Domestic glazing takes a hit

Domestic glazing takes a hit

The market for glazed products in Great Britain declined for the fourth consecutive year in 2010, with no upturn predicted until 2015. That’s according to the latest Palmer Market Research report, which reflects interviews carried out with over 600 industry stakeholders.

The installed value of the market was £3.7bn, down from a 2006 high of £5.4bn, and a decrease of nearly 4% on last year.

The first fall in real disposable income in 30 years, and continued drops in consumer confidence, have badly hit the market for private sector home improvements – an area that represents 80% of the housing glazing market.

And with continued uncertainty around the UK economy, there’s little growth forecast until 2015, with a further downturn of 10% in 2011 (see chart).

Robert Palmer said: “While some parts of the economy are not suffering too badly, it seems homeowners’ appetite for big ticket items dissipated during the year with confidence hitting record lows. And saturation of the replacement window market, the biggest single market, is having an increasing effect.”

New housing was the only sector among the three covered by the report (alongside home improvements and social housing replacements) to show growth, with an increase of 25% in housing starts during 2010. However, completions fell, and Palmer predicts minimal growth in glazed products in the sector for the next few years, in spite of a move from flats to houses implying a greater incidence.

“The fundamentals have hardly changed,” he said. “The main problem facing the market is still the availability of finance, particularly to first time buyers – and without them the rest of the market cannot trade up.”

Windows accounted for half of all glazed products in 2010, and conservatories one quarter, although these two product markets were down 2% and 12% respectively from 2009 in installed value terms. It was the market for patio doors which did the best, with a surprise increase of 17% during the year. This was mainly because of growth in bifold patio doors which saw a market doubling in size to £43m in home improvements alone, and predicted to grow a further 40% to 2015.

Just as bifold doors are on the increase so conservatories in home improvements continued their long decline, falling to their lowest level since 1995, just 92,500 units.

Entrance doors showed a decline in both new housing and home improvement sectors, with only a very slight increase in the social sector. However, against this unprepossessing background, there was one ‘winner’, as composite doors made strides against a decreasing use of PVCU – in home improvements, composite doors increased by 30%, while PVCU declined by 22% – and this growth in composites is predicted to continue.

PVCU continues to dominate as a window frame material, representing 84% of the market in home improvements, and 91% in social housing. Aluminium/timber composite frames are forecast to nearly double in size in the new housing sector between 2010 and 2015.

The Market for Windows, Doors and Conservatories in Great Britain 2011 Edition, was developed by carrying out over 600 structured interviews with housebuilders, housing associations, fabricators and installers between April and August 2011. This was backed up by an extensive desk research programme, as well as Palmer Market Research’s proprietary database which stretches back for over 30 years.