“We the undersigned petition the Prime Minister to instruct Lord Mandleson to investigate glass pricing activities currently being taken by the dominant glass suppliers to the UK.”
“The dominant glass suppliers (all non UK owned) to the UK are planning to significantly increase prices (by up to 50%). This will potentially drive small companies out of business, raising unemployment, and driving up building costs in an already depressed construction industry. The increases are all of a similar magnitude, and have been announced in the same period. By these actions the glass manufacturers would appear to be trying to profiteer at others expense during a recession, with the UK tax payer picking up the cost.”
This petition was placed on the 10 Downing Street ePetition facility by Steve Sutherland of curtain walling and structural glazing contractor Dortech Architectural. Dortech does not process glass but does install a great deal of it in what are often impressive, large span installations.
News of the rises, stoked by Steve’s petition, prompted outcries from all quarters of the glazing industry, with demands for the manufacturers to be investigated not just for increasing the prices once again apparently arbitrarily, but for collusion in doing so. In other words, Cartel.
The glass producers, whilst not daring to put their heads far above the parapet, muttered that they had little choice, that they would themselves face ruin if they had not responded to huge increases in raw materials, but crucially a significant reduction in manufacturing capacity world-wide, an issue that is to a degree in the hands of the producers anyway.
In a major coup that would not be possible at any other industry event, the glass pricing debate GlassTalk will enjoy a full airing. On The Couch will be none other than Steve Sutherland, the author of the petition, accompanied by independent processor Jeff Hooson, managing director of Custom Glass.
And in a bold move that guests must applaud when they gather at GlassTalk whatever their views, the Managing Director Alan McLenaghan and Marketing Director Derek Dragten of Saint-Gobain Glass UK have agreed to balance the discussions by putting the perspective of the glass manufacturers. Of key importance to the discussion is that Alan McLenaghan is also Vice President of Manufacturing Worldwide for Saint-Gobain Glass and thus able to offer a unique global perspective.
It will be a passionate debate. For Steve Sutherland glass is intrinsic to his business, affecting it in terms of performance, continuity of supply and, of course, price. So when Pilkington, followed in swift succession by the other major glass producers, increased their prices again, by as much as 50% on some products and with little notice, Steve reacted immediately by placing his petition at No. 10. By 8th September 943 people had signed the petition, a not inconsequential number in relation to the specialisation of his proposition. There were – and still are – some very angry people around.
However, whilst the pricing issue – and perhaps how price increases are delivered to the market – must be examined closely, that the big four in the UK are colluding on price must be in considerable doubt given the enormous fines imposed in recently years for being caught with blood on their hands. Anyone that deals with the producers on a regular basis, and particularly in the environs of conference and exhibition halls, will have witnessed the paranoia of the staff and executives of glass manufacturers caused by at the mere thought of being seen in the same room as their competitors. The conspiracy theorists have, nonetheless, had a field day.
GlassTalk is all about participation. And the GlassTalk that takes place in a few days time on the 3rd November at Daresbury Park Hotel, Cheshire, will offer a unique opportunity to comment and be part of a discussion on the most controversial issue to strike the glass and glazing industry this year. And maybe even to shape the future a little.
There are a few places left but they are going fast. Sign up now at www.glasstalk.co.uk.
