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Tough times for Conservatory Companies
At a time when even the most ambivalent are starting accept that a recession will hit the UK economy in 2008. A new study by industry analysts Plimsoll Publishing has looked at how the UK slow down is already impacting on Windows & Doors market.
The analysis published on the 1st of May, has drawn on the very latest figures for each of the UK’s Top 1000 companies in the windows & doors market. The headline findings offer stark reading.
Over a third of companies are already showing signs of recessionary behaviour, reporting declining sales. This is immediate evidence that the market is slowing down.
Over half of companies have seen their margins fall. Of most concern, a third of these are currently running at a loss. The pressure on sales has forced an immediate squeeze on profitability. These companies are struggling against rising costs and declining sales.
Over a quarter have seen an increase in their need for short term finance, a sign that costs are running ahead of cash flow. This is doubly dangerous at a time when Banks and financiers are looking hard at their loan books and therefore places these companies in an even more vulnerable position.
As a result, as many as 1 in 6 Windows & Doors companies could disappear completely if this trend continues or deepens.
The analysis, is not entirely without some good news, some evidence that certain areas, particularly the small companies, with their concentration on local and domestic markets are less exposed to the slow down in the market.
The figures clearly show that there has been a slowdown in both windows and doors , and conservatories . However, Conservatory Outlet seems to be bucking the growth with sales figures for January to the end of April up 10% on the previous year.
The Conservatory Outlet dealer network allows consumers to deal with the local installation company, but with the backing of one of the UK's leading manufacturers.
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