Signs of Recovery in Windows or Just a Flash in the Pan?

Sales:

Overall sales are still weak compared with 2004 but a balance of 38% (the difference between 46% who sold more and 8% who sold less) of window fabricators reported improved sales in May 2006 compared with April 2006. Mid-sized firms (net 60%) did best with none of those interviewed reporting a drop. But small fabricators (30%) and large firms (20%) also did better in May. The South (net 50%) did better than the North and Midlands (30%).

A balance of 14% of window fabricators also saw sales recover in May 2006 compared with May 2005 (chart 1). Mid-sized (net 27%) and small companies (17%) saw a rise. However large firms (40%) sold less over the period. Across the country a net 25% of fabricators in the South and 15% in the Midlands experienced sales growth. But on balance firms in the North saw no change.

Forecasts:

A net 34% of fabricators expected to sell more in June 2006 compared with May 2006. Firms of all sizes and in all regions were more confident but particularly mid-sized companies (net 53%) and fabricators in the North (47%).

A balance of 24% of window fabricators also expected to sell more in June 2006 compared with the same period of 2005 (chart 2) when sales were particularly weak. Again, mid-sized firms (net 47%) were most confident but small companies (17%) were also optimistic.

Growth expectations were stronger in the Midlands (net 30%) and South (25%) compared with 17% of firms in the North.

Confidence:

It may be premature but confidence strengthened on the basis of May's results with a net 24% of fabricators more optimistic now about the overall prospects for windows than three months ago. Mid-sized firms (net 33%) and those in the North (41%) are most confident.

The monthly tracker survey is produced by Michael Rigby Associates and sponsored by WHS Halo in conjunction with The Fabricator. The aim is to keep a finger on the market pulse between the regular quarterly reports, and to monitor fabricators' views and expectations of market movements. The survey covers a representative sample of 50 window fabricators. Telephone interviews took place between the 20th and 23rd June 2006 across a balanced spread of size of firm, geographical area and type of fabricator. For survey details or further information contact Lucia Di Stazio, Michael Rigby Associates (01453 521621). © Copyright Michael Rigby Associates 2006