How the right supplier can help you reduce risks

After an uncertain start to 2023 – thanks to rising input costs and the war in Ukraine – joint managing director of Mackenzie Glass, Matt Prowse, explains that having flexibility in your glass supply is vital for stability.

Glass processing companies going into 2023 are facing a challenging set of circumstances, according to Matt Prowse, joint MD of Cornwall Group company Mackenzie Glass, fuelled primarily by uncertain supply, but also by changing demand in the UK.

“Volume glass demand was replaced by a requirement for specialist high quality glass as we moved from 2022 into 2023,” Matt says. “On the one hand, this is excellent news for glass processors in the UK because there are more opportunities to add margin, but on the other there is a potential element of risk if supply isn’t managed correctly.”

Matt explains that Mackenzie Glass saw a significant increase in demand for specialist glass such as tints, etched, multi-coloured mirrors, antique silvers, heat and fire-resistant products, and bespoke restoration glasses during 2022. But this was met with a corresponding reduction in supply across Europe.

“There are still significant pressures on glass supply,” adds Matt. “Thanks to the war in Ukraine, and the planned cold repairs on some of the float lines in Europe, most of the glass that has been available from the continent has been standard product that can be used most widely – 4mm float, for example. This is good news for volume supply, but not specialist.”

To meet the demand for specialist glass, Mackenzie Glass has been building a global glass supply network, which includes suppliers from China, Turkey, Italy and America, among others.

“One thing that is now working in our favour is the falling cost of shipping containers,” Matt says. “This reduces the cost of the glass, and it opens up new lines of enquiry. But we still have to go through a multi-stage process to ensure that the quality of glass we receive is of the highest quality.

“Mirror glass, for example, must be completely blemish-free, and we have to be confident that everything we source can be toughened.”

For Mackenzie Glass’s customers, this investment in the supply of high-quality specialist glass puts them on the front foot when talking to customers. And it allows glass processing companies to better manage their cash flow, according to Matt.

“What no-one wants to be doing as we head into a recession is to expose themselves more than they have to,” he said. “By its very definition, the requirement for specialist glass is limited and many glass processing companies don’t have the space to be stocking large quantities of a particular tint of mirror, for example, or they don’t want it sitting in storage indefinitely tying up cash in the process.”

“We deliver the amount of glass required, allowing glass companies to bid for specialist projects, without investing heavily in glass.

“We will also cut to size and toughen, which could be a valuable service for those companies that have decided to mothball their tougheners as the cost of energy has rocketed,” Matt says.

“Similarly, we are continuing to invest in our machinery and take on new staff despite the downturn. A new fire saw has just been installed, and we have a new straight-line edger on order. In fact, we are on course to have replaced all our machinery over a four-year period, helping us to guarantee the product quality for our customers.”

The final piece in the jigsaw for Mackenzie Glass is speed of delivery. Matt argues that agility in service is key to winning and keeping work in 2023, and having suppliers that can turn round orders quickly will help glass processors achieve that.

“Mackenzie Glass is delivering to site within days,” Matt continues. “In fact, we are getting some orders delivered to site within 24 hours.

“But this is an essential part of the service we provide, because we know that the quick supply of product can be the difference between winning a job, and losing a job.

“This speed of service, coupled with the range of specialist glass delivered in the quantities required, gives our customers the confidence to go out and pitch for the profitable jobs that are available in 2023.

“Yes, conditions are challenging. But they will only be a problem for those companies that don’t partner with the right suppliers.”