NEWS
RETAIL SALES STILL INCREASING IN BRIEF
November www.ggpmag.com
• Profine Extrusions UK, the
systems company behind
WarmCore, recently switched
to source its aluminium
profiles from Garnalex, the
UK-based aluminium
extrusions company. Profine
had reportedly been
experiencing prolonged
supply chain problems from
China, but says that ‘within
just a few weeks’ Garnalex
had eliminated the problem
and delivered the product.
Mateusz Prudlo,
purchasing manager of
Profine, commented: “The
recent support from Garnalex
has meant we can continue to
maintain our high level of
service to customers. Instead
of having to wait 12 weeks for
supply from China, Garnalex
cut the profile dies and
supplied the profiles within
just a few weeks. The quality
of the manufactured product
was great, as was the service
and support throughout. I
have only positive things to
say about our experience of
working with Garnalex.”
Roger Hartshorn, CEO of
Garnalex, added: “Following
the European Commission’s
proposal to impose antidumping
duties on imported
aluminium from China, the
support we provided to
Profine highlights just how
important it is to invest in
British manufacturing and buy
locally. Companies who buy
from China can expect prices
to increase, as well as the
already long lead times. By
extruding in the UK, we’re
able to take full control of the
supply chain and offer shorter
lead times and outstanding
quality and service.”
“We’ve invested heavily in
Garnalex’ vertically integrated
supply chain so we could
provide this unprecedented
level of service, quality and
support. All raw aluminium
logs are sourced from Wales
which saves time, unnecessary
carbon road miles and
minimises the uncertainty of
supply and quality.”
Headline analysis by Neil Cooper-
Smith, senior analyst, Business Pilot:
The latest Business Pilot Barometer
shows that window and door sales
climbed by just under % in October
on September, reversing the fall seen in
September on August.
This is consistent with last month’s
data, with the % increase in leads seen
in September successfully converted
into new business.
However, it should be noted that this
was at a slightly lower rate of conversion
– down % on September, which
suggests that demand from retail has
shifted to more sustainable levels since
summer’s hiatus.
This also did not translate into
recovery in average installed values,
which remained around the £,‚ƒ„
mark for a second consecutive month,
representing a †% drop on August.
While writing as England goes into
a second period of national lockdown,
with restrictions remaining in place in
Wales, Northern Ireland and Scotland,
it is very difficult to comment with
any certainty on the shape of things
to come, we believe there is, however,
continued reason for optimism in the
near term.
House prices increased at their
fastest rate for five years last month
October. The figures from Nationwide
showed a jump of .8% compared to
this time last year as buyers rushed to
close out purchases before the Stamp
Duty Holiday ends in March. Figures
from the Bank of England show that
homebuyer mortgage approvals hit a
†-year high in September.
The reality remains that, despite what
appears to be a cascade of ‘bad news’
about the impact of COVID-‚ on the
UK economy, the Stamp Duty deadline
means the housing market remains on a
high. And as long as it does so, it can be
expected to be storing up work for the
window and door industry.
It’s not only installers (and their
suppliers) who are currently struggling
with the backlog of demand, (something
which is unlikely to be helped by new
restrictions on working). Lenders and
conveyancers are also struggling to keep
pace. With many purchases going down
to the wire in March, everything points
to continuing demand as we head into
late spring and early summer.
Interest rates remain at record lows,
so borrowing and cash, is cheap –
something that is unlikely to change
until the UK is well on the way to a post-
Covid economic recovery.
We’d argue it is important for
installers to use any short term respite
going into Christmas to get to grips with
their ‘P&L’ to make sure that in a period
of potentially continuing high demand
in the New Year, they are maximising
profitability on each and every job,
putting cash into their businesses for
any slowdown, when and if it comes.
www.businesspilot.co.uk
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/www.businesspilot.co.uk
