No Conservatories Near Pipes

Just when you thought the changes affecting our industry were done, dusted and out of the way for the next few years, here comes another one!


From 1st October this year, it is going to be against the law for conservatories or orangeries to be built over or near to sewers. The reason? From 1st October all privately owned sewers are going to be adopted by the local water companies. It is estimated that there are about 125,000 miles of privately owned sewers, affecting about 10 million households.


What is the reason for this change? The Government want the water companies to be responsible for all the sewers in the country. The companies will then be responsible for any repair work, so that the homeowner doesn't have to foot the bill.


But this is going to create some logistical problems when it comes to extensions, conservatories or orangeries. You're not going to be allowed to install trap doors in the flooring as far I'm aware. In some cases you will be able to re-route the pipework away from the work area to get round the ruling. The downside to the customer having the work done will be the extra cost. It won't be a great deal extra, but in a time of austerity people are penny pinching down to the nearest pound!


But there will be some cases where re-routing the pipework just isn't an option i.e. if the structure is going to take up a lot of the garden space and it doesn't leave much room for the pipes. Hopefully these circumstances will make up the minority of cases.


So, get your plans in, start the building work and get your projects complete before the start of October!


A helpful Q and A site can be found here.

Tesco Windows

Maybe it was just a matter of time, but now one of the biggest supermarkets has moved into the double glazing market with the introduction from Tesco of their own range of windows, doors and conservatories.


And at first glance they look to have entered the market with a decent set up. They have a pretty comprehensive website, not bogged by down by 'offers' or 'sales'. It's not too flash heavy either.


Each page sets out in quite some thorough detail their different products, all the available options that come with it and what the customer can expect to get for their money, which when they look at the lists they've compiled looks substantial. They're are also clear on what you get in the standard price guide and what is optional and would be added to the cost - something which could have easily been overlooked but has been well explained.


What I'm also impressed with are the prices they've entered the market at. £554 for a top and side hung window shows that they are aiming at the higher end of the market. What this will help to do, because Tesco is such a massive household name, is to build up the impression to customers that these are the right prices to be paying for these products. OK, they may become half-serious competition if this takes off in a big way, but I also think it will push out some of the dead wood companies and cowboy OMB's that plague our industry. Tesco's marketing Juggernaut and commercial power could be a good thing for our industry.


One huge stumbling block they need to make sure they can get over is the after-sales care. They need to be ready for the numerous remedial calls, professional non-payers, the ultra pedantic consumers and those who think they know more than you despite you selling the product. Customers can be the biggest problem in this industry, but as long as they handle them well, professionally and courteously then I think they could make a good go of this.


I have one question however. Do they no something we don't? It's quite unusual for a British supermarket to move into something like this. Could they be anticipating energy efficient windows being included in the new green energy bill set to be announced by the Government? If they are, they may be positioning themselves to cash in on some potentially substantial home improvement work.


This is one to watch I think.

Renting Is The Problem

It has been pointed out today that one of the main causes for the spate of high street stores going under, as well depressed sales, are very high rent rates the stores have been having to pay.


With rising costs and slowing sales, these expensive rent rates have obviously proved the last straw for many businesses. Rents are usually paid quarterly, but have been rising every quarter to make sure landlords have been able to stay profitable. Unfortunately these rents have proved to be too much.


So this got me to thinking; if this can happen to high street stores, could the same scenario play out with double glazing companies that rent office space or warehouse space for manufacturing?


I think it could. If tenancy contracts are up for renewal soon, this is an opportunity for landlords to bump their prices up to help cover their rising costs. Of course this will have an impact on businesses. Rates for companies renting manufacturing space are already going to be quite expensive. Any further rises would surely mean the cost of the company's windows would have to go up. Anyway, you get where I'm going with that scenario, don't want to be too negative, I keep getting told off about being too down beat! Let me know if you agree though!


That's the negative spin out of the way, here comes the good news...well, for those that own their own buildings anyway! The good news is...wait for it...your rent won't be going up! For those who own their own building in which they run their double glazing company from, this is the ideal to not be shelling out cash for sitting in the building your working in. Obviously running costs are still going to have to be paid for, but the mortgage on your building is by far one of the biggest overheads, so if you've just paid it off, or have paid it off quite a while ago, you have one less thing to worry about.


So, yet one more reason why renting in this country is dead money, and why owning the building you live/work in is the better position to be in for the long-term.

Update On Oil Price Crusade!

A couple of weeks ago I received and email from Justin King, CEO of Sainsbury's, in reply to my email questioning petrol prices. So below is his reply, and my reply to his after that:


Dear Mr ************

Thank you for your email. I understand your concerns about fuel prices, especially as they are at a record high.

It’s extremely important to us that we offer our customers great value through our entire product range and our additional services, such as our petrol filling stations.

The fuel market is extremely competitive and prices are very unstable in the current climate. As you pointed out, prices had dropped when you emailed but they have recently risen again.

