This is a very interesting interview by Richard Kruger of GGPmag.com with Jim Rawson, Chairman of Epwin Group.
I was particularly interested in the fact that one of the main figures in our industry talks about a ‘bloodbath’ that is currently happening among suppliers as margins are being driven down.
He states, ‘The last man standing will do quite well, but in general we’re not making enough money today - nobody is.’
Jim confirms that the industry is down 15-20% down year to date, but 15-20% of the capacity has not disappeared yet. So over the next 18 months to 2 years it will all sort itself out.
The good news is that there are opportunities that will develop for those that are strong enough.
For more good news about the double glazing industry, please call back to the Renegade Conservatory website in the near future.
1 response so far ↓
1 Colin Torley - VEKA plc // Sep 22, 2008 at 9:57 pm
Everything that Jim mentions in the report is happening i.e Bloodbath, last man standing etc. I believe that the systems companies are being hit the hardest or certainly as hard as anyone else out there. We have seen unprecedented increases at very short notice, from what is almost a monopoly situation and have to try and pass these onto our customers, who as anyone at the fabrication end knows, are finding it harder than ever. Fuel increases, energy increases, material increases, steel increases, but yet we are expected to absorb these, it’s not possible. The industry must try and get their prices up for everyones sake, but as soon as the word “increase” is mentioned all hell breaks loose. We have all gone to great lengths and costs, to produce a far better product than ever before, yet we still mange to undersell it. The only winner in all of this is the consumer, but in the current climate it is even proving difficult for them to part with their money. Where will it all end, who knows but it certainly wont be an easy time for anyone.
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