Consumer confidence and Gateway 2 challenge growth
The latest Business Pilot barometer, which highlights trends from retail installers using Business Pilot software, has revealed a drop in leads, sales, order values and conversion rates for August.
This could be down to the time of year, with homeowners focusing on the holiday period rather than investing in their properties, but it could also indicate that consumer confidence is low.
Analysts will point to higher than expected inflation but there has also been plenty of speculation of tax rises in the Autumn budget.
Reports of tax raids on the middle classes, as well as higher earners, owners of high value homes, savers and pensioners may be politically charged – and may prove to be unfounded – but they will sow the seeds of doubt in those who could be affected, nonetheless.
And when we talk about targeting higher value retail sales, with heritage style flush casements and doors, aluminium and timber, it is precisely this demographic that may now have hit the pause button on spending, at least until the details of the next budget are clearer.
You can read the latest BP Barometer in full here.
While retail may have suffered over the summer, I’ve heard reports of some fabricators enjoying relatively strong sales in the commercial sector, despite continuing holdups from the Building Safety Regulator (BSR).
According to a report in Construction Enquirer, BSR officials have admitted that it takes an average of 36 weeks to secure gateway approval on new build projects.
A new Fast-Track approval system will aim to solve this issue, and while it will take some time to do so, it could prove to be a welcome boost once the floodgates are opened.
For more on the challenges of Gateway 2, and how aluminium system manufacturer Aluprof can help with the approval process, click here to read a comment piece by major projects manager, Tom Cherowbrier.
As it stands, it seems likely that any significant upturn in activity across retail and commercial sectors may be on hold until consumer confidence picks up and BSR rule changes can release pent up demand.