6 NEWS ANALYSIS DOWN BUT NOT OUT IN BRIEF Double anniversary Mercury Glazing Supplies is celebrating 20 years in business, and 20 years of being a Spectus vertical sliding fabricator. Steve Cross, its director, said: “We were one of the first to manufacture the Spectus Vertical Slider system in 2002. Two decades later, the product remains as popular as ever. We are delighted to be celebrating this milestone.” By Neil Cooper-Smith, senior analyst, Business Pilot. It’s a big figure. But it probably reinforces something that retailers have instinctively known: average order values have crashed in the last month – by more than 50%. This is consistent with what we have picked up anecdotally from our customers. Big ticket items and whole-house replacements have been harder to get across the line, but single items, replacement doors and distress purchases have continued to move. If they aren’t spending as big, homeowners are, however, still spending. Average sales were up by almost 15% last month. Leads were also up 14%, reversing the fall recorded in February on January. So, what can we take away from this month’s figures? Homeowners are definitely more cautious. The government safety net (furlough) has been pulled. Stamp duty breaks aren’t there, and the housing market has slowed down, as the number of property transactions have fallen. Despite this, end users are still exhibiting a desire, or an aspiration, to buy new windows and doors. Their resilience, financial or otherwise, in the longer term, is far more difficult to gauge. Conversion rates remained flat in March, at around 33%, where they have been hovering all year. This compares to the 37.7% in summer last year, a time when the total number of leads was also 8% higher than last month’s figure. In summary then, leads are significantly down on the hiatus of last summer. Despite the month-on-month resurgence seen in March on February this year, they are harder to convert, and are coming in at lower values. As we have highlighted, government incentives have gone, and have been replaced indirectly by disincentives to invest in home improvements, so, in a sense the numbers shouldn’t be a surprise. Massive increases in energy bills, which will see average household energy costs top £2,000 this year, have arrived on top of inflation, and the uncertainty and volatility created by the conflict in Ukraine. The latter particularly has, in our view, accelerated the cooling of the market seen at the start of this year. As consumers adjust to continuing political and economic uncertainty, alongside the seasonal appeal of products, we believe that we may see a moderate return of confidence in the months ahead. Fundamentally, however, the landscape has shifted. We are also still to see the impact of the energy price cap lifting, and how consumers respond to it. While reducing disposable income, it brings energy efficiency into clear focus, creating market opportunities for windows and doors. For information about how Business Pilot can help, visit businesspilot.co.uk. Leader inspires sixth formers Howard Trotter, business manager of Birmingham-based manufacturer Shelforce, gave a half-an-hour talk to sixth form students at Highclare School, Erdington, offering them insight into the glazing industry. Howard told of Shelforce’s rich history, it’s inclusive environment, and how the company reversed its fortunes over the last 10 years. He described the experience as an honour. Target-ed support Stoke-on-Trent-based Target Windows hopes to raise £1,500 to support Anthony Lockley, who was diagnosed with Motor Neurone Disease last year. The funds will subsidise care and equipment costs, including physiotherapy and house adaptations. Already, £1,210 has been raised by 34 supporters. But to help boost this total, Target has launched its own JustGiving page. To support the cause, visit bit.ly/TGtony. April 2022 www.ggpmag.com
Glass & Glazing Products April 2022: Page 6
