scott.

Penicuik also has a showcentre in Glasgow and one just outside Edinburgh.

The company specialises in conservatories, sunrooms, windows, doors and roofline products.

Further information: Craig Scott, Penicuik, 01968 664000


Glass Doctor to Offer NGA's On-line Training

The National Glass Association (NGA) announced on 13th November that it has reached an agreement with Glass Doctor® that will make its on-line training programme, MyGlassClass.com, available to all of Glass Doctor's 140 franchises and hundreds of glass technicians. Glass Doctor is the nation's largest full-service glass company, specialising in auto glass replacement and repair and residential and commercial windows and doors.

'We are extremely pleased to have worked out this agreement that will give our franchises the opportunity to offer a training programme as comprehensive and accessible as MyGlassClass.com at preferred pricing,' said Mark Dawson, President of Glass Doctor. 'This on-line training dovetails nicely with our existing internal training, and we believe it will be a huge benefit to our franchises and their employees.'

MyGlassClass.com launched in June and offers dozens of courses specifically designed for both the auto and flat glass industries, ranging from safety instruction to professional development to industry certification. It was developed in partnership with leaders in the glass industry and will be continually updated and enhanced to reflect industry needs, with more than 100 course offerings planned for the first year.

'We at the NGA are thrilled to have yet another world-class company like Glass Doctor embrace MyGlassClass.com,' said NGA President and CEO, Phil James. 'This deal will truly broaden the nationwide reach of our on-line training programme.'

The NGA's Vice President for Association Services, David Walker added, 'Our alliance with such a high-calibre company is strong testimony to the quality and affordability of MyGlassClass.com, and highlights the importance of this innovative member service to the entire glass industry and to independent franchises.'

For more information on the alliance between Glass Doctor and the NGA, or information on MyGlassClass.com, contact the NGA's Debi Schneider toll-free at 866/DIAL NGA (342-5642), ext. 126.

Web: http://www.glass.org


Prosaw - A Success Story in Difficult Times

After 43 years as the leading supplier of metal sawing equipment in the UK Prosaw decided in 2005 to diversify into the upvc and aluminium machinery market and open a Window Machinery Division.

Realising that this is a specialised market Prosaw recruited Martin Linnell (pictured) , who having worked in the window machinery market for some 14 years, is well known in the industry and highly respected for his knowledge and expertise.

With the objective of becoming as successful in the company's new venture as it has been in its previous 43 years, Prosaw was proud to be appointed official distributor of Pertici machinery, which is recognised as a market leader in the upvc and aluminium window machine sector.

'I have known Pertici for many years, and having worked with the company in the past, I am delighted that Prosaw is now agent for such a progressive and well respected company' says Sales Director, Martin Linnell.

The first year of trading exceeded initial expectations, with orders throughout England, Scotland and Ireland, for Pertici multi-head welders, electronic saws, corner cleaners and cutting centres.

Prosaw then looked at other machinery to complement its range and was again delighted to be awarded the sole UK agency for the Tekna range of machinery, one of the world leaders in high quality CNC control machining centres, drilling lines and sawing equipment.

'The decision to represent Tekna within the UK was a logical step, because the Tekna product range offers a new opportunity for Prosaw to offer this type of machinery to its existing customers within the sectors of Aerospace, railways and heavy industry, plus the ability to look at other areas, such as machined extrusions, curtain walling and panel preparation.

Having already secured orders for Tekna machines worth in excess of £250,000, this has further reinforced our confidence to move into this market', says Martin.

Prosaw's 26,000 sq. ft. premises are centrally located within the UK, and with over 100 machines available for demonstration, customers are invited to Prosaw to see any machinery offered to them in operation. Alternatively machines can usually be taken to a customers premises on one of the two Prosaw purpose built mobile demonstration vehicles for an on-site demonstration.

With any machine investment, there must also be an underpinning commitment of quality, professional after sales service and spare parts support.

Prosaw is very aware of the importance of this, and has over nine directly employed area based service technicians to assist their customers.

With this level of engineering support, together with over £1000,000 invested within spare parts and machinery stock, all available on a next day delivery, the 'commitment to service' cliché is, in Prosaw's case, no empty promise.

'After spending many years in the Industry I am aware of the problems experienced by many customers and being able to join Prosaw and start with a blank sheet, we can offer customers what they need: the right machine at the right price with the long-term after sales back-up they deserve' says Martin.

http://www.prosaw.co.uk/


House Building: July to September Quarter 2006

Figures for the latest quarter to September show some slowing in the recent increases in housing starts and completions in England. There were, however, increases in some regions and the longer term trends show housing starts and completions in the 12 months to this September around 25 per cent higher than for the equivalent period in 2001.

