Renegade Conservatory Guy

Old Roots; New Routes

It is clear that my previous letter published on the Fenestration News website, together with the weekly blog from the ‘industry debate’ on the Glazine, have stimulated a degree of debate amongst a selection of individuals not originally invited to Combe Abbey.

Some of the comments have been constructive, other less so. Let’s be clear, the industry is not in crisis, but it does have problems. And who is to blame?

All of us!

Having considered all the opinions from the debate itself and elsewhere, my position is as follows:

Obviously, my first concern was that a lack of key individuals and installers would mean that the debate would not be representative. I’ve thought long and hard about my letter, and feel I was probably off the mark a bit. I now feel that it was less important whether other industry heavyweights were present, and far more important that no representatives of the lower echelons of the supply chain were represented.

It is vitally important that any future debate includes installation companies, or at the very least, more fabricators who can speak for the installers.

But in the end, it is not debate but ACTION that is required. My gut feeling is that we’ll all keep talking and because we’re essentially in competition with each other – nothing good will happen.

However, if the industry is ready for radical change for the better I suggest something along these lines:

Another meeting takes place but on a larger scale. All the major extruders, hardware companies, glass producers, software companies, sealed unit manufacturers, frame manufacturers, conservatory roof manufacturers, a few forward thinking installation companies and a selection of PR and trade magazine editors should attend. Richard Schwarz, Sam Kennedy and Mike Rigby have done a good job creating the spark, and should be encouraged to continue their good work.

Prior to that meeting, individuals put their name forward to be considered for election to a ‘Double Glazing Trust’. More than anything the industry needs leadership and if, between us, we can democratically elect individuals to better represent and promote our industry then good will come from it.

The Trust should be funded by all major suppliers in the industry – a small percentage of each company’s turnover to be agreed. This organisation will be created to better advertise and market the common unique selling points of our industry as a whole. If the media portrays our industry in a negative way, this organisation should fight back and argue the positives. It would not interfere with the work of the GGF, BFRC or other industry organisations.

The organisation’s remit would be to change perceptions, and make us all proud to say we are in ‘double glazing!’

As an industry we are morally obligated to push Energy Rated Windows, and by doing so we can make a difference, while driving demand and profits for all of us. Climate change could be the biggest ever opportunity for our industry.

For conservatories, we will all benefit if consumers understand what a great investment a conservatory could be, whether it has an Ultraframe or K2 roof.

The most important issue we need to address is stimulating demand from the right type of customer. I’m not talking about necessarily trying to increase volumes, but increasing demand for the quality products we can offer.

By increasing demand profits will return to all parts of the industry, and only then can we seriously consider investing in serious amounts of training, research and development.

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Glass fixing cartel fined - a great day for the double glazing industry!

It has long been a subject of discontent in the UK double glazing industry; the way the four main glass producers have put their prices up on the same day and by the same uplift.

It has been a disgrace how these multinational corporations have used uncompetitive price fixing to strangle an industry already struggling to make a profit. They have also saught to take advantage of rising oil prices by the unjust implementation of ‘energy surcharges’.

We’ve known for years they’ve been running a cartel.

So, today I was delighted to hear that the EU have caught them at it and fined them heavily as follows:

Guardian - 148m euros
Pilkington - 140m euros
Saint-Gobain - 133.9m euros
Glaverbel - 65m euros

The European Commission said the firms had raised or stabilised prices in 2004 and 2005 through illicit contacts.

“The companies will have done very well out of this cartel until today,” EU Competition Commissioner Neelie Kroes told reporters in Brussels.

“It is right that the punishment in this case is severe in order to achieve a sufficient deterrent effect and it is a great pity that the Commission’s many previous cartel decisions did not deter the companies from forming the cartel,” she added.

Between them they control 80% of Europe’s market for flat glass. Basically, in the UK if you want to buy glass then you have to buy it from one of these companies.

The average company in the glass and glazing industry has been struggling along with an average net profit of 1.4% while these companies have been agreeing price rises between them to ensure their own profits, rather than competing fairly and making profits through trading efficiently.

The question now is the impact this decision will have on the market.

Will these companies continue to collude but more discreetly? Will they decide that the best way to increase profits is by innovation? Will they seek to recoup the fines through higher prices? Or, will our industry be able to renegotiate glass prices with these suppliers for the benefit of all?

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Lock bumping UK

Lock bumping is a big thing in the US, and as they say, we’re always just a couple of years behind US trends.

This video shows how serious a problem it is, and the most shocking thing is the video has had nearly 7 million viewers!!

