From:
David Thornton
Chairman,
The Window Company (Contracts)

I’m delighted to be able to report that The Window Company (Contracts) has once again been given the highest possible rating of Strong in the latest Plimsoll Analysis of the Doors and Windows industry.

This time around though I think the reassurance which this rating gives to the contractors and social housing providers we work with across London and the south east is more significant ever, because of the pressure which installers’ margins are under in the aftermath of Brexit.

With so many suppliers imposing surcharges on imported products and components because of the fall in value of the pound, margins are being squeezed and I believe that it is only strong and well-resourced installers like us who will be able to cope.

Some suppliers of things like hardware and door slabs are adding up to 12% to their prices and encouraging installers to pass these on to customers in order to keep margins intact. Obviously, that’s maybe fine if you’re working in the retail sector but if you’re in the commercial sector, as we are, prices and margins are set at the beginning of a contract and we have no real choice but to absorb the extra costs until such time as the contract is renewed.

I’m not blaming suppliers – they are at the mercy of the financial markets, but I am trying to draw the commercial market’s attention to something which I think could be a real issue moving forward. Installers who are not financially stable or who are working on margins which are simply too small could potentially find themselves in trouble which could have real implications for the industry.

At The Window Company (Contracts), we operate an open book policy with our clients so that they can see exactly how strong our trading position is, but I think contractors and social housing providers who perhaps don’t have the same relationships with their installers need to be vigilant. This Plimsoll report shows that average margins in the window and door market are now just 5% and there are more than 200 companies in the industry classified as being in financial danger so it could be a real concern if surcharges remain and prices continue to rise.