Reasons to be Cheerful

Mark Richmond, Sales Director at Selecta Systems argues that there is more than one reason to look on the bright side in 2010 (Jan 2010)

So 2010 has dawned and we can look back on the wreckage of 2009, one of the toughest years for business in living memory. But, at the time of writing, the Office for National Statistics (ONS) has revised the contraction in the UK economy during Q3 from -0.4% to -0.3%. Some observers even claim that the figure could yet reduce to zero once all the measures are finally ratified.

So, as most experts predict the UK coming out of recession in 2010, are fabricators prepared to take advantage of new opportunities?

2009 wasn’t just the year of the credit crunch; it was also the year that saw a major trend change with consumers. Suddenly, the world is going green. As the economic outlook brightens, consumers will start to spend again. But what products will they want to buy?

Rethink your business
Now is the time to review your business and put in plans for the year ahead. How will you market your business? Which products should you be offering? Which system should you be manufacturing?

Climbing out of recession isn’t the only reason to be optimistic in 2010. Figures from the Homebuilder’s Federation indicate that in 2009, new build completions fell to just under 100,000; an 80-year low. This has generated a shortfall against demand in 2009 alone of over 150,000 properties, equivalent to a town the size of Nottingham. If new homes are not available, it follows that homeowners are likely to improve their existing properties and look to replace their windows and doors. This is born out by the sales figures from B&Q, who reported a 45% hike in profit for the 13 week period to October 2009.

What’s more, with Banks tightening their mortgage lending criteria, many homeowners will simply be unable to buy that new property and will therefore choose to improve their existing home in 2010. Many will make lifestyle choices such as conservatories, bifolding doors, and composite doors.

This is all good news for the home improvement industry – and one opportunity that fabricators – and installers – should capitalise upon.

Energy Efficiency
Everyone is becoming environmentally conscious; whether it’s more fuel efficient cars, energy efficient homes or a more responsible attitude to waste and recycling. For the window industry, 2010 will be the year of the Window Energy Rating.

While proposed changes to Part L of the Building Regulations is scheduled to come into force from October 2010 with C-rated frames as standard, why wait until then and play catch up? According to the British Fenestration Rating Council (BFRC) web site, installing ‘A’ rated windows can reduce CO2 emissions from heating by 18% per year and could save the homeowner over £400 in heating bills.

Choose the right Systems Company
One of the key decisions in 2010 is to decide which suppliers to work with. With so much turmoil surrounding many systems companies – whether it is rumours about pulling out of the UK or likely mergers and acquisitions, you need to be sure your supplier is here for the long-term. Selecta Systems is one such company. Established in the UK over 26 years ago and still in the same private ownership, we have continued to grow steadily year-on-year and invested over £3m in our 9 acre site in the last two years.

And it’s no surprise that 118 fabricators have switched to our Advance 70 system. This lead-free 70mm window system has all the benefits of British extrusion with German engineering to ensure consistently high quality and long-term performance. Easier to fabricate and install, it also boasts a 5 chamber design so a BFRC “A” rated window is achievable without compromise.

We have also introduced new products to help customers get a bigger share of the home improvement market, including SelectaFoil, a new range of coloured foils available from stock. Our dedicated patio door system is available in bar-length or in kits, while the bifold door system is seeing rapid growth. Selecta’s composite door range is also a winner with customers reporting an upsurge in sales.

Saying no to price rises
Most fabricators are aware of a rise in the cost of raw materials and as a consequence many systems companies are passing on price rises. At Selecta, we have taken the view that we want to help our fabricators kick-start their business in 2010, so we have absorbed the raw material rises. We want our customers to succeed and we would encourage any companies recently stung by any increases to contact us.

Selecta fabricators have every reason to be optimistic over the next year. There are plenty of opportunities out there and if you’re prepared to grasp them, your business will grow. For more information on Selecta or our products, please visit www.selectasystems.com or call 0121 325 2100