There are countless videos showing potential burglars how to do it and where to buy lock bumping keys, so it won’t be long before it takes off in the UK. I have to say, though, I have tried lock bumping myself (as a test obviously) and it isn’t easy.

The major problem in the UK has been lock snapping where burglars break the cylinder with a hammer or mould grips, rather than lock bumping. The challenge now for the hardware suppliers is to design door cylinders which solve both problems. There are products soon to enter the market.

So watch this space!

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Climate change - bad news for the world but could it be good news for the double glazing industry?

Energy Savings Trust Report

A recent report about the UK glazing sector paints a depressing picture if you’re the owner of a double glazing company. Although, if you run a double glazing company, you probably already know this!

The report, commissioned by the Energy Saving Trust and the Energy Efficiency Partnership for Homes, points out that the UK windows market declined from 10.12 million units in 2003 to 9.2 million in 2006, and a projection of only 9.02 million this year. This is a decline of 12% over 4 years in a growing economy.

There was slight growth in the door market from 1.98 million units to 1.99 million in 2006, but conservatories have also performed badly. Conservatory sales in 2006 accounted for 205,000 units, compared to only 187,000 last year, but with projections of 196,000 in 2007. These figures were supplied by Palmer Market Research.

Coinciding with this reduction in demand for windows and conservatories, raw materials and manufacturing costs have been rising steadily during the last two to three years, while ongoing price competition has depressed prices for replacement windows. Suppliers throughout the supply chain have had to absorb cost increases, which has eroded margins and resulted in considerable restructuring in the supply chain.

This is great news if you are looking to get a quote for double glazing or a conservatory, as there’ll be some great deals around, but very bad news for a fragile industry.

Saturation of the market is a key issue with a very high percentage of homes in the private sector now fitted with replacement windows - although these may not necessarily be energy efficient windows. This saturation is likely to continue for the short to medium term. It’s not difficult to see ’saturation’ with a quick drive around any housing estate.

In 1976 fewer than 10% of existing homes had double glazing in one or more rooms. In 2004 market penetration reached almost 83%.

Time to exit the industry then?

Well, not necessarily. Read on:

The total UK residential energy efficiency market inclusive of double glazing, central heating and building thermal insulation, will increase by around 10% between 2006 and 2009, driven by construction sector growth, the Energy White Paper as well as current and future changes in building regulations.

Heating and hot water in housing make up around 25% of total national energy consumption, and at the same time emissions from domestic buildings account for some 27% of all UK carbon emissions. An estimated 9.5 million windows are replaced each year in the UK, and if these replacements were all Energy Saving Recommended (ESR) products, around 285 million kilowatt hours of energy per annum could be saved.

In addition:

- Poorly insulated window frames and single glazed windows account for up to 20% of heat loss in the average home. Double glazing cuts heat loss and also reduces noise and condensation problems.

- Installing double glazing can cut heating bills by £80 - £100 a year and 680 kilograms of CO2 (or four double decker buses full of CO2) each year.

- If everyone in the UK who could install double glazing actually did so, it would save £500 million and 3.5 million tonnes of CO2.

Across all of the UK, 38% of the housing stock is estimated to have been built before 1945 and is therefore at least 60 years old. This fact has significant implications on energy efficiency as, broadly speaking, the older a property is the less energy efficient it is.

Continuous media coverage is slowly changing the public’s opinion about climate change and global warming. New research from the Energy Saving Trust (EST) has found that nearly 70% of British people believe that energy efficiency is important when buying a home. Almost half (45%) are willing to pay up to £10,000 more for an environmentally friendly home.

So, I see two opportunities:

If the double glazing industry is able to harness this consumer interest for energy efficiency then demand for energy rated windows should increase. As an industry we need to adopt these more energy efficient windows to a greater extent, and then educate the public through advertising and marketing initiatives.

By educating the consumer then suppliers of non-energy efficient windows will be forced to fall into line, or see sales and profits decline.

Secondly, the Government is going to be forced to take drastic action to reduce carbon emissions, and energy efficient windows will have to play a part in the Government achieving targets.

The government must create legislation which promotes energy efficient windows (and doors) or create incentives to the industry to produce more energy rated windows. I have personally put my name to a campaign to reduce VAT to 5% for such windows and my gut feeling is the Government will have to consider this.

Since 1998 the government has offered a reduced rate of VAT (5%) for micro-renewable technologies and energy saving materials to encourage investment in domestic energy efficiency, but not energy efficient windows. There is no doubt that a lack of trust of the double glazing industry as a whole, combined with a potential loss of taxable income of around £490m per annum, is the reason our industry has been overlooked.

But, I have faith, that as more research continues to highlight the real problem of climate change, the Government and the World will have to embrace energy efficiency at a faster rate.