We appreciate that many of our customers are particularly concerned about the rising cost of fuel and we’re working hard to offset this through competitive local pricing, ensuring we offer our customers a fair price wherever they live. We also run frequent fuel promotions, which include 5p off per litre when you spend £50 in our store, and triple Nectar points per litre instead of the usual one point.

I’m grateful to you for contacting me and I hope I’ve reassured you of our commitment to fair pricing.

Yours sincerely

Justin King
Chief Executive

-----------------------

Hello again

Thank you for your reply a few weeks ago.

Since your last response, oil prices have remained roughly at the level at when I first contacted you. Also, the past few weeks and days have seen a further significant drop in the cost of oil, while the exchange rates have also remained relatively steady. So my question again is why is it that now oil is roughly $23-$25 lower than a couple  of months ago, these lower commodity prices are not reflected at the pumps?

I have contacted you again because you have been the only major supermarket to bother to respond to me, so I have more confidence that you will respond to this email.

I again repeat my sentiment that supermarkets are quick to raise their prices when oil shoots up, but are incredibly slow when prices fall. Over the past 6 weeks I have seen only 1p per litre come off the price of petrol, yet the lower cost in oil should have meant a more significant reduction. The public can't help but feel that the petrol retailers and supermarkets operate in a cartel, looking to make as much profit as possible out of a tough situation.

I urge you to take action and rectify the situation. The public are more aware than ever how the oil price relates to the petrol price.

I look forward to hearing from you soon.

Regards

Who thinks I'll get another reply?

Jane Norman In Administration

Not a great way to start the new working week, but it has been announced that the high street fashion retailer Jane Norman has been placed in administration with US accountancy group Zolfo Cooper.

The chain employs around 1600 staff, and has debts of £140 million but has been suffering from slow sales.


Zolfo Cooper has said that they will put Jane Norman into something called a pre-pack administration, where a buyer of their company or assets have already been lined up, before they enter formal administration. This practice has been criticized has it often leaves creditors unpaid. That feels oh so like double glazing doesn't it?! 

Big Home Improvements Company On The Edge

Homeform Group, which consists of Moben Kitchens, Sharps, Kitchens Direct and Dolphin Bathrooms, looks set to be put into administration by private equity group owners Sun European Partners.


The group have filed with the Court a Notice Of Intention to Appoint an Administrator, with the expectation that the company will be Deloitte. This is a process that can take up to ten working days. Though I feel this will be sped up to give the group as much of a chance possible to rectify their current predicament.


In total the group employees 1300 staff, with an additional 1500 self employed fitters. Staff have been told to go home today. A worrying sign that the health of the business is in a very bad way. There are also concerns for customers who have placed orders with the companies involved. Will they get their money back if their installations aren't carried out?


The home improvement market has been one of the worst sectors hit during these harsh economic times. The business body CBI has reported that 85% of home improvement business have recorded a decline in sales in June - usually one of the peak months of the year.

Guest Post: Keep Cool And Carry On

Carrying on my series of guest posts, below is an article which brilliantly points out how we are so focused on keeping heat in our buildings, we forget how to keep them efficiently cool. It's a little bit promo at the end, but the ethos of the post was good, and if the products work well then this could be an opportunity.


This post was sent by Tom at: www.touchdownpr.com 

Keep cool and carry on: Why energy-efficiency depends on more than just thermal insulation 

The business case for energy-efficiency is a powerful one; at the end of 2010 The Carbon Trust reported that the average payback of energy efficiency projects carried out in commercial premises is 48 per cent. Increasingly, it is becoming clear that to invest in sustainability is to save money.

But while the UK government is supporting carbon reduction by introducing grants and green initiatives, these have done little more than skew people’s perception of what represents an energy saving. With heavy focus applied to insulation and heating, cooling strategies have been left rather more… out in the cold.

The hot topic

The government’s Renewable Heat Incentive (RHI) was announced in March 2011 to drastically alter the way heat is generated and used in buildings and homes. It’s currently aimed at the business and public sectors, which contribute 38 per cent of the country’s carbon emissions , and offers long-term financial support to companies investing in renewable heat installations. 

Britain’s largest energy users are required by the CRC Energy Efficiency Scheme to start lowering carbon emissions so will naturally be enticed by such offers. But incentives like the RHI fail to acknowledge that when a commercial building is designed, the crowds of people and electrical appliances that then occupy it are not taken into account. Human bodies and devices such as computers, printers, coffee makers, toasters and refrigerators generate an exceptional amount of heat and cause room temperatures to dramatically increase. So, instead of heating, most commercial buildings need to bring temperatures down in order to maintain a comfortable environment and maintain staff productivity. 

Office cooling, namely air conditioning, represents a huge energy burden, and can increase a building’s emissions by 100 per cent. So to use it on a daily basis yet take a grant to invest in heating and insulation is a notion most people would surely see as perverse. 

