Public Sector Quarterly Trends Report

Sponsored by System10 this survey is the third in a series of Quarterly Trends Reports on the public sector window and door market.

Local Authorities rate partnering highly

Current replacement windows and doors programme

Ninety-two percent of the Local Authorities in this survey have window or door replacement programmes. Replacement windows installed are 1% aluminium, 2% hardwood, 11% softwood and 86% PVC-U (chart 1).

Replacement door installed are 2% steel faced doors, 17% hardwood, 13% softwood, 31% composite doors and 37% PVC-U panel doors.

All Local Authorities we spoke to plan to replace windows or doors in the next 12 months. The mix they plan is 2% hardwood, 2% softwood and 96% PVC-U for windows installed in the next 12 months. For doors installed in the next 12 months the planned mix is 2% steel faced doors, 4% softwood, 4% others, 19% hardwood, 35% PVCU-panel doors and 36% composite doors.

Housing stock

Local Authorities continue to transfer stocks to Housing Associations and in this survey 92% expect their housing stock to decrease. Eight percent expect it to stay the same.

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“As an established regional contractor Cowlin Construction's reputation has been built on establishing client expectations, joining together multi disciplinary teams and producing an end product to the client's satisfaction.

“This has been achieved utilising the principles of Partnering, the benefits of which provides both value for money and quality to the client.

“The Partnering philosophy is being adopted by both the public and private sector, and the quantity of projects accepting this method of procurement continues to increase each year.” Mr Andrew Pettigrew, Procurement Manager
Cowlin Construction Ltd, Cardiff

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Frames put out to tender

Thirteen percent of Local Authorities say the number of window and door frames they put out to tender became larger in the last 12 months (chart 2). Twenty-two percent say they became smaller and 65% stayed the same.

		Window and door contracts LAST 12 MONTHS
	Supply only			Supply and fit
	1st survey	2nd survey	3rd survey	1st survey	2nd survey	3rd survey
DLOs	23%	13%	13%	20%	16%	20%
Direct to fabricator/ installer	26%	22%	37%	26%	19%	21%
Via main contractors	51%	61%	50%	54%	65%	59%
Other	0%	4%	0%	0%	0%	0%
Total	100%	100%	100%	100%	100%	100%

Budgets

A net 4% of Local Authorities increased their replacement window budgets in the last 12 months.

What Local Authorities want from sub-contractors

Local Authorities look for quality of both workmanship and materials, budget and price, and reliability when they choose window and door sub-contractors. Quality of installation is hardest to find, and so is reliability.

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“The main benefits of partnering for us are continuity of work and an advanced order book.

“Long term partnering will create more efficient contracts which will drive down the costs to local authorities. At the same time greater emphasis is placed on customer care and satisfaction.

“As we are tied into the partnership for a long time, it makes it worthwhile for us to establish offices in the different areas. We can also attract local employees and implement training schemes instead of operating from Head Office which could be many miles away from the contract work.”

Mr Gary Anderson, Director
Baas Construction Ltd, Burnley, Lancashire

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Partnering

Fifty-four percent of Local Authorities are involved in partnering. But what do Local Authorities think of partnerships? On a scale of 1-7 where one is very poor and seven is excellent, 63% rate it as five or more. They see it as a positive development.

Local Authorities with replacement partnering programmes say that “they can organise their programme for the whole year”, “good relationships can be built up long term” and that “the customer service is good”. On the downside some say that “problems don't get sorted, just passed around”.

Most important issue in the next 12 months

The Decent Homes Standard along with Health & Safety are both rated the most important issue for Local Authorities in the next 12 months. Funding and skills shortages are again seen as issues most likely to cause difficulty in complying with the Decent Homes Standard (chart 4).

WINDOW FABRICATORS

Sales to Local Authorities

Window fabricators' sales to Local Authorities eased in February to April 2004 compared with the previous three months. A net -8% of fabricators saw lower sales. But compared with the same time last year a net 12% of fabricators improved sales (chart 5). Medium sized and large fabricators sold most. Fabricators in the Midlands were particularly strong and those who produce more than 125 frames a week for the public sector were ahead of others.

*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.

Outlook

A balance of 27% of fabricators expect to improve window and door sales to Local Authorities in May to July compared with three months ago. More large fabricators expect to increase sales. All regions expect to sell more except Scotland where fabricators expect sales to ease.

Compared with the same time last year a net 16% expect to sell more in the next three months. Medium sized fabricators and those in the Midlands are especially positive.

Prices

A balance of 16% of fabricators improved Local Authority prices in the last three months compared with the previous three, but only small fabricators and those in the North put up prices.

In the next 12 months a net 47% expect to put up their Local Authority contract prices. Prices are being pushed up by higher labour and material costs.

Comment

“A recent EU report on the use of PVC-U and other window and door materials concluded that from an environmental position no material is better - or worse - than others”, says Mike Stevenson, Sales and Marketing Director of System10 who sponsor this survey. “It also concluded that PVC-U is not a 'bad material', a case heavily argued by Greenpeace and other anti-PVC-U lobbyists. Scientifically speaking their case is not backed by facts - as has now been proved. But the environment and environmentalists have a big effect on us, continuing to hit headlines. Lobbying groups also continue to pressure the Government to direct industry to clean up its act.

“The benefits of PVC-U are being ignored by some social housing managers - a matter not taken seriously by all PVC-U systems companies. Anyone in the public sector should consider the quality of any anti PVC-U 'evidence' before making up their minds. Environmentally concerned architects wishing to specify PVC-U can now do so with a clear conscience. All windows replaced with System10 products will be recycled at its strategic partner's plant for post-consumer windows - they not only recycle PVC-U, but also timber, aluminium and steel.

“That's not the only thing we're doing for the environment. Our commitment to the Vinyl 2010 agreement, which sets out to collect 50% of post-consumer windows by 2005, is further indication to anyone who ever doubted the benefits of PVC-U. They can be increasingly confident about its environmental credentials”.

The Public Sector Survey, a quarterly trends report, is sponsored by System10 and produced by Michael Rigby Associates. It keeps a finger on the public sector's market pulse, and views fabricators' and specifiers' expectations of market movements. The survey covers a representative sample of 40 window and door fabricators and 60 specifiers. Telephone interviews took place between the 7-19 May 2004 across a balanced spread of size of firm and geographical area. Numbers employed was used as an indication of company size. The categories are small (1-19 employees), medium (25-49), large (50-200) and very large (over 200 employees). © Michael Rigby Associates 2004. Full report available free: call Pam Fay on 0121 749 3000 or www.specifiernewsline.com