And this will be a real shot in the arm for the window industry!

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In my previous post in support of Andy Jones’ campaign for 5% Vat on Energy Efficient windows I sugested I would write a letter to my local MP using the standard letter he had produced.

Well, I did this and I got a very positive response. This is the content of the letter below, although I’ve had to alter it quite a bit to protect my identity:

Dear Mr Xxxxxx,

In addition, I have written to Rt Hon John Hutton MP, Secretary of State, at the Department of Business and Enterprise asking them to look into the matter and respond to the issues you have raised.

I will contact you as soon as I receive a response.

Xxxx Xxxxxx
Labour Member of Parliament for Xxxxxxxxx

What a positive result!

So, I’ll attend the constituency surgery in the New Year and let you know how I get on.

But, for this to work we need more people from the double glazing industry to do the same for some type of momentum to be created. So write to your MP - it took me no time at all.

Just follow the instructions on my previous post.

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Get behind the 5% VAT on Energy Rated Windows campaign

Well done Andy Jones from Edgetech for trying to keep the campaign alive for the Government to try to reduce VAT on Energy Saving Recommended windows.

The only thing I can disagree with you on is that 835 signatures to the Number 10 online petition was ‘pretty good’. We both know that the response from the double glazing industry was pathetic, but I know you can’t be seen to say that!

The industry needs to increase momentum in this direction for a number of reasons, not least the fact that as an industry we should be promoting energy efficient products and doing our bit to help reduce the effects of global warming and climate change.

So, if you are reading this, and you have yet to play your part in helping change the Government’s opinion on VAT for Energy Rated windows then you really aught to be writing to your local MP.

Andy Jones from Edgetech has made it easy for us all by writing the letter. If you copy and paste this onto a Word document you will be half way there:

Dear Sir

I am writing to you as my local MP to ask for your advice and help regarding an industry campaign to reduce the VAT on Energy Saving Recommended windows (rated A-C by the British Fenestration Council) to 5%. ESR windows do not yet enjoy the same 5% rate as other ESR products like white goods.

According to the Energy Saving Trust, almost half the UK’s carbon dioxide emissions come from buildings, with 20% of the heat lost from an average home occurring through windows. Despite this obvious energy waste and contributor to fuel poverty, ESR windows remain excluded from the 5% scheme. If every home in the UK installed C rated windows, or higher, carbon emissions could be reduced by 12.8 million tonnes a year, and every year after. This is the equivalent to removing 840,000 cars from the UK’s roads every year.

As a local company, this reduction would have a big impact on my business so I would appreciate any advice you can offer as to how to move this campaign on. I would love to have the opportunity to discuss this with you further if that would be possible. I look forward to hearing from you.

Yours sincerely

Then, if you are unsure who your local MP is or don’t have their contact details then you can contact them easily by using this website They Work For You.

I’m going to get on with sending my MP a letter right now, and I’ll let you know if I get a response.

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Renegade Conservatory Guy enjoys the GM Fundraising bash!

Well, the double glazing industry sure knows how to throw a great bash, and the main man for such events is Gary Morton. It was a privilege for myself, and my lovely wife, to attend this year’s GM Fundraising 70’s extravaganza at the Holiday Inn, Birmingham.

Platforms, flares and wigs were the order of the day for the 300+ guests, as Gary and his team skilfully extracted as much money as possible from them for charity. A number of the industry’s premier companies were present such as Haffner, Business Micros, Veka, Conservatory Outlet, Mila, Deceuninck, Wegoma and Thermoseal.

I’ve got to know Gary over the last couple of years and he has been a real inspiration to me. It is truly fantastic what he, along with his fundraising team of Sarah Jones, Debbie White, Alan Tupman, Iain McInnes and Dave Broxton have achieved over the past few years.

Last year alone GM Fundraising donated £137,000 to Hope House Children’s Hospices in Oswestry and Conwy, which is an incredible achievement from a team of individuals from the double glazing industry.

The GM Fundraising team will now turn their attention to their third gruelling bike ride - Ride 4 Hope:

Over 3,000 Miles Across America In September 2008 the Ride 4 Hope team will set off on bicycles from Oceanside, just outside San Diego on a 3043 mile trip across the USA in to Atlantic City, climbing over 100,000 feet in the process. Over 16 days, this will equate to a daily average of around 200 miles which will be carried out as 3 teams of four on a rotational basis, resulting in a 12 hour day.

During the trip the riders will be faced with many different challenges including a high point of 10,000ft above sea level in Colorado and one single day which covering 270 miles. Excessive temperatures in Nevada will also pose a test to the riders and nutritional expertise will be harnessed throughout the challenge.