The reality of air conditioning is that, despite its widespread use, the energy it consumes often goes to waste. Realistically, without tackling this problem it is unlikely than any commercial building will be able to create a truly energy-efficient environment, no matter how much government grant money it is awarded. 

Here comes the sun

As we all know, when the sun comes out in the UK, it is met with something resembling blind panic. Whether in the heights of summer or the depths of winter, sunshine causes heat to build up through unprotected glass windows. These windows then get thrown open to create a through draft, or in colder months, blinds will be snapped shut to block out the sun’s glare, meaning that lights have to be switched on. Either way, this behaviour ends up negating the effect of air conditioning, causing wildly fluctuating internal temperatures and eating up a large, unnecessary supply of heat and energy.

Such widespread and basic energy wastage should not be allowed to continue. Maintaining stable internal temperatures requires more than efficient heating and insulation; businesses need a cooling solution that minimises air conditioning, allows natural light to enter the building and helps to block out heat, rather than trap it within the building. One of the most simple and most cost-effective solutions that can deliver all of these benefits is one you may not have heard of: solar-control window film.

By rejecting up to 82 per cent of solar energy, window film can reduce internal temperatures by up to ten degrees. This stops air conditioning units from being maxed out during sunny spells, meaning that internal temperatures are kept stable and extreme peaks in energy usage are reduced. Cooling systems can therefore be run more efficiently and inexpensively, reducing a building’s cooling load by 30 per cent, or roughly five per cent of the energy bill. If window film were taken into consideration during the design stages of a new building, savings would be greater still as businesses would reduce cooling requirements from the outset; using smaller, cheaper air conditioning units that are easier to install and maintain.

In plain English, this could mean thousands of pounds in savings to many UK firms.  

Love in a cold climate

With budgets being squeezed and such significant carbon reductions to be made, the heat is on for UK businesses to find meaningful ways to lower emissions. It is the responsibility of our government to steer them in the right direction. Improved insulation and heating is, without doubt, an effective means of preventing energy waste, but without considering the likely effects of over-heating businesses are in danger of missing the bigger picture. 

While most UK businesses will currently look to insulation as their first port of call for energy savings, more vocal support for solutions such as window film by government schemes and incentives, would show these companies that such measures are just the tip of the iceberg. 

Solar Gard recently completed an Environmental Product Declaration (EPD®) which calculated that the carbon payback period for Solar Gard’s solar control window film is less than 12 months and that the products have a net positive environmental impact. For more information visit www.solargard.co.uk or www.environdec.com. 

It's Time To Wake Up Sales People!

Why is it that when companies are being told time and time again that making a decent profit margin is an absolute priority, am I still surrounded by fools who still think it's a good idea to sweep their quotes so much they're doing the work for nothing? All to make sure they win the order? Whats the point!!


We have one of two reasons to choose from here folks. The first choice is that the people in charge of these companies have no basic understanding of mathematics and have no business skills. They don't understand that in a time of economic hardship, the work they bring in must have some profit attached to it so that they can stay afloat to hopefully make more money and honour the guarantees they give out.


The second choice we have is that they are unable to sell the benefits of their product over their competitors'. They feel that the only way to secure a deal is to make it cheaper than everyone else's, even if it means making very little or nothing at all. But they think it's OK because even though they're doing it for nothing, no else has got the work.


Which ever reason you pick, both are ridiculous. Duncan Bannatyne was on Sky News Wednesday morning and the news reader asked him what was one of the biggest mistakes people make in business. He said that one of the biggest failures of people in business was people blaming everything but themselves for their shortcomings. And this applies here. I don't believe that you can't make a decent profit during times like these. If you sell your benefits well, believe in your product, know your product inside and out, and provide exemplary service from the beginning, there's no reason for your quotes to have little or no profit. These hairy fairy excuses of 'there's too much competition' and 'times are tough' don't wash with me. We managed to increase our profit margin all the way from the recession in 2008 to now - through professional salesmanship good business sense.


And you don't have to give in you know, when a customer asks for a discount, more times than not they're prepared to accept the quote you gave them in the first place, they're just trying their luck.


You may ask why I'm so bothered about this. It bothers me because the reason why people are in business is to make money. Why else would businesses exist? Yet during these last few years we've seen many people lose their heads, become irrational and have forgotten how to run a business effectively and profitably. This to me is completely unacceptable when there are people's jobs and livelihoods at stake. Owning/running a business means you have a lot of responsibility, if you can't hack it, leave and don't run the company into the ground!

Let Greece Go Cold Turkey!

Greece has a problem that it needs to face up to. It over-spent badly, and is now in a state of disrepair. The public and government keep rejecting austerity measures designed to get the country back on some form of financial footing however. The country is in ruins. Credit rating agencies keep plunging the value of their debt, the economy is on it's backside, there are daily strikes and the country needs hundreds of billions on Euros extra to help keep it afloat.

