Dublin, Jan. 30, 2018 (GLOBE NEWSWIRE) -- The "The UK Annual PVC Window Door & Conservatory Industry Market & Forecasts to 2020" report has been added to ResearchAndMarkets.com's offering.
Is This a Good Time to Invest in a Conservatory or Orangery, Especially with Interest Rates on Borrowing at a Historically Low Level?
This 2017 Annual PVC Window, Door and Conservatory Industry Report and Forecast, published a year after the UK referendum that resulted in the decision to leave the EU and a few months after Article 50 of the Lisbon Treaty (the mechanism to start the process to terminate membership of the EU) was triggered by the UK government . Additionally the UK was subjected to a snap general election that unexpectedly resulted in a hung parliament.
It is fair to say the UK consumer by-and-large has ignored the immediate effects of the two events and continued to drive strong household expenditure. This was in the face of weaker rises in investment and government expenditure. This has resulted in better than expected growth in the window and door industries. A year ago on the back of construction and economic forecasts issued - soon after the referendum that resulted in the Brexit decision - growth in window profile demand was only expected to 0.6% in 2016. In the end growth in demand turned out to be 1.3%.
However more challenging times lie ahead for consumers, and it is consumer spending that the window and door industry largely depends upon for home improvement. Rising inflation is set to erode real disposable income leading to household spending retrenchment. Even the EY Item Club in their summer economic forecast say the immediate outlook has darkened. On the plus side the forecasters are bullish on house building over the forecast period in the light of the current drive to increase supply.
Experian in their Summer Construction Forecast are projecting little growth over the forecast period. New housing construction growing between 3% and 5% per annum performing much better than RMI (repair, maintenance and improvement) where no growth is expected. There is no reason to believe the window and door industry will buck the trend of low growth. Our forecast for growth in demand is therefore essentially flat over the forecast period.
Immediately post the EU referendum there was downward pressure on sterling which has persisted. Sterling weakened against the US Dollar, Euro and other currencies that are important to the window and door industry due to components and raw materials being imported. This has result in many important components including hardware, polymer, profile and door slabs increasing in cost as forward purchases of currency runs out. UK is not a major exporter of profile or finished windows and doors so the export advantage at this time of a weak sterling is minimal.
The window and door industry is not insulated from the effects of the wider economy. The ITEM Club have forecast that consumer spending will go into reverse and fixed investment will also decline in 2017 - this despite interest rates at or close to 0%. However, as the headwinds facing the consumer pick up again - average earnings are expected to increase by 3.4% in 2017 but prices are forecast to rise by 2.5%. The result of which is to put the brakes on the wider construction industry and in turn the UK window and door industry.
However, post the Brexit decision the slower economic growth over the forecast period will inevitably affect construction activity particularly on the private side, with demand now projected for the next three years to be essentially flat. These growth projections are so small in percentage terms that any hic-up with the value of sterling and/or acrimonious and drawn out Brexit negotiations could cause the industry to go into reverse.
The less buoyant economic outlook is likely to impact private housing Improvement (RMI) activity and activity in the sector could now largely stagnate over the forecast period. This is not good news for the window and door industry where much of the activity is dependent upon housing improvement - both private and public.
On the plus side, the share of the total market that foiled windows takes has increased as too is the range of colours. Where once there were five or six traditional wood-grain finishes there are now twenty or more foiled finishes - including pastel and bold colours.
After enduring a tough time over the past few years conservatory volumes that were starting to edge forward have now been knocked back as consumers hold back on spending on big ticket items. Will businesses such as restaurants and hotels find this a good time to invest in a conservatory or orangery especially with interest rates on borrowing at a historically low level? Or will they put on hold plans to expand at a time that consumers have to tighten their belts?
Key Topics Covered:
Part 1: Introduction and Executive Summary
1. Introduction & Executive Summary
1.1 Introduction
1.2 Details of 2016 Edition
1.3 Research Method
2. Executive Summary
Part 2: Window Profile
3. UK PVC Window Profile Production
3.1 Volume - Total UK PVC Compound Throughput
3.2 UK Window Systems Companies - Production & Throughput
4. Industry Stock Levels Imports & Exports
4.1 Industry Stock Levels
4.2 Imports of Profile
4.3 Exports of Profile
4.4 Imports and Exports of Windows & Doors
5. Window Systems Companies Market Shares
6. Profile Prices
7. Summary Balance of UK Supply & Demand
Part 3: Window Door & Conservatory Units
8. Window & Conservatory Volumes
8.1 Volume by Product Line - tonnes
8.2 Window Volumes - units
8.3 Conservatory Units
Part 4: Door Units: PVC Panel, French, Sliding Patio, Bifold & Composite Doors
9. Door Units
9.1 Volumes by Product Line - Tonnes
9.2 Volume by Product Line - Units
9.3 Composite Entrance Doors
9.4 PVC Doors
9.5 PVC French Doors
9.6 PVC Sliding Patio Doors
9.7 PVC Bifold Doors
Part 5: Construction & Economic Forecasts
10. Construction Forecasts
10.1 Construction Industry Outlook
10.2 House Building
10.3 Non Residential Construction
10.4 Housing Repair Maintenance & Improvement (RMI)
11. Economic Outlook
Part 6: Window, Door & Conservatory Forecasts to
12. Window, Door and Conservatory Forecasts
12.1 Volume Forecasts - Introduction
12.2 Volume Forecasts - Conservatories
12.3 Volume Forecasts - Windows
12.4 Volume Forecasts - PVC Entrance Doors
12.5 Volume Forecasts - Composite Entrance Doors
12.6 Volume Forecasts - Sliding Patio Doors
12.7 Volume Forecasts - Bifold Doors
12.8 Volume Forecasts - French Doors
12.9 Volume Forecast - Total PVC Profile Volume
Part 7: Market Size & Values
13. Market Size & Values
13.1 Introduction
13.2 Market Size - Units
13.3 Market Value of Profile - Systems Companies
13.4 Market Value - Fabricators
13.5 Total Installed Value
Part 8: Sector Forecasts
14. Market Size & Values
14.1 Introduction
14.2 Window Units
14.3 PVC Doors
14.4 Composite Doors
14.5 Sliding Patio Doors
14.6 Bifold Doors
14.7 French Doors
14.8 Conservatories
14.9 Market Value Summary
Part 9: Industry Structure & Players
15. Industry Structure, and Players
15.1 Industry Structure
15.2 UK Window Systems Companies Current & Past
15.3 Importers of Profile Systems
For more information about this report visit https://www.researchandmarkets.com/research/gpbtsr/uk_annual_pvc?w=12
CONTACT: ResearchAndMarkets.com
Laura Wood, Senior Manager
press@researchandmarkets.com
For E.S.T Office Hours Call 1-917-300-0470
For U.S./CAN Toll Free Call 1-800-526-8630
For GMT Office Hours Call +353-1-416-8900
Related Topics: Doors and Windows
