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The BWF CERTIFIRE Fire Door & Doorset Scheme Quarterly Trends Report
Merchants expect strong timber fire door growth
Sales, quarter-on-quarter
In the three months January to March 2005, 38% of merchants increased sales of timber fire doors compared with the previous quarter. Eighteen percent saw a decrease and 44% stayed the same.
| The difference between the number of companies reporting an increase over those reporting a decrease is the net balance, expressed as a percentage. A positive balance indicates growth, a balance of zero implies little has changed. |
On this basis, a net 20% of merchants improved sales of timber fire doors in the first quarter of 2005 compared with the previous three months (chart 1). Of those who reported a rise in sales, 57% saw an increase of 10% or more.
Growth was most widespread among large (56%) and mid-sized merchants (32%). Small merchants (-5%) reported a fall. A balance of 52% of outlets in the Midlands and 36% in the North grew sales compared with -3% of outlets in the South. Merchants in Scotland reported little change.
January-March sales compared with the previous three months - by size
| Size | Increase | Decrease | Same | Total | Base |
| Small | 23% | 27% | 50% | 100 | 44 |
| Medium | 45% | 13% | 42% | 100 | 38 |
| Large | 61% | 6% | 33% | 100 | 18 |
| Total | 38% | 18% | 44% | 100 | 100 |
January-March sales compared with the previous three months - by region
| Region | Increase | Decrease | Same | Total | Base |
| South | 28% | 30% | 42% | 100 | 40 |
| Midlands | 61% | 9% | 30% | 100 | 23 |
| North | 44% | 8% | 48% | 100 | 25 |
| Scotland | 17% | 17% | 66% | 100 | 12 |
| Total | 38% | 18% | 44% | 100 | 100 |
Timber fire door sales to all sectors were up in the last three months compared with the previous three months. Sales to the new build non-housing and commercial repair, maintenance and improvement (RMI) sectors (15%) were just ahead of the new build housing and housing RMI sectors (10%).
Sales, year-on-year
A balance of just under one in four merchants increased sales of timber fire doors in the last three months compared with the same period in 2004 (chart 2). Large (44%) and mid-sized merchants (32%) were ahead of small outlets (9%). Notably more merchants in the Midlands (44%) and North (33%) reported growth than outlets in the South (10%) or Scotland (17%).
A net 31% of builders' merchants increased sales of fire doors over the period compared with 18% of timber merchants. Outlets belonging to national chains (43%) were ahead of independent merchants (13%) and local chains (10%).
Ninety per cent of all fire doors sold by merchants in the last 12 months had a 30 minute fire door resistance rating. A net 25% of merchants saw sales of FD30 fire doors go up over this period. Merchants selling FD60s (17%) also reported growth.
Sales forecasts
Merchants are bullish about future sales of timber fire doors. A net 62% of outlets expect to sell more over the next three months compared with the previous quarter (chart 3). Merchants of all sizes share similar levels of optimism. Outlets in the Midlands (78%) have the strongest expectations followed by the South and Scotland (65%). Merchants in the North are more cautious (40%).
More local chains (80%) forecast better sales over the period than outlets belonging to national chains (68%) or independent merchants (55%).
Buying Prices
A net 44% of merchants reported an increase in purchase costs of timber fire doors compared with three months ago (chart 5). This was reflected among outlets of all sizes and in all regions. More builders' merchants (58%) were affected by rising costs than timber merchants (37%).A net 57% of outlets belonging to national chains saw prices go up compared with 38% of independent merchants and 30% local chains.
Selling Prices
A net 34% of merchants increased their prices of timber fire doors in the months January to March 2005 (chart 5). More large (39%) and mid-sized merchants (42%) raised prices than small outlets (25%). Across the country few merchants dropped their prices. A net 49% of outlets belonging to national chains put up prices compared with 30% of local chains and 25% independent merchants.
Price forecasts
Just under one in two merchants expect to hike prices in the next 12 months. Few anticipate a drop (chart 6). Significantly more merchants in the Midlands (61%), North and Scotland (57%) forecast a rise than outlets in the South (28%).
Prospects
A net 47% of merchants are more optimistic now about the overall prospects for the timber fire door market than three months ago (chart 7). Small (55%) and large outlets (50%) are more positive than mid-sized merchants (37%). Outlets in the Midlands, North and Scotland (54%) are more confident than merchants in the South (38%).
Sales of Fire Door components
A balance of one in four merchants increased sales of fire door components in the first quarter of 2005 compared with the previous three months (chart 8). Growth was most widespread among large outlets (41%). More local chains (33%) and merchants belonging to nationals (30%) reported higher sales than independents (19%).
“It's very important when customers come to use fire doors that they can be certain we know what we are talking about when it comes to fire door specification. We have a nominated supplier of fire door hardware who provides us with training, support and reference manuals.“Many of the tradesmen who purchase fire doors from us know what they need to meet new and existing building regulations; it's the ones that only install them periodically that need help to get it right.”