The country is in a right mess. Plunging IMF and Eurozone funds into the country to help pay it's debts won't work a second time round if it didn't the first time. Their trouble are too deep. So what should they do? Well Boris Johnson had the right idea yesterday, Greece should just default on it's debts, it will probably cost us less than the bailouts did, and leave the Euro and start again.


If a person were in such a mire, the banks would just declare you insolvent and make you start again. For Greece, and the rest of Europe (including the UK) to have been this reckless with such colossal overspending, you have to wonder how qualified our most 'qualified' people were when crafting these plans. 


On Tuesday, Greece is due to vote on whether to pass the proposed austerity measures. The likelihood is that they won't. And if they don't, they don't deserve to be bailed out. They should face up to the oncoming situation, default and leave the Euro. That way they can go back to their own currency so that they can be more competitive within Europe. The quicker they do this the less long term harm they will do to the stock and pensions markets by not dragging this out.

Guest Post: Are Orangeries Still A Preserve Of The Rich?

I'm happy to say that a member of Anglian Home Improvements has been kind enough to respond to my request for a guest post. This is an insightful one, and as always comments are welcome:


Are Orangeries still a preserve of the rich or are they becoming affordable enough for the average household


Home improvement companies across the UK are introducing Orangeries to their product list, but are they going to be a fashionable accessory for our homes or just a fad?


I personally think that, as with all fashions, the orangery is overdue a comeback and once again be a popular choice for homeowners, this time for the masses not just the aristocracy.


They first become popular when Italians started producing large sheets of glass in the 17th century, allowing them to create beautiful glass roofs, harnessing the sun's rays. This was embraced by the Italians who put fruit and plants into the Orangery, giving them their fruity name.


Orangeries have never been a mainstream product available to everyone, which has given them an association with being wealthy, as they have until recently, mainly been found on big manor houses ans stately homes. This classic association of Orangeries and wealth, I believe is firmly instilled in our minds, so putting an attractive Orangery on our homes is acting as a rich symbol, giving us more reason to be house-proud. (And make the neighbours jealous).


As Orangeries are now much more affordable it is even more of a reason to go down this route, but does this mean that it will lose it's affluent image? My thoughts are, maybe! If everyone has one, its bound to lose it's novelty and some of it's association with wealth, possible becoming just another room in an average house. Of course it will still have the fantastic lighting, extra warmth in the summer months and the well structured pillars, but are we going to remove it's status by increasing it's availability?


Then again Louis XIV had one, so why not? I would like to feel like a King!


Personally, I don't think Orangeries will lose their affluent image just yet, for two reasons. Firstly, they are still quite a bit more than conservatories when it comes to cost. The extravagant roofs and lavish internal decoration separate them from standard conservatories. Secondly they also look far grander than a 'white plastic box stuck on the back of a house'. The parapet walls, lantern roofs and bi-folding fronts create an image which far exceeds that of a normal conservatory.


But as new products become the norm, prices drop. Orangeries won't always be as expensive as they are now. And when prices do start to fall (which won't happen for a while unless raw material prices increases stop), then we will probably see the affluent tag disappear.


Again, thanks to the Anglian team for providing this post.

Window Industry Projects A Very Blurred Picture

The window industry is projecting a very blurred vision of itself right now. There are many quarters reporting very difficult trading conditions, with all sorts of figures down on previous years. Only a few days ago @VastPaul was reporting that various sources were telling him the industry had bottomed out, with a fabricator telling him they were 50% down on where they should be right now.


Yet despite this, when I speak to others in the industry, they tell me of a fair number of good news stories coming to the fore. And to some extent I have to agree with this. On a local basis, I know that there are some companies doing rather well in West Yorkshire, and some who really are on their last legs.


So, as the title of this post suggests, the overall health of the window industry is far from certain. So why?


Well, I think we have all been used to doom and gloom stories for so long that when a good news story shows itself, it's promoted to within an inch of it's life. In an attempt to shun the difficult trading conditions, we are now utilizing the better stories within the industry to try to spread a better feeling throughout. This is commendable, as for a while many have been saying we need to be promoting the industry in a good light. But let's keep an analyzing eye on this. I'd still say the industry is in a critical condition, with much recovery yet to come.


One other point which should be pointed out is that while many are finding business difficult (and that goes for every type of business, not just double glazing), there are some companies dotted around the country which are doing the complete opposite of struggling and doing rather well. @ConservatoryG's very own Sun Shield had a very good year last year for growth and by all accounts are doing just as well this year. Spacer bar companies are also doing well, in a time where energy rated windows has mean't nearly all companies have had to start using some form of warm edge unit spacers. From sources I speak to, there are other companies bucking the trend.


There are businesses out there who not only go out looking for the work, but know how to do it and do it well. That is where having the right people in your business counts for a great deal.


While writing this post I tried desperately to come up with a crystal clear picture of the double glazing industry as we stand today. But I've failed. In a sector where companies are either going bust left right and centre or exploding their profits or being bought and sold, the only summary that I can give is that the industry remains confused, disorientated and in flux. Maybe in two years time we might be able to say everything is calm again.

