The BWF CERTIFIRE Fire Door & Doorset Scheme Quarterly Trends Report

Strong Sales & Forecasts for Timber Fire Doors

Sales

A balance of 57%* of manufacturers reported better sales in the three months April to June compared with the previous quarter (chart 1). Few manufacturers of any size across the country saw sales fall. Small (80%) and large (64%) manufacturers and those in the South (75%) did particularly well.

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 no change.

Year-on-year sales were also strong with a balance of 67% of manufacturers selling more timber fire doors in April to June 2005 compared with the same period in 2004 (chart 1). As with quarter-on-quarter sales, growth was widespread among manufacturers of all sizes, in all regions.

Eighty two per cent of manufacturers' timber fire door sales were sold with a FD30 rating, sixteen percent a FD60 rating and two percent were sold with a FD90 and FD120 rating (chart 2).

A net 48% of manufacturers saw sales of FD30 rated doors increase in the last 12 months. Sales of FD60 doors were also up (38%) but manufacturers saw little change in sales of FD90 and FD120 doors.

Forecasts & Prospects

Manufacturers are positive for the next three months with just under five in ten expecting to sell more in July to September compared with April to June (chart 3). Small manufacturers (80%) and firms in the Midlands (75%) are most positive.

Year-on-year a balance of just under six in ten manufacturers anticipate better sales in the coming quarter compared with the same period last year (chart 3). Across the board few expect sales to drop.

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"The BWF have a strong campaign to educate the industry about changes in legislation as safety becomes more of an issue.

"Government legislation has meant an upgrade in safety which in turn has seen a higher demand for fire doors and fire door sets.

"We manufacture approximately 250 fire doors per month of which 30% are fire door sets. We have seen an overall increase this quarter on last by over 10%. Seventy five percent of the fire doors we make are bespoke because the demand for tailor made doors are on the increase too.

"I feel there is a need for five year interval inspections of fire doors once they have been fitted to make sure they are still up to standard, as you would do with other fire safety precautions."

Mr Mick Sibley, General Manager
Holloway's Doors & Frames Ltd, Sheffield

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A net 48% of manufacturers are more positive now about the overall prospects for the timber fire door market than three months ago (chart 4).

Orders

Just under seven in ten reported a rise in orders compared with three months ago (chart 5).

Selling & Buying Prices

A balance of 14% of timber fire door manufacturers put up prices in April to June 2005 compared with the previous quarter (chart 6). None of the manufacturers interviewed dropped prices. Most held their prices.

But just over one in two manufacturers reported higher input prices over the period (chart 6). Small manufacturers and firms in the South were affected the most.

Problems

Price cutting (71%), margin squeeze (62%) and lack of skilled staff (57%) were among the three main problems facing timber fire door manufacturers in April to June 2005. Price cutting (24%) is the single biggest problem (chart 7).

Internal & External fire doors

Unchanged since the last survey, 91% of timber fire doors sold by manufacturers in the last 12 months were internal, and 9% were external doors.

Fire Doorsets

Twenty-nine per cent of timber fire doors sold in the last 12 months were sold as fire door sets.

Merchants' sales

A net 32% of merchants sold more timber fire doors in the last three months (April-June) compared with the previous three months (January-March). Of those reporting an increase in sales, 58% saw an increase of 10% or more. A balance of just under three in ten merchants also sold more timber fire doors in the last three months compared with the same period in 2004.

Merchants continue to hold positive expectations for timber fire doors sales with a balance of 26% of merchants forecasting better sales over the next quarter (July-September) compared with the previous quarter. Optimism levels for market prospects are also positive with a net 22% of merchants more confident now about the overall prospects for the timber fire door market than three months ago.

Comment

"Whatever uncertainties there may be in other sectors of the economy, they don't appear to have reached the timber fire doors market", says Richard Lambert, Director of the British Woodworking Federation.

"Both merchants and manufacturers are reporting continuing improvements in sales and optimistic forecasts.

"Although there is still widespread concern about price cutting and squeezing margins, no manufacturer dropped prices over the survey period and many are managing to pass on some of the rising costs.

"There is still a general expectation that the tightening housing market will affect the construction sector. But if the Government delivers on its spending plans, particularly in the social housing sector, and if commercial office construction recovers as we move towards 2006, then the optimism of fire door manufacturers could be well-founded. Longer term, the proposals in the revision of Approved Document B, which are now under consultation, could actually increase the requirements for fire doors in housing."

The Timber Fire Doors Report, a quarterly trends survey, 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 manufacturers' and merchants' 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 timber fire door manufacturers as well as 100 timber and builders merchants. Telephone interviews took place between the 1st -19th July 2005 across a balanced spread of size of firm and geographical area. Numbers employed was used as an indication of company size. For a free copy of the full report call Lucia Di Stazio on 01453 521621. © Copyright BWF and Michael Rigby Associates 2005