Mr John Padley, Branch Manager
Jewson Ltd, Sleaford, Lincs
A net 22% of merchants saw a rise in sales of fire door components in the last three months compared with the same time last year. Significantly more large outlets (50%) improved sales than small (20%) or mid-sized merchants (12%).
Merchants in Scotland (33%), South and Midlands (23%) were ahead of outlets in the North (14%).
Fire Door Component Sales, expectations
A balance of just under one in two merchants forecast sales growth of fire door components in the next three months compared with the previous quarter. Expectations are strongest among large outlets (65%) and merchants in the Midlands (57%).
“With increased new build and flat conversions we expect to see sales of timber fire doors double over the next twelve months. We feel it is very important to recommend and stock the correct hardware compatible with fire doors to comply with building regulations.“We get building regulation updates and leaflets from our supplier and together with our years of experience it means our customers can be sure and can buy with confidence.”
Mr Tom Boydell, Proprietor
Boydell's Timber Merchants, Leigh, Lancs
Stocks
A net 13% of merchants increased their stock of fire doors compared with the last three months (chart 9). Notably more large outlets (38%) reported higher stock levels than mid-sized (11%) or small merchants (5%).A net 30% of local chains and 22% of outlets belonging to national chains built up stocks compared with 2% of independent merchants.
Problems
As in last quarter's survey, the main problems facing merchants this quarter were price cutting in the market (40%) and margin squeeze (37%).Twenty-seven per cent also mentioned supplier price rises and low sales volumes.The single biggest problem was price cutting in the market mentioned by 23% of merchants (chart 10).
Internal & External fire doors sales
Seventy-one per cent of timber fire doors sold this quarter were internal doors. Twenty-nine per cent were external doors.
| Timber fire doors sold in last 12 months | Merchants' % of fire doors sales | Manufacturers' % of fire doors sales | ||
| Internal | External | Internal | External | |
| By type of Fire Door: | ||||
| Flush doors | 67% | 76% | 85% | 100% |
| Panel doors | 21% | 14% | 2% | 0% |
| Die formed doors | 2% | 1% | 6% | 0% |
| Laminated timber cored flush doors | 8% | 8% | 6% | 0% |
| Other | 2% | 1% | 1% | 0% |
| Total | 100% | 100% | 100% | 100% |
| All Timber Fire Doors | 71% | 29% | 91% | 9% |
Fire door components
Eighty per cent of merchants interviewed recommend compatible components every time a fire door leaf is sold. However, 20% of merchants still do not recommend anything.This quarter, more merchants (40%) say they have had relevant training on compatibility of components. Most (85%) feel confident in giving correct advice.
MANUFACTURERS' SALE
A net 43% of manufacturers saw an increase in sales in January to March compared with the previous three months. Both mid-sized and large manufacturers expanded but small manufacturers reported little change. More manufacturers in the Midlands (75%) improved sales than those in the North (50%) or South (46%).Eighty-one percent of manufacturers' timber fire sales were sold with a FD30 rating. Sixteen percent were sold with a FD60 rating and three percent with a FD90 and FD120 rating.
A net 29% of manufacturers forecast better sales in the next three months compared with the previous quarter. Few expect a drop. Year-on-year expectations are also strong with a net 52% of manufacturers anticipating higher sales in April to June compared with the same period last year.
A balance of just under one in four manufacturers are more confident now about the overall prospects for the timber fire door market than three months ago. Few manufacturers are negative about prospects.
This quarter's survey shows that 95% of manufacturers say they advise customers on components.
Comment
“The BWF's campaign to raise the importance of matching compatible components to fire doors is clearly having an impact on merchant's sales”, says Richard Lambert, Director of the British Woodworking Federation. “The increase in sales of fire doors is now matched by an increase in sales of components, and expectations are that this trend will intensify in the coming months. It's significant that the larger outlets are the ones who have really picked up on the opportunity to make the most of the customer's willingness to buy in order to sell them the whole package. “Nevertheless, this report also underlines the previous report's finding that while merchants' staff will advise on fire doors and fire door components, only a minority have actually been trained to give that advice. This quarter's report found 80% of merchants advise on fire door components, but only 40% had relevant training, which is slightly higher from the last quarter. This compares with 83% advising and 32% with training last time round. This means almost two-thirds of builders' merchant staff could be giving the wrong advice to their customers.“Training merchants' staff to understand the importance of compatible components is essential, as selling a fire door is not like selling any other door. A fire door is a carefully engineered safety device and must function to protect lives in the event of a fire.
“We've trained over 160 staff members across the 46 merchant branches which make up the BWF Approved Fire Door Centre network. The aim is to increase the network to 100 by the end of 2005 as part of our drive to educate contractors, retailers and regulators alike of the importance of correctly specifying and installing fire doors.”
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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. Michael Rigby Associates specialises in fact based marketing in home improvements, DIY and building materials markets. The survey covers a representative sample of 100 timber and builders' merchants as well as manufacturers. Telephone interviews took place between the 1st - 14th April 2005 across a balanced spread of size of firm and geographical area. Numbers employed by branch was used as an indication of size. The categories are small (1-9 employees), medium (10-25) and large (over 25 employees).
© Copyright Michael Rigby Associates 2005
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