Guest Post: Striking Teachers

This isn't about double glazing, but this is an issue where many people will agree with the content and the sentiments of the post. I know I do. Comments are welcome and encouraged:

Teachers Striking over having to work an extra 6 years for their pensions.

Last time I remember teachers had about 12weeks a year in holiday entitlement, so doesn't that mean for every 4 years they work they get 1 year off.

So if teachers were working in the Private sector and got the minimum holiday allowance 24 days inc bank holidays off, perhaps people would have a little more sympathy with them.

PS when the teachers go on strike, whose going to pay for the extra child care costs I incur???????????

Guest Post Anyone?

It's been a while since I last had a guest post on this site, so I  thought it was high time we had another one on here.


So I'm putting a call out to all my readers to see if anyone has something they wish to get of their chests? It doesn't necessarily have to be about the double glazing industry. I know there are a lot issues causing a lot of frustration right now.


If any of you wish to have something posted on here, contact me on: glazingblogger@googlemail.com

The Media Are Not Helping

Here's one theory I have: if the media never reported on the financial collapse and the ensuing recession, we would never have had one.


This is a point of view I hear regularly from people. And I must say that I agree pretty much completely. 


Over the past few weeks, and even today, the TV news has been littered with doom and gloom stories about high inflation, low interest rates, stagnant wages, job cuts, government spending cuts etc. This is exactly the bad press that the spending public do not want to hear. Why do we all want to be made to feel even more depressed about things when we turn the TV on?


We're all in this together, the media should shoulder some of that moral responsibility and start to broadcast some more positive news. Negativity isn't going to get this country spending again. Good evidence of this was the recent royal wedding. I don't know about everyone else but leading up to that day business was booming. People were happy, positive and ready to spend their cash. After that, and when the media lost interest and focused back on the economy, it all dipped again.


Things like this really grind my gears. Businesses are doing their damned best to make the best of a bad situation. Negative media will only exacerbate the problems and make life even harder.


And before any of you lot go saying: "well you're not so positive yourself", well I think I'm allowed to be a bit downbeat about things sometimes on here, I'm not watched by tens of millions of people in this country every night. I don't think I'm not going to have a national impact on here!

Lister's View On Veka's Purchase Of Bowater

Here is Lister's response to Veka's purchase of the Bowater group:

We have been expecting Bowater to be bought for some months now as market share and demand for construction products including windows has been shrinking in the UK and a smaller more consolidated industry with far fewer systems companies is inevitable.


Bowater is viewed as a prize for anyone to gain and they have been courted by several other systems companies for some time now. Bowater's brand, quality, innovative design, excellence in product development and customer service has produced a loyal customer base that is the envy of the industry.


But, if Bowater was to continue to develop they needed outside investment to continue in what has become a very competitive and demanding market. Our only worry was that the 'wrong' systems company would buy them.


We gave Veka our full blessing in the acquisition plans for Bowater and kept our fingers crossed that they would carry out the purchase. We were very happy indeed to hear the news.


We believe that this is best of all possible outcomes. We have known Veka for a long time and believe that they are well matched to Bowater in their focus on quality and customer service. We are also pleased to have their reassurance on the new partnership:


Dave Jones, MD of Veka says: "Each brand will continue trade under their current brands names and will retain their own brand identities and product ranges."


"The worldwide VEKA Group has always placed great importance on the plant here in the UK as one of it's key markets...Whilst we are immensely proud of our 25 year manufacturing heritage in the UK, we will not rest on our laurels and believe that continuing to look to the future is key to our ongoing success. The acquisition of Bowater Building Products and the highly esteemed WHS Halo brand demonstrates our long term commitment to manufacturing and continuing to invest in the UK. 


"The acquisition of Bowater Building Products is the result of a thorough market review by VEKA and is a long term investment for the company...the best option for the long term future of the VEKA and WHS Halo brands."


"The ethos of the VEKA and WHS Halo brands will not change - we will continue to invest in our products and services to ensure that we offer the best quality profile on the market and will continue to work in partnership with our customers to assist them with growing their business."


Now, while other systems companies still worry about what will happen to them in this market, Listers Customers can feel a sigh of relief that Bowater and Veka have committed to a new partnership that will make them the envy of our industry, stronger and better financed for the future.

When Is Something Free Not Free?

I received this email the other day, the sender has asked me to keep their identity and who they work for secret. Take a read and see what you think:

To Swiss V head office Switzerland:

For the Last 8 Months we have been using SwissV spacer bar to comply with new UK building Regs.
We get our Glass units made by Glass Systems Ltd, Swansea UK. & we promote your products with samples & your Brochures in our showroom.
I have recently downloaded your latest version of Caluwin, in order to be able to give specific u-value information to my customers.
I was only able to download the "free trial 40 day" version, which does not have the capacity to printout reports. To get the print enabled version, it seems we would have to pay. Your colour brochure specifically states that the program is absolutely free of charge. I took this to mean that it is "absolutely free of charge"
Could you please supply me with the enabling code so that I can supply relevant information to my customers, as it states in your brochure, in order to continue to successfully promote your products.
We do like your product, but we have to work hard to sell at the premium price you demand.
The program provides the technical evidence needed to support sales staff.Your support in this respect would be very much appreciated.

