 Print this page |
The BWF-CERTIFIRE Fire Door & Doorset Scheme Quarterly Trends Report
Fire Door Sales Surge
|
The difference between the number of companies reporting an increase over those reporting a decrease is the net balance, expressed as a percentage. A positive net balance indicates growth, a net balance of zero implies little has changed.
|
Sales, year-on-year
A net 41% of manufacturers reported higher sales in the last three months compared with the same time last year. Two-thirds recorded an increase of 10% or more.Large companies (60%) were ahead of medium-sized manufacturers (43%). Small firms reported little change. A net 83% of manufacturers selling more than an average of 1000 fire doors a month increased sales. Manufacturers in the North (67%) recorded an increase in sales followed by manufacturers in the Midlands (33%) and South (20%).
Timber fire doors with a rating of FD30 accounted for 81% of sales in the last 12 months. Seventeen percent were 60-minute rated fire doors and the remaining two percent were FD90 and FD120.
A net 25% of manufacturers said they increased sales of FD30 rated fire doors in the last 12 months. Fourteen percent saw a rise in sales of FD60 rated fire doors over the same period.
Forecasts
Sales forecasts are strong this quarter with a net 36% of manufacturers expecting to sell more between October and December compared with the last three months. Large firms (50%) and companies in the North (45%) are particularly positive.The pattern is similar for year-on-year forecasts with a net 50% of manufacturers expecting sales to go up in the next three months compared with the same time last year. Large (80%) and medium-sized (43%) manufacturers expect widespread growth. Regionally, sales expectations were strong across the board.
Orders
A net 45% of manufacturers increased order volumes from July to September compared with the previous three months.
Prices
Few manufacturers raised their selling prices (5%) during the three months July to September compared with the previous quarter. Most reported no change. However a net 33% of companies absorbed an increase in the cost of materials.
“80% of our business is timber fire doors and 20% non rated doors. With continued increase in demand for fire doors through legislation, we have found a niche market by manufacturing complete fire doors sets that comply with CE marking for the modular building market which is enjoying lots of government support. Our view is margins and price increases are going to be difficult to enforce as the market becomes swamped with off the peg fire doors. We believe the way forward is to corner a market and this is the way ahead for us.”Mr Lee Robinson, Product Development Manager
Aynsley Doors, Brighouse
Prospects
The outlook amongst all manufacturers for the next 3 months is positive with a net 50% more optimistic now about the overall prospects for the timber fire door market than the last three months.
Problems
Slow payments and bad debts (46%), lack of skilled staff, price cutting in the market, and margin squeeze (41%) were among the problems mentioned this quarter. Lack of skilled staff is identified as the single biggest problem with 23% manufacturers affected by it.
Internal & External fire doors
Ninety percent of timber fire doors sold in the last 12 months were internal, and 10% were external doors.
| % of fire doors sold in the last 12 months | ||||
| Manufacturers | Merchants | |||
| Internal | External | Internal | External | |
| Flush doors | 75% | 96% | 69% | 87% |
| Panel doors | 9% | 4% | 19% | 5% |
| Die formed doors | 5% | 0% | 5% | 2% |
| Laminated timber cored flush doors | 11% | 0% | 5% | 3% |
| Other | 0% | 0% | 2% | 3% |
“We are a bespoke joinery manufacturer who as part of our product portfolio provides fire door assemblies and screens to the UK market.“Our pro-active approach in raising awareness about current legislation amongst our customers has led to our increasing sales of internal fire door assemblies to approximately 25% of our total business in 2004. We expect this trend to continue and have planned for a 10% growth in this sector in 2005.”
Mr Allan McGillivray, General Manager
Hall & Tawse Joinery, Aberdeen
Fire Doorsets
Thirty-seven percent of timber fire doors sold in the last 12 months were sold as fire door sets.
Merchants' sales
A net 31% of merchants increased sales of timber fire doors in the last three months compared with the previous three. Year-on-year sales look healthy too with a net 39% of merchants selling more timber fire doors compared to the same time last year.Ninety percent of all fire doors sold in the last year by merchants had a 30 minute fire door resistance rating. A net 22% of merchants saw sales of FD30 fire doors go up in the last 12 months.
Merchants' outlook for the next three months is optimistic. A net 13% expect to sell more during October to December. Nearly 30% of all timber fire door manufacturers still do not recommend compatible components every time a fire door leaf is sold.
Comment
“The increase in sales and optimism reported in this quarter's survey shows the strength of the timber fire doors market at the moment,” says Richard Lambert, Director of the British Woodworking Federation. “The manufacturers' confidence is reflected in the parallel survey of merchants retailing fire doors.“However, there is a significant difference between the two. The merchants reported that manufacturers were pushing up their prices and the merchants were bullish enough to expect to pass them on to the customer. This survey shows that manufacturers' confidence is based on expectation of continuing growth in sales volume. They don't anticipate being able to raise their prices, reflecting the intensely competitive nature of the fire door market. Increases in the cost of materials will add to that pressure. Little wonder then that those who want to develop their businesses are looking to increase the value of what they offer in terms of doorsets or complete assemblies.
“From our perspective, it is curious to find that almost 30% of merchants do not recommend components to go with the fire doors they sell, and curiouser still that they give their reasons as either a lack of knowledge or an assumption that the customer knows what they want. In effect, they have someone standing in front of them wanting to buy something, and they aren't making the most of the opportunity to cross-sell. The trained staff in BWF Approved Fire Door Centres don't just give better advice about the product because they understand fire doors; they are also better able to use their knowledge to the commercial advantage of the business.”
|
The Timber Fire Doors Survey, a quarterly trends report, is produced by Michael Rigby Associates, and sponsored by the BWF-CERTIFIRE Fire Door and Doorset Scheme in conjunction with Timber Trades Journal. The aim is to keep a finger on the timber fire doors' market pulse, and to view merchants' and manufacturers' expectations of market movements. Michael Rigby Associates specialises in fact based marketing in home improvements, DIY and building materials markets. The survey covers a representative sample of 100 timber and builders' merchants as well as manufacturers. Telephone interviews took place between the 1 - 10 October 2004 across a balanced spread of size of firm and geographical area. Numbers employed by branch was used as an indication of size. The categories are small (1-9 employees), medium (10-25) and large (over 25 employees). © Copyright Michael Rigby Associates 2004 Full report available free: call Lucia Di Stazio on (01453) 521621 |