Starts and Completions in July to September
In England, in the quarter to September 2006, there were 40,800 starts and 37,700 completions. Comparing the quarter to September with the equivalent period in 2005:

* Starts were down 9 per cent
* Completions were down 1 per cent
* There were regional variations -
* starts up in the East Midlands (up 3 per cent) and the South East (up 4 per cent)
* completions up in Yorkshire and the Humber (up 11 per cent), West Midlands (up 1 per cent), East of England (up 3 per cent), London (up 20 per cent) and the South West (up 9 per cent).

Starts and Completions in the 12 months to September 2006

Looking at the medium trends by comparison of the 12 months to September 2006 with the equivalent period in the previous year, there were:

* 178,900 starts up 2 per cent on the figure for the same 12 month period last year.
* 165,400 completions, up 6 per cent on the figure for the same 12 month period last year.
* regions with increases in starts were North West (up 1 per cent), East Midlands (up 2 per cent) the North East (up 3 per cent), South East (up 14 per cent) and the South West (up 17 per cent).
* All regions saw increases in completions except the West Midlands (down 1 per cent) and South East (same level).

Longer Trends

Looking at the long trend, starts and completions in the 12 months to this September were around 25 per cent higher than in the equivalent period to September 2001.

The following charts illustrate the trends in starts and completions through use of a 'quarterly moving average'.


Volkswagen Reveals High Temperature Fuel Cell Technology

Volkswagen Research has developed a new type of high temperature fuel cell (HTFC) that means an affordable fuel cell-powered vehicle is suitable for everyday use could be available as early as 2020.

The HTFC system eliminates the disadvantages of existing low temperature fuel cells (LTFC), and thanks to a new, high temperature membrane and electrodes, will enable significantly more compact, cheaper and more efficient fuel cell systems.

In simplified terms, LTFC systems are operated at a membrane temperature of approximately 80 degrees Celsius. If the temperature greatly exceeds this value, fuel cell performance breaks down and irreparable damage is done to the cell. This is why LT fuel cell vehicle prototypes - should they be able to pass driving test cycles similar to a combustion engine - place very high requirements on the cooling system, and become very expensive. In addition, in an LT system the supply of hydrogen gas and air must be continuously humidified, because otherwise the production of energy will break down. This humidification also takes space, weight and money.

The high temperature membrane developed by Volkswagen can, in combination with newly-designed electrodes, be 'driven' at temperatures of up to 160 degrees at the same output of power. A medium operating temperature of 120 degrees is intended for vehicle operation, and this is without additional humidification. A distinctly simpler cooling system and water management is sufficient here, significantly reducing the need for space, weight and money.

The Volkswagen timetable for fuel cell research is as follows:

1999: Volkswagen Research begins the programme for the development of a high temperature membrane.

2001: Volkswagen decided to carry out independent development of the high temperature fuel cell - starting with basic research on the topic of membrane technology.

2003: Volkswagen researchers achieved significant success in membrane development. But suitable electrodes were missing as the key to implementation.

2006: The electrode problem has for the most part been solved. The high temperature fuel cells are currently being developed and tested in the Volkswagen Technology Centre in Isenbüttel, specially constructed for the research of alternative drive systems and located at the gates of Volkswagen's HQ in Wolfsburg.

Approx 2010: More higher performance HTFC systems evolve that are perfected step by step and will power the first research vehicles in 2010.

Approx 2020: The first Volkswagens with a fuel cell drive that is affordable and suitable for everyday use - the decisive factors - could appear. Volkswagen sees no chance for the mass series production of LTFC vehicles, primarily being used by other carmakers today due to the disadvantages related to their conceptual design.


Power Efficiency in the Glass Sector

Last winter, large energy users in the UK suffered the consequences of the highest wholesale gas prices in the world and electricity prices that were the highest in Europe. Manufacturers shifted production outside the UK and closed sites - some permanently.

According to the Energy Intensive Users Group, over 6,000 jobs have been lost in the glass sector over the last two years.

‘The major cause has been gas,’ the EIUG says. ‘[It has] increased 300 per cent between 2003 and 2006 - in turn pushing up the costs of electricity and raw materials. The UK now has little or no crystal, automotive, fibre or TV/computer screen manufacture left.’