Regards

The sender of the above information has said they would keep me informed of any progress in the matter, so if I receive any further emails I will post them on here.

Fuel Prices On The Rise Again

The start of the week saw Scottish Power announce that it was raising it's gas prices by a staggering 19% and electricity by a further 10% by August this year. It begs the question; why are we paying so much for gas when there is so much of it around? It's not in the same position as oil where supply will outstrip demand in a few years time.


With Scottish Power raising their prices, other power companies are expected to do the same soon. What this means is yet more pressure on households to make ends meet in a time when wages have stopped rising and high living costs are crippling family budgets. This is going further suppress people's spending power, which is the last thing businesses need. 


People tell me that I'm always banging the downbeat drum, and I'm afraid I'm going to bang that same drum now. 


While wages are stagnant, and living costs are sky rocketing, people simply are not going to spend. And with gas and electricity prices also shooting up, this is making the current situation ever more difficult to turn around.


I also think that the government should be looking into how these power companies come up with their prices, because from here it looks to me like they're all in a cartel and profiteering from the current hardships.

A Little Bit Of Information Can Be A Powerful Thing

The last few weeks have taught us something very fundamental yet something very simple about social media. The media has shown us that one very anonymous person with a very small piece of information can cause a whole load of trouble. With the internet now so embedded in all our lives, any information posted we can read within minutes of it being published. A perfect example was the Ryan Giggs case. Despite injunctions being made to stop those details getting out, a simply anonymous Twitter account was set up to reveal the hidden story. And once that Tweet button was pressed, it was all over.


A much more relevant example of social media being used to spread information was the recent Veka buyout of Bowater Systems. I put out a call last Tuesday night on Twitter asking if anyone had any bits of gossip so I could update my Gossip page on this site. I got a Tweet back from one of my followers just minutes later telling me that Veka was about to buy WHS Halo. This story hadn't been published on the web as of yet, so naturally as a blogger I wasn't going to miss out on this golden opportunity. So I whipped up a post within about 20 minutes and posted it just after midnight on Wednesday, ready for everyone to read in the morning. What I didn't expect (perhaps naively) was how the story exploded over the coming days. I'll post some specific stats from the last week. Each working day, including today, the story and this site spread, rather quickly. As well as usual visitors reading this story, the post reached many (if not all) employees at both Veka and WHS Halo. I had contact from many new people, via this site and via my Twitter account as I was posting updates on new comments and further developments. There was also a rumor regarding Spectus and Synseal, which turned out to be false, but this also generated a lot of interest.


As with the Ryan Giggs scenario, once the information is out there, it tends to snowball out of control. Traffic to my blog was heavy, as was my Twitter account. Then it seemed like someone wanted to shut me up for a while as I had my Twitter page attacked with hundreds of proxy-false accounts from all over the world. It had the desired effect for a few minutes and crashed my page. A quick settings change sorted that out though.


Speculation and rumor continued op until late morning Tuesday when Veka released an official statement confirming the industry's worst kept secret, that it had bought Bowater Systems.


During this frantic few days of buyouts and uncertainty, it was clear that there were some people who weren't happy about all the chatter online about what may or may not be happening with various businesses. And this is where a vital lesson must be learned if this sort of scenario (bordering on farce), isn't to happen again. If you don't want to be talked about and have people speculate on whatever might be going on, make sure the information is kept in the boardroom!


We live in an age now where people can publish information on sites like Twitter, Facebook and on blogs, and it be spread instantly around the world. If people do have sensitive information, they're naturally going to feel compelled to share it, and social media provides that ideal platform. As the title of this post suggests, if that one person has just one pivotal piece of gossip, that cat can be brought out of the bag very quickly, usually before any response can even be thought of.


I do also have plenty of private messages on Twitter, unpublished comments and email, full of further rumors and speculation. I have been reluctant to publish these as I'm not 100% sure of their accuracy, and because I don't fancy another Twitter attack so soon! But this is the world we live in now. Anonymous communication is very easy now. Businesses I'm sure will take heed of the events of these past few days.

Veka's Official Announcement Of Bowater Takeover

VEKA Plc has announced the acquisition of Bowater Building Products in a move which will further strengthen VEKA’s market position within the UK industry during its 25th anniversary year of manufacturing in the UK.


