Fewer systems companies

The number of UK systems companies has
fallen over the past 20 years, and a more
competitive, maturing market makes
consolidation inevitable. Twenty years ago
there were 40 extruder systems companies
in the UK. In 2000 there were 28.
Now there are 20 including seven or eight
substantial ones. Is there enough room for
all 20 remaining companies? I don't think so.
The big are getting rapidly bigger.
There's more consolidation to come as
smaller, weaker, less flexible companies fail
to compete effectively with larger, fitter and
more adaptable ones.

Does this matter to installers? Of course it does. The fate of the systems companies
will be felt at every level of the supply chain. Making sure you are using the right
system is more important than ever. It goes well beyond the obvious - whether the
company will be around five years from now to supply product for you to sell add-on
that match the products you've installed.

All installers, whether they fabricate or not, should be using a system with a future:
one which is confidently looking ahead and anticipating, defining and leading a rapidly
changing market; not one which is nervously looking over its shoulder wondering
whether it will still be in the game this time next year.
The system you use, in particular its reputation for quality and its ability to innovate is
more important that ever before. More is being asked of window systems in terms of
energy performance, for example. But more is asked of systems companies too.
Have they invested in future proofed warehousing & logistics, so you or your supplier
gets what you need when you need it? If a trade fabricator doesn't get what it needs
on time its installer customers go short and their sales and cash flow suffer.
If it fails to invest enough in good people, accurate information & effective marketing,
customer service & support will suffer and installers will be left to fend for themselves.
Systems companies that cannot keep their customers happy come under pressure
as customers complain and leave if there is no improvement. Fewer customers
and lower volumes mean less profit to invest.

Installers need to respond to all the opportunities in the market - and they need
fabricators and systems companies that can help access these opportunities.
Increasingly whole supply chains - installers, fabricators who supply them and the
systems companies who supply them compete - against other supply chains for
business. It's teamwork. If it's not obvious you're in a team then perhaps you and
your fabricator suppliers aren't getting the support you need to compete effectively.

It should feel like a partnership

Saturation in the replacements market is the biggest factor shaping the industry
evolution. But it's not the only one. Other forces are also at work such as the recent
shake up of building regulations. Across a wide range of areas including energy
efficiency, fire-safety, ventilation, noise and disabled access, the requirements are
changing. For some installers these changes bring headaches.
It doesn't have to be this way. The best systems companies recognise it's their job
to keep ahead of building regulations - not the job of their fabricators and installers to
puzzle it out on their own. Your chosen system should inspire confidence and keep
you ahead of the game. It should feel like a partnership. If it doesn't, perhaps its time
to turn to one that does.

PVC-U is part of the solution

Environmental issues are also having an enormous impact. Consumers are much
more aware of the ecological impact of their spending decisions. Ironically, instead
of boosting the PVC-U industry as it should have done, concern in the media among
property and environmental writers has spread to sections of the public who perceive
PVC-U as eco-unfriendly. The science says otherwise. Dr Patrick Moore, one of the
founders of Greenpeace, says: "There's absolutely no evidence that vinyl damages
human health or the environment. PVC is durable, low maintenance, recyclable
and performs well in LCA tests".

But as an industry we have been too slow to defend our reputation against inaccurate
accusations and too quick to leave it to someone else to make the case for PVC-U.
It's the job of each and every one of us. Far from being part of the problem, PVC-U is
part of the solution. Consumers are not afraid to ask tough questions.
As an installer you need to make sure you have the answers - and you should be
looking for support from your systems company. For example the Environment
Brochure (see it here) - that Spectus recently published. It looks at all the issues
relating to PVC-U, the environment and the community, and provides robust,
reassuring answers backed up by hard science to address consumer's concerns.

The industry is in a state of flux. The market we know is transforming itself into one
with big potential. But unlike the old market this one is best exploited by teams:
supply chains of systems companies, fabricators & installers working together to win.