Mixed outlook ahead of Budget
As we head into November, the feedback from the industry – across retail and commercial sectors – is that some businesses are doing relatively well, despite broader economic conditions, while others are continuing to face considerable challenges.
This is based on various ‘off the record’ conversations I’ve had with organisations up and down the supply chain, but also reflects data in the latest Business Pilot Barometer and Tommy Trinder reports.
The Business Pilot Barometer presents a cautiously optimistic picture, especially for average order values which have jumped by almost 25%.
Tommy Trinder on the other hand suggests that margins for premium products are actually being squeezed as flush casements, vertical sliders and bi-folds continue to become more mainstream and therefore more vulnerable to price pressures.
Similarly, the recent Council for Aluminium (CAB) AGM was a relatively upbeat affair, including a keynote address from the economics director of the Construction Products Association that outlined ‘a cautious but improving economic outlook.’
Over at the GGF however, president Mike Butterick warned attendees at the launch of The Glass & Glazing Collective at the Houses of Parliament, that continuing delays at Gateway 2 are still putting the construction supply chain at risk – in October, the Building Safety Regulator reported 91 historic new build applications waiting for Gateway 2 approval.
Following Rachel Reeves’ pre-Budget speech earlier this week, most analysts concur that more tax rises are on the cards at the end of the month, especially as the Chancellor refused to rule out a U turn on hikes to income tax, VAT or National Insurance.
Whether the current mixed outlook remains once the Autumn Budget is officially revealed at the end of the month remains to be seen…
Whatever the outcome, it will be important for all forward-thinking companies to remain proactive and positive if they are to make the most of the opportunities that remain in 2025 and into 2026.
That includes adopting new product innovation, embracing the latest software solutions (including AI) to enhance operational efficiency and profitability, partnering with suppliers that are prepared to do more than just deliver products, and also implementing marketing strategies that aren’t limited to just one channel.
And you can find out more on all that – plus more – in the monthly print edition of Glass Times, via our weekly e-newsletter, LinkedIn and website.