Each rider will undertake a gruelling training programme which will be supported by coaching, dietary consultation and a number of training camps both in the UK and overseas. This process has already begun.

For more information about GM Fundraising go to: GM Fundraising

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Ultraframe Conservatory Roof video

For six months now, I’ve had conversations with representatives of Ultraframe suggesting they’re working on a video showing the relative strength of their roof system, compared to other conservatory roof systems on the market - Synseal (Global), K2, Aztec, Quantal, Eurocell etc.

Well, I found the video on YouTube this evening:

Fair play to Ultraframe - this is a really well made video, and a powerful marketing tool.

But, my concerns with this video are as follows:

Ultraframe - You show a roof system on your video which falls to pieces with the intensity of the weather test. You attempt to conceal the Roof System used for obvious reasons. But how can consumers and people from the industry trust that the tests were undertaken in a completely impartial way?

For example, how can we know whether the competitor roof shown was fitted correctly? How can we be sure that the roof was not tampered with. For example, if the polycarbonate sheets were cut a bit short in the competitor roof, you could imagine the polycarbonate would fly out as shown. Were there representatives from the competitor roof system company present to ensure fair play?

If not, how can consumers and the trade believe the Ultraframe Conservatory Roof system is the best on the market?

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Double Glazing - the pitch goes horribly wrong.

If you have been wondering how Craig Fairbrass’ sales pitch ends up, I’ve decided to put you out of your misery.

The coked-up, sex-crazed double glazing salesman turns to typical hard sell tactics, with a call to his sales manager:

Well, it looks like this time the double glazing guy gets his due rewards (a punch in the face) but things go from bad to worse, and it just goes to show that sometimes the customer is not always right.

The serious issue I have is that this film is made around a double glazing pitch - not insurance, or kitchens, or any other product. The problem is we have created an industry with the worst possible image, and whilst the story is fictional, the representation of people’s perception of double glazing is a fact.

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Double Glazing - The Hard Sell- Part 1
The second instalment of the industry debate has been released by the Glazine and to be honest - there’s some good stuff discussed.

Dave Ruzicka, from Sash UK, seems to be speaking a lot of sense. He talks about the pressure on those at the coalface, and he should know being based in Barnsley:

I looked at a window the other day - I was going to bring the details here - and it was a fabricator that’s been in business probably about 20 years. He’d produced a quotation for a trade guy to go and fit these for a consumer. There were five windows and a French door or two, residential doors. He was selling that - bearing in mind that this is one of the most technically advanced secure products that you can buy today - at £729 plus VAT. The guy said to me, “If you can beat that price, you can have the deal” and I said, “I don’t want the deal, there’s nothing to do a deal on”. So, when I got back I took my costs; took all labour out of it and I just looked at material costs. There was £96 between my material costs and what he sold it for. That’s the industry. We can all talk about sustainability, u-values and what have you: it’s a load of bollocks because I’m telling you out on that coalface, for me, unfortunately, that’s our industry. £96 and he’s got to manufacture that, make profit out of it and invest? That’s the sad thing about it.

The problem is the end user does not see the value in uPVC windows anymore. Dave goes on to state:

Twenty years ago you were sold the idea of what PVC would bring to you thermally, no maintenance, secure. Today, I don’t think anybody sells that product any more. We don’t sell it. You walk into a brand new house today and the consumer will look at bathrooms, kitchens, the flooring, timber floors that they have now because most of them don’t bother putting carpets down any more. Who looks at the windows? Nobody. Because it’s got no value to it; as an industry it’s got no value.

The problem we have is that the industry is in decline, and the view in many parts of the industry is to cut the selling price, buy the work, and hopefully things will be OK in the future. We then have serious problems with our reputation as I mentioned in my previous post. Would you want a double glazing salesman in your house?

I found this video on YouTube today which gives an insight into society’s view about the double glazing salesman. The director of the video states:

A coked-up, sex-crazed, double glazing salesman (Craig Fairbrass) pays a visit to a couple (Karl Howman and Chrissie Cotterill) one night and tries to sell them something they don’t want, and gets more than he bargained for…

This ’salesman’ isn’t cut price at £26,000+ for a house full of windows - quite the opposite. This is the Safestyle UK way of selling - quote a ridiculously high price for the windows, then knock off 55%, and then discount until you get the work. Then start quoting the price in terms of a price of milk per day, or a pint of beer.

Mike Rigby - you’re absolutely right - we need to change perceptions, and sooner, rather than later.

I await the Part 2 of ‘the Hard Sell’, but more importantly the next instalment of the great industry debate, and hope the discussion turns from talking about perceptions to a solution for changing perceptions.

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