Dave Jones, VEKA Managing Director commented: “VEKA is pleased to announce the acquisition of Bowater Building Products. As many of us in the industry are aware, the current market is extremely difficult, yet VEKA has continued to invest in its systems, people and plant and is now in the position to demonstrate further commitment to the UK market with this acquisition. We have undertaken a thorough review of potential acquisitions and have selected Bowater Building Products due to its obvious synergies with the VEKA brand in terms of product quality and positioning. During the review we also found that the ethos of the 2 companies is very similar as is the way they are run which should make way for synergies as we align the 2 brands. This exciting news comes as we celebrate our 25th anniversary of manufacturing here in the UK. We are aware that there are rumours about the stability of many of our competitors right now and want customers of both the VEKA and WHS Halo brands to feel reassured that they are partnered with a systems company whose roots are firmly planted in the UK. Not only can we offer customers the stability of buying from a company which is still family owned, but our acquisition of Bowater Building Products sends out a clear message to the market that VEKA and WHS Halo are here to stay within the UK and we will continue to invest in the future for ourselves and customers of both brands.”


The VEKA brand is revered for its technical superiority and the quality of the profiles, backed up with a whole host of additional benefits such as the diversity of the systems, the technical support available for fabricators and the strong link to recycling, which is more relevant than ever. Users of VEKA systems also have exclusive access to Network VEKA, the elite trade organisation that promotes members direct to end users and offers protection to homeowners via a series of guarantees. Since its inception 15 years ago, many organisations have tried – but failed – to copy its winning formula to help members build their businesses and offer peace of mind to the consumer.


WHS Halo is also held within similar high esteem as one of the prestige profile manufacturers in the UK. Both brands have spent considerable time and money investing in the technical performance and development of the product range and this will continue following the acquisition.


Customers of each brand will continue on their current system and the teams at both VEKA and WHS Halo have worked hard ahead of the acquisition to ensure they will continue to offer a compelling product and service package throughout the process and beyond. Working in partnership with fabricators is part of the ethos of both VEKA and WHS Halo and this will continue for users of each brand.


A comprehensive strategic review will take place over the next few months of the facilities at the VEKA and Bowater Building Products sites. The acquisition of Bowater Building Products is the result of a thorough market review by VEKA and is a long term investment for the company – as such, any decisions taken will be carefully considered to ensure they are the best option for the long term future of the VEKA and WHS Halo brands. For both VEKA and WHS Halo it will be ‘business as usual’ during the review process.


Dave Jones concluded: “The worldwide VEKA Group has always placed great importance on the plant here in the UK as one of its key markets. Over the last 25 years VEKA plc has developed its range of products and services to offer a compelling customer offer and many of the industry’s key milestones have been ours. Whilst we are immensely proud of our 25 year manufacturing heritage in the UK, we will not rest on our laurels and believe that continuing to look to the future is key to our ongoing success. The acquisition of Bowater Building Products and the highly esteemed WHS Halo brand demonstrates our long term commitment to manufacturing and continuing to invest in the UK. We believe this is fantastic news for customers of both brands and indeed for the industry as a whole as there are now 2 clear choices for fabricators, installers, specifiers etc wishing to partner with a secure, stable profile manufacturer.”

Notes

• The acquisition of Bowater Building Products by VEKA demonstrates VEKA’s clear commitment to the UK market during difficult trading conditions and reconfirms the stability of the VEKA brand.
• VEKA will emerge as a stronger player within the industry and also as a stronger partner to UK fabricators of both VEKA and Bowater products.
• Each brand will continue trade under their current brand names and will retain their own brand identities and product ranges.
• As per our heritage of the last 25 years, VEKA will continue to focus on continuous product development and customer service excellence and expects no disruption to customer service levels during or following the acquisition.
• During VEKA’s 25thAnniversary of manufacturing in the UK, Network VEKA, the first scheme of its type in the industry is also celebrating its 15 year anniversary.

Official: Veka Have Bought Bowater Systems

After days of huge speculation and rumor, it has been announced today that Veka have bought Bowater Systems.


The announcement comes after days of speculation, both here and on the Twittersphere, about whether the deal was done. 


Well, via a couple of sources, plus three Twitter accounts now saying the same information, it's clear to see that this information is accurate. One of my sources has also told me that there are no plans to make changes until into the last quarter of the year, once Veka has had time to observe the business. This should come as some medium-term comfort to those who may have been worried about job losses.


It is expected that both the Veka and Halo brands will continue, at least during the review period which is to take place over the coming months.


As regards to the value of the deal, I've had a couple of different estimates, but I will only publish that information once I know what the confirmed amount is. You can privately message me if you wish to know the two estimates I have been given.


For a few years now, the industry has been of the opinion that the extrusion market was over crowded, and the consolidation was needed to allow for better trading. Well, I think it's fair to say that the period of time where we will see buyouts and mergers has arrived. The question is how many more will there be?


I have spoken with one of my contacts, and they expect things to at least remain the same where they work, or even improve. They like the idea of someone of the likes Veka coming in with their expertise and financial stability. They see this as a chance to improve things across the board.


I also want to apologize to those who left comments for the first post regarding the take over. The information provided was excellent, but due to the accurate nature of the comments, I felt it best to wait until a formal announcement had been made until I publish them. They should be on the site soon.