As a result of the price increases and security of supply concerns there has been a trend to move from forward curve purchasing (i.e. fixing a price a long time ahead of usage) to prompt market contracts (such as buying day ahead), which means customers' energy prices have been more closely influenced by the market. Many intensive users had to buy gas on the day-ahead market to avoid uncompetitive forward prices. However, this entails much more risk and uncertain costs.

Mark Callaway, Director of Energy Markets at Power Efficiency, says: ‘This winter, large industrial buyers face the same difficult choice as they did twelve months ago. Fixed price gas is expensive compared with gas in Europe. Buying day-ahead or month ahead is much riskier but will create savings if it is a mild winter with good supply.’

Power Efficiency's advice to heavy gas users, such as the glass sector, is to take this decision wisely, starting with quantifying the exact risk and having a strategy to deal with high prices, if they occur.

Power Efficiency deals with a client's negotiation, management and monitoring of utility contracts and specialises in fundamental analysis of the gas and power markets.

In the last seven months the outlook for this winter has become less pessimistic. According to utility consultancy Power Efficiency, gas traders are much more confident about the supply of gas versus demand for this winter. For the first quarter of 2007, gas prices have fallen by one third since they peaked at 95p/therm on 3rd April. Since then the Rough gas storage facility has returned to service, the Langeled pipeline has opened and the market is also confident of new supplies of gas from the Netherlands and liquified natural gas coming into Teesside.

Furthermore, National Grid has created its ‘restricted’ gas demand forecast, which predicts that industry and power generators will reduce their demand in response to high prices. National Grid has assumed that domestic customers will reduce their demand by a further 2 percent as they feel the effect of higher prices.

A recent survey by the Major Energy Users Council (MEUC) found that many large users were not intending to change their buying strategy this year. The majority would remain on the same contract as last year, despite the high gas prices they suffered last winter. However, the small number that were changing were all switching to a more conservative strategy.

In practice this means switching from a flexible contract to a fixed contract. A fixed contract between user and energy company has a fixed energy price usually on a 12 month basis. A flexible contract can take three forms: buying energy a season ahead, a month ahead or a day ahead.

One company which took part in the MEUC survey purchased day-ahead in winter 05/06 has changed to a one year fixed price contract for 06/07. A spokesperson says: ‘Due to the high volatility of prices experienced last winter, budget performance and forecasting became a major problem (budgets are set by central HQ). After this experience the finance director decided that budget certainty was the priority so a fixed contract option has been taken.’

Another company purchased month ahead in winter 05/06 and it has ‘already purchased 75 per cent of our spend’ for winter 06/07.

This is the impact of unmanaged risk on business users' energy strategy. A conservative approach does not necessarily mean savings. As recently as 2004/5, conservative strategies ended up costing 15-30% more than a day-ahead flexible contract.

There are a variety of contract types on the market for large users. Powergen has developed an ‘emergency sell-back’ contract, which means the energy company buys gas back from its customer at a pre-arranged price, if there is a slowdown in the rate of growth. The company admits that some of its customers may have got their fingers burned last year, and that there has been a slowdown in the rate of growth of flexible contracts this year.

Since energy prices have increased by so much, the implication of taking the wrong decision about energy contracts is much bigger. A company could potentially go out of business on the back of a bad choice. In light of this environment, Power Efficiency has found that, surprisingly, fewer companies are willing to issue invitations to tender for energy contracts believing they would do better staying with their supplier.

Power Efficiency says: ‘Intrigued by it, we undertook to prove or disprove the assertion by analysing the result of the issue of invitations to tender for contracts to supply electricity and gas with July and October start dates.’

The company says its research found that 95 per cent of gas customers were better off changing supplier.

‘They saved 5 per cent by changing supplier,’ the company says. ‘And 47 per cent of electricity customers were better off changing supplier. They also saved 5 per cent by switching.’

Power Efficiency says the danger of a lack of liquidity in the retail market, and an absence of customer 'churn', is ‘unlikely to encourage new entrants to the electricity and gas supply industry - increasing supplier security, and fostering the possibility of supplier complacency.’

‘The lesson in all of this is, simply, that it pays to take your supply contracts to the marketplace - and that denying there's any benefit in doing is, simply, dangerous,’ the company says.

The question remains, have companies learned their lesson from last year, when many were caught out by high prices? The relative lack of contract switching in the market - and the slight trend towards fixed - indicates that energy is still not a top priority for many large users. If energy buyers were valued highly in companies, and thorough research undertaken, the potential for savings is huge.

Bobby Collinson
Managing Director
Power Efficiency
0208 269 6111


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