More work, less profit?

Following recent claims from the Institute of Financial Studies (IFS), that average household incomes are now back to where they were before the financial crisis of 2008-09, supplier of roof windows and domes for the window and building sectors, LB Roof Windows, wanted to know how companies in the industry think the current situation will impact on their activity.

To this end, LB teamed up with window and construction industry data specialist, Insight Data, to email 12,000 builders and installers with a number of questions.

Asked what their expectations for their businesses are in 2015, the majority of respondents were ‘overwhelmingly positive’, with more than 54% stating they’re expecting the number of projects to increase considerably this year and over 37% anticipating they’ll be a little busier than in 2014.

However, despite their expectations for a higher volume of work, building companies and window retailers are a little less optimistic regarding profit margins: only a third think these will be much better in 2015 compared to last year, whereas half of the respondents believe their profit will only be ‘slightly better’ than in 2014.

LB Roof Windows sales director, Adrian Cooper, commented: “Although the market is on the rise, builders and installers feel pressurised to keep their prices down in order to maintain their competitive edge. This trend is highlighted by their expectations for 2015, which show that even if there is more work available, this is not 100% reflected in their profit margins.”

The survey also shows that most companies (75%) expect the price of materials and home improvement products to increase to a certain extent this year.

Adrian added: “One solution is to focus on building materials and home improvement products that deliver better value for money. An example is our Aurora roof window, which is becoming increasingly popular as a more competitively priced alternative to the well-known Velux brand, while delivering similar benefits. Aurora roof windows are helping more and more trade customers protect their margins, and keeping homeowners happy.”

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