My personal opinion of the buyout initially is a good one. Veka has the cash to be able to push forward product development, re-structure the business in a more efficient way, and provide stability. However one thing they may want to stay away from is losing the Halo brand in any way. Halo customers are very loyal. If customers see any dip in quality, customer care or get the impression that the Halo brand might disappear, there will be a lot of very unhappy customers, and consequently a lot of business lost. 

More Pressure On HMV

In an announcement expected to be made tomorrow, the trouble high-street music chain HMV is set to become owned by the general public. More specifically, banks such has the Lloyds Banking Group which are majority owned by the general public will now take a stake in HMV in a bid to help with restructuring it's debt.


With the announcement tomorrow, it's expected that the sale of Waterstones book chain will go through, raising £53 million towards HMV's debt fund.


HMV has debts of £170 million. Banks will take a 5% stake in the company, based on a warrant. In a years time these warrants will be converted into shares. The deal with the banks come with high interest rates and fees. 


This is yet another sign that a once dominant high-street is struggling under the pressure of debt, low consumer confidence and the rise of internet shopping, which HMV missed the boat on when iTunes was launched.


Personally, I don't think HMV will be long for this world. Their CD's are too expensive compared to downloadable albums. Their points rewards system doesn't proportionately reflect the amount of money you spend, you get 1 point per penny spent, but to get a £20 voucher, you have to spend 50,000 points (£500), and that's no way near value for money.

Apology To Spectus

The last few days have seen fevered speculation within the industry about various take-over bids from various different companies. One of these rumors was the buy-out of Spectus by Synseal. I now have information to clarify the situation.


I have been contacted by Spectus and their PR company, who state that the company has not been bought out, and continues to trade normally.


They have also published this tweet: Spectus Window Systems has not been bought out, contrary to rumours circulating. The company continues to operate as normal.


I stated on this site in an earlier post that if any information I have published turns out to be inaccurate or untrue, then I will issue a formal apology.


So to Spectus, Synseal, their customers and their employees who work for both companies, I apologize for any distress or uncertainty my posts and tweets may have caused. When writing this blog, my aim is never to intentionally upset or anger potential readers, but it is clear I may have done so by publishing the content I have.


I would like to state that the information I have published was sent to me anonymously, and not fabricated my me.


So again, apologies for any stress and anger I have caused.

Buyouts On A Personal Level

Tomorrow we should be reading a statement which will confirm the buyout of one systems company by another. While this has been big news for those who have bothered to follow the tweets and blog comments, we have to remember and be sensitive to the fact that combining two massive companies in the fabrication sector of our industry are going to have big ramifications for those who work at both companies.


Operations may be moved, jobs may be lost. What I can say for sure is that there will most likely be some very nervous people in both companies right now. Uncertainty is one of the worst emotions to feel when there are no solid answers to be given.


So while I'm sure all the forums and sites will be talking about the buyout and have copies of the statement on their sites, bear in mind what this means for the people who work for these companies.


I will be keeping an eye on all the outlets which are likely to have a copy of the statement, and as soon as it becomes available, I'll have a copy on here for you as soon as possible.

Something Refreshing On A Sunny Day!

Here you go @AnglianHome:

And here you go @TradeStopUK: 

Rumors And Clarification

The past 36 hours have been filled with speculation about fabricators buying out other fabricators, with whispers about other deals being done also.


I would like to clarify that any information that has been published by me has come from various sources privately to me, who I will not name. But I would like to emphasize that the information that I have published on here and my Twitter account has not been made up by me, I have been informed it is genuine.


However, if any information that I have published turns out to be incorrect, or if someone informs that it's 100% not true, then I will instantly issue a formal apology on here.


I would like to make one point though. We live in a world where information has never been so readily available. Social media outlets like Twitter, Facebook and blogs mean that information can be spread around the world in literally seconds and minutes. If people or businesses have information they don't want revealed to the world, then they ought to make an effort to keep that information secret, until they are ready to reveal it themselves. 


So, as I've said above, if any content I have published turns out to be incorrect I will issue an apology straight away on here, and on Twitter. 

Month In Review: May 2011

After the frantic five weeks that was April, May turned out to be far more calm. 


As the weather took a bit of a dip compared to April, so did sales. Lead levels slightly quieter, which did have an overall impact on sales. But we are still above target for the quarter which I'm pleased to report.


One stark difference between May and April was the number of conservatory leads. We had plenty in April, but in may these all turned to windows and doors, no mixture. I guess that still shows that the conservatory is still going through a transition period, and that we will likely see more up and down months for that sector.


From what I could gather from other people's comments, the slowdown in May was matched in other areas. Maybe the splurge in April proved too much to carry and and the industry took a bit of a breather during May.


If we were to compare May to the first two months of 2011 however, it doesn't come close. Still far more positive. How did everyone else's May compare to April?