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Navigating the new normal: Why the fenestration industry must adapt or decline
The fenestration market is facing structural decline after a short-lived pandemic boom. Our MD, Andrew Scott, outlines the choices businesses must now make to survive and grow.
There is no doubt the home improvement boom triggered by the pandemic led many in the fenestration industry to believe we had entered a golden era. Sales soared, order books filled up and businesses expanded to meet unprecedented demand. But those now experiencing falling enquiries and lower conversion rates are not alone. What we are witnessing is not a return to normal but the continuation of a long-term decline briefly hidden by the Covid surge.
At Purplex, we work with more than 200 companies across the building products and home improvement sector. Insight Data, our sister company, monitors more than 15,000 firms in the supply chain. This combined perspective gives us access to hard evidence that goes beyond surface trends. And that evidence points to a consistent fall in demand. Not just recently, but over a much longer period.
The Glass and Glazing Federation has described the sector’s direction of travel as a 20-year decline, and the data supports that view. According to recent figures, window installation volumes peaked at 4.3 million in 2003. By 2024, that number had dropped to 1.8 million. The average job size has also decreased. Even when orders come in, they are often worth less than before.
As we now know, the pandemic brought an uplift, albeit a temporary one. Systems companies, which supply fabricators across the UK, reported revenue increases of around 45 per cent between 2020 and 2021. But this was not sustainable. It was driven by exceptional conditions, not by lasting market shifts.
We’ve spent time reviewing the published accounts of the major systems companies. Their post-pandemic contraction is significant. As they sit at the top of the supply chain, their results reflect the true health of the sector. When they shrink, everyone is affected.
Insolvency data adds another layer. Between 74 and 122 fenestration firms are closing each month. These are not just poorly run operations; we are seeing established, respected businesses fold. The market has changed, and it is now smaller and more competitive.
Online behaviour tells the same story. Search volumes for core categories such as uPVC windows and bifold doors have fallen since 2021. Even previously strong segments are softening. Consumer caution has replaced the enthusiasm of the pandemic period.
What to do? Well, given this environment, every business has four options:
- Do nothing. Accept the situation and operate at a reduced level. This usually leads to further decline.
- Invest in marketing. In a shrinking market, maintaining or increasing market share means attracting customers from competitors. That requires visibility, a clear message and consistent effort.
- Increase order values. Offering higher value products or full-service packages can boost revenue even if order numbers stay the same.
- Diversify. Many businesses are already moving into adjacent sectors such as garage doors, outdoor living and garden rooms. And also into renewables….
Renewable energy technologies such as solar panels, battery storage and air source heat pumps are growing fast. Government incentives, rising household energy bills and the drive towards sustainability are all playing a part. Many installation businesses already have the skills and relationships to enter this space.
A renewable energy system can bring in £15,000 or more per project. That is significantly more than a standard window job. Some companies are already retraining their teams or partnering with specialists to offer a complete home energy solution.
This is not the time for fear, but it is the time for focus. Hoping for a return to the conditions of 2021 is unrealistic. The companies that succeed will be those that respond to the market as it is now, not as it once was. At Purplex, we support firms to make that shift, helping our clients build sustainable, resilient businesses through the power of marketing. This could be via website design, boosting your social media presence or securing top tier coverage with the media, all of which will increase visibility, improve brand awareness and build trust and credibility with your relevant audience.
As many firms are discovering, when the market changes doing nothing is not a neutral act. It is a choice. And it is one that few can afford to make.
For more information about Purplex, contact www.purplexmarketing.com
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