Renegade Conservatory Guy

Happy New Year for the glazing industry?

In a previous post I wrote before Christmas I made my predictions for 2008. I stated that in the first month or two, trading would be very tough with a number of installers going bust. And, I have been gobsmacked at the extent this has already happened.

As you may know I have been cycling through India over the last 10 days, and while I was away it seems like 10% of the double glazing industry has ceased trading or restructured.

Who are the main casualties?

In the North East, there have been two major casualties. Firstly, Pennine Home Improvements of Newcastle with the ironically named website Trust Pennine went into administration on 3rd January with the loss of 126 jobs. A major competitor of Pennine has also ceased trading - Budget Windows with the loss of 80 jobs. It is understood that a buyer of Budget Windows could be found with two interested parties talking to the receivers PWC. Maybe price competition in the North East and between these companies has been the deciding factor?

In the North West, Planet PVC has gone bust again on the second anniversary of the initial business collapse. Planet were the darlings of the conservatory installation business 3-4 years ago, with massive growth and a stated aim of floating a massive conservatory franchise business on the stock market. The business, headed by Dean St John, is unlikely to resurrect itself again, although I feel there may be good news for many of the Planet staff, so watch this space for news during the coming week.

Bowater companies Zenith and Staybright have also got into trouble and have now joined the Weatherseal brand under Brian Kennedy’s Latium umbrella. These ‘hard sell’ national companies have been struggling to adapt to changing market conditions with consumers increasingly seeing through such out of date techniques.

It is understood that frame fabricator Advantage from Cheshire - Part of the Moran Group plc - has had a ‘reshuffle’ and allegedly left Rehau and Spectus with a £300,000 and £100,000 debt. I have heard rumours that two other major fabricators have ceased trading - Second City (from Tipton in the West Midlands) and, perhaps more significantly, Tradestyle (the trade arm of Safestyle UK) has apparently stopped trading.

And, in the roofline business Everwhite Plastics has been a major casualty. Everwhite has gone into administration and have blamed their demise on the US credit crunch on its cash crisis, but is hopeful of continuing operations with 20 interested parties interested in purchasing the stricken South Wales firm.

So, is it time for all of us to pack in running double glazing related businesses?

Well, it’s going to be tough over the coming months - that’s for sure! But, with interest rates starting to drop and with fewer players in the market, the trading conditions should improve for those companies strong enough to survive, and brave enough to innovate, invest and adapt.