UK in deflation – good news or bad?

There is probably good news and bad news for the industry in the announcement that inflation has fallen below zero for the first time since 1960.

While the headline cause is a drop in air and sea fares – hardly relevant in itself to the fenestration industry – the greatest impact may come from the effect it has on the consumer. On the plus side, they may feel more optimistic about their own financial position and so be encouraged to invest in their homes. But the absence of inflation also means consumers don’t expect prices to change, making it difficult for any business not only to make increase but it could also put pressure on their current prices in terms of what the consumer expects to pay. Read the story Here

Also in this issue, it isn’t often that factory closures are good news for anyone, but Glazerite has announced its eighth customer to quit manufacturing in favour of buying in (read story here), reflecting a trend that has been gathering momentum in the industry for some time, and the fabricator is urging other small to medium fabricator-installers to give it some serious thought.

New figures on late payment add further evidence to the fact that it is the small traders that are hit the hardest and, in a trade with so many of them, that is not good news for anyone. read story here

But then again, small traders may get a boost from FENSA’s launch of Pay As You Go. read story here

On a lighter note, we see Distinction Doors has gained further distinction by a visit by The Earl of Wessex who officially opened its new in-house painting facility. read story here

I hope you enjoy this week’s issue.

Please send all your news stories to news@the-glazine.com

Chris Church Editor

This Week's News

UK economy is in deflation

The UK economy went into negative inflation last month, for the first time in over half a century.

The Consumer Price Index fell by 0.1% in the year to April, compared to no change in the year to March. This is the first time the CPI has fallen over the year since official records began in 1996 and the first time since 1960 based on comparable historic estimates.

Economists say the underlying cause of the fall is temporary, coming from air and ferry fares and a quirk in the timing of the Easter holidays, and us unlikely to result in a sustained fall in the cost of living.

Chancellor George Osborne said the figures were good news for family budgets, a sentiment that may be reflected by many in our industry and supported by some economists. Ian Stewart, chief economist at consultants Deloitte said that falling prices raise consumer spending power, while Scotiabank economist Alan Clarke warned: “enjoy it while it lasts; there is a good chance that inflation will be back in positive territory next month.”

Read the Rest Here...

FENSA launches ‘Pay As You Go’

Small business and sole traders with low volumes of domestic window and door work have been offered a simple and easy route to Building Regulations compliance with the launch of Pay As You Go by FENSA.

FENSA Pay As You Go will enable businesses to show compliance without having to hold an MTC (Minimum Technical Competency) Card or provide mandatory Insurance Backed Guarantees (IBGs).

The system will mean companies will have all jobs inspected, as with the Local Authority Building Control route, instead of undergoing random inspections as with the usual FENSA compliance procedure. They will however still need to be certified to show competence and undertake a document and procedures audit at an onsite Certification inspection every three years.

FENSA says Pay As You Go is intended to give ‘infrequent installers’ of domestic windows and doors a simple and economical route to compliance, as Managing Director Chris Mayne explained: “The introduction of requirements for individuals to hold an MTC card to prove their competence to MTCs and provide IBGs for self-certifying companies on the original FENSA scheme has introduced an extra level of administration that many companies who infrequently install are finding difficult to deal with.

Read the Rest Here...

A Royal Opening

The Earl of Wessex officially opened Distinction Doors’ paint plant in  Barnsley this week.

During his visit, His Royal Highness was given a tour of the facilities and met key members of staff after watching a door being sprayed. Finally, he unveiled a plaque to commemorate his visit before signing the company’s Visitors’ Book.

Chantel Roach, Marketing Director of Distinction Doors, said: “It was a great honour to welcome The Earl of Wessex to our site and we are delighted that he officially opened our paint facility. It was a wonderful surprise to be contacted by His Royal Highness’s office. It was felt that Distinction Doors represented a great success story and was therefore very appealing for an official royal visit.”

Distinction Door’s paint plant went into production only a few months ago and has already seen its 1000th door completed.

Read the Rest Here...

Small firms hit hardest by ‘poor payment culture’

The new Government has been called on to tackle the UK’s ‘poor payment culture’ as new figures show that late payment is now the prime cause of one in five of all UK insolvencies.

John Allan, National Chairman of the Federation of Small Businesses (FSB), put most of the blame on large companies’ treatment of small suppliers. He said “The weight of evidence showing the damage poor payment practices are having on the UK economy grows greater each day with the amount owed in late payments now at £41.5 billion. Once again we find it is sole traders and smaller firms which are facing the brunt of late payments, and this is putting viable businesses at risk of closure. Addressing the UK’s poor payment culture must be a top priority for the new government. Small businesses see progress on payment practices as a key benchmark of success for the new administration.”

The figures, from to the insolvency trade body, R3, also revealed that business victims of late payment saw almost one in six of their invoices paid late in the last six months and almost half of all businesses suffered from some degree of late payment.

Read the Rest Here...