Some of the names are still in use although
the owners, systems, customers & people
who ran them have changed, or they are
no longer systems companies. Some were
acquired and renamed, merged with other
brands and dropped. Others continue but
no longer extrude or sell in the UK.
A few ran out of road and failed.

The cause of this merger mania is market
maturity. It manifests itself as a rise in
sophistication and customer expectations;
a gradual market penetration & saturation
of demand and a slowdown in growth;
overcapacity from supply exceeding
demand, and the need for a restoration
of that balance through rationalisation and
consolidation to enable investment in a
more profitable future.

Great expectations

Take expectations. Homeowners don't
know what they should, or what we'd want
them to, but they are more discerning than
they were.

Greater expectations mean greater investment in product development, product
upgrades and new products to extend the range; in colour; in extrusion facilities to
meet tighter tolerances and improved quality which translates into fewer fabrication
and installation problems. Investment in additional capacity means fabricators can
continue to grow; in delivery services so customers can run lower stocks and make
product when they want to without disruption. Investment in marketing support and
technical literature; in technical and commercial contract support; and in the
professional management and people to make it all happen is also required.
It's a long and costly list, and if your systems company is struggling to compete
it won't have that money to invest and stay in the game. And you will know about it.
Questions like: 'where is the new product you promised?'
Where is my new literature? It's been months since we saw the sales rep' are early
warning signs. Soon, there will be another name to talk about in the after-show bars.

Spare a thought for the fabricators

But after the game of 'whatever happened to systems company X' is over, spare
a thought for their customers, the fabricators who had to live with the consequences
of their exit.

It is a well documented fact that most acquisitions and mergers fail, often damaging
the acquired and acquirer, sometimes fatally. But the impact can also harm their
suppliers and customers. The more abrupt and ill-prepared the changeover, the
more damaging the effect is on customers.

Most acquisitions and mergers fail because of a conflict in cultures and values, and
the same is true of their customers. Fabricators choose systems companies for
products, but also for values that match their own. When fabricators find their new
suppliers don't understand them, have a different set of priorities, are distant and
uncaring or leave them on their own to put up with the problems of the merger, their
business suffers. What they had and took for granted, they now miss and value.

Good home for Marshall Tufflex fabricators

But when Marshall Tufflex decided to get out of window profile extrusion and focus
on its core cable management and rainwater systems it made it a priority to find a
good home for its loyal fabricators. Customer relationships had always been
paramount for the company and it had no intention of doing a deal and leaving its
fabricators to sink or swim with a new supplier.

Marshalls needed to find the right partner to withdraw professionally and, eventually,
identified a best fit for itself and its fabricators with Spectus. It looked at the technical
criteria, the ability to invest in innovative new products, the focus on quality, a high
commitment to best practice in manufacturing, service & support, and the marketing
to help its customers grow. But Marshalls also looked for evidence of good long term
relationships and shared values. We, Marshall Tufflex and Spectus, then met each
customer to explain what Marshalls planned and what we hoped would happen.
We listened to each fabricator and got to know them. There was no rush; we took
our time so fabricators could think calmly and rationally about the changes and the
questions they needed to ask. We talked about products and product development,
about investment, service and support, but the emphasis was on the relationships
and values that mattered to them.

Shared values, mutual respect

Was it an acquisition or a merger in the conventional sense?
Not really, it's been more like a courtship, a coming together based on shared values
and mutual respect. Will it catch on? That I can't say, but it has proved its value as
an alternative, fabricator-friendly exit route for systems companies who no longer
see their future in the window industry.