Timber Fire Doors Market Keeps on Expanding

Sales, quarter-on-quarter

A balance of 20% of merchants saw a rise in sales of timber fire doors over the last three months (October to December) compared with the previous three months (July to September) (chart 1). Of those reporting an increase, 40% saw a rise of 10% or more.

* The difference between the percentage of companies reporting an increase over those reporting a decrease is the net balance.

Mid-sized outlets (net 33%) did best but large (20%) and small merchants (3%) also saw growth. The North and Scotland (net 26%) did slightly better than merchants in the Midlands (20%) and South (16%).

More timber merchants (39%) saw growth than builders' merchants (7%). Independent outlets (32%) performed better than outlets belonging to local (18%) or national chains (13%).

October - December sales compared with the previous three months - by size

Size	Increase	Decrease	Same	Total	Base
Small	17%	14%	69%	100	35
Medium	40%	7%	53%	100	45
Large	30%	10%	60%	100	20
Total	30%	10%	60%	100	100

October - December sales compared with the previous three months - by region

Region	Increase	Decrease	Same	Total	Base
South	27%	11%	62%	100	45
Midlands	25%	5%	70%	100	20
North	33%	8%	59%	100	27
Scotland	50%	25%	25%	100	8
Total	30%	10%	60%	100	100

Demand was strong across all sectors compared with three months ago. The new-build housing sector and commercial repair, maintenance and improvement (RMI) sector (net 18%) saw improvements over the period, as did new non-housing (16%) and housing RMI (15%).

Sales, year-on-year

A net 31% of merchants also increased sales in October to December 2006 compared with October to December 2005 (chart 3). Large (50%) and mid-sized outlets (net 40%) did better than small merchants (9%). Merchants in Scotland (net 63%) did better than those in the South and Midlands (35%) and the North (11%).

Significantly more timber merchants (net 46%) increased timber fire door sales than builders' merchants (15%). National chains (40%) did better than independents (29%) or outlets belonging to local chains (6%).

Over the last 12 months, 90% of all fire doors sold by merchants had a fire door rating of 30 minutes fire resistance. Ten percent were 60 minute fire rated doors. A balance of 34% of merchants sold more FD30 fire doors over the period, 31% of merchants selling FD60's also saw an improvement.

Merchants see new fire legislation as the main driver for timber fire door sales but also acknowledge the role of building regulations. Other reasons for increases range from better marketing to new, larger contracts (chart 4).

Sales forecasts

A net 42% of merchants expect to sell more timber fire doors in January to March 2007 compared with the previous three months (chart 5). Small (net 49%) did better than large or mid-sized firms (39%). Those in the North (net 52%) are most optimistic but firms in the South (44%), Midlands (35%) and Scotland (13%) also forecast an increase.

Both builders' merchants (42%) and timber merchants (36%) are positive. More outlets belonging to national and local chains (net 46%) expect growth than independents (32%).

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"There is a lot of new build being erected in our area which require fire doors in order to adhere to regulations. As a lot of these buildings are now three storeys high, the amount of fire doors required has increased.

"Timber is now also in favour as people are more aware of its versatility."

Mr Ian Hough, Branch Manager
Jackson Building Centres, Newark

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Buying Prices

A net 65% of merchants reported an increase in their buying prices of timber fire doors compared with three months ago (chart 6). Merchants of all sizes and in all regions were affected. Both timber merchants (89%) and builders' merchants (60%) saw an increase.

Selling Prices

Fifty-five percent of merchants raised selling prices compared with three months ago (chart 6).

Outlets of all sizes raised prices with very few dropping back. More merchants in Scotland (net 75%) and the North (70%) increased prices than those in the Midlands (50%) or South (45%).

Price forecasts

A net 84% of merchants expect to put up prices of timber fire doors over the next 12 months comapred with the previous 12 months (chart 7). Firms of all size, type and in all regions forecast an increase with no merchants expecting to drop prices.

Prospects

On balance just over a quarter of merchants are more optimistic now about the overall prospects for the timber fire door market than three months ago (chart 8). Large outlets (net 40%) and mid-sized firms (31%) are more confident than small merchants (11%). Those in the Midlands (35%) and North (30%) are more confident than merchants in the South (22%) or Scotland (13%).

Timber merchants (net 46%) are more optimistic than builders' merchants (11%). Local chains (47%) are more upbeat than independents (26%) or national chains (19%).

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"More small builders are doing refurbishment work and more student accommodation is being built. This combined with upgrading of new buildings to meet fire regulations has meant the demand we have received for fire doors has risen."

"As specifications become stricter, our sales grow stronger."

Mr Keith Slaney, Branch Manager
Harlow Bros Ltd, Derby

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Sales of Fire Door components

A net 28% of merchants increased sales of timber fire door components over the last three months compared with the previous three (chart 9). Merchants of all sizes saw an increase. Firms across the country reported an increase with very few seeing a fall in sales.

Local chains (net 35%) did slightly better than outlets belonging to national chains or independent companies (27%).

A balance of 47% of merchants also saw higher sales of all timber fire door components over the last three months compared with the same period of 2005. Outlets of all sizes and in all regions saw an improvement.

Fire Door Component Sales Expectations

A net 48% of merchants forecast sales growth of fire door components over the next three months compared with the previous three. Small and mid-sized firms (net 50%) did slightly better than large companies (40%). Merchants across the country are positive.

Stocks

On balance, just 3% of merchants increased stock levels compared with three months ago (chart 10). While large and mid-sized outlets (net 6%) raised stock levels, small firms (3%) cut back. More firms in Scotland and the Midlands (27%) increased stocks than those in the South (2%). A balance of 9% in the North cut back.

Problems

During the three months to the end of December, supplier service and availability (59%), margin squeeze (57%) and price cutting in the market (50%) were the main problems facing merchants.

The single biggest problem was supplier service and availability, mentioned by 37% of merchants (chart 11).

Internal & External fire doors sales

Seventy-nine percent of sales of timber fire doors this quarter were internal doors. Twenty-one percent were external.

Fire Door Components

Eighty-one percent of merchants said they recommend compatible components every time a fire door leaf is sold. Nineteen percent still ignore this opportunity for added sales.

Ninety-three percent of merchants are confident that they are able to give correct advice on compatible fire door components. This figure has increased steadily from 63% when the survey first began in October 2003.

Fifty-eight percent of merchants say they have had training on components.

Comment

"It looks like the dip in optimism reported in the previous survey will turn out to be a wobble rather than the first signs of a decline in the market" says Richard Lambert, Chief Executive of the British Woodworking Federation. Sales have remained strong throughout, but we can see the expectations for the next quarter returning to their former levels.

"The growth in the fire doors market in recent years has been driven by changes in regulation. No doubt the confidence in the market stems from the growth in understanding of the implications of the changes in the fire safety regime introduced in October. I expect that the revised Approved Document B, published just before Christmas, will give further grounds for confidence, not least through the changes in guidance for loft conversions, which now recommends a fire door on every exit onto the staircase intended as the escape route, rather than just one door to hold the fire back from the loft extension itself.

The BWF-Certifire Fire Door and Doorset Scheme has promoted the benfits of certification for many years as the only way to be sure that the product you buy and install will actually perform as expected in the event of a fire. We're particularly pleased that the new Approved Document has given the strongest ever recommendation towards using certificated fire safety products. If Building Control Bodies are being told that they can accept products certificated under recognised schemes to have proved their compliance with the required standards, then manufacturers need to get their products certificated. In the same way, merchants should ensure that in future they stock certificated fire doors and components to make life easier for their customers."

The Timber Fire Doors Survey, a quarterly trends report, is produced by Michael Rigby Associates, and sponsored by the BWF-CERTIFIRE Fire Door and Doorset Scheme in conjunction with Builders' Merchants' News. The aim is to keep a finger on the timber fire doors' market pulse, and to view merchants' and manufacturers' expectations of market movements. The survey covers a representative sample of 100 timber and builders' merchants as well as manufacturers. Telephone interviews took place between the 2nd - 10th January 2007 across a balanced spread of size of firm and geographical area. For survey details call Lucia Di Stazio on 01453 521621 © Copyright BWF and Michael Rigby Associates 2007