Product category:
Soffits, Fascias and Gutterings
News Release from: Freefoam Plastics
Edited by the Buildingtalk Editorial
Team on 14 March 2008
The Freefoam Roofline Report
Roofline sales up on previous year as more installers join the Market.
Sales, quarter-on-quarter A net* 20% of roofline stockists and installers reported a drop in sales in November 2007 to January 2008 compared with August to October 2007
This article was originally published on Buildingtalk on 5 Dec 2007 at 8.00am (UK)
Related stories
Latest Freefoam Roofline Report
Lively roofline market despite rising costs and uncertainty sales, quarter-on-quarter.
Large Range of Woodgrain Fascias
Freefoam Plastics have introduced the new Rosewood finish to their range of light oak, black ash and mahogany fascia, window board and cladding systems.
* The net balance is the difference between the percentage of companies reporting an increase over those reporting a decrease.
Small (net 34%) and large firms (20%) were more affected by poor sales than mid-sized companies (3%).
More stockists and installers in the Midlands (36%) and North (18%) fell back than those in the South (9%).
Further reading
Houses get sunburnt too
Freefoam Plastics launch new media campaign, titled 'The Burning Issue', to increase awareness of the dangers of UV radiation to buildings.
New slate and tile trim brochure from Freefoam
Freefoam Plastics, a leading manufacturer of roofline products in UK, Irish and Mainland European markets, has recently launched a new slate and tile trim brochure.
Rhino go with Freeflow rainwater systems
Rhino Building Plastics, a Freefoam stockis, introduce Freeflow range of rainwater systems to complement their existing range of Freefoam products.
On balance both specialist stockists and specialist installers sold less (19% and 22% respectively).
Sales, year-on-year.
However, year-on-year a net 14% of stockists and installers sold more roofline in November 2007 to January 2008 compared with the same three months of last year.
Mid-sized companies (net 42%) did particularly well followed by 7% of small firms, but large stockists and installers (20%) sold less.
While firms in the South and North increased sales (22%), a balance of 3% in the Midlands fell back.
A net 25% of specialist stockists reported better sales, contrasting with a net 4% of specialist installers who sold less.
Sales forecasts.
Stockists and installers are positive in their outlook with a net 50% expecting sales to improve in February to April compared with the previous three months.
This is similar among firms of all sizes and in all regions.
Specialist stockists (62%) are more positive than specialist installers (48%).
Similarly, a balance of 42% of stockists and installers expect to sell more in February to April compared with the same time last year.
Mid-sized firms (56%) and those in the North (59%) are most upbeat about forecasts.
Significantly more specialist stockists (64%) forecast growth over the period that specialist installers (26%).
Profits.
A net 41% of companies forecast better profits in the next 12 months compared with the last 12 months.
Strong profit expectations are mirrored across the board.
Employment.
On balance staff levels among stockists and installers remained unchanged compared with three months ago.
While mid-sized firms (14%) took on more staff, small and large companies cut back (8%).
Capacity.
Overall, 49% of roofline stockists and installers are currently working at capacity.
Buying Prices.
A net 73% of stockists and installers reported an increase in material costs compared with three months ago This is similar among firms of all sizes.
Companies in the South (net 83%) were more affected by rising costs than those in the Midlands or North (68%).
Selling Prices.
A net 41% of roofline companies put up prices compared with three months ago.
Small and mid-sized firms (net 45%) were more active at raising prices than large companies (25%).
More stockists and installers in the Midlands (55%) increased prices than those in the South or North (35%).
A balance of 58% of stockists and installers expect to put up their prices over the next 12 months compared with the previous 12 months.
Expectations are strongest among mid-sized firms (74%), those in the Midlands (68%) and specialist stockists (69%).
Stock levels.
A balance of 11% of roofline stockists and installers reported an increase in stock levels compared with three months ago.
Investment intentions.
A net 26% of stockists and installers expect to invest more on buildings and equipment over the next 12 months compared with the previous 12 months.
Prospects.
A net 14% of firms interviewed are more optimistic now about the overall prospects for the roofline market than three months ago.
Specialist stockists (25%) are more bullish than specialist installers (4%).
Problems.
Price cutting in the market, margin squeeze (56%) and supplier price rises (53%) were the three main problems for stockists and installers in November 2007 to January 2008.
However, supplier price rises was the single biggest problem, mentioned by 16% of those interviewed.
The Internet.
Seventy percent of respondents say they use the internet regularly i.e.daily or weekly but 21% never go online.
Thirty eight percent of firms with internet access place orders with suppliers online and 86% have a website of their own.
Of those that have a website, 43% claim to offer customers the option to order online.
Overview.
"The final quarter of 2007 and the start of 2008 have been turbulent," says Neil Parsonson of Rigby Research, which produced this report.
"The mounting scale of US subprime losses hit the availability of credit and consumer confidence.
A coordinated $110bn dollar injection by the world's banks and favourable inter-bank loans from the European Central Bank made little impact.
Oil hit a record $99 a barrel on 21 November and Opec nations moved to boost output, helped by Iraqi oil production returning to pre-war levels.
We have yet to see the longer term effect of two US interest rate cuts within a week, one of which was the single biggest reduction in 25 years.
"In the UK interest rates were again cut in February to 5.25% to ease pressures on the economy.
However we are yet to see if all mortgage providers will pass on the savings to homeowners and new buyers.
Confidence in the housing market has weakened and mortgage lending in November 2007 was 40% below the same month in 2006.
January saw the third consecutive monthly fall in house prices.
"There is increasing talk of a US recession, but talk of a UK recession is premature.
Latest employment figures show record numbers in work.
Cheaper credit will tempt back consumers, while those who have shelved a house move may be persuaded to refurbish and improve their home instead.
Consumers prepared to spend are out there and still spending freely".
Comment.
"Finding ways to differentiate yourself from the competition is becoming increasingly important," says Tony Walsh, Managing Director of Freefoam, who sponsor this survey.
"In the current climate homeowners have become more cautious with their disposable income.
They will spend with those who add value, are credible and know their product, and with those who can clearly communicate the benefits of what they are selling.
Stockists and installers with good selling and marketing skills and superior customer service will find themselves doing better than others.
"The internet is a key marketing and selling tool, and I believe stockists and installers could make more of it to boost their business.
It has increasingly become a first point of reference for searching for the right products and suppliers.
But it's not just about being online.
Good websites give customers a 'call to action' by making it easy to buy, by helping browsers move from choice to purchase.
"Customers want convenience and the internet is a great way to provide it.
The internet allows customers to compare products and services, have choices explained to them, get all the technical information they need and allows easy communication.
A sleek, easy to navigate website is one of the most effective ways a company can differentiate itself, particularly in markets increasingly led by price.
The idea that the internet is for consumers rather than the trade is outdated.
It works for both.
"Making the whole buying process easy for customers gives them another reason to choose you.
The best performers and fastest growers are already doing this.".
• Freefoam Plastics: contact details and other news
• Email this article to a colleague
• Register for the free Buildingtalk email newsletter
• Buildingtalk Home Page
Search the Pro-Talk network of sites
