The joinery sector has reported a significant increase in sales volumes after two disappointing quarters, and is optimistic about a further increase in demand, according to the BWF Joinery State of Trade survey Q3 2013.
BWF Policy Executive Matt Mahony commented on the survey findings:
“The survey results strongly support anecdotal data from our members that, after a difficult start to the year, demand for joinery products is on the rise. The majority of respondents are not only reporting an increase on sales volumes, but also anticipating one for the next quarter ahead.
“It’s not all good news. High overheads have had an effect on restricting margins, as pricing has been competitive, especially for work quoted for earlier in the year. Some joinery businesses are struggling to maintain profitability without putting their prices up to balance further fuel and energy costs increases. Companies have also had to invest time and money in getting their products CE marked, which has been a legal requirement for most windows and external doorsets since 1st July.
“The results indicate that companies in London and the South East are doing slightly better than the UK average, but even if you take these companies out of the equation, the results remain encouraging.”
Key points from the BWF Joinery State of Trade Survey Q3 2013 include:
– After two successive quarters where a balance of 7 % of respondents noted a decrease in sales volumes, the Q3 survey noted a balance of 43% reporting an increase.
– Manufacturers also remained confident that sales volumes would improve in the next quarter, with a balance of 52% predicting an increase, and a balance of 55% predicting an increase over the next year.
– 59% of respondents were using more than 70% of their manufacturing capacity over Q3, compared to 40% in Q2.
– 19% of companies reported a current order book of future work extending beyond 3 months, up from 7% in the previous survey.
– 38% listed demand as a likely constraint on activity, down from 63% in the previous survey.
– Raw material costs increased for 83% of respondents, with fuel and energy costs also continuing to put inflationary pressure on unit prices.
– Investment in manufacturing equipment and product improvement is set for the highest capital investment change over the next year, with a balance of 43% and 56% respectively planning for increased investment.
BWF members are able to log in and download the complete survey report.
You can find more detail on CE Marking by visiting dedicated CE marking page, and we can also offer guidance to members through the BWF member technical helpline (0844 209 2610), as well as providing template documents for members to download such as our CE marking label, Declaration of performance, and written factory production control system. You can also get you U-values calculated through BWF at reduced rates and these can be accredited